There are many ways to become a millionaire, but there is no shortcut. First, you have to determine what you want, have a good plan until you have enough money to sustain your lifestyle. There are millions of people who are now financially independent at their young age. How did they do it? For me it’s all about determination and following your passions.
The steps below describes how you can make money with no or little money.
HAVE A VISION AND SET FINANCIAL GOALS
To be honest, there is no real thing as overnight riches.
However, you can do behind the scenes work that leads to the outward appearance of getting rich overnight.
One of the first steps to become rich overnight you need to do is have a vision and set goals.https://widgets.moneymade.io/expandable-discovery?utm_campaign=paidOnly&utm_medium=embed&utm_source=compoundingpennies&frameId=__mm_6096
If your vision is to be independently wealthy within five years, you then have to take that and break it down into smaller time frames and goals.
Like a goal after one year, then after year two and so on.
Then break that down even more by quarter or month, and have specific steps along the way.
For example, pay off your mortgage, pay off car debts, add no more debt, work extra hours, do a side job, etc.
It is very rare for anyone interested in building wealth to stumble into it.
Most successful people have a vision and lay our a map for how to get there.
DON’T QUIT AND BE FOCUSED
Work-life balance is often a common theme, but in reality, those who advocate it are not the types who go after getting rich.
They just want to be comfortable.
If being “comfortable” is not enough for you, then you focus your energy and time on your goals and vision, and don’t allow yourself to get distracted by “balance.”
Developing good habits is essential if you want to get rich one day.
Oh, and don’t believe those who say your goal is “impossible.”
It’s only impossible because it’s not their goal.
It’s yours. Own it.
Will times get tough? Will you want to quit?
Of course.
Here is where having a strong money mindset comes into play.
That and referring back to your plans you created in the first step.
BE AN ENTREPRENEUR
Find a way to monetize your best skill set and locate a market.
You have higher potential to make money working for yourself than working for “The Man.”
If you have a salaried job, do your startup on the side until it makes a certain income that covers most of what you make in your regular job, and then quit the full-time job.
Having these multiple streams of income will make life a lot less stressful in the beginning.
During this time, plow all your earnings back into the business.
Don’t take a salary or use any of the income for living expenses.
By reinvesting everything back into the business, you will grow faster and have a solid balance sheet.
In other words, you have your money work for you.
This helps you to survive through lean years, which you will be certain to experience at some point.
Finally, don’t go into an industry you know nothing about.
If you have not been in the food-service business, don’t buy a Krispy Kreme franchise.https://9ac75a4fa01aae7d652335568a8ddecc.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Stick to business opportunities that you know or a passion you have and turn that into money.
REDUCE YOUR LIFESTYLE
It doesn’t need to be drastic, but take a look at areas in your budget where you could trim here and there.
The leaner your life can be, the more profit you can make in the end, or the longer your business can stay open if you lose money in the early months.
What are some simple ways to reduce your lifestyle?
- Learn to meal plan to save time and money on groceries
- Find ways to slash your cable bill
- Use homemade cleaning products to clean your house
These are just a few ideas to get you started. There are many more simple things you can do to save money.
For example, you can use Trim.
This service will negotiate your bills on your behalf to save you money.
And they are great at doing this.
Work smarter and harder than your competition.
Identify your competition. How hard are they working? What are some differentiators you can bring to your workplace or market?
Start by working smarter. There’s no use in working harder if your work isn’t effective at producing income – you’ll be spinning your wheels.
There’s no sense in selling ice cream cones on your front lawn in the dead of winter. Instead, set up a booth at the park in the sizzling summertime – you get the idea! Simple, commonsense changes can greatly improve your effectiveness.
Work harder than others are willing. We’ve all seen the guy or gal at the office who works harder than anyone else. Maybe they’re a little nerdy or a little too interested in their job – or are they?
Maybe they’re onto something. After all, aren’t they the ones getting the promotions? Aren’t they the ones who become the office linchpins?
I remember when began my career with A.G. Edwards & Sons in 2002, I was in a training class of around 55 people. After completing training a year later, our class was reduced to less than half. My fifth anniversary mark? Only five of us were left.
Most failed. Why? Because they weren’t willing to put in the hard work required.
I beg you to not be afraid of hard work. Not only will your boss feel better about what you’re doing for them – you will too.
I’m not afraid to die on a treadmill. I will not be outworked. You may be more talented than me. You might be smarter than me. And you may be better looking than me. But if we get on a treadmill together, you are going to get off first or I’m going to die. It’s really that simple. I’m not going to be outworked. – Will Smith, Actor
Learn from your mistakes and move on.
Everyone makes them. I do, you do, we all do.
And believe me, I’ve made some pitiful mistakes.
Would you get suckered into two multi-level companies that go nowhere? Would you throw $8,000 into an online business venture only to lose it all? Those are just a couple of several investment mistakes I’ve made with my money.
Mistakes are difficult to swallow. I think our first gut reaction as human beings to the realization we messed up is to shift blame – to others or to circumstances.
The very best way forward is to admit we fumbled the ball. Are you willing to admit when you make mistakes?
Some people, when faced with their own inadequacies, beat themselves up. And you know what that does? It paralyzes them from making the decisions they need to make to achieve success.
It’s important to remember that . . . .
