No one becomes a millionaire overnight. Unless, of course, you win the lottery. However, that which is easily gained can be easily lost
The first step to becoming a self-made millionaire is to be poor. The most common handicap which prevents the majority of people from climbing the ladder of wealth is spending. Although income continues to swell for those above the poverty line in the U.S., U.K., and other western countries, people aren’t actually getting any richer.
Let’s face it. Everyone wants to get rich–even millionaires wants to earn more money. It’s inherently built into us to seek stability (think of the hunter gatherer buried under all that first world fluff). But, how exactly does one become a millionaire?
Purchase like the poor
Allow me to take you back to a time. Maybe it was ten, even twenty years ago. A time when you didn’t dine out every other night. You saved every dollar and penny. You didn’t buy coffee everyday–making it at home was cheaper and tasted better!
When you’re tight on money the first things to go are the small daily expenditures that eventually add up. The poor wouldn’t ever dream of spending $20 on a burger. Treat purchase as though you had been saving months to be able to afford it.
Even better, try planning for bigger purchases. Set aside a predetermined amount every month rather than pulling from your account in one go. You’ll notice how your habits change, and more money remains in your accounts.
Spend big on self-improvement
“Continuous improvement is better than delayed perfection.” Human beings are never complete. We are constantly changed and improve based on experiences supported by knowledge.
You won’t gain experiences sitting in the same environment. While you save money on daily items, you should be less sparing when it comes to self-improvement.
So, what falls under self-improvement? Classes–any kind for that matter, whether it relates to your skill or a new hobby. Travel is also an important, but not only for the purpose of de-stressing to get the synapses firing. It allows you to expose yourself to different cultures, different ways of thinking and seeing the world.
Avoid risky investing
Women tend to invest less than men, however they are more successful. Gentlemen, before you get riled up, there is some wisdom you can pick up from your counterparts behaviors.
Why do women see more returns? Two things: variety and less risk.
Variety deters your money from being lost to a faulty market. Think bonds, domestic, different sized cap funds, and some stock. Don’t worry, you won’t need to commit too much time or effort in order to be a successful investor. Even lazy portfolios can amount to a large return over time.
Although women take less risks when investing, this fear actually prevents them from taking on investing in the first place. Ladies, money doesn’t grow just by sitting in a savings account. At least, not enough to make you a millionaire.
The first step to making your millions is action. Redundant as that sounds, it’s the only way to secure a brighter, richer future.
What other habits make a millionaire? Have you tried any of the suggested tips?