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Sounds too good to be true, doesn’t it?
After all, if you’re earning a mere $15,000 a year, it would take you approximately 67 years to coming close to hitting a million bucks.
Of course, that would mean that you never spend a dime and stash away every penny that lands in your account.
Before looking at the different ways you can become a millionaire, it’s worth noting that you’re already rich in your own rights. You don’t need to have the millions to live like a millionaire. All positive transformations first happen on the inside.
Having millions in your bank account won’t be beneficial if you have neither the time nor the organization skills to spend it as you should. For that reason, adopting the millionaire mindset before you actually become one.
With the right level of time, discipline and patience, anyone’s net worth can soar to a mouth-watering six-figure amount. It’s also possible to be a self-made millionaire without winning the lottery or earning a gross annual salary of $100,000 (or more).
Here are a few sure tips to help you become a self-made millionaire:
1. Find a Stable Source of Income
Becoming a millionaire isn’t such a complicated endeavor. Unless you’ve inherited wealth, were born into riches or struck it rich in the lottery, you need to find a legitimate way of making money. A stable source of income will be a huge starting point on the path to making millions.
All millionaires have to start from somewhere. If you read any of their stories, you’ll most likely notice something common in each one of them – hard work. You too can become a millionaire before 30 by choosing to hustle on a 24/7/365 basis.
If you want to stand a better chance of finding a stable source of income, then look nowhere but online. Not only will you find a good way to make money, but you can also choose to work on more than one online venture. The more you work on, the more money you make.
You don’t necessarily need to have an alternative way of making money – though it will be worth your while. These are the most common ways of making money online:
Fill Out Surveys Online
Survey Junkie is among the most well-known online survey sites on the world wide web right now. For each survey you complete, you earn virtual points which can be exchanged for e-gift cards or PayPal cash.
Sign up on Swagbucks
Get free cash watching short videos on your phone or laptop. Simply pick your preferred category and start watching away. Once you create your free account, you get a signup bonus.
Make Money Through InboxDollars
InboxDollars has its own search engine that you can use to make money. For every 4 qualified searches you make, you earn $0.15. Much as InboxDollars serves as a trusted market research company, it also gives free money for doing something as basic as an online search.
Become a VA (virtual assistant) with Horkey HandBook
A client or business will hire you to perform simple online tasks such as replying to emails, managing one’s social media, booking airline travel and so on. As a VA, you get to choose your clients, tasks and rates.
Teach English Online
Have a knack for imparting your English skills to young minds? Tutor students between 4-12 years old on VIPKID for 90 minutes per day and earn as much as $500 every month. Per hour, this translates to $14 – $22 per hour.
This is among the most common ways of making money online. You probably have what it takes to become a successful freelance writer. That’s why you should get your freelance career started on Fiverr ASAP. No background expertise is required to start earning.
These are just a few of the many ways to earn money online. Take full advantage of these numerous opportunities and get started on a new career, fill the gaps in your budget and make lots of cash in your free time.
2. Keep a Company of Smart and Like-Minded People
We all have those kinds of friends that encourage us to spend money like there’s no tomorrow after payday. Until the next paycheck hits our accounts, we’re left entirely broke and keeping a constant diet of Ramen noodles.
For a future millionaire such as yourself, you need to learn how to manage your finances better. One of your biggest struggles will probably be to keep your distance from friends who are not what you’d call a good influence.
The first step to keeping a like-minded group of friends is to find out whether or not they care about your goals. Finding true friends who will help you succeed in your quest to becoming a millionaire can be a fairly tricky endeavor.
There’s that type of friend that focuses on how they relate with you just to get some money from you.
Then again, there are those who will borrow money without any intention of repaying it. Quite frankly, you’ll need to let go of ‘friends’ who pull you back from maintaining your financial progress. As a result, you end up making a series of poor financial choices.
By keeping the wrong company, without realizing it, you’re wasting two things: your money and your life. The money you seek to have in future will come as a result of your hard choices and personal hard work.
Limiting the effect of financially irresponsible people in your life can be achieved by finding people with a similar ambition as yours. At any given time, you can exchange healthy financial ideas and habits or learn a lot more than you would with friends of a contrary mindset.
3. Make Frugality One of Your Foremost Traits
Any money that lands into your account should always be used with utmost wisdom. Most people typically spend their money on new pieces of clothing, electronics or anything else in a bid to impress the people around them.
