You may have heard several people announce their net worth on social media and you get to admire them. Sometimes you are left with questions whether you will ever get there. You may not have dreamt becoming a Millionaire, but your journey begins the moment you think of being one. In fact. Becoming one is more realistic than you might think.
It may not be easy to be a millionaire, but we can say it can be simple by studying the common practices of millionaires in order to identify their patterns of getting there. According to Jaime Tardy, the author of Eventual Millionaire, perseverance is the main trait of a millionaire. She defines perseverance as the ability to KEEP GOING in the face of challenges even when the finish line is far away.
Let’s explore how one can become a millionaire
1. Think like a Millionaire (Millionaire Mindset)
Wealth is a mental game. Starting with a solid money mindset, prepares you to easily adopt to the practices and habits of a millionaire. Having the dream in mind keeps your vision alive.
Here are some mindset that will enable you build a millionaire routine:
Laying down a plan of what you want to achieve makes your journey smooth. A plan prepares you for emergencies by giving you a clear way on how to handle them in case they happen.
Once you define your dreams, stay focused towards the finish line. Challenges may be many, but never give up on your dream.
Willingness to learn
Seek knowledge, be willing to learn from your mistake. Every mistake you make should provide a learning ground for you. Surround yourself with positive influences.
2. Watch your expenses
Unnecessary expenses may delay you from becoming a millionaire. Spend your money on purpose. Most millionaires stick to their budget and ensure they live on less than they make. They cut their spending so that they can save more. You cant keep making unnecessary purchases and expect to scale up financially.
3. Find ways to increase your income
A huge salary does not mean you will become a millionaire. Whatever amount you get as your salary, can be invested to earn you more. Most millionaire put their money to work for them. To boost your income, ask for a rise in your salary or find a new job that pays you higher. You can also start a side hustle that can earn you income during your extra time.
Most millionaires believe that, they have full personal control of their life. They get things done. They do not sit down and wait for magic to happen for them. They always go out and do something about it. So, if you want to become a millionaire, rise and do something that increase your income.
4. Prioritize saving and investment
Saving increases your financial base. When it come to saving, ensure to save 20% of your income. It is through investing that you become a millionaire fast. You can invest towards your retirement by creating a retirement account. The accounts may be, IRA which are personal accounts or 401(k) offered by employers. The two accounts allow you to invest in stock market while saving more on tax. In 2019, people became millionaire by just investing in these two accounts. Contributing as much as possible to these accounts, it’s a fast path to becoming a millionaire.
5. Evaluate your progress regularly
Evaluation gives a clear picture of how you have progressed in your journey. If you want to hit your big financial goals you have to keep assessing your progress. You are able to identify the area of improvement and those which can earn you more.
Becoming a millionaire is not luck or being born into wealth, it is an action every person can take. It is a change of a person mindset in order to get rewards from effort. Thinking like a millionaire is a key to unlock your potential towards wealth. Just know, becoming wealth is a game of mind.