The Top 5 Ways to Become a Millionaire – How to Become a Millionaire

[ 0 ] July 30, 2012 |

Becoming a millionaire isn’t all that difficult and
there are countless ways to achieve that milestone.
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. I know some people who earn well over
N10,000,000 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 outside in
the summer sun. Anyone can become a millionaire
and there are five things you need to do to have the best shot of making that a reality.

1. Earn Income.
Clearly, the more money you make, the faster you
can reach that milestone, but that doesn’t mean
your average naira notes with a average income
can’t obtain millionaire status. The current median
income in this country ranges between N50,000-
N80,000 monthly depending on where you live. Better yet, get married so you have dual incomes.
The wonderful thing about having dual incomes is
that even with two people in the household, your
income may double, but your expenses typically
don’t. If you don’t earn even an average income, all is not
lost. It is up to you to do something about it. A
negative attitude about your job or your earning
potential won’t change anything. 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 Means.
Ok, so you have income but now what? 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 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. Start by renting or purchasing a home that you can
comfortably afford and drive vehicles that suit your
lifestyle without straining your budget. You don’t
have to be pulling down N7,000,000 a year and
drive a 1992 Civic Hatchback or live in a dump, but
throwing your money at a 4,000 square foot home in a gated community with luxury cars or SUVs that
cost as much as one year of your salary won’t help
you become a millionaire. Some may argue that an
expensive home and real estate in general is a
good way to become a millionaire, but I will touch
on that later.

3. Save Money.
This isn’t rocket science but if you earn a
reasonable income and you live within your means,
guess what, you will probably have money left over
to save. But that’s exactly the problem. Most people
treat savings as an afterthought, or something that
only gets attended to after all the other bills are paid. People pay bills, buy things, and then
whatever is leftover they try to save. That is the
wrong way to save. I’m sure you’ve heard it before,
but pay yourself first. Whether it is N10,000 a
month or N100,000 a month, think of the savings
as a bill that needs to be paid and do it regularly. 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.

4. Invest Wisely.
Now that you are saving money, you need to invest
it wisely. Sticking it under the mattress or slowly
building up in a savings account isn’t going to help
you reach your goals any faster.You don’t have to
watch NSE news everyday while actively managing
your portfolio in order to be a good investor. 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. 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. So,
begin with opening up an investing account and
put 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 simply buying a
single stock and holding onto it for 20 years if it
goes up significantly just like you can buy a
N5,000,000 home and have it double in value in 20
years, but that’s a pretty risky proposition. 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 over the years..

5. Stick With 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 through climbing the ladder 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. It Isn’t Hard to Do if You Work at It Unfortunately, most people are looking for a way to
get rich quick or to capitalize on the next big thing.
It is true that some people have made their wealth
through playing the real estate market, while
others have done so by investing in a few stocks
that exploded, but this is the exception and not the norm. If the above list seems overly simplistic, that’s
good. There are no secrets to becoming a
millionaire and almost anyone has the chance to
make it happen. Certainly, there are many factors in play that can
make this easier or more difficult for different
This is simply the process that you can use
in order to reach that goal, whether it is in 5 years
or 50, if you follow a few basic steps you can do it.
Adapted from
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Category: Wealth Creation

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