Easy Steps to Become a Millionaire (Hah!)

Sounds like an infomercial, doesn’t it? I love those things – they make everything sound so easy from Getting In-Shape the easy way; Cooking the easy way; Buying Real-estate the easy way; Becoming a Millionaire the easy way.

The truth is, unless you're getting a sizeable inheritance, you'll need to figure your own route to wealth. That said, becoming a millionaire is definitely within reach of those who start young and develop the right habits. And anyone, at any age, can “train” themselves to increase wealth and decrease debt.

A great definition of an Asset is something that will grow your wealth. On the opposite site, a Liability is anything that costs you money. By that definition, I’m sorry to say, your cool Car is a… Liability;  your House a…Liability.

Which will help you retire earlier? Buying a "liability" or an "asset" – something that will appreciate over time and give youa return on your investment.

We’ll boil it down into some simple steps to becoming wealthy. Remember, wealth is relative; it doesn't necessarily mean "millionaire” – financial independence works too.

Steps to wealth – when you have enough to be able to make your own choices

• Written Financial Plan
• Save Along the Way
• Spend less than you make
• Start A Business
• Use a Professional

Written Financial Plan

As a CFA, numbers fascinate me – 95%of the population never achieves financial independence;  For 65% of retirees, Social Security is their largest source of retirement income. Saying you want to be wealthy isn't good enough. You need to come up with a workable plan to get you from where you are today to where you want to be in the future. Clark Howard is a big believer in writing things down too. We offer a great starter plan for FREE Financial Roadmap (Click HERE to get yours today)

Save Along the Way

How much do I need to save to get me from point A to point B. When & where am I saving my money? Saving money is a habit. Today’s Technology makes forming a habit easy – make it automatic with systematic withdrawals from checking into your investment account.

Spend Less than you make

Again, it’s simple math. In order to save money – you can’t spend as much as you earn. You need “buckets”- there’s a bucket for living expenses (food, rent, etc) & a bucket for savings (401k, IRA, Investing). The old saying is a good one – pay yourself first. Do that by saving in your 401k, IRA, or even a normal investment account. Keep the money from even entering a “spendable area” such as your checking account.

Allow your money work for you

It takes money to make money, but that doesn't mean you need a lot to invest. Play around with any “retirement calculator” and they will illustrate the concepts you already know – the early you start saving, the better off you are; and the more you save, the bigger your nest egg at the end of the journey. 

Start your own business

In the 1996 book The Millionaire Next Door: The Surprising Secrets of America's Wealthy,  the authors state that 66%+ of the millionaires are self-employed, with 75% of them entrepreneurs, and the remainder professionals such as doctors and accountants.  Business creation is the No. 1 driver of wealth in this country.

Get Professional Advice

According to one recent study, investors who worked with a financial professional report:

• Saving significantly more for retirement (2-3x more);
• over 60% believe they know more about investments than their peers;
• 62%  said they were Highly confident about enjoying their retirement.

You more than likely already have Fiduciaries on your team (someone who’s obligated to put your interests ahead of their own): you have a Doctor give you medical advice; a Lawyer for legal advice; a CPA for tax advice. Why should your personal finances be any different?

Summary
It’s not rocket science on how-to become wealthy. You can formulate a written plan to get you to where you’d like to be, and we can help.  It’s consistently focusing on the right things – but as we all truly know, that’s what makes you successful at ANYTHING you accomplish.