Everyone wants to know how to become a millionaire. You may believe that you will never become a millionaire and afford the life of your dreams.
However, anyone can become a millionaire—if they set their mind to it.
You can achieve millionaire status by following time tested routines and habits. I have included what I feel to be the most important habits/routines in this post.
If you follow the steps that I will outline in this post—you are sure to become a millionaire!
1. Develop a Written Plan
The first step towards achieving millionaire status is to create a written plan.
Writing down your goals makes them tangible—and by writing them down—you make it harder to let go of these ambitions.
You should hang your long-term goals list up somewhere you will see it every day.
It’s important that you see your written plan every day.
Placing your written plan somewhere visible will help you keep your end-goal in mind and persist when times are tough.
2. Make Increasing Your Income a Priority
As Dave Ramsey says: “Your income is your most powerful wealth-building tool!”
And you must focus on increasing your income if you want to become a millionaire.
Increasing your income is crucial—as it will accelerate nearly every other process in this list.
There are many ways to increase your income including:
- Asking your boss for a raise
- Improve your level of formal education—thus, increasing the value you can potentially provide to your workplace
- Work a second job or “side hustle”
Increasing your income will not only allow you destroy debt more quickly—but it will also help you build wealth faster!
If you are making $70,000 a year you will be able to save $14,000 a year—assuming a 20% savings rate.
While someone making $180,000 a year will be able to save $36,000 a year at an equal savings rate of 20%.
These two income earners will have drastically different net worth’s by the time they retire. Assuming of course that they started investing at the same age.
Increasing your income will help you destroy debt faster, build wealth faster—and ultimately shorten the time it takes you to retire!
3. Start Investing Early
You must start investing early if you want to build significant wealth in the future!
The age whereby you start investing will drastically affect the size of your retirement fund!
If you invest $500 a month from age 22 you will amassed an investment portfolio of $2,023,746 by age 60!
If you invested the same $500 a month but started 10 years later, you will only have $762,496 by the same age!
By building an investment portfolio at a young age you’re giving compound interest plenty of time to do what it does best.
Grow your money!
For example, here is what $10,000 growing by 10% annually over 20 years looks like:
4. Develop Multiple Streams of Income
Diversifying your income is a great way to protect yourself in the event of a financial emergency. And it’s a tactic that many millionaires use today!
Developing multiple sources of income will be especially helpful in the case that you lose a primary income source.
This may be your full-time employment or a business—either way, developing multiple income streams will lessen the impact!
Thomas C. Corley conducted a five-year study on millionaires and found that:
- 65% of millionaires had three streams of income
- 45% of millionaires had four streams of income
- 29% of millionaires had five or more streams of income
Not only is diversifying your income a great way to build wealth—but it will also take a load of your back knowing that your income is safe!
Also, regularly waking up and seeing new deposits in your bank account is one of the most satisfying feelings!
Build multiple streams of income over a prolong period—and you are sure to become a millionaire!
5. Automate Your Savings
Automating your savings is one of the best ways you can secure a big, fat nest egg for retirement!
Maxing out your tax-advantaged retirement accounts like your 401k’s, Roth IRA’s or other IRA’s is a great idea.
Also, putting aside a portion of your money before it ever reaches your bank account will reduce your likelihood of spending it—and help you build wealth on autopilot!
Automating your savings will allow you to grow your wealth over a prolonged period—and pay minimal taxes at the same time!
6. Live Below Your Means
Some of the wealthiest people in the world live below their means—in certain aspects of their life that is.
This includes billionaires like Warren Buffett, Bill Gates and Mark Zuckerberg—as I will explore below.
Warren Buffett has become famous for both his intense frugality and investing prowess.
Buffett lives in the same house that he bought in 1958 for $US31,000—despite having a net worth of over $US80 billion today!
Here is a picture of Warren Buffett’s house for reference:
The house has an estimated value of $US652,619 today!
The billionaire founder of Facebook—Mark Zuckerberg, drives a car worth only $30,000!
His primary car is a Volkswagen GTI—with a manual transmission.
Another billionaire known for their frugal habits is Bill Gates (if we forget about his $63 million house).
He wears a $10 watch and insists on doing the dishes after dinner!
Need I say anything more about frugality?
Living frugally—while increasing your income is one of the fastest ways to become a millionaire!
7. Exercise Regularly
This is probably something you didn’t expect to see on a list about money. However, regular exercise is an important habit that many of the world’s wealthiest people swear by.
Cardiovascular exercise has many proven benefits for both your body and mind.
Here are some of the benefits of cardio:
- It will help you sleep better
- It reduces stress
- It gives you more confidence in how you look and feel
- It makes you feel good—by increasing dopamine and serotonin release
Here are just a few benefits of regular cardiovascular exercise.
Regular exercise is also known to increase your energy levels, which will allow you to work harder—for longer!
Verywellfit.com recommends, to improve your health through exercise, that you:
“Try moderately-intense cardio 30 minutes a day, five days a week, or vigorously-intense cardio 20 minutes a day, three days a week. You can also do a mixture.”
Exercising regularly will optimize your energy levels—and have you feeling at your very best!
8. Become More Knowledgeable
I don’t like to use clichés too often, but it’s very true that “knowledge is power”.
Continuously educating yourself is one of the most common habits of the wealthy.
No matter who you are or where you’re from—everyone has the same 24 hours in a day. What you choose to do with your 24 hours is entirely up to you.
It’s a fact that most billionaires spend a lot of time reading. The late Zig Ziglar claimed to read three hours a day.
Warren Buffett claims to spend 80% of his time reading—typically reading around 500 pages every single day.
Mark Cuban is a billionaire American businessman and investor and is the owner of the NBA’s Dallas Mavericks.
He said “I read everything I can. I don’t care what the source is,”. Mark Cuban says his reading routine takes up “four to five hours a day.”
You are sure to become a millionaire if you follow the steps/employ the habits that I have laid out in this post!
If you’d like to learn more about how to become a millionaire check out our post Think and Grow Rich By Napoleon Hill. We summarize the book Think and Grow Rich—arguably the best book on accumulating wealth ever written!
What is one thing from this list that helped you?