There is no doubt that almost everyone is familiar with this popular TV game show. Why is this show so appealing to viewers? The simple reason is that it resonates with the deepest desires of almost everyone we know; the dream to be rich. People watch this show because most of us want to be millionaires.
But how to be a millionaire? Is it even possible to realize that dream, or is it just a fantasy? The only person who can answer that question is you. But you do not answer it by simply saying yes. The answer lies in taking financially intelligent steps every day to bring you closer to your goal of wealth.
What are those steps?
The steps to retire as a millionaire
Becoming a millionaire is something that happens by a process. Most people are only interested in overnight events that will transform them into millionaires, such as winning the lottery. They have no interest in committing to a process.
If you are one of the few who is ready to stop dreaming and start doing something about your dream to retire as a millionaire, Upkeep Media shares steps on how to do it:
1. Cultivate patience
Haste is your biggest enemy when trying to become a millionaire. Building your capital and expertise to the point where your earnings are big enough to make you a millionaire takes time. Despite what you see on TV and the internet, most millionaires do not achieve this overnight.
Success results from a combination of patience, competence, self-discipline, and audacity. If you are unwilling to develop these four qualities, you will waste your time following deceptive shortcuts that promise you a quick road to wealth.
2. Educate yourself
A few people have become millionaires by luck, but many of those lucky millionaires have eventually ended up losing their luck and money. Many millionaires found their way to millions by following a plan, not by chance.
Your journey to making millions begins in your head. The more you know about making, managing, and investing your money, the more likely you will be a millionaire. You can start your learning by joining the FIRE (financial independence/retire early) movement.
3. Start saving
The fact is you cannot save your way to becoming a millionaire. It would take too long to achieve your goal if you used this method. So, what then is the purpose of saving?
Saving your money does two things for you. It instills financial discipline. Without this, it is virtually impossible to become a millionaire. Secondly, it will help you set aside enough money to serve as the seed for planting your money tree. Your money tree is the instrument you want to use to launch yourself into millions.
4. Buy a smaller house
The standard financial advice you hear is that your home is an investment. But while your home is a store of wealth, it is really not an investment. It does not earn money for you, and the only way to make money from it is to sell it.
This is not to say your home is not important; owning a home is essential. But to help you save more money, it is advisable to buy a smaller home. Your mortgage and your maintenance costs will be lower.
5. Invest your savings wisely and aggressively
You become a millionaire not only by saving but by efficiently deploying the saved money. You will never make more money than your chosen wealth-building instrument allows you to.
That’s why the avenues you use to build wealth are very important. What are the best investment options for becoming a millionaire?
- Stocks and bonds
Investing in stocks and bonds is one of the tested ways to earn more returns than what you’d get by only saving your money in a bank. When buying equities, make index funds your priority.
High growth stocks and buying shares of companies before they go public are two highly profitable strategies. Foreign stocks may also offer better returns and stability than domestic ones. The downside of investing in stocks is you have to start early to meet your target of retiring as a millionaire.
- Real estate
No industry makes more millionaires than the real estate industry. Almost every billionaire or millionaire you can think of is heavily invested in real estate.
Investing in real estate has several advantages over investing in stocks. You have access to unlimited leverage in the form of loans. You can use your equity in one property to buy another property.
Real estate offers you more control over your investment. It is more stable than stocks, and there are different strategies you can use when investing in real estate.
Also, with real estate investing, you can still retire as a millionaire even if you did not start early. Lastly, you can make real estate as passive as stocks by hiring a property manager to manage the property.