You do not have to earn a 5-figure salary for becoming a millionaire. People who acquire a good financial education at an early age are clearly on the right track. Personal qualities such as curiosity, perseverance, and taste of challenge are found among millionaires. It is necessary to invest in his financial knowledge.
They understand that investing in their knowledge is the first step to take action; most of them do not watch TV at all but read a lot. Buying a book worth a meager amount for your personal finances will earn you 1000 times more. This will be the most profitable investment of your life.
The more you win the more chance you have in becoming a millionaire. However, you still need to know how to spend less than you earn. In our society of consumerism, one who knows how to live with less, who knows how to differentiate between “his desires” and “his needs” will have more savings and therefore more savings and investment capacity. Simplicity allows you to live with everything you need and if you want to become a millionaire act like that.
Flee debts and if they exist, paying them back first is a priority.
The Requirement to Be Rich
Those who want to become rich have to make their money work. To do this, first pay yourself, each month automatically invest 10% of your salary on the stock market preferentially on a tracker or on shares of companies that offer regular and growing dividends, which will allow you to pocket a lucrative passive income every year. These two investment strategies should not be conducted by investing a single amount on a T-date but investing over time (e.g. every month) to smooth stock prices. The interest is to reduce the impact of declines and overtime to obtain a limited but secure return.
Another option may be to subscribe to a SICAV (open-ended investment company). Over a year some of these financial funds show returns of + 70%. However, you have been cautious not to suffer heavy declines.
1. A rental real estate is the investment asset but you have to have a well-built project (advanced research, yield calculation). Do not forget to build security capital (2/3 salaries) to cope with unforeseen events.
2. The millionaire has a plan of action and sticks to it. He is self-disciplined. The wealth in a snap of a finger, unfortunately, does not exist!
3. Always seek to diversify your income. Earning more each month means that you will also be able to invest more and thanks to the snowball effect all your investments will generate more themselves. Spend less, earn more, save, and invest. Repeating this method is key.
4. Focus on profit. Develop multiple sources of income. One way to make more money is to increase our sources of income. Many millionaires have developed multiple streams of income: some have 3, 4, and others 5 or more. These additional sources include real estate rentals, investments in the stock market, and ownership of shares in an ancillary activity. The key to systematically putting money aside is to automate the process. In this way, you will not see the money you invest and will learn to live without.
5. Do not show off. Change the way you think about money.
6. Invest in yourself: the safest investment in your life is investing in yourself. Read at least 30 minutes a day, listen to quality podcasts, and look for mentors. You must not only be an expert in your field, but you must also have complete knowledge of all subjects to be able to talk about everything, whether finance, politics, or even sports. The majority of rich people like to spend time reading, Warren Buffett, for example, estimates that 80% of his workdays are dedicated to reading.
Set goals and imagine reaching them
If you want to make more money, you must have clear goals, but also a specific plan to reach them. You have to work hard to win money. For this, you must remain focused on your goals, show courage, and have a lot of knowledge, which requires a lot of effort. All of this is possible only if you have specific goals and a clear vision.
Spend time with the people you admire
Andrew Carnegie started with nothing and became one of the richest people of the US in the 20th century. He attributes all his success to one principle: the Master Mind. The idea is to surround ourselves with talented people who share our vision because the association of many creative and brilliant minds is much more powerful than one mind. Moreover, you tend to resemble those with whom you spend time, which is why rich people stay with rich people.”Being in touch with people, who have done better than us, broadens our thinking and increases our income. The reality is that millionaires have a different view of the middle class about money. There are many benefits to be gained by being in contact with them, “explains Andrew Carnegie.
Aim 10 million, not 1 million. Think big. Aim for higher goals. Set your target higher than you can actually achieve.
Unless you are born into riches or have inherited a fortune you need to earn money. You don’t need to earn a lot of money to become wealthy; it’s what you do with that money that matters. There is no secret to wealth creation and no quick scheme for becoming a millionaire overnight. There are sets of methods and rules of doing and don’ts which you have to commit to if you’re to reach this lofty goal. All it starts with is having a plan!