A lot of people are looking for tips on how to become a millionaire. Sure, having a million dollars sounds sexy. But if you’re really going to think about it, a million dollars is not that much money if you’re looking to retire and live like a boss. You have to think of professional athletes who are now broke after earning millions of dollars all throughout their career. This teaches us two things. First, we have to amass as many millions as we can, and second, we have to know how to keep those millions growing.
My Multi-Million Dollar Blueprint
Here are the things that I’m going to do in order to make several million dollars:
- Establish a multi-million mindset.
I don’t want to join the million dollar club. That club’s for losers and future broke people. I want to join the multi-million club, and all the things I’ll do will have that in mind.
- I will pay all of my debts including my credit card debt.
I just crunched some numbers and it’s showing that I’m losing a significant amount of money just paying the interest on my credit cards. I now have this commitment never to use any of my credit cards again until they’re fully paid. This is an important strategy if you want to learn how to become a millionaire.
- I will have an emergency fund and keep it growing.
Some people will tell you that you should have an emergency fund equal to 3 months of expenses. I’ll one-up that and set an emergency fund that can cover for 6 months of expenses. I’m not going to stop there. Once it’s set up, I’ll add 5% of my monthly income to it. Hey, I’m not about to let inflation eat up my emergency fund.
- I’ll save 10% of my monthly earnings in a bank.
Say what you want about banks and inflation. Having liquid cash will help me down the line. This way, I won’t have to tap into my investments for emergency expenses. This is one of the simplest strategies on how to become a millionaire especially if you’ll use the savings wisely.
- I will spend money on my financial education.
I consider myself well-versed in different investments, but that doesn’t mean that I’ll rest on my laurels. I will voraciously learn things that can help my investment portfolio.
- About 90% of my investments will be on “safe” investments.
I’ll invest on blue chips that will have a very good chance of growing in the next few years. I’m not going to trade in the stock market. I’m going to invest in it by buying blue chips.
I’ll use the same strategy for other investments. I’ll be playing it safe…for the most part.
- I’ll also do calculated risks when it comes to investing.
I’m not going to gamble on these risky investments. I’ll make sure that whatever risks I’ll commit to are calculated. I’ll commit that 10% of my investments will be high risk-high reward. I’ll only invest money that I can afford to lose here.
- Take advantage of my employer’s 401(k) plan by contributing the maximum allowed contributions.
This will add to my retirement funds. The contributions are generally small compared to the sum that I’ll be getting. Done right, this is basically a one-step process on how to become a millionaire.
- I will be frugal.
I’ll live in a modest house with a modest mortgage. I’ll buy a much better house in cash later on once I’m already a multi-millionaire. I’ll stick to an efficient car now. I won’t spend senselessly. I’d rather make these sacrifices now, and reap the benefits later on once I’m already a multi-millionaire.
On their own, each of these steps can help anyone looking for tips on how to become a millionaire. Done together, these steps will make me (and you) a multi-millionaire.