Becoming a millionaire is a choice. But how to become a millionaire is something most people don’t know.
“A wealthy person is someone who has learned to make money when they’re not working,” says Robert Kiyosaki, American businessman and author, best known for his book ‘Rich Dad, Poor Dad.’
If you are thinking how to become a millionaire in 365 days, Kiyosaki’s words are your first lesson.
There’s an old saying, that millionaires have at least seven sources of income. Quite likely. You might not have as many streams to get cash but there are definitely ways and means to become a millionaire in 365 days. That’s right: 356 days or 12 months.
How to Become a Millionaire
It starts with your mindset. To get that very desirable tag as ‘millionaire’, you need to think and act like a millionaire. Therefore, let’s explore how to become a millionaire in 365 days.
Keep Limited Goals
Usually, millionaires do not have muchgoals. Instead, they pick a few goals that lead to money and keep it growing. Having too many goals means you spend a lot of time on each one. The end result of too many goals is ordinary life.
Choose only those goals that lead to money, money and more money. Regardless whether you are working or have small enterprise, your main focus should be on making money.
Find some ways to increase income if you are employed. Try freelance and part-time jobs that pay well. Working two or three hours a day daily or occasionally can be pretty enjoyable.
Billionaires have clear, specific goals. You could definitely try these out. After all, billionaires too are human and not aliens or supernatural creatures and hence have similar life patterns in several ways. Once you know how these richest people in the world set goals, creating one for yourself becomes simpler.
Time is Money
Yes it is. And we waste a lot of time on useless stuff. Nobody denies your right to entertainment, socializing and other leisure activities. They are very necessary to live happily. But consider the long hours on commute and other useless activities. And of course, the time you waste at work.
A survey by Salary.com which finds mention on Forbes clearly indicates, at least 30 percent employees waste more than 30 minutes daily at workplace. An equal number waste an hour every day while 16 percent fritter away as much as two hours.
Why? There are various reasons. A poll by CareerBuilder reveals, employees waste time using technology such as instant messaging, social media and email. Yet others were found to waste time sleeping under pretext of praying and various other activities.
Instead, you can utilize this time to increase productivity and get better income. Cutting out commutes might be impossible if you are working. Yet, you can ask an employer to consider offering you work-from-home job or begin freelancing.
In sharp contrast, millionaires rarely waste time. They plan each day for success. Millionaires have proper schedules and spend time and effort only on work that makes money.
Write Your Financial Plan
It’s OK if you don’t have a huge income. Find out what you have and possibly what you are worth at this moment. Not having enough money right now doesn’t stop you from writing a financial plan.
Writing a financial plan is fairly simple and easy. What’s exactly a financial plan? In simplest terms, it is a list of your financial goals for the next few years.
Write about how much money you want in a bank account or investments within the next three to five years. And write about what you will do to get this money.
This means, you have to put down on paper or computer, your present income, expenses and savings. And go about finding how these would help to get to your financial goal.
A good financial plan is your roadmap to become a millionaire. It will give you a clear idea of how to go about becoming a millionaire in the fastest possible way.
Find Newer Sources of Money
Your financial plan might indicate you do not have sufficient money to become a millionaire in 12 months. That’s not reason to worry. Find newer sources of money.
In case you didn’t know, you can make money from the comfort of your home. Download an excellent app on your smartphone that helps make money for completing small tasks that pay $10 or more or testing other apps that give you as much as $50 per task.
There isn’t any need to take time out for these tasks: you can complete them during commutes or simply while lying on your couch.
Consider freelance work for a couple of hours or provide consulting services. Gig economy of the US is on the roll. Nowadays, businesses around the world outsource some tasks from freelancers and online consultants.
It’s possible to earn big money and inch closer to becoming a millionaire in 12 months. Crowdsourced jobs is something you can look at to earn more money.
Income Minus Savings
Perhaps you’ve heard this before or read about it somewhere. Another sure shot way to become a millionaire in 12 months is to follow this simple idea: Income minus savings equals spending.
Always take out the money you wish to save from your income first. You can spend the remaining.
Most millionaires save at least 20 percent of their income, though they may never have to dig into their savings accounts ever. You can start by keeping aside 20 percent of your income and keeping it in a separate bank account. The remaining money goes for meeting household and other expenses.
You’ll be surprised, but this idea always works. We gradually learn to meet our needs with the remaining money and never miss that 20 percent or more we keep aside. If it suits you, consider you never had that 20 percent money.
Save Up Pennies
Now that you’ve put aside at least 20 percent of your earnings, start saving pennies and coins too. Buy a large coin jar or make one yourself using an old container.
