Although it sounds like a TV commercial, it’s not. You can become a millionaire too. It’s all about taking the proper steps to reach your million-dollar goal. It’s more than just hitting the right stock or some other quick ploy. AdviceIQ Network member Jeff Rose is the founder of Alliance Wealth Management, Carbondale, Ill.
When you hear “millionaire,” what image do you have? Maybe a senior citizen, in a bathrobe and sipping champagne, looking out at acres of accomplishment from the mansion’s entrance. You believe you will never become a millionaire. What if you could?
It is much easier than you might think to become one. First, you might be already rich. You could be among the top 3.65% richest people on the planet if you have $20,000 in annual net income.
It is not always easy to accomplish simple tasks on the path to wealth. However, they can be very effective.
1. Your competition is more innovative and more skilled than you.
Identify your competitors. How can you add value to your market or workplace?
It doesn’t make sense to sell ice cream on your lawn in the dead winter. Set up a stand at the park during the hot summer. Your effectiveness can be significantly improved by making common-sense changes.
We’ve all witnessed colleagues who work harder than others. They are often the ones who get promoted. They often become the office linchpins.
In the early years of my career, I was part of a class with 55 students. Our class had halved in size a year later. Only five people remained by my fifth anniversary of the job.
Many people were unwilling to do the hard work. Do not be afraid of hard work.
2. Learn from your mistakes, and then move on.
Did you fall for two scams that failed? Did you invest $8,000 in an online business venture only to lose everything? These are just some of the many investment mistakes I made.
It is hard to accept mistakes. Acknowledge that you have made mistakes. Do you want to admit your errors?
People can get so upset after making a mistake that they stop thinking clearly and may be unable to make the right decisions for their future. However, Ingvar Kamprad, the founder of IKEA, said that only awake people don’t make mistakes.
Get up and keep going. Millionaires aren’t given up just because they made a few mistakes.
3. Create something you love.
Customers will be bored by the idea when the innovation is delivered.
Millionaires know that passion and vision are critical to some of the most innovative ideas. For example, Percy Spencer, an engineer, happened upon a candy bar melting and popping corn while working with radar. Percy Spencer quickly realized the immense potential of the microwave oven.
Do projects that you are passionate about. You have a good chance of creating something you love and would use. Remember that experimentation is the key to some of the most innovative ideas.
4. Budgeting is essential.
What amount do you spend on food out, clothes, and other frivolous delights? Then, write down the amount.
Budgeting is a way to ensure you spend less than what you earn. How do you do this? Keep track of everything. If you need assistance with record keeping,
5. Get started investing.
Millionaires are often able to invest and remain prosperous. The good news is that investing is easy. The good news? Investing can be done quickly.
Some people begin with Robo-advisors. These are simple online investment sites that can be used as an adjunct to a real-life advisor. For example, Betterment allows you to make three decisions about how much you will invest, how frequently you will invest and how you would like to divide your assets between bonds and stocks.
You don’t need to be a rocket scientist or have a lot of capital to invest.
Don’t abandon your journey once you have started. Stock market ups and downs are part of the ride. Long-term, ride the wave.
6. Do not believe in discouraging people.
Your beliefs affect your actions and your outcomes. Listening to discouragers can make you feel inferior so that you can’t be like them.
Humbly prove them wrong. Your results should speak louder than your words.
7. You can save for a rainy night. Trees can get through roofs. Jobs evaporate.
You’re more likely to go into debt than borrow from your family if you don’t have an emergency fund of liquid money in a savings account, such as one from Capital One 360. So do not be the entrepreneur who owes the parents or the couple drowning in debt.
Your fund should cover three to six months of expenses. However, for tough times, I recommend eight.
8. Generate income from more than 1 source.
Maybe you have a job that makes you good money but think of Side Hustles that make you extra money to save. You can think of starting a blog for extra income or a webshop. This way you will have multiple income sources. Passive income is very popular nowadays.
Your million-dollar goal is not about fame. Instead, it would help if you strived for these riches for your family and your community, as well as for a greater purpose than yourself or your bank accounts.
And remember Its all in the mind. Focus yourself for a while on a business or multiple businesses and you will see results. Get up early, focus, work, and hustle. “You are capable of anything you set your mind to man”. Think different, hustle, and go get it.