There are 17,000 new millionaires born every day in the United States. These are not people who won the lottery, been given an inheritance, or simply got lucky. These are normal hard-working individuals like you and me who started from nothing.
The truth is, $1,000,000 is no longer considered a lot of money. Heck, at the current rate of inflation, you won’t even be able to buy a 2 bedroom house for under a million in the next 20 to 30 years.
If you want to live a life of abundance, take care of your family, and have the freedom that comes with money, then you have to first get your mindset right about money.
The truth is, there is an abundance of wealth in the world. Those who think there is a shortage don’t it or they’re scared to lose it. Before you can become a millionaire, you need to have an open mind about the amount of wealth that is in the world.
There is an abundance of money everywhere
Here’s a simple exercise you can perform right now just to see how much wealth is in the world.
The next time you are outside, take inventory of everything that is around you. Think about how much each thing costs and start adding it up.
You will find that you can add up $100 million dollars in less than a minute.
For example, I live a pretty average neighborhood. When I step out my front door, I can see about 20 houses, 30 cars, a paved road, street lights, telephone poles, and other objects you would find in any neighborhood.
The average house costs $350,000 here in California. Average car is about $20,000. Just adding these two things up, there are $7,600,000 worth of things just in the view from my driveway. If I drive down the freeway in a big city, I can add up close to a billion dollars worth of things really quickly.
You see, there is no shortage of money. Only a shortage of ideas and actions in order to acquire it.
If you want to be 1 of the next 3.1 million people who will become a millionaire in the next 3 years, follow these 10 steps:
1. Set Your Goals to Becoming a Multi-Millionaire
The number one step to becoming a millionaire is to decide to become a multi-millionaire. The first reason for this is, even if you reach your goal and become a millionaire, you will quickly realize that it’s not enough. If you had a million dollars and had no other income, you would be able to live off of $4,000 a month for 21 years.
Can you truly live off $4,000 a month? And when those 21 years are over you have nothing. Thinking of retiring early? Better have more than a million.
The second reason is most of us come up short on our goals. If you’re goal is to make a million and you come up short, well then, you’ll just end up being broke.
However, if you set your goal to making $10 million and you come up short, you’ll probably at least make it past the $1 million mark.
You want to fail high rather than setting too low of a target. The #1 biggest mistake is going for a target that is too low. I would say to set it at $20 million or even $30 million if you can think that big.
The third reason for this is the amount of action you take. Most people don’t realize how much work it’s going to take to become a millionaire. If your goal is $20 million then you are going to take more massive action than if it was just a million. The increase in the amount of action you take will get you to your goal quicker.
2. Get Out of the Poverty Mindset
A poverty mindset is a terrible way to live. Some people have a lot of money and still live in a poverty mindset because they are so afraid they’re going to lose what they have. A poverty mindset thinks that money is limited or is too hard to acquire, so it’s not worth the effort.
Make a list of everything people in poverty do and start eliminating habits that are on that list.
Here a few examples to get you started:
- No goals
- Spending more than they have
- Not investing
- Depending on Government to take care of them
- Victim mentality
- Trying to take shortcuts
- Not spending time on personal development
- Not learning / reading
- Refusing to acquire new skills
I’m sure you can add to this list. If you want to become a millionaire then stop all poverty behavior. Which brings me to the next step.
3. Study Other Multi-Millionaires
Start spending your time studying multi-millionaires. Make a list of what these people do and how they act. Don’t just study someone who is a millionaire. Most of the time when people reach this point they go into conservation mode and stop growing.
Study people who have consistently proven through the accumulation wealth they have the right practices, mindset, and discipline to keep expanding.
You don’t need to study 20 different people. Find 2 or 3 successful people you would like to have as a mentor and study them deeply.
If you are really dedicated, start networking and reaching out to get in contact with someone who is a multi-millionaire. Spending a day or just being around these types of people for a few hours will completely change you.
4. Work Like a Multi-Millionaire
If you want to be successful then you have to work hard. Don’t kid yourself thinking that once you make it to a million you can sit back and relax. All of the big players you want to be like don’t work 40 hours a week.
Elon Musk says he still works 100 hours a week even after all of his success.
Every person you read about that has achieved massive financial success has never stopped working hard just because they’ve made a little money.
Why is it that the people who rely on unemployment and government aid to support them sit around watching TV? Meanwhile, the wealthy are out working 12 to 14-hour days.
Successful people work hard because they love what they do. If you don’t find something you love then it’s highly unlikely you will put in the work that’s required to succeed. Which brings me to step 5.
5. Love What You Do and Get Really, Really Good at It
As Steve Jobs once said, “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.”
You want to become the authority in your field. The go to person that is better than anyone else. This is how you can charge higher prices and provide a better service.
There are consultants that charge $1,000’s of dollars an hour for their advice. Why would anyone pay someone $1,000 an hour?
Think about this:
If I have the knowledge and skills to help a business grow $10 million dollars a year to $50 million a year, do you think they would pay me $1 million for that knowledge?
Many companies will gladly pay someone $1,000 an hour for their advice if they provide $10,000 worth of value.