Only those who are asleep make no mistakes. – Ingvar Kamprad, Founder of IKEA
So, take the simple step to fess up and move on. Yes, it’s simpler than you think – especially once you have practice. If you are still in the middle of a debt mistake one of the best things you can do is to stop paying interest by transferring your balance over to a 0% APR credit card. This will free you up to hammer down on that debt instead of paying big interest payments.
Millionaires don’t give up because of a few silly mistakes. They press on toward the goal.
Your money mindset – Start thinking like a rich person
Here’s where you have got to get out of your own mind and start evaluating the way you think about money. Does it make you uncomfortable to think or talk about money, and if so, why?
I remember visiting a friend who was housesitting her parents’ house. This was the first time I’d been to the house and dare I say, it was exquisite. The parents definitely had some financial savvy. I was admiring their choice of furnishings when my friend blurted out, “Oh I know the house is big, but they worked very hard for their money.” I remember wondering why she felt she needed to apologize for her parents’ wealth.
So what if they won it all at a horse race? Their money is their money! It’s important to know that hard work doesn’t always lead to wealth. Anyone working a 10-hour shift in an Amazon warehouse will tell you that.
But it highlights a social flaw. Everyone wants to be rich but those who already are sure as heck have to apologize for it!
We’re not going to do that anymore.
Common money mindset traps to avoid
The hustle trap: The more I work, the more I earn, right? Wrong. You may be able to add an extra hour of overtime to your workday or pick up extra shifts, but at what cost? Living a rich life is also about your lifestyle. You’ll want to set up your income sources so that you can earn money in less time. Adding a passive income stream is a great way to do this, but be warned – passive income still requires up front work. But, it’s way more effective than picking up an hour or two of overtime every now and then.
The less I spend, the more I’ll have: Technically that’s probably true, but it also leads to a very dull life. While there is some merit to cutting back on expenses, it’s what you cut that matters. Cutting back that $12.99 you spend on Netflix every month might seem like a good start, but not if it’s your only source of entertainment.
Spending less on things you love, for instance, that $3 Starbucks coffee, is not going to make you rich. It might increase your bank balance incrementally, but what about the quality of life?
What if you’re just a little more conscious of the things you don’t actually enjoy, and cut back on that instead? For instance, finding a smaller apartment at a better price because you spend too much time cleaning and too much money on heating. Frugality might have a few merits and make you appreciate your resources, but can also zap the life right out of, well, life.
The goal is to spend less time faffing over $3 questions and more time asking the $30,000 questions.
There isn’t enough money out there: If you’ve grown up in a household where there was a lack, it’s possible that you might attribute this quality to money too. Here’s the thing though, rich people know that money is as bountiful as the sands on the shore. Adopting an abundance mindset will help you realize that there’s enough money to go around in the world – even for you.Bonus: Ready to ditch debt, save money, and build real wealth? Download my FREE Ultimate Guide to Personal Finance.
Control Your Money (Don̵t Let It Control You)
Millionaires set a goal and then work toward it. There̵s never a nebulous plan for a million. One of the first steps in that plan is often to get rid of your debts and take control.
Debts have a nasty habit of controlling you and you have to take control of them before you can ever achieve bigger financial goals! Next, work on your lifestyle. Figure out what work makes you happy by trying
different things. A helpful homework assignment is to write down what your perfect day would look like. This will give you an idea of what will truly make you happy.
Pay off debt
Debt is expensive. Also, it affects your net worth. If your assets are worth $1 million, and your debt is at $700,000, your net worth isn’t $1 million, it’s only $300,000. Let’s take a look at what debt might mean for your finances.
- Mortgage: If you’re looking to buy a $330,000 house with a $30,000 downpayment, you’re still looking at a loan amount of $300,000. At an interest rate of 3.8% per annum (which is considered low) and a term of 30 years, the total interest paid would be $203,233.94. Pick that interest rate up by a percentage and you’re looking at tens of thousands more. If you have a mortgage, increase your installment and pay it off faster. Not only is there the satisfaction of owning an asset outright, but also that you’re saving on interest.
- Car Loans: This is a quick debt trap that can bleed you dry of potential. I say this because it’s so easy to jump from a $30,000 car to a $60,000 if the bank decides you can afford it. But here’s the thing: over the period of 5 years at an interest rate of 4.35%, you’re looking at total interest paid of $3,434.80 vs $6,869.60. Imagine what nearly $3,500 can do in a good investment product or to your retirement?
- Student Loans: Get rid of them, and quickly. Don’t wait for the possibility that they might be forgiven. You need to make headway on it as soon as possible or you’ll still be paying off your student loans when your kids go to college. The quickest way to get this figure down is to throw money at it. $50 extra per month may not seem like much, but gradual increases like those go a long way.
- Credit Cards: Credit cards are great if used well. The rule of thumb is not to use more than 30% of the available credit limit and to always pay your balance in full every month. If you can’t, you’ll end up paying very high interest with most cards. If you’re stuck with a high balance, consider a 0% credit card and pay off the balance before that interest-free period runs out.
Conclusion
As you may have guessed, the title of this post is not true. There are no shortcuts to success, at least not without hard work. I’ll go even further – you can’t just wake up tomorrow, decide that you’re now a millionaire and then expect money to start flowing into your bank account. This is not how it works. Even if you somehow managed to become a millionaire overnight, chances are it won’t last long.