Roughly 1 in 30 English speakers are millionaires. How to become a millionaire is a matter of only 3 key things, but 29 out of 30 people don’t know how to become a millionaire and never get there. Being a millionaire is fun. It opens options for lifestyle choices and although money dosen’t buy happiness, it helps a lot. If you have a think, chances are you know a millionaire already and likelihood is that you are already in quite a good position to become a millionaire once you know how and decide.
Across English speaking countries, about 3.5% of people are millionaires. Around the world, there are over 25 million millionaires. That’s a lot of ways to become a millionaire!!! So think about your knowledge, your current net wealth, your other skills and assets, can you shift to the millionaire level?
Have a look at these stats on Millionaires around the world which I pulled together from around the web.
|Country||Millionaires||Population||Millionaires as % of Pop|
|China (incl Taiwan, HK)||1,056,000||1,354,486,300||0.1%|
A few countries like Switzerland, Sweden, The Netherlands, Qatar and UAE are likemillionaire city with more than 5% density of millionaires!
You can do it too.
Here are the 3 keys to get to become a millionaire:
- Spend less than you earn
- Leverage your assets
- Keep going
The major variable is time and how well/fast you execute determines how long it will take you. Yes, it really is that simple. Some would call it the Millionaire Mindset, but it is basically a decision, action, commitment and time.
Spending less than you earn is the first step to a million
This is also the point of intention or decision. Either you decide to spend less than you earn or you don’t. One way or another you have to get over this point if you want to become a millionaire unless you inherit money. After you have worked out how to keep your costs less than your income, your goal is to maximize the difference between your costs and income.
Maximizing the difference between your costs and what you earn comes down to one question:
If I spend my time today focusing on minimizing my costs, will I save more than I will make if I spend my time focusing on increasing my income?
Now keep going, continually focusing on either your costs or your income day-to-day, month-to-month, year-to-year. The above question is really good because many people have an unbalanced tendency to either focus on saving money and forget to increase earnings or they focus on earning money and forget to keep their costs under control. Focus on both is good. There is nothing wrong with increasing your costs if you increase your income more. Sometimes you have no choice like in the case of leveraging borrowed money to buy a house.
Once your intent to become a millionaire is aligned with your actions to become a millionaire, staying the course will make you a million dollars then more.
When I look back over my experience and look at the advice of other millionaires, I believe you will find that all available advice falls under these 3 critical keys of Spend less than you earn, Leverage your assets and Keep going. There are a couple of extra things if you want to become really rich, but becoming a millionaire is more or less maths. Here is another way to look at it.
|Current Age||Years to Save||Weekly Savings Needed||Monthly Savings Needed||Annual Savings Needed|
The above is calculated with 8% annual return and retiring at 65, but there are so many variables. The key take away is:
It is much easier either if you start early or save a lot or both
Never the less, starting today is the best tip, even if you can only start with a few dollars per week, make a start, it will get easier.
Leverage your assets
Once you are over the decision and have committed to spending less than you earn, the next step is to leverage your assets. You need to leverage something. It doesn’t really matter what you leverage, and there are many examples. Leveraging a few things together will get you to a million fairly simply over time.
Be open minded when you think about what to leverage there are literally hundreds of examples. Make a list of your skills and assets and think about how you can leverage them better. Here are a few examples:
- Knowledge – Leverage for a pay rise, a better paying job or something on the side
- Ability to learn – Leverage for further study and a promotion, learn about investing or start something on the side
- Courage – Leverage to ask for a raise – good things come to people who keep asking
- Good on the phone – Ring around and save yourself money on utilities and other costs
- Spare stuff you don’t use – Sell it on Ebay (This is called dead money. Money sitting in low interest bank accounts or under the pillow is also dead money – make it work for you)
- Good relations with other people with spare stuff they don’t use – sell it for them on ebay
- Good at crafts – Make stuff and sell it at a market
- Good at music – Why not give a couple of lessons and put that money into saving
No matter what assets you have or what you are good at, you will find a way to utilize it better if you have a think about it and do some research. It is possible to monetize more or less any hobby nowadays. Once you have the income, simple savings discipline is good for a start, but shares are good, houses are good, businesses are good, even collections of art has its place. It doesn’t matter really, do something you like.
Now keep going
Finally, you need to keep going. Getting to a million is not about doing anything radical. it is about staying the course. Here you need to maintain your costs below your income and continually improve the leveraging of your assets.
- Patience is a virtue
- Be consistent
- Look after yourself so you have energy
- Stick with what you know
- Get advice from people who have achieved success
- Learn what motivates you
- Focus on small steps
You can do it, UR Awesome!!!
This post was inspired by the great advice being offered by Brendon in his 2013 Experts Academy. The free videos are great to check out if you have any inclination at all to make money online one day. Either way, now you know how to become a millionaire, take action today.