Change your mindset, implement lifestyle changes, accumulate cashflow
The number one obstacle that gets in the way of someone becoming a millionaire is the belief that becoming one is unattainable. With the right guidance and attitude, anyone is capable.
Once you have a millionaire mindset, you cannot lose the drive to attain what you know is rightfully yours. Get your head in the game, and prepare to be your own boss in this life. I’ve outlined some tips for success that have helped me through the years to get where I am. Follow these steps, and don’t lose sight of the end goal. You’re on your way to becoming a millionaire.
1. Assess Your Current Financial Status
To grow, you must first know where you are. You must get everything organized on paper and asses your current financial status. Physically writing it down, you will be able to see what needs to change to achieve your goal. Be honest in your assessment. Evaluate what you earn versus what you spend and create a financial plan that will guide your upcoming journey.
Write down the following:
- Full income
- How much you spend
- Where could you cut back and save?
- Create invoices to keep track moving forward
- Write down goals: financial and lifestyle
Don’t be discouraged if doing this makes you realize you aren’t satisfied with your income and current spending habits. That is the point of this exercise. You must face what is true to make positive changes. Nothing changes if everything stays the same.
2. Increase Your Current Income
Now that you have evaluated your current financial status, assessed where you could make cutbacks, and written down your goals, it’s time to brainstorm how you can achieve these goals based on your evaluations. You aren’t going to become a millionaire overnight, and while opting to eat in more nights a week will help, you will need to increase your current income to reach your goal of becoming a millionaire realistically.
Increasing your current income may seem daunting, or even out of reach, but that is not the millionaire mindset. Look at opportunities with your current employer. Is there a promotion up for grabs or a new position within your company that offers a higher income? Talk to your employer about your goals and pitch your stand out qualities.
3. Discover New Revenue Streams
Whether or not increasing your income is possible with your current employer, millionaires rarely have only one source of income. Most millionaires have more than two streams of revenue.
Think about what skills you have that could be used elsewhere. A second income doesn’t always come in the form of another full or even part-time job. Start small and brainstorm side jobs that generate more monthly money for you like freelancing, mentoring, consulting, lecturing, blog writing, renting a room on Airbnb, or opening an online store. Regardless of how much, any extra money a month is more than what you started with.
4. Start Saving
Once you’ve figured out how to bring in more income monthly, and you’ve organized how much is coming to you, it’s time to create a saving strategy. Think about splitting your income into three categories, living costs, personal expenses, and savings.
Your living costs are things you need to spend on each month like rent and groceries while personal expenses are things that you want to spend on like activities, eating out, and holidays. You need to create budgets for these and stick to them. Your savings should be split into two accounts, a retirement plan, and an emergency plan.
The best way to keep to your budgets and stay organized is to automate your finances. Establish how much you’re going to be saving each month and create direct deposits from your account into each savings account. Ideally, depending on how much you earn, aim to put 5 percent towards your emergency fund and 10 percent towards your retirement. With the remaining money in your account, deduct what you need for living expenses, and don’t overspend on your personal expenses. It will take some getting used to, but before you know it, this method will become routine.
5. Acquire New Skillsets
There is no shortage of skills to learn. Whether you want to learn more about your current job and position to become an expert in your field or learn something entirely new to bring to the table, knowledge enables you to stand out from the crowd. Additionally, being well-versed in broad topics allows you to talk to a range of professionals and make connections. You don’t have to take classes to learn and become a more well-rounded intellectual. Start devoting time to reading more books, listening to podcasts, attending conferences, and browsing the web for seminars. Not only does learning help you professionally, but it also helps keep your brain active and sharp. Millionaires are innovative, creative, thinkers. The more skills and facts you acquire, the more you have to offer.
6. Manifest Opportunities
Opportunities rarely find you, and you must actively seek them. You must get out of your routine and explore new experiences for new opportunities to come along. Make yourself known by being active in your community and be ruthless when it comes to pursuing your goals. Being out in the world, ideas manifest and doors open that you may have never known existed.
If you’ve been sitting on a business idea and have yet to pursue it, think about the reasons why. Typically, we come up with excuses out of fear of failure. In your free time, start developing your business idea, give it attention and get out in the world and seek advice. Start it as a side gig, before you know it, that small idea you’ve been harboring could be your million-dollar baby that just needed some TLC to take off.
7. Get Frugal
Millionaires don’t become millionaires by recklessly spending and giving it away. Once you’re there, giving back is essential, and with the right understanding of your finances, you can spend on luxurious items, but not in the beginning.
If you want to become a millionaire, you need to start off by living a more frugal lifestyle. Cut down on your spending habits, especially when it comes to personal expenses, by avoiding brand products and holding off on shopping sprees. Remember, it’s not forever, it’s just for now.
8. Stay Away From Debt
One of the biggest keys to becoming a millionaire is avoiding debt at all costs! You don’t want to have balances you need to pay off weighing you down. While some debts are worthwhile investments, like schooling or a mortgage, others like credit card debts are expenditures you made without consideration in the first place.
Treat your credit card as an emergency for back up purposes only, not as a luxury for careless spending. It may seem obvious, but only spend what you know you can pay off. Get in the right habits, and leave it at home when you’re shopping and try not to online shop. Think twice before buying something unnecessary just because you can “put it on the card.”
9. Embrace Free Time
Take advance of your free time! Be grateful for moments of boredom. Being bored means that you have spare time on your hands. Time is valuable, and when used correctly, free time can enhance your overall life. Use it to learn new skillsets talked about above, or to work on side businesses, or even on personal development. You don’t need to fill boredom with activities that cost money. Learn to meditate, read, take walks around your neighborhood or city, learn a new recipe, or write in a journal. Taking time for self-care makes you a more balanced individual ready to tackle the challenges presented by the world.
Network, network, network! The saying, “you are who you surround yourself with” rings true. Put yourself out there, and meet new like-minded individuals looking to elevate their lives. Meet professionals already on the rise. Talk to people who can give advice but also learn from you. While having a plethora of knowledge is essential, knowing people is a major key to becoming a millionaire. The more people you know, the more chances you have of encountering new opportunities for success.