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Historically, the term “Millionaire” was frequently associated with those who came from a privileged background or won a big lottery. For the majority of ordinary people at that time, having a boundless bank account or assets that are valued at millions of dollars was seemingly a daydream. However, the inspirational stories of self-made millionaires have proven the opposite. In this article, we will summarise the best ways to reach millionaire status and reveal common habits that help you realize this dream.
The Best Ways to Become a Millionaire
Pursue a Successful Career
Many young adults insist that doing a nine-to-five job, even in prestigious companies, cannot help you in generating a seven-figure salary per year. However, this perception is wrongly made. Wandering around the job market for highly-qualified workers, you can see handsome incomes they receive depending on their posts and expertise.
According to Levels.fyi, Principal Engineers at Google can obtain the average annual wage of over one million dollars. Meanwhile, a Partner Managing Director at Goldman Sachs anonymously shared on the Quora thread about his substantial compensation of 5 to 6 million dollars per year. Those earnings include base salary, stocks and other bonuses. In turn, they have to work extremely hard and spend a long time to acquire those salary levels, not to mention incredible stress and heavy responsibility at work.
Generally, going on a professional career path is not a quicker way to earn a lot of money, but always proves safer.
Build up Considerable Savings
Saving up is always a keyword behind the financial success of numerous self-made millionaires. PNC Wealth Management – a wealth advisory member of PNC Bank – conducted an extensive survey on American millionaires. It deduced that 56% of the respondents started saving frequently from an early age, which most impacted their later affluence.
Thomas C.Corley, who spent five years researching major ingredients for the success of 177 self-made millionaires, also comes to the same conclusion. The savings range from 10 to 20% of their after-tax incomes. Besides, they choose a frugal lifestyle by giving up luxury shopping habits and reducing unnecessary expenditures on costly jaunts or exorbitant dishes in top-tier restaurants.
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Inevitably, depending on incomes or returns on existing investments and when you wish to achieve your savings target, the monthly goal will vary.
Develop Your Intellectual Property
If you have any unique creations, you can turn them into marketable products and services that give you a fortune. Common intellectual properties entail works of art and literature, copyrights, trademarks and patents. For instance, a composer often charges from $5 to $1,000 per minute of his finished song based on his fame and more. Even a software architect may publish nonfiction about his area of expertise or program a specialized software to encourage the app-building procedure and then make money from such creative products.
The recent booming of social networks (e.g. Facebook, Instagram or Tiktok) also supports millennials to advertise their intellectual inventions across the globe and reach a wider audience. This concurrently improves their profile and turns them into young millionaires.
Many individuals choose to upsize their reserves by doing business. This method is considered riskier and sometimes more challenging than building up passive funds or having a long-term income from a permanent job. Provided you have a brilliant idea and work out a definite business plan, you can commence with operating your own company.
Starting up is always involved in a heavy workload and severe strain. Nevertheless, various entrepreneurs with efficient and immediate strategies can drive their companies out of difficulties and thrive positively. In other words, high business growth will translate to great returns and quickly magnify the businessmen’s net worth.
Participate in the Real Estate Market
The buy-to-let investment in real estate has so far flourished as one of the fastest ways to become a millionaire. Rather than living in purchased accommodations, first-time buyers will receive active incomes from renting out. Besides, thanks to inflation which explains the increase in the property’s value, investors may get on the property ladder and earn considerable amounts from this venture.
Though, the real estate market also accompanies high stakes. Indeed, it is hard to predict the subsequent trends of the market, not to mention that you have to fork out for housing. Accordingly, this investment method can either make you become a high-net-worth individual (HNWI) or pose you to worse financial chaos. Therefore, before jumping into this high-risk venture, you had better be well-prepared for fluctuations in the market.
Devise Investment Strategies
One aggressive tactic to earn millions of dollars overnight is making smart investments in financial instruments such as fiat currency pairs, stocks or bonds. The greater investment you make, the higher after-tax incomes you can receive. Even in case you want to start small on this side hustle, brokerages now provide you with the leverage tool and CFDs (Contracts for Difference) services that allow you to trade financial assets without ownership.
Either way, you will generate a lot of money if you make accurate predictions of later market trends. Otherwise, you may face big losses that are induced by improper trading plans or unexpected market movements. Therefore, being well-equipped with in-depth knowledge and tremendous analysis is a must, no matter which instrument you place bets on.
What Should I do to Become a Millionaire?
Regardless of the chosen path to become a millionaire, the wealthy mostly reveal several same tips and form some motivational habits to help them achieve their goals in the shortest possible time.
Formulate a Financial Plan
Regardless of investment strategies, setting up a financial plan is advisable to help you know where your money goes. This financial scheme should include financial goals, monthly cash inflow from the main source of income and investment plans, expenditures on tax payables, insurance, necessities, debts, emergency funds and retirement plans. Moreover, to hit a bigger financial goal, you should establish smaller objectives beforehand. Finally, it is important to anticipate the possibly worst cases and find ways to continue getting on the predetermined track.
Monitor Your Progress
Tracking your progress is essential despite short- or long-term goals you want to achieve. The availability of multiple apps and software products (e.g. Personal Capital, You Need The Budget or MoneyNote) facilitates your budget management whenever and wherever possible. With simple manipulation and layouts,
Consult a Financial Advisor
According to PNC Wealth Management, the seed of wealth lies in a fruitful collaboration between individuals and financial experts. 77% of the investigated millionaires consult professionals about investing/savings plans or money management. Further, 53% of the surveyed subjects also claim to equip themselves with financial acumen and make their own judgment in lieu of merely depending on advisors.
Other studies reach a similar consensus as well. The research of the Hongkong and Shanghai Banking Corporation (HSBC) deduced that those who draw up a retirement plan with the full support of Thus when you do not know what you should do to monitor your funds effectively, you had better hire a financial specialist.
Be Diligent and Persistent
When being asked about must-have qualities behind their financial success, HNWIs all appreciate hard work. Sam Degon, a founder of Financial Samurai, shared that he started working at 5.30 AM and did not leave the office until 7.30 PM. This striking attribute was well-recognized by his colleagues and manager. Further, working diligently helps pay all debts early and quickly build up your reserves, which consequently minimizes existing concerns of retirement and worry-free life when you get older.
Besides, self-made millionaires also consider other important criteria including “discipline”, “good decisions” and “luck” as great motivations behind their financial success. Indeed, having a net worth of at least one million dollars is not so easily attainable as eating a piece of cake. This goal requires your persistence, sensible decisions on investment and sometimes big luck.
Extend Your Education and Expertise
Learning is always ongoing, no matter whether you either want to master your profession as a software engineer or learn about totally new things like currency speculation. Many individuals make an efficient investment in education to advance their expertise and necessary skills, which accordingly gives them enormous earnings.
Education is not limited to any qualifications that are only acquired at university or college, but rather extends to work and daily experience. For instance, you may learn from the mistakes of other entrepreneurs before doing your startup. Even when you fail to build your own business multiple times, such failure is also a valuable lesson to help you flexibly deal with problems in operating a new company later.
Establish a Supportive Network
Networking and setting up a good association with different parties play a key role on the way to becoming a millionaire. Building up lasting relationships with colleagues helped Sam Degon land on the vice president post at the age of 27. Even when you start your own business or make an investment in forex or real estate, assistance from others is inevitable. They may give you incentives and sound advice to drive the firm, or be your right-hand men in the company. They can be seasoned financial professionals who help prepare the written savings plan. Regardless of their role, they act as an indispensable part of your success.
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