The following are a couple of suggestions to save big on your day-to-day expenses:
The Coupons App is a handy tool you can use to steal some of the best deals at your preferred gas stations, restaurants or local stores. If you want to save printed coupons on your phone, install SnipSnap to do that for you.
Get coupons for specific items you consume regularly. If you make couponing a daily habit, you triple the chances of raising your weekly and monthly savings. The more your savings, the more productive you become.
Plan Meals for the Entire Week
It helps a lot to plan carefully for your meals each week you go grocery shopping. Randomly throwing a bunch of items into your cart can make you forget key ingredients for your desired dish. Additionally, you may be spending more than what’s necessary.
If you’re not sure about what to have on a specific night, the Budget Bytes app can be of assistance. Not only does it offer cost-effective meal suggestions, but it also gives you a detailed list of what to buy based on the required ingredients.
Downsize and Declutter
By the time you get where you want to be financially, you’ll have to become a frugal freak. If you have a sizeable home, you’re more likely to spend more to fill up the empty rooms. In such a case, you’ll have to downsize to a smaller home to resist the urge to splurge.
It may sound a little bit too much to move from a 2,000 square-foot home to an RV but it’s worth it. Living in a smaller space will make you mindful of what you buy. Every purchase you make will be done according to factors like storage, size, weight, etc.
Spend Less on Entertainment
Here’s one field that most people can’t afford to extend their frugality into – entertainment. If you find yourself spending up to $500 a month on only the fun stuff, that calls for some huge adjustments.
Spending less on entertainment won’t just save you money, it’s also an excellent way to keep your mind fixed on the simple stuff. There are loads of ways to keep you (and your family) entertained on a budget. It’s up to you to decide what works out for you and how to save the extra money.
These are just four of the numerous ways to make sense of your cents. Reckless spending always ends in regret and self-pity.
A month or two after getting your paycheck you’ll be wishing you’d have put that money into good use. Money in the form of tax refunds or raises can particularly be used to grow the little wealth you have.
4. Tired of Working for Someone Else? Develop Your Own Business
Most millionaires in this day and age have built their empires from scratch by employing a hands-on approach. Not allowing yourself to be limited to another person’s plans and ideas is the first step to being your boss.
Becoming an entrepreneur when you’re cash-strapped is an achievable endeavor, provided you have a workable plan. Getting started on your entrepreneurial journey doesn’t mean you have to break the bank.
Identify what you’re particularly good at. You may have a skill or knowledge that someone out there is ready to pay for.
It could be anything from painting, coding or fixing stuff. If you have an ability that centers around what most people are after e.g. home designing, you have a huge advantage.
A handy tool that you should take full advantage of is the internet. It’s a hub for any resource or information you may need – all at no cost.
To give your business an early head-start, don’t be shy to seek financial assistance via crowdfunding. It’s not that hard to figure out, to say the least.
Platforms such as FundedHere or Kickstarter help budding entrepreneurs to showcase their new and original innovations and benefit financially from interested investors. Aside from getting financial assistance, you also get your name out there.
Word of mouth is by far one of the best ways to make your business a reality and gain a solid customer base.
As you continue to grow, consider partnering with someone who has exceptional expertise on a field that you don’t excel at.
That kind of synergetic partnership is sure to catapult your business to newer heights that you couldn’t possibly achieve on your own.
5. Start a Slow but Steady Investment
Millionaires continue making a kill by a continuous train of investments. If you are aspiring to get your first million, you can do so by doing what millionaires always do: investing.
How possible is it to start an investment without money? As long as you prioritize and rearrange your finances, starting an early investment is as easy as it gets. If you have no money to start investing, you need to rearrange your budget.
Assess your current lifestyle and weigh if there are certain expenses worth cutting. If you cut out costs worth more than $50 per month, that’s more than you need to get started.
You don’t have to stash away thousands before you begin investing. While larger nest eggs don’t have distinct advantages, they’re not necessary either. For now, the single most important step is to get started.
As much as possible, keep your investment strategies simple. You’d be shocked to find out that most millionaires today don’t rely on tax-sheltered plans, off-shore bank accounts or other complex investments to get their millions.
Depending on how soon you get your paycheck, whether it’s bi-weekly or monthly – be sure to make some periodic investments.
When the markets are down, you stand a better chance of buying more shares of all the funds you invest in.
When they’re higher, you’ll be buying shares in lower amounts. Steer clear from investing in individual stocks if you don’t have the time to keep tabs on them.
Benchmark yourself throughout your investment journey by setting various ranges of expectations. Now that you’re investing to become a millionaire, come up with a specific amount of money you’ll need later based on saving assumptions and market returns.
