Everyone has wondered how to become a millionaire at some point.
However, the odds of doing so are pretty slim, so you need more feasible ways.
You can invest in the stock market or start a side hustle, but you may find yourself wanting more directions and ideas for how to achieve millionaire status.
Anyone serious about becoming a millionaire should explore our Savvy steps for wanna-be millionaires and get started right away!
How To Become A Millionaire
Becoming a millionaire is not an impossible money game. In fact, there are many ways to do it, but it does require work on your part.
For those looking for a more practical (and more possible!) approach than lottery winnings, here are a few steps for how to become a millionaire:
1. Create Your Goals
Few people take the steps necessary to make the dream of becoming a millionaire a reality. If you’re serious about becoming a millionaire, set goals, and work on your financial success.
Here are a few tips to get you started:
- First, make sure your goals are specific. Vague objectives like “make more money” or “get rich” will not cut it. You need to be clear about what you want to achieve money-wise (and when!) and why it’s important to you.
- Second, set realistic targets. If your goal is to earn an annual salary of $1 million, that’s great- but is it exactly achievable right now? There’s no point in setting a goal that’s impossible to reach. Aim for earning a certain income every year and determine how much goes right to investing and how much goes to savings.
- Third, write down your goals and review them regularly. Writing down your goals will help you stay focused and on track. Buy a journal and dedicate a few pages to your millionaire aspirations. Review your goals every day, week, or month to ensure you’re making progress- and if you’re not, make a game plan to change that!
- Finally, remember that achieving millionaire status takes time. Be patient, and don’t give up! Adopt a millionaire’s mindset and stay focused on your goals and financial plans. Enact those plans and always stay active with your money.
2. Get Budgeting
Without a doubt, becoming a millionaire is a lofty goal, but it is achievable with careful budgeting and disciplined saving.
To have a chance at becoming a millionaire, you need to start by creating a budget and keep as much money in your bank account as you can (without becoming cheap!).
Several budgeting apps, like Empower (formerly Personal Capital) and Mint, can help you save money and manage your personal finances. These apps have unique features and benefits that allow you to track your spending, create budgets, etc., easily on your phone.
3. Pay Off Debts
To become a millionaire, you need to pay off your debts and stop spending so much in interest payments. Paying off debt is a smart financial move and will also free up more money that you can use to save and invest.
Here are some ways to pay off debt and get started on the path to financial freedom:
- Negotiate with creditors: If you’re struggling to make your monthly payments, you may be able to negotiate a lower interest rate or other terms with your creditors. It never hurts to ask.
- Get help from a financial advisor: A financial advisor can help you create a debt repayment plan and offer other advice on becoming debt-free (or investing!).
- Make a debt repayment plan: Once you know how much you need to pay each month, you can create a budget and plan how you will repay your debts. Using a debt repayment planner will help you stay on track.
- Stick to your repayment plan: It’s essential to be disciplined and stick to your debt repayment plan. This may require making some sacrifices, but it will be worth it in the long run when you have more money to your name.
4. Reduce Spending
Once you have created a budget, you need to start living below your means and cut spending. This means cutting out unnecessary expenses and saving as much money as possible.
But think frugal, not cheap. Still enjoy your life and your adventures, but be sure you’re still prioritizing money for future millionaire status.
Some ways to reduce spending include:
- Identifying your spending triggers: What causes you to spend money unnecessarily? Is it when you’re bored, stressed, or feeling down? Once you know your spending triggers, you can avoid them.
- Use the 30-day rule: When you want to buy something, wait 30 days before purchasing. This will give you time to see if the price drops on the item using Honey or find coupons to make the purchase cheaper.
- Save with a browser extension: Several browser extensions can help you find savings on your purchases, such as Capital One Shopping.
- Automating your finances: Automating your finances with Empower can help you stay on track with your budget, pay bills on time, and avoid overspending.
- Cancel any subscriptions that you’re not using. Truebill is a great app that can help you cancel unwanted subscriptions and negotiate on bills.
5. Invest Early
Anyone can become a millionaire if they start investing early and let their money work for them by buying assets that will accrue more wealth.
To start investing in the stock market or real estate, you don’t need a lot of money, but you need a brokerage account at a DIY platform like Robinhood. You can start small and invest slowly over time and make your money work for you.
Another great way to become a millionaire is to contribute as much money as possible to retirement accounts like 401(k)s and IRAs with a Robo-advisor like Betterment. This will help you save for retirement, but it will also allow you to grow your wealth tax-free.
By diversifying your portfolio with real estate, stocks, bonds, and other best investments, you can minimize your risk, consistently beat the market, and maximize your chances of achieving financial independence.
6. Start A Savings Account
Saving money is one of the key components to becoming a millionaire. While there’s no guarantee that you’ll become a millionaire by only saving money, it’s an excellent place to start!
One way to save more money is to open a high-yield savings account at CIT Bank to take advantage of the compound interest. A savings account at CIT Bank typically offers higher interest rates than other deposit accounts, such as checking accounts.
