We all make New Year’s resolutions to improve ourselves one way or another. It can be a resolution to lose weight or to be a better person or to save more money for retirement. But it is very rare that we make a resolution to become a millionaire. Why not? Are we too comfortable enough with our financial situation? Is ‘becoming a millionaire’ a topic that is taboo? If you’re serious about becoming a millionaire you may want to work with a financial advisor, to figure out what your options are.
Most people think that if they pursue money somehow they will lose their family or they will be perceived as ‘greedy’ or ‘evil’. If you have this kind of thinking, you will less likely to become a millionaire. Having a lot of money gives you financial freedom. Freedom to do a lot of things that could have been impossible otherwise. Therefore, we must believe that money is good.
Becoming a millionaire is not an unrealistic dream, and you can reach millionaire status even if you did not win the lottery or inherit a big chunk of money. With determination and hard work, you could be on your way to becoming a millionaire. Here are some of the best money tips you should follow to be a millionaire this year.
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Money Tips to Become a Millionaire:
Tip # 1: start your own business
The first money tips to become a millionaire this year is to start your own business. In my opinion, starting your own business is the best routes to becoming a millionaire. Most millionaires are millionaires because they have their own business, and very few reach that status by working for someone else. When you have your own business, you don’t share the profits with nobody but yourself and business partners (if you have any).
Whereas when you work for somebody else, you just earn wages, and your wages can only can only go up a little bit over a long period of time.
While it is possible to become a millionaire by working for somebody else, that process can be a slow one and can take up to 30 or 40 years.
Tip # 2: focus on paying off debt and avoiding new debt
Whether you have personal loans or have a few hundred or many thousands owing on your credit cards, you have to find ways to pay off the full balance on your credit card each month to avoid interest. Interest on these type of debts is not tax deductible and is usually quite high.
If you are paying a lot of interests on your cards, you might not have left over money to save up or invest. Thus, it will take you longer to reach millionaire status. So the sooner you get them paid off the better.
Just as it is important to pay off debt, it is also important to avoid (bad) debt at all cost. A bad debt is a debt that does not benefit you. For example a credit card debt is a bad debt; whereas a mortgage debt is a good debt.
Avoid credit card debt at all cost. Treat a credit card as a way to build your credit score. You buy something with your credit card, then you immediately pay it off. When you go on shopping, leave your credit cards at home to avoid any impulse buying.
Tip # 3: focus on increasing your income
The more money you’re earning, the quicker and the more likely it is for you to become a millionaire – assuming, of course, your spending and expenses are under control. There are several ways to increase your current income. One, you can ask for a raise at your current job. Whether it is part time or full time, you can always negotiate your salary.
Or, there might be a promotion within your company that could offer you a higher income. Second, you can apply for another job in your field with a higher pay.
Tip # 4: focus on generating multiple income streams
Millionaires always have more than 1 income stream. You should too. This includes real estate investment, having their own business, and their typical 9 to 5 job. So to become a millionaire, you need to have two or three revenue streams that can generate money for you on a monthly basis. Related: 5 Passive Income Streams That Will Make You Rich
Tip # 5: Invest in stocks.
Investing in stocks is one of the best ways to become a millionaire. Investing in stock has higher risk than a savings account but will usually provide higher returns over the long term and will more likely make you rich.
Investing in the stock market can be intimidating if you are a beginner. However, a financial advisor can help you put an investing plan together. You can start by opening a 401k plan with your employer or opening a Roth IRA. You can also consider a mutual fund or exchange traded funds (ETF). They can be a low cost way to gain exposure to growth assets without a large up-front investment.
If you want to pick your individual stocks and does not how, educate yourself or consider getting financial advice.
Tip # 6: Invest in Real Estate
Some of the wealthiest people on the planet made their money in real estate.
So, investing in real estate is not only a great way to becoming a millionaire, but it is also a great way to making passive income. At first, it can be an active venture. As with all income streams that are passive, it takes a significant amount of time and effort on the front end.
It also requires time to seek and acquire properties, to come up with finances, etc. But when all of that is done and your property is fully rented, it’s mostly a matter of managing the property and keeping it performing well.
Property management can make the investment much more passive for you. Those property managers can manage your property for you, usually 10% of the monthly rent.
7. Start a Blog
A blog, regardless of the niche, can provide you with tremendous amount of income. A blog requires a lot of time and work to succeed. It can take quite a while before you start making money as a blogger.
Once your blog becomes popular, it gives you the platform and audience to generate multiple streams of revenue by monetizing your blog.
I created my WordPress blog on Bluehost. BLuehost is one of the best hosting companies out there. You can start your blog with Bluehost for as low as $3.95 a month. The regular price is $7.99 a month, but you get it for $3.95, which is 50% off the regular price.
You can monetize your blog in two ways: (1) Affiliate marketing, (2) Ads. Affiliate marketing can be a great way to make passive income because when people click on the affiliate links, you receive a commission at no cost to them when they product or service.
The second way you can make money by starting your own blog is from advertisements that you put on your blog. A good example is Google Adsense or Commission Junction. When someone clicks on your ads, you get a commission. See our beginner’s guide to making a blog.
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