Categories: Career

How To Become A Self-made Millionaire

It’s fun to dream and have great ideas to become a self-made millionaire. There are diverse reasons and subjective reasons people strive to become wealthy. It could be a result of a wish or goal to experience a good, comfortable, decent, and fulfilled life; probably, you are tired of being poor and unable to satisfy yourself, your needs, or your wants.

Another reason could be fulfilling a strong desire to help people and empower people. To be of assistance to the needy. Notwithstanding the justification behind wanting, wishing, hoping, striving, or working towards accomplishing the dream of becoming a self-made millionaire. There are nine effective steps on how to become a self-made millionaire.

Before you read these nine effective steps to become a self-made millionaire, it’s essential to note that these steps are effective for anyone. Irrespective of any age, location, profession, career choice, or business you engage in.

Becoming a Self-Made Millionaire:

9 effective steps that would guarantee your status as a self-made billionaire

1. Develop a Rich Mindset

In the Book “The Millionaire Next Door”. American writer Thomas Stanley said, “One of the reasons millionaires are economically successful is that they think differently.” 

Mindset is a habitual or distinct mental attitude that specifies how an individual would interpret or respond to situations. Developing a rich mindset refers to the tossed poverty mentality, thinking differently, focusing on wealth, and elevating your reasoning. There are numerous impressions and actions people have regarding poverty and wealth.

A common action is making excuses, and there is nothing wrong with admitting mistakes. Likewise, you could avoid mistakes and excuses by creating a clear vision for whatever you want in life and making sure you go for it.

Becoming a self-millionaire requires cultivating a successful mindset. This implies that you are prepared to embrace pain or struggles on the way to a breakthrough. Trust me, no one can escape these struggles. So don’t hesitate to step out of your comfort zone, and be expectant. You will encounter struggles on the way to a breakthrough.

However, there’s no cause for alarm, just set your goals and objectives. And set your eyes on the goal, of becoming a self-made millionaire.

2. Build a Financial/Marketing Plan

Planning is based on short-term and long-term plans; short-term plans are plans made for the next few months to two, three, or five years. While long-term plans are made for eight, ten, fifteen, or twenty years. Becoming a self-made millionaire requires adequate planning; Alan Lakein described planning better in these words, “Planning is bringing the future into the present so that you can do something about it now.”

There’s a need to create an ambitious plan with achievable goals in mind, this plan might seem impossible to attain at the present age, but with a positive and healthy sense of self, identifying strengths, and working on weaknesses, any goal is achievable. There are two categories of plans, a financial plan and a marketing plan.

A financial plan requires knowing your money flow, i.e., what you earn, how much is spent, the capital you invest with, or, the amount you save. A financial plan aids in the easy identification of one’s money flow and helps to keep records of savings and investments.

A marketing plan is a commercial integrated plan that involves the rate of change in promoting, selling, and distributing a product or service. While anyone can employ a financial plan, self-made millionaires employ a marketing plan. To become a self-made millionaire, a stable salary income should not be relied on.

Instead, an individual desiring to become a self-made millionaire should learn a skill (service) or create a product, then create a marketing plan to keep your service or product relevant and relevant service or product backed by a good marketing plan always transcends to wealth.

Part of your financial plan could include using a voided check to automate your payments or investment; likewise, your expenses and savings, voided checks are also helpful and handy for record-keeping.

3. Multiply your stream(s) of income

 In a circumstance where the water supply is out, a house with three tanks (has a reservoir) would be at rest than a house with one tank (as a reservoir); this illustration is a good way to tell any individual striving to be a self-made millionaire to focus on creating or increasing your stream of income. Living from paycheck to paycheck leaves you little or nothing to save or invest with.

Maximize your earning capability, a research conducted by Thomas Corley (a longitudinal study for 5 years) studied the habits of 233 wealthy people; Thomas found that 65% of wealthy people maintained exactly three streams of income, 45% of wealthy people maintained four streams, while 29% of wealthy people maintained five (or more) streams of income. 

Don’t place your eggs in a basket; emulate hundreds of wealthy people and multiply your stream of income; this would set you up to become a self-made millionaire.

4. Investment is better when started early

Investment is a financial activity of setting capital or money to an investment platform or enterprise with the sole anticipation of making a profit. A pleasure in investing is that your capital or money works for you. This is a difference between wealthy people and others, and Warren Buffet said it better, “If you don’t find a way to make money while you sleep, you will work until you die.”

Find a business you love or learn an extra skill and use this to your advantage. Remember, an additional stream of income increases your chances of becoming a self-made millionaire.

5. Be a lifelong learner, invest in yourself, and learn the skill of effective listening and questioning skills

No one becomes a self-made millionaire without investing in themselves; self-investment refers to learning; you must improve your skills and daily knowledge. Be your teacher, read financial, self-improvement, and self-help books, take courses, and challenge yourself to learn a new skill, and an important skill to acquire is effective listening and effective questioning skills.

These skills would mold you to become a better person, a leader, and one who can note the trends of business, finance, and life. These models are self-made millionaire models that everyone aspiring to be one shouldn’t hesitate to follow.

6. Automate your Finances

Investing by guesswork is not safe; though it is advisable to garner knowledge on whatever investment platform you are about to dabble in, it is also better to automate your finances if you hope to become a self-made millionaire.

For instance, to automate their finances, self-made millionaires set up an automatic savings plan that would directly deposit a fixed amount to their investment accounts; if emulated, this would save you from spending your investment capital or savings and aid your investment or savings program.

7. Cultivate a Frugal Lifestyle

Self-made millionaires have one thing in common, they know how to live a comfortable life without affecting their investments or savings. Avoid lifestyle inflation, back out from impressing others, and you are on your way to breaking through as a self-made millionaire.

8. Take Calculated Risks and Persevere through Rejection or Failure

Living entails taking risks, and everyone at one time would certainly encounter rejection or failure. However, taking risks is not enough; take calculated risks, be willing to stretch yourself out of your comfort zone, whatever you choose to do, build a startup, learn a skill, or leave a job, embrace yourself, and learn from mistakes.

9. Associate with Like-minded, Smart people who are Successful

We are all social beings, and we want to associate with others; however, to become a self-made millionaire, there’s a need to associate with like-minded people who are diligent, and ambitious, cultivate a rich and successful mindset, and are smart. Social media is a great platform to associate with, so aside from surfing the internet for fun, remember and create time to message and link up with successful and smart people.

ON A FINAL NOTE

The road to becoming a self-made millionaire would be full of obstacles and discouragements, don’t focus on these; set your goals and follow the steps above, and you are going to become a self-made millionaire. 

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