Becoming a millionaire isn’t difficult. There are countless ways to become one. Some people do it through real estate, others start their own business, while some simply get lucky by winning the lottery or winning big on a game show. What is even more interesting is that you don’t have to be wealthy, to begin with, nor do you have to earn six figures to reach this goal. Read further and see five ways to become a millionaire.
1. Earn an income
Clearly, the more money you make, the faster you can reach that milestone, but that doesn’t mean your average income can’t obtain millionaire status. Be proactive and make the decision to improve your situation. It is your life, so take control and realize that things don’t change overnight. It may take a few years of slow growth before you reach the point where you want to be, but you can do it if you try. Remember, short of inheriting money from a relative or winning the lottery, you will need reasonable income to become a millionaire.
2. Live within your income
It doesn’t matter how much money you make if you spend it all or spend even more than you make. It might be nice to eat out at nice restaurants every night, or to always be on the cutting edge of designer fashion but, this will only make you look like a millionaire to others instead of actually being a millionaire. This doesn’t mean you have to live a miserable and miserly lifestyle, but you simply need to live reasonably. The bottom line is buying things and acting like a millionaire if you aren’t will simply empty your bank account and give people a false impression of your status, but that’s it.
3. Save Money
If you are unable to save money you will find that your only wealth is in the form of material things. So, you need to start saving every month and you need to make it happen automatically. An online savings account can accomplish this for you, and on top of that, you’ll be earning better interest on that money than you would be at your local bank. Here are a few online banks with current rates to check out.
4. Invest Smartly
Now that you are saving money, you need to invest it wisely. Sticking it in a savings account isn’t going to help you reach your goals any faster. Some of the best investment advice is to simply invest regularly and in a diversified portfolio. If you do this you’ll already be doing more than most people and on your way to building wealth.
Start with opening an investing account and putting your money to work. It doesn’t matter if you are investing in stocks, bonds, or index funds, but keeping costs down helps you keep more of your own money. You can become a millionaire by buying a single stock and holding it for 20 years if it goes up significantly just like you can buy a $500,000 home and have it double in value in 20 years.
5. Stick to your plan
Finally, if you have done the previous four items the only thing left to do is to continue doing it and stick to the plan. As far as income is concerned, always be on the lookout for ways to increase your income, whether it is rising/getting promoted at your current job, finding work elsewhere, or maybe even starting a business on the side. Increased income will mean you can save even more, provided you aren’t foolishly spending the additional money. As that additional money gets tucked away into savings or investments it will continue to grow even more quickly.