6. Utilize Compound Interest
If you earn less compared to what your peers are making in a month, you can get your low income to work to your advantage through compound interest.
According to Investor.gov, compound interest is the interest one earns on interest. Take, for instance, you’ve made a $10,000 investment on a high-interest savings account. Suppose you earn an annual interest of 10% on the amount you’ve invested.
The $1,000 you made in the first year will be added to the $10,000 in your account. The amount you have in the bank earns interest totaling to $11,000.
In the second year, you’ll earn an interest of $1,100. This is reinvested yet again thereby leading to interest on top.
Through this continuous framework, you’d make exactly $6,105 after five years. The longer you keep this up, the more the money continues to increase exponentially. The beauty of compound interest is that even when you invest solely on small amounts, they can grow into a fortune.
Put aside as little as 20% from your earnings to your savings and investments. This is a good rule of thumb for individuals with low incomes.
Based on how much you put in, there are lots of compound interest tools you can use to calculate how much you can make over time.
At some point, you’ll have to speed up your earnings by getting a side hustle. Having little or no income can hurt your first million’s timeline. If you don’t get as much from your first job, pick up something more lucrative on the side.
7. Open a Personal Retirement Account
As you get started on your investment plans, think of where you want to store your money. The best place to do that is in a retirement account.
The reason you should consider saving your money in a retirement account is that you can evade taxation on all your investment gains.
This can be especially helpful, if you’re on track in investing your way to a million or more. There are different kinds of retirement accounts to choose from.
It’s up to you to decide which one works best for you. Typically, for starters, you will find a 401(k) or any other work-sponsored retirement account the ideal option. Accounts like these allow you to contribute to tax-deferred investments through pre-tax contributions.
That means that it will be easier for you to pay little income tax while avoiding taxation on your investment gains.
This may go on until you withdraw the funds in your retirement. Your next best option after a 401(k) is an IRA.
This option is applicable in instances where your employer hasn’t offered you a retirement plan or your 401(k) contributions are at a maximum.
You don’t have to worry about paying annual taxes on each of your investment gains. With an IRA or Roth IRA, you won’t need to. That provides a quicker, stress-free way to grow your gains.
8. Extend Your Determination Online
Another resourceful place you should be investing your time is the digital world. There’s so much you can do online that can impact your determination to become a self-made millionaire.
You can reach out to individual influencers via social media or email, write articles, get feedback on your ideas by personally messaging friends or followers on social media, etc.
Doing any or all of these will serve as the foundation of your online efforts. These will set the pace for you to try your hand at marketing.
Whatever activity you choose to do on the interwebs should involve selling your ideas, brand, products, or even services. Using your business, you should provide solutions to problems.
Utilize the online platform to convince potential customers to spend their money on whatever you have to offer.
You should also be able to persuade them to grow with you. If it’s a product you’re selling online, pay more attention to the negative reviews than the positive. That way, you can improve your products and services and bounce back better than before.
Building your market presence online isn’t as hard as most people make it out to be. It’s achievable regardless of whether you have money or not.
Be sure to do some idea validation to ensure you’re working on something you’re comfortable with – not just for the sake of selling your way to the top.
Working on something with a passion always yields positive results. If there’s already a market for whatever you want to venture into, the better for you.
Today’s world is full of problems in need of solutions. Come up with a solution for one or two issues and you’re assured of raking in millions in the not-so-distant future.
Get Out of Your Comfort Zone
Jeff Bezos wouldn’t have a billion-dollar net worth (approx. $148.5 billion) if he had chickened out from introducing Amazon to the world way back in 1994.
Mark Zuckerberg would be a random thirty-five-year-old family man with a rather ordinary life if he and his four college buddies wouldn’t have stepped out and made Facebook a global phenomenon.
The list goes on and on but point is, to become successful in what you set out to do, you have to take a positive step.
Come out of your shell and do something you’ve never done before. Doing it to change your current lifestyle is one thing and doing it for fame or money is another.
Though it may take a while before hitting the one billion mark, we all have to start from somewhere. Right?
A successful businessperson knows that he or she has to reinvent their business and themselves based on the ever-changing market and technology. And it’s worth noting that with any business, it’s a step at a time.
Grow your own business and be ready to take any risk necessary. There’s nothing wrong with making money on a daily/monthly basis.
It all boils down to how you can use it to grow yourself, your finances and the people around you. With the relatively simple tips outlined above, you can soar to greater heights if you can apply each one and prioritize as much as you need to.