You can also sign up with Chime if you want more options for a high-yield savings, but you can always get a financial advisor to give you some advice on saving your money or investing it to get the most bang for your buck.
7. Increase Your Income
One of the best ways to become a millionaire is to have multiple income streams. The key is to have a diversified income so that you aren’t relying on just one source of funds.
Having more than one source of income means security because if one stream dries up, you still have others to fall back on and not end up broke.
For example, you could have a full-time job working your way up the corporate ladder, a rental property, and passive income from investing in stocks or bonds.
Another option is to take on a second job like a side hustle or start your own business to add more money to your name.
You can find jobs that make you rich, essentially finding a job that pays better than you have now.
The Millionaire Mindset
What separates a millionaire from the average person? Is it their education, their connections, or just their bank account?
While these things may play a role, the difference between a millionaire and the average person is the millionaire’s mindset!
Millionaires have a unique way of seeing opportunities where others see roadblocks. They will take risks and are less afraid of failure.
This mindset is what allows them to reach millionaire status.
If you want to know how to become a millionaire, you need to start thinking like one.
You need to be willing to take risks and seize opportunities. You need to have faith in yourself and your ability to succeed. When you adopt the right mindset, you open up a world of possibilities.
Being One Step Ahead
Wealthy people tend to be one step ahead. They don’t just sit and wait for things to happen.
They make things happen.
They are always thinking about what they can do next to grow their money and businesses.
You need to constantly think about how you can move forward and improve your situation. You need to have a plan, and you need to be executing that plan.
You need to be actively working towards your goals. The more effort you put in, the more likely you will achieve financial security.
No More Instant Gratification
Instant gratification can be a significant roadblock to becoming a millionaire. When you’re constantly seeking instant gratification, you’re not thinking about long-term goals that will help you achieve wealth.
You’re only thinking about the present moment and what will make you happy in the short term, and millionaires always think of the future and long-term goals.
Patient & Determined
It’s no secret that to become a millionaire, you need time, patience, and determination to amass wealth.
Many people give up when they don’t see results immediately, but it’s important to remember that overnight success is rare. Think long-term and stay focused on your goals, and you increase your chances of achieving financial success.
Things To Avoid
If you want to become a millionaire, there are certain things you should avoid doing. These things will only set you back and make it harder for you to reach your goals.
One of the best ways to become a millionaire is to avoid lifestyle inflation.
Lifestyle inflation is when you allow your lifestyle to increase along with your income instead of making more significant savings with the additional funds.
When you receive additional funds, whether through a raise in salary or a bonus at work, resist the urge to upgrade your lifestyle immediately.
Instead, reinvest that money into wealth-building activities like investing in a solid stock portfolio or contributing to a retirement account to gain financial security.
If you want to become a millionaire, you need to start by avoiding new debts.
Borrowing money can be tempting, but it’s one of the surest ways to keep yourself from becoming wealthy.
Interest payments on car loans and credit cards can eat away at your savings, and if you’re not careful, you can find yourself in a cycle of debt that’s not easy to break out of.
Ideas To Increase Your Income
There are several things you can do to increase your income and build wealth, ultimately increasing your cash slowly but surely to a million dollars.
Start A Business
Being your own boss has many perks, including being self-employed (putting an end to the ongoing job hunt!), setting your schedule, and controlling your success.
You will have the potential to make a lot of money, but you’ll also have the satisfaction of knowing that you built something from scratch.
However, starting a business from scratch isn’t easy. It takes a lot of hard work, dedication, and sometimes luck. But if you are willing to put in the effort, it can be gratifying and profitable.
Blogging is one of the most popular ways to earn money online and is a fun and satisfying way of building wealth. By sharing your thoughts, experiences, and knowledge on a particular topic, you can attract a large audience of readers and earn passive income.
Once you’ve built up a sizable audience with your own website, you can monetize your blog through advertising or sponsorships- to the tune of 6-figures per year!
Proofreading can be an extremely lucrative career option if you have a keen eye for detail and a passion for language. With the rise of the internet and the increasing reliance on digital communication, there’s a growing demand for talented proofreaders.
You can take a free proofreading course to learn the basics and start your business, and you can easily start earning $20 per hour as a new proofreader.
It is possible to earn a six-figure income and become a millionaire with a well-run bookkeeping business.
Bookkeepers maintain accurate records and catch errors in accounting or personal finance documents, making them a must-have for many businesses.
Bookkeepers typically charge an hourly rate or a flat fee per month- some certified bookkeepers charge $80 per hour!
Hopefully, now you see that becoming a millionaire is not impossible! It does require work, but there are steps you can take that are easy and mindful.
There are several money-making ideas to increase your income and build wealth, ultimately helping you on the way to a million dollars.
Plus, to become a millionaire, you need to set financial goals like paying yourself first and investing early and often.
With dedication and hard work, anyone can become a millionaire with these steps and ideas.