TomorrowMakers ™

Financial Planning

6 Actionable money tips from those who became millionaires

06 April 2017
Everyone wants to be a millionaire, but very few know how to get there. Here are some tips from self-made millionaires to help you
 

Becoming a millionaire is a matter of putting your heart and mind where the money is - quite literally. While many think that this is close to impossible, there are those who have accomplished the feat in a short time.

From working in a high paying job to investing well, and even starting your own well timed enterprise, backed with optimum efforts, there are many ways to help you on your journey to becoming millionaire. Here are some tips from millionaires who got there and beyond.

Related: 10 hacks that can save money in day to day life

1. Assessing Your Needs

To become a millionaire in 5 short years, you need to know exactly what your needs are. People who manage this feat are those who know every grocery item they require on a weekly and monthly basis. They watch every item that they spend on, and they live way below their means for these five years until their efforts start to pay off.

2. Go where the Money is

In his book for aspiring millionaires, ‘Change your Habits, Change your Life’, Tom Corley, a well-known financial planner and accountant, says that you must chart every penny you spend. It starts with being more aware of your skills and how to hone them.

3. Know your Competition

‘Price is what you pay and value is what you get’ - these are wise words offered by famous money mogul Warren Buffett. Value lies where your competition does not. This brings us to the next tip- tackling your competition. A would-be millionaire watches the market like a hawk and learns to recognize a gap, so that he or she can fill it to make a good profit. With the right innovation and foresight, you can develop a product or service that will instantly become a necessity for those who have been trying to work around this gap.

4. Find a Money Mentor

Millionaires who make money in the first five years after college or once they start working are also the ones who follow someone’s advice. So, ensure that you find a money mentor who has followed a similar path of making money in a short time. This will help you understand the steps and efforts that go into it. Additionally, when you have a mentor, you are accountable to act on this person’s direction.

5. Invest Well

Investing your money in different places is necessary to grow your dividends. While most people start splurging on expensive and luxurious items once they start earning well, there are those who hold on to their old car and apartment. They invest the extra money so that even more starts to flow in. Watch the investments these people make and replicate the efforts. But don’t forget to do your own research so that you can invest your money in a secure place. Do not get swayed by ‘get-rich-quick’ schemes that could turn out to be fake or filled with losses. “Rule 1: Do not lose money,” says Buffett, “and rule 2: do not forget rule number 1!”

Related: 4 Money management lessons you can learn from Donald Trump

6. Aim for More

If you want to earn $1 Million in 5 years, work like you want to earn $10 Million. Dreaming bigger and aiming higher are sure shot ways of getting there. This also gives you the impetus and discipline to keep at it for the rest of your working years. It’s the precise advice business baron- Richard Branson – offers, ‘Love your business, aim for more and keep creating!’

 

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