How to Become a Millionaire

Eric | Feb 05, 2010 | 1 comment

Anyone can become a millionaire by following 6 simple steps. Becoming a millionaire is not all that difficult and there are countless ways to achieve this milestone. At my previous post here, some people do it through real estate, others begin their own businesses, while some simply get lucky by winning the lottery or win big on a game show. What’s even interesting is that you do not have to be wealthy to begin with, you still have to buy six figures to achieve this goal.

I know that some who earn well over $150,000 and all they have to show for it is a large mortgage payment and a fancy car that depreciates faster than a glass of milk left out in the summer sun. Anyone can become a millionaire and there are six things you must do to have the best shot to make it a reality.

1. Earn Money
Clearly, the more money you earn, the more you can reach this milestone quickly, but this does not mean your an average income can not get the status of millionaire. The current median income in this country lies between $45.000 – $80,000, depending on where you live. Better yet, get married and you have dual incomes. The wonderful thing about having dual incomes is that even with two people in the household, can double your income but your expenses are not typical.

2. Think Like a Millionaire
To become a millionaire you must think like a millionaire. You need to equip themselves with new ideas and skills that you would sell and make profit on top of an article. One of my relative is a sales person and when I asked him to help with sales, the first thing he said to me that was the “Here, take this pencil and convince me of to buy it for the $10″, and then I kept thinking and thinking, then I finally abandoned. He then told me that I have the potential because a true hope never loose seller and keeps going.

Always think of ideas and never loose hope. Get a small notebook and a pen, go around and observe some business opportunities that facinated you. Remember you would not be successful with some thing you are not familiar with or do not know about.

3. Save… Save… and Save Money
This is not science but if you earn a reasonable income and you live within your means, guess rocket that you will probably have money left over to save. The problem that most people have is they put the savings for the last time afterwards. The wage bills of people buying things and then whatever is surplus they try to save.

It’s the wrong way to save. I’m sure you’ve heard before, but you pay first. If it is $100 per month or $1,000 a month, think of saving as the invoice must be paid and do it regularly. If you can not save the money you find that your only wealth is in the form of material things. Start saving today !!

4. Invest Wisely
Now that you are saving money, you need to invest it wisely. Sticking it under the mattress isn’t going to help you reach your goals any faster. You don’t have to read the Wall Street Journal or watch CNBC everyday while actively managing your portfolio in order to be a good investor. Some of the best investment advice is to simply buy and hold and to buy low and sell high.

It is also important to remember that real estate is part of your investment picture, but it shouldn’t be all of it. Too many people stake almost everything they have into a primary residence and expect it to appreciate in value. Just like any investment, generally speaking, over time you will make money. There isn’t much debate about that, but relying heavily on real estate is no different than if you rely on one stock to fund your retirement. Start investing for free – trade stocks for free at www.zecco.com

You can become a millionaire by simply buying a single stock and holding onto it for 20 years if it goes up significantly just like you can buy a home $500,000 home and have it double in value in 20 years. Take a lot of the risk out of the picture by making sure all of your eggs aren’t in the same basket and develop an investment strategy that will provide steady growth.

5. Start Small
Oke, now that you have a positive mental atitude and a great idea, you need to start your first business. Whether it’s a car wash, a jam business, a farmers market business, a computer business or a website designing business, they cannot survive without proper planning and execution.

If you need a partner or some shareholders, I suggest you do not do the mistake. Being the only owner can be rewarding and a smart choice.

6. Stick With Your Plan
If you did the previous five articles the only thing left to do is continue to do it and stick to the plan. Regarding income, are always on the lookout for ways to increase your income, it is up the ladder at your current job, finding work elsewhere, or perhaps starting even Affairs side. The increased income will mean that you can save even more if you do not spend additional money foolishly. As the additional money gets tucked away in savings or investments it will continue to grow faster.

If You Work at It – It Isn’t Hard to Do
Unfortunately, most people seeking a way to get rich quick or take the next big thing. It is true that some have made their wealth playing the stock market real estate, while others have done well by investing in a stock that has broken out, but it is the exception not the norm. If the above list seems overly simplistic, it’s good. There is no secret to become a millionaire and almost everyone has a chance to make it happen. The process is simple :

1. Earn Money
2. Think Like a Millionaire
3. Don’t spend all of your money
4. Save some money
5. Start with Small Invest that money
6. Repeat

Certainly, there are many factors in play that can make it easier or harder for different people. It’s just a process you can use to achieve this goal, it is for 5 years or 50, if you follow some basic steps you can do.