Drop your change into this coin jar daily. You’ll be amazed how much all those coins add up to at the end of the year.
In fact, Americans throw away more than $62 billion worth coins every year, says one waste management company. The amount is much higher since figures from other sources are not available.
It’s fairly understandable that carrying too many coins is a hassle. And it’s pretty tough to exchange them for notes.
Yet, there are banks and credit unions that will readily exchange your coins provided you sort and roll them properly. That piggy bank or coin jar will be worth several hundred, if not thousands of Dollars by end of a year.
Start Investing Now
Tomorrow never comes and will never come too. Instead of waiting to collect a large sum of money to invest, you can begin right now. Using a free app such as Robinhood or Webull among others, you can start investing with as low as $5. Some apps also offer $3 cashback on your first investment.
Unless you have a financial advisor, which you most likely won’t, the best way to start investing is through these free apps. They also provide excellent tips about where to put your money and how much to invest in a plan, scheme, stocks or commodities.
Diversify your investments, even if you can afford only $5 each time. Investments that pay highest returns include Mutual Funds, Exchange Traded Funds, stocks, commodities, precious metals and foreign currencies, among others.
Eliminate Debt & Credit
Annual Purchase Rate or APR is a type of interest that banks and other lenders slyly use to make you pay stiff interest. When you buy something using credit card but don’t pay the full amount, the bank or credit union charges APR on the unpaid balance.
You might end up paying as high as 32 percent interest on the stuff bought using credit card by availing ‘revolving credit.’ Reduce your credit card spending, pay full amount and aim for elimination of debt at the earliest. You’ll be amazed how much money you save this way.
Ditto for other loans and mortgage. Step up repayments where possible to reduce debt and credit. It gives you more money in hand. Follow some excellent tips for eliminating debt. It has two advantages: peace of mind and more money in hand.
Sell that Clutter
Look around your house, closet and everywhere. You’ll definitely come across a lot of useless stuff- from furniture to garments lying around. Sell them off on Craigslist or consignment stores and make money. You can invest this money and make it grow.
There’s several websites where you can sell the stuff too. Though the money you get might not really add up to much- remember- every drop makes an ocean. If nothing, it will give your home that neat and tidy look while money you get works to earn you more.
If you are given to buying designer or branded stuff, exchange old clothing for vouchers at consignment stores. Not only do you save a lot on buying clothes, it also enables you to but that wonderful dress or suit.
Cut Unwanted Expenses
Your cable TV or DTH is the best example how money goes waste. Cable TV and DTH providers have this system of bundling up channels. Means, you would pay for a channel package that features only one or two you would really watch. Yet, you are paying for those you never watch. Eliminate such channel packages.
Cutting the cord – as it’s called- isn’t a painful experience. In fact, more and more Americans are getting rid of cable TV and DTH due to high cost and low viewing. Instead, they are shifting to Netflix, Amazon Fire TV and Over the Top (OTT) modes for entertainment.
An average American household spends between $60 and $110 per month on cable or DTH. The newer modes of watching your favorite shows and movies cost a fraction.
Again, the money you save is useful for investments and making it grow to your advantage.
Avoid Vices & Addictions
Vices and addictions are the greatest enemy to become a millionaire in 12 months. Unfortunately, Americans rank second on the ‘League of Shame’ of Global Drugs Survey in alcohol consumption.
On average, an American drinks 50.3 times a year while USA is also a major cannabis or marijuana consumer. Additionally, compulsive gambling also affects about 2.6 percent of America’s population.
Such vices cost money. What you drink or smoke doesn’t come for free: you are paying hard earned bucks for the stuff. And you might need to pay for treatment of addiction related health issues.
Instead, stay away from all vices. Alcohol and drugs don’t come cheap. There’s penalties for Driving under Influence (DUI).
Staying away from drugs and alcohol would improve your focus on reaching every financial goa.
And finally, staying healthy is extremely important if you want to become a millionaire in 12 months. Without proper physical and mental health, there’s really little you can do to get rich.
Most millionaires and billionaires have a schedule that includes fitness activities. They also consume healthy food while maintaining habits to stay away from sickness.
Staying fit doesn’t mean you rush to that exclusive gym or join a fancy club that has pricey membership. Walking, bicycling, jogging all help stay fit. Take an activity that you like. Staying fit relieves stress and puts you in the driver’s seat to become a millionaire.
How to become a millionaire in 12 months depends upon your efforts. Nobody else will help you on this journey. It can be lonely and sometimes, scary too. No millionaire ever had it easy. Were it so easy and simple, the world would be full of millionaires. There are hurdles on the way. Yet, thousands of people do become millionaires by following these simple steps. You could be one too.