Any person wants to be financially independent and earn as much money as possible, but not everyone knows how to do this. The 11 tips from researchers and millionaires on how to become a millionaire.
Focus on making money
“My income was $3 thousand per month, and after 9 years – $20 thousand per month. Start tracking your money, it will force you to control your income and see opportunities,” says entrepreneur, bestselling business book author and millionaire Grant Cardone.
Develop multiple income streams
Author Thomas Corley spent 5 years researching the habits of rich people for his book Rich Habits. He discovered that many millionaires have multiple income streams.
According to Corley, 65% of respondents had three streams, 45% had four streams, and 29% had five or more. These incomes can come from rental properties, investments in the stock market, and partial ownership of a side business.
Don’t save for the sake of saving. Invest your saved money
“The only reason for saving is further investment. Put your money in protected, sacred, untouchable accounts. Never use these products for anything, even in an emergency,” Cardon advises.
One of the world’s largest investors, Warren Buffett, recommends putting 10% of your savings in government short-term bonds and 90% in a “very cheap” S&P 500 index fund. The main thing is to make the process of saving money automatic.
Be disciplined and determined
“The billionaires I’ve talked to are the most disciplined people I’ve ever met. They set high standards for themselves and those around them,” admits an expert in the field of entrepreneurship psychology Rafael Badziag. For the book The Billion Dollar Secret, Badziag interviewed 21 billionaires.
Another quality of rich people is determination, writes Napoleon Hill, a journalist and creator of the self-help genre, in his 1937 book Think and Grow Rich. The writer studied the habits and lifestyles of 500 millionaires.
Don’t rush to buy expensive things for show
“I didn’t buy luxury watches or cars until my business and investments started making enough money for me to feel stable and secure. For a long time I drove a Toyota Camry, although I was already a millionaire. Let them know you by your approach to work and principles, not by the trinkets you buy,” says Cardon.
Start thinking differently about money
“Many people believe that the rich are simply lucky in life; rich people know that making money is a real inside job. Wealth begins with how you think and what you believe,” explains millionaire Steve Siebold.
Invest in yourself
For example, Warren Buffett devotes 80% of his working day to reading, and every billionaire Badziag surveyed exercises daily.
Give up a steady paycheck
“It’s not that world-class performers don’t exist, but for most, it’s the slowest path to prosperity, promoted as the safest. The greats know that self-employment is the fastest path to wealth. Most people almost guarantee themselves financial mediocrity by staying in a job with a modest salary and annual raises,” says Siebold.
Set goals and visualize achievements
“The number one reason most people don’t get what they want is because they don’t know what they want. Rich people are very clear that they want to be rich,” says millionaire Thomas Harv Ecker. It is not enough to dream about money, you need to set a clear goal and have a concrete plan to achieve it.
Start connecting with people you admire
“In most cases, your net worth reflects the level of your closest friends. Interacting with more successful people can expand your thinking and catapult your income. Millionaires think differently about money than the middle class, and there is a lot to be gained by interacting with them,” Siebold said.
Aim for $10 million, not $1 million
“My biggest financial mistake was not thinking big enough. I encourage you to set your goal above $1 million. There is no shortage of money on this planet, there is only a shortage of people who think big,” says Cardon.