The only way you are going to increase your income is to develop the skills and knowledge that no one else has. And the only way to do this is to be the best at what you do.
6. Go From Spender to Investor
It’s not how much you earn that will make you a millionaire, but how much you keep.
Stop wasting your money on useless things. Sure, buying those new shoes or brand-new car feels real nice, but that nice feeling quickly fades. And the only way to get it back is by spending more money.
I know people who earn $500,000 a year but are still living paycheck to paycheck because they spend $490,000 of it on stuff.
On the other hand, there are people who earn $60,000 a year and are multi-millionaires because of smart investing habits.
Your goal should be to get to the point where you invest 40% of your income. If you start doing the math, you’ll see really quick that even then, it will take a long time to become a millionaire.
Let’s say I make $200,000 a year. The IRS always makes sure they get paid first, so after taxes I am at about $130,000 net. 40% of my gross income comes out to $80,000, which leaves me $50,000 a year to live off of.
If I am able to invest $80,000 at the end of every year, get an 8% return on my investment, and reinvest the dividends, here is what the math looks like:
- Year 1 – $80,000
- Year 2 – $166,400
- Year 3 – $259,712
- Year 4 – $360,488
- Year 5 – $469,327
- Year 6 – $586,873
- Year 7 – $713,822
- Year 8 – $850,927
- Year 9 – $999,001
- Year 10 – $1,158,921
This can be discouraging to realize if you saved and invested $80,000 a year it would be another 10 years before you become a millionaire. This is why it’s critical to increase your income and reduce your spending if you want to make it.
There is light at the end of the tunnel though. Here’s an where things get exciting:
If you continued to invest $80,000 a year and reinvested the dividends at an 8% ROI for another 10 years, that $1,158,921 would turn into $16,788,723 by year 20. That’s the power of compounding my friend.
If you could do this at 30, by the time you are 50 you will have over $16 million in the bank. That requires some serious discipline though, which is what it’s going to take.
7. Create Multiple Flows of Income
I’m sure you’ve heard the saying that the average millionaire has 7 flows of income. The truth is, that most multi-millionaires have 100’s of flows of income. If you are dependent on one flow of income (Like a job with a paycheck) then you are setting yourself up for failure.
As soon as that income stops, you are out of luck and may find yourself in the poor house.
Life is unfair and bad things can happen at any moment. You want to bullet proof your finances so if something does happen, you won’t be affected.
Multiple flows of income means more money coming in from different places.
Think of your finances like a big ocean. You want 100’s of channels and rivers flowing into your ocean to keep it alive and growing.
So how do you create multiple flows of income? This is beyond the scope of this article but outside of real estate and investing, here’s my favorite:
Learn to create businesses that can produce passive income. Once profitable, systemize and scale. Then outsource all the work required to keep it running and growing.
It’s very difficult to learn how to do this, but once mastered, you just duplicate the process.
If you want to learn more about creating passive income businesses, then make sure and subscribe to our Newsletter. Here we cover a variety of topics on this issue.
8. Learn How to Network
Have you ever heard the saying that the size of your network is your net worth? Or what about, it’s not what you know, but who you know?
There are truth in these words. No one has ever been successful without the help of others. In fact, the more you can learn how to leverage other people, the quicker you will reach your goals.
All income you receive requires some type of transaction. And all transactions require at least 2 people to be involved.
The more people you are affiliated with, the more influence you have. The more influence you have, the easier it will be to reach your income goals.
Don’t get comfortable with your small circle of friends and family. They are great to support you and make you feel good when you fail, but in order to be successful you have to be able to step out of your comfort zone.
Start by attending conferences, summits, and masterminds. Here you will get access to the way other people think, operate, and achieve success. And if possible, get to collaborate with those people to sell your ideas, go into partnerships, and expand your reach to other people’s circle of influence.
9. Never Lose Money
Warren buffets says his number one rule is, “Don’t lose money.” His number two rule is, “Don’t lose money.” If he had a third rule, it’d probably say the same thing.
Putting your hard-earned cash in the bank is one of the quickest ways to lose money. Money depreciates overtime and becomes less valuable every day.
However, putting your money in something that is a maybe is a surefire way to lose money. Only invest in things that you know have very little chance of losing money.
If you are unsure of where to put your money, start by reading books, taking courses, and acquiring knowledge. You can never lose by investing in yourself.
Before you invest a dime in something, make sure you’ve done your research. Seek council from wiser, more successful people than you. Always keep learning and never stop growing.
10. Never Give Up
If you want to be a successful millionaire then it’s going to take massive action over a consistent period of time. There will be all sorts of problems along the way and obstacles at every turn.
Become a problem solver not a problem starter.
Stay motivated by writing down your goals every morning you wake up and each night before you go to bed.
Visualize daily the person that you want to become.
The desire to become a millionaire has to be stronger than the desire to quit. Have faith that you will reach your goals and remind yourself everyday why it’s important to you.
And when things get hard, never… ever… give up.
If you follow these 10 steps then this will ensure that you become a millionaire. I hope you enjoyed these steps to become super rich so you can be an example to other people
Be super successful. You will help a lot of people in doing so.