There are several routes to becoming a millionaire.
Naturally some are quicker than others but these routes normally have extremely low odds or are illegal. :-)
For example you could win the lottery or perhaps a gameshow such as “who wants to be a millionaire”…. But the chances are extremely low.
Today I will bulletpoint some tips to give you a chance of to move towards millionaire status.
Here it goes:
- Rule 1 – Focus on reducing your outgoings and Increasing your Income
Focus heavily on your spending pattern. Print out a list of your regular outgoing expenses and total them up. Look at expenses that are not essentials, for example shopping purchases, lunch, that daily coffee from starbucks, the sunday newspaper you never get round to reading. That sweater that you had to have as it was in the sale. Carefully pull your finances apart. The non-essential monthy spend is not a fixed outgoing. You can manipulate this figure by shopping more carefully. Supermarket spending can be reduced by buying lower priced non brand items which often taste the same. Unbranded medicine in supermarkets often contain exactly the same ingredients as branded items but are 1/3rd of the price. You will find when you take a step back that the savings can be huge. Soon you will find that you have found an extra few hundred pounds a month that can be invested into savings/investments.
- Rule 2 – Stash money monthly by automated direct debit to savings account
After identifying non-essential items above you can then setup a high interest savings account online. You can then setup an automated payment from your main bank account to your savings account. Automated saving is a fantastic way to grow cash. You can continue to increase the direct debit amount as you tweak your spending and find new ways to reduce costs.
- Rule 3 – Do not borrow money (a mortgage is ok)
Avoid Loans. Do not borrow money. If you need money then save it and gain interest. Dont give it away.
- Rule 4 – If you have debts then pay these off first before you start saving
If you have outstanding debts you should always concentrate on clearing these first before you start saving money. Your savings account interest is cover the high interest on your debt. Being debt free is the first step to becoming a millionaire.
- Rule 5 – If you drive then buy a car and keep it. Selling will lose you cash.
You will often see that a millionaire doesnt drive a brand new porsche. They know that cars are a liability. A millionaire is more likely to drive a sold volvo or mercedes and keep it for years and years. The cost of keeping a car for years is far more cost effective than selling cars and losing money with depreciation.
- Rule 6 – Read up on investment. Books, magazines and website.
Research and understand investment. Buy a book and some magazines and read about investment strategies on the internet.
- Rule 7 – Make a plan
Make a plan. Set milestones. What do you want to achieve in the next year. Make sure you set realistic objectives.
- Rule 8 – Always live below your means
Dont stretch yourself with a huge mortgage or expensive luxuries that leave you with a lack of cash left after your monthly pay cheque. Live below your means and invest.
- Rule 9 – Haggle and compare prices when you need to make a purchase
Never accept the first price. Compare and haggle. Remember you are the customer and its your money.
- Rule 10 – Invest Invest Invest
Invest heavily. Savings account (to cover at least 6 months pay cheque), shares, ISA’s, property. Research heavily first and invest in sectors you are interested in or industries relating to the sector that you work in. Invest in companies that you can see are making a difference. If all your neighbours are buying a certain product or service then the shares in this company are likely to be surging upwards.