How Do You Become a Millionaire?
When I was a kid, I used to think millionaires were only the people I watched on television.
I believed Hollywood celebrities and musicians are the millionaires, and I’m just a normal person who would never have millions of dollars.
I wasn’t born rich, and the only way I thought it would be possible to become a millionaire was to win the Powerball lottery.
And I actually believed this for a very long time…until I read a very interesting book that changed my perspective.
This book is called “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy”.
Once I started reading this book, I couldn’t put it down because it gave me hope that one day, I’d become wealthy. The content of the book gave me a million dollar blueprint to follow.
There are 7 factors that will determine if you’ll become a millionaire. All of these factors are described in detail in the book, but I’m going to share with you 5 of the biggest learning lessons I took from reading the book.
I highly suggest you grab yourself a copy of it and read it for yourself, so you can understand completely what it takes to become a millionaire.
Factor 1: Millionaires live well below their means
Most people are surprised to find out the majority of millionaires are really frugal. They spend a lot less money than what they earn.
They’re not balling out in a Porsche or Ferrari. And most of them will never lease a car. They aren’t spending their whole paycheck on things they don’t really need.
The millionaire next door wears inexpensive suits and drive regular cars (The book describes how most of the millionaires surveyed drive American made vehicles, but I own a Honda). They’ll drive their car until it doesn’t run anymore.
In the past few years, I’ve really learned how to live well below my means. Sure…I occasionally spend a little extra money and treat myself to something nice once in a while, but I still save and invest over 20% of my salary annually.
Factor 2: Millionaires are masters of allocating time, money, and energy efficiently
Millionaires don’t waste time on any activities that aren’t congruent to making money. Most of them probably aren’t spending endless hours scrolling through Facebook or Instagram feeds. I doubt if any of them binge watch Netflix.
Instead, millionaires are laser-focused on the next move that’s going to generate another stream of income for them.
I find myself always thinking about ways to make money. This year alone, I’ve started an online eBay business and am averaging about $7,000 of monthly sales revenue.
I also started hosting a AirBNB rental property and have earned approximately $1,000 dollars in the first 5 weeks.
I’m not quite a millionaire yet, but I try to allocate my time, money, and energy into finding ways to make more money in addition to my day job.
Factor 3: Millionaires think it’s more valuable to be financially independent than to display high social status
The majority of millionaires are very low profile. Contrary to pop-culture you’ll see on television, they’re not wearing the latest designer label clothes along with gaudy jewelry.
There might be certain exceptions where you’ll see a millionaire living lavishly, but they’re definitely not the common millionaire. The person you see wearing the thousand dollar outfit or the newest iPhone is probably living paycheck to paycheck.
I won’t lie. There was a time in my early 20’s when I liked to show off. As I’ve grown older, I’ve stopped trying to display a high social status for the sake of boasting. I used to be the guy who wanted to impress others by pretending to live lavishly.
The truth is, I was a broke bum just faking it because I was seeking attention.
Factor 4: Millionaires are very good at identifying opportunities to make money
I’ve been a victim of the get rich quick scams. It was a multilevel marketing pyramid scam that promoted legal insurance. The organizers promised me endless wealth…all I had to do was get my family and friends to sign up for legal insurance.
It was a complete waste of money and time, and I never made a dime, but at least I learned not to fall for that kind of stuff anymore.
Self-made millionaires are generally smart people. They don’t fall for the get rich quick stuff, because they know it’s too good to be true.
Instead, millionaires invest their money in real estate, stocks, or real businesses that generate revenue.
Factor 5: They choose the right occupation
The majority of millionaires are self-employed entrepreneurs. They don’t work for someone else. They make their own money. However, professionals such as lawyers, doctors, engineers, and CPAs can and do become millionaires.
These occupations are highly paid and a lot of theses highly paid professionals are smart enough to invest a large amount of their money in real estate or stocks.
That’s the way you become the millionaire next door. I’m slowly building my wealth and I do feel on track to becoming a millionaire. I think it’s pretty easy to become a millionaire once the correct foundation has been established.
Do you agree or disagree? Sound off in the comments.