How to Become a Millionaire
When Aladdin rubbed the magic lamp, an all-powerful Genie appeared to grant him three wishes. One of his wishes was to leave his riffraff street-rat life in Agrabah, and become the rich, wealthy Prince Ali of Ababwa. If only being a millionaire was as easy as rubbing a magic lamp, we’d all be able to fulfill our dreams of wealth and financial security. Yet being a millionaire requires more than the magic of genies; it takes a lot of time, patience, dedication and knowledge for you to be on your way to your first million, and beyond. Here are tips to help you become the millionaire you always wanted to be.
Smart Work, Hard Work
It’s often the case that the world’s hardest workers are often the poorest. Working hard is only part of the millionaire’s equation; to make good money, you have to work smart. You can think of it this way: to be a millionaire, you have to take on a job that puts you in a plush office at the top floor, instead of sweeping the front lobby on the bottom floor.
From the get-go, you need the right educational background to land yourself a job with a lucrative salary. Just because Bill Gates was a college dropout doesn’t mean that you can follow in his footsteps with the same success. With the proper education, you open up more opportunities for yourself to make a lot of money, and at the same time apply your skills to the work that you do.
Think of the Long Term
Unless you win a million-dollar game show or a very wealthy relative leaves you a hefty inheritance, there’s no such thing as an “instant millionaire.” Making a million requires a lot of foresight and careful financial planning. It takes years or even decades for people to reach seven-figure values. You’re planning your millions for the long term, which also means that you should find ways to keep yourself a millionaire. Hit the books, listen to sound financial advice, and apply your financial knowledge to savings and investments you make.
Save and Invest
Some people think of “savings” and “investments” as the same thing, but they are completely different from each other. The key to making your first million is to know the difference between the two, and how each of them can help you reach your dream of seven figures in the bank:
Savings. Money you put in the bank is savings that generates interest. The amount of interest added to your money may not seem like much (say, 2% interest), but it’s very important to keep that for you to remain financially stable. There is no millionaire in the world without substantial savings in at least one bank, and you should be no exception.
Investments. Whether it’s land or business partnerships or shares in stock, almost every millionaire relies on investments to generate income. Start off with small investments that you can afford, and with the right decisions you’ll be well on your way to gaining more solid ones, like real estate and company shares. In time, you may have the money to make your own company, and you can sit back and watch your market value increase.
Remember that savings and investments always go hand in hand. If you choose a good, stable bank that offers reasonable interest for your savings, and if you choose the wise solid investments to keep money flowing in, you’re well on your way to your dreams of becoming a multi-millionaire.
Take Calculated Risks
There are many “get-rich-quick” schemes that seek to dupe people into putting their money into pyramiding schemes, illegal networking schemes, and extortion rackets pretending to be legitimate businesses. Remember the old saying: if the deal sounds too good to be true, it probably is. All business prospects are always risky; while it helps to play on the safe side by taking small investments and shares from very safe and stable businesses, it’s quite difficult to earn a million in time.
When faced with a risky but promising business prospect, always weigh the pros and cons. If you’re not comfortable with a high-risk, high-reward business prospect, you’re better off letting it go for a low-risk, low-reward investment. Keep this rule of thumb in mind: the higher the amount of money you have the potential to make from an investment, the riskier it is.
Don’t Give Up
Being a millionaire is tough, patient work. It takes a while before you get your first million, and there’s a good chance you may not even be able to make it at all, especially with the way the economy is now. The important thing to remember is not to give up; there are many millionaires in the world, and there are no reasons why you shouldn’t be one of them. If you plan to become a millionaire, you should be a millionaire in things that make money: perseverance, patience, and persistence. Remember to focus on your goals. You’ll run into a few road blocks well into your road to your first million, and those wouldn’t be the last. With the right business and financial decisions, plus a lot of hard work and perseverance, that million could be yours.