How to become a millionaire is a topic many people have given up on. Not like you don’t want to reach the million mark, but then life isn’t just a fair game sometimes, and you spend year after year battling one challenge or another that in its little way take a lot of your money. But the truth is you can become a millionaire even with all the challenges the world has to bring.
Hello, and welcome to my blog. Again, I will be bringing you the best topics on finance, investment and more. Today I am talking about the possibility of being a millionaire. Becoming a millionaire does not have anything to do with your current financial status. It doesn’t matter if you are almost beginning to make money or are already earning more money. A lot of people, not minding what their income is, are treading water. Becoming a millionaire in your thirties, forties, fifties, or retirement is possible with a little maths and dedication.
Only a few people know how to consistently have their income, style of living, and at the same time, joy increased. However, to become a millionaire is not as impossible as people believe. Many people have shown that each passing year, it is not a must that you take on a banking job, win a lottery, or be born into a wealthy family to ensure you build a seven-digit fortune. It is just knowing how well to utilize the opportunities available to your benefit. So how exactly can you become a millionaire and retire happy?
The steps to becoming a millionaire
This is creating a plan or deciding on how your money would be spent. Developing this plan for your expenditures will enable you to restrict your spending. I am an advocate of minimalism living, and I will regularly say that if you don’t need or it’s not an essential need, then don’t get it. You can check out my book living a minimalist life for guidance on this lifestyle choice.
So budgeting is beneficial. It helps you live within your means, meaning you don’t even have to run into debt. It also helps you allocate resources to the points which matter to your future. The right budget will get the ball rolling for your future millionaire self.
One of the major components to become a millionaire is by saving. It is necessary that you have a certain amount, separated to be saved. It can be weekly or monthly. Savings remains one of the key priorities when aiming to become a millionaire. When you make your budget, you must include a space for saving. This might be difficult to achieve, but once it is included in the spending plan, this would serve as a guide.
But it’s not just about saving, it is about knowing the right amount to save through the years to gain that financial freedom. For me, I encourage having a minimum of ten year’s goal mark. That is ten years of working towards the millionaire goal. How much should you be saving monthly then, within that goal? The answer is slightly complicated. What you need to focus on first is number 72. For every investment plan or vehicle, I will talk about shortly, you need to calculate it using the number 72. If you divide the investment returns by the number 72, you should realize the target amount you need to get to your millionaire mark.
Investing is the key step for you to become a millionaire. Investing is not a difficult process if you choose to enter it, and there are many options that an everyday person can easily participate in. I love stocks, and I recommend it to anyone. You can check out my blogs to get all the beginner’s guides. The first choice to follow when investing is knowing the vehicle to follow on.
Do you want to go for stocks, shares, high yielding low risks? You need to understand all this, and you are tasked with finding them all out through research. Again, I have a lot of great topics on them for you to go through. But when you do find one, I recommend meeting a financial investor or an expert investor to give you all the important details on investing and the various investment risks and benefits.
I enjoy using low-risk investments in stocks, and I go for index funds because of the diversity and the low cost. These two things make it lower risk, but then the returns are slower, and so my goal is inevitably a long term goal. Bank savings are also low risk and long term goals, but the yield is really low, going between 0.5% to 3 % yearly interest.
If we are using the calculation of 72/3, the result will be 24 years. That is a long time; this is why high investment yield is necessary. In my post, ‘the dividend stock to buy this July’ I mentioned that the best yearly yield for any investment is 7% and in this case, I am saying the same thing. If you get a yield of 7%, then the result will be ten years and a few months, just right.
This is just passing through, and I believe finding multiple ways to earn money is a great choice. Passive income sources give you earnings without you exchanging your time for it. There are several choices, and you can easily find one that suits your interest, career, or hobby.
When trying becoming the millionaire of your dreams, remember that a large goal like this takes time, and most time, you have to be ready to arrange those goals in small chunks. If your goal is a lot for a month, get weekly savings to plan to help you reduce the load.
Get more than one investment choice to improve the outcome, and above all, learn to cut down on your excess spending. As long as your dream is for the future, you can achieve it. Do you have any opinion on this topic, or would you like to ask a question concerning investment, savings, budgeting or passive income?
If you do let me know in the comment section and I will be sure to give my honest opinion. Get the latest updates from my blog by subscribing and don’t forget to like and share the post.
For further information, I would suggest reading the following books: