Roadmap on How to Be a Millionaire

how-to-be-a-millionaireThis is my Roadmap on How to Be a Millionaire and I have faith that following what I talk about will get you to that level of Financial Freedom.  Here’s the good news, what I’m about to share with you has worked for millions of self made millionaires and can work for you too!

 

So, where do we start on this journey together?  First off, if you haven’t already, I really suggest you pickup two books that have changed my life profoundly and how I first became more conscious about planning for my financial future.  Those books are: The Millionaire Next Door (Thomas Stanley) and Think & Grow Rich (Napoleon Hill).  Also, picking up a copy of Robert Kiyosaki’s Rich Dad, Poor Dad won’t hurt as well.

 

Following the teachings within these books are just recipes for building out wealth success that really works.

 

Think of it this way, if you were making say – banana oatmeal and you followed the recipe, it would come out as banana oatmeal.  What if you followed the recipe for carrot cake and expecting banana oatmeal?  It would be ludicrous, yet that’s exactly what so many people day in and out are doing to their financial future.

 

REALLY?? 

 

Yes, absolutely, if you’re just going through the motions of earning a pay check and burning through it – you’d best take a bird’s eye view of your financial situation.  You have the power to change that.

 

Too many people hold on to the dream of the get rich overnight scheme and buy into every magic pill snake salesman speech about getting there.  Real millionaires build their business and their net worth, one financial brick at a time.  At some point, they have a financial fortress.  Another great attribute of most millionaires is that they started with a strong Millionaire Mindset.

 

 

With a bit of financial planning and discipline, anyone can be a millionaire with these steps below.

 

Learn to Save (Put Savings on Overdrive).
Stop being a typical consumer or spender.  Instead, put that hard earned money to work to propel you to millionaire status.  Getting into the habit of serious saving can change your personal finance in no time.

 

Don’t Live Above What You Can Afford. Long story short, start living within what you can actually afford or within your means as the older generation would say.  These are just as wise words today as they were back then.  Many people are trying to live a lifestyle that they simply can’t afford.

 

Make Saving a Habit. In addition to saving regularly, actually make it a habit.  The best way to do that is to make your savings automatic like clockwork.  Find the best financial institution to give you the best and safest return on your money.  Get them to setup a standing order that simply deducts from your account a set amount – like say 5-10% on your money into another interest bearing account.

 

Practice Delayed Gratification. Interestingly enough, we live in an instant society that needs things now.  Instant coffee, instant microwave dinners and the list goes on. Instant gratification is what many people are about and that’s why they’ll never be rich.  Instead, think back to the bird’s eye view of your financial future and know that you have a bigger goal than instant satisfaction with big purchases (boats, luxury cars and so on).

 

how-to-be-a-millionaire-2Map Out Your Financial Freedom. Give yourself a few hours and a few sheets of paper and just start writing your financial goals out and how you will get there.  This is a very important and powerful exercise.  Once you get your subconscious onboard, it’s amazing of what it will help you accomplish in life.   Revise and clean up your plan and put it in front of you where you’ll see it daily.

You can use a free mind mapping and process software called Mind Map to map out your important ideas into an outline form and then expand those ideas on paper.

 

Visualize Your Success.

This used to be somewhat of a weakness for me and I’m getting better at it.  In fact, I now used a powerful set of visualization software to map out my vision boards through video and the power of MindMovies – The Absolutely Best Visualization  video software.  I highly recommend this software and it gets a big 5 star rating from myself.

Click to Learn the Unexpected Secret To Success in a Shocking Video

Basically, Visualizing success is most accomplished by sitting in a quiet area, meditating and seeing in your mind’s eye where you want to be in life. Really think on these things, in fact really feel it.

 

Get your 5 senses on board in your visualization.  How do things look? How does the environment around you smell?  What things can you hear around you?  Things like how you’ll feel when you become financially free, what your life will look like, the type of lifestyle you’ll be living and so on.  Imagine eating a red delicious apple in your new life, how does is it taste?  These are again powerful cues to let your subconscious know that you mean business.

Generate Extra Income.
Nothing will give your Finances a boost in the arm like boosting your income and at the same time, allowing you to get closer to millionaire status.  My “How to Generate Income” blog post is a great primer and can help you in the right direction to finally getting YOU the income boost you deserve.  I’ve used the same techniques to raise my income substantially.
Also, keep in mind that usually when your income increases, so do expenses, because of bad money management.  Keep this in mind and keep your expenses low as possible, so that you can do things to increase your net worth with the extra income generated.

 

Always Revisit and Revise Your Plan.

The thing to always remember is that to get to the status of becoming a Millionaire Magnet is a journey.  Sometimes, it can be a long journey or a fairly short one.  You’ve always have got to take the correct amount of time to review and revisit your Millionaire map from above.  You may have some stumbles and hurdles along the way, but the prudent know that there is definitely a finish line in sight.

“Ok, let’s take a breath here.  We’ve covered a lot so far but I really just wanted to take a little breather and I highly suggest you stop at this point and review the points you’ve read so far so that it becomes ingrained in your brain and can start working for you instantly.  That’s the power of review and repetition.  This is important as we’ll be hitting on some more powerful techniques for becoming a millionaire shortly. Dwight Anthony

 

TIME FOR AN EXERCISE !

 Yes, indeed, to break up the long sections of this millionaire guide –  I wanted to make certain that we take time to get you used to modifying our plans to becoming a millionaire.
I found an awesome millionaire calculator on CNN Money where you can use it to calculate how much time in years it would take you to make it to millionaire status.  You can find the calculator here and it will be on the left side of the site – Calculate Time to Become a MillionaireYou can see my own example in the screen shot below.

how-to-be-a-millionaire-3

 

Play and play with the calculations above and make sure you make your financial goals using the S.M.A.R.T. goal setting system (stands for Specific, Measurable, Achievable, Relevant and Time Sensitive).  This is very powerful stuff by going through these exercises as your visualization goals can start to kick in and you start seeing yourself already at the level of where you want to be.

 

Ok, so how did you do in the above exercise?  One of my best tips is to learn to start saving more, boost income, decrease expenses and contribute the max to a preferred retirement plan like a ROTH IRA.  Yes, it really doesn’t take rocket science and really isn’t as hard as others make it out to be, but it definitely is possible.

 

Test that those calculations are doable with a bit of discipline and get to it right away.  Seriously, time is the only thing that you and a billionaire have in a 24 hour day.  Why put off till tomorrow that you can start doing from today.

 

Remember, this is a Journey, Not a Sprint

As you get on with the journey of getting to that first million, remember this is accustomed to a marathon rather than a short sprint.  You’ve got to have the financial stamina and what not to really stand out and succeed.  Work on your financial education and re-invest in it.  One thing to note is that success leaves clues, so pattern yourself after successful people.

Ok, it’s time to look at some of the other wealth strategies to building your net worth and getting you to millionaire status.  Here’s a few that you really need to take into paramount importance and that you should not do without.

 

 

  • Never Spend More than You make – The golden rule of money management involves never going into debt due to spending.

 

 

  • Invest in a Diversified Portfolio – There are so many people that have gained good riches for a short period of time and then lost it all.  This is usually due to not having a diversified portfolio for your investments.  The Real Estate market bubble crash of 2008 is a perfect example of too many people having too many investments in real estate.

 

  • Take Out Stock Options When Possible – This is a good option if you are an employee and can take on stock options of your company or say you’re an entrepreneur in your own company that owns shares of stock.  Using a good, buy and hold strategy in the right company can yield very good gains over time or sale of a business.

 

  • Invest at least some of your portfolio in Real Estate – As bad as real estate might seem as an investment as I write this, it’s still one of the most stable investments over time.  In fact, real estate can be bought at huge discounts right now.  Remember the old adage, that location is everything in Real Estate.

 

  • Max out your 401K Contributions – Not only max them out if you have a retirement plan, but invest in a ROTH IRA if you have the option.  This plan features tax deferred investing that is taxed at redemption for retirement age.  Also, plans where your employer must match your contributions are winners and you should think of it as free money.

 

If you can discipline yourself of possibly everything you’ve learned in this Roadmap to be a millionaire, it won’t surprise me that you can reach millionaire status within your lifetime.

Don’t stop there though; your motto should be one of Kaizen or Continuous improvement.  Tweak your financial plan as you go along and you’ll be utterly amazed at what you can achieve in the time that it takes to make the first step on your journey.
The thing to remember is to take small steps and master one part of your financial plan at a time and it will make a colossal improvement to your net worth. Dwight Anthony
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Category: Financial freedom