How to Become a Millionaire in 10 Simple Steps

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Becoming a millionaire is something that most of us dream about at one time or another. We look at those with large amounts of wealth, wonder how they got there and how we can get there too. However, the road to wealth requires patience, but the steps needed to get there are relatively simply.

If you want to know how to become a millionaire, simply follow the steps below to start your journey to financial freedom.

1. Change Your Mindset

A negative mindset – what I like to call a “lack” mindset – is, in my humble opinion, a primary roadblock to achieving wealth or anything else. If you consistently view yourself as poor, you will both consciously and subconsciously make spending decisions that deflate your net worth.

The subconscious “What’s the use? I’ll always be broke.” message will leave you thinking short-term satisfaction regarding your spending decisions instead of thinking and making spending decisions that are in line with your long-term goal.

Start viewing yourself as a wise person who does have the knowledge (get it if you don’t have it) to build wealth and loves themselves enough to make smart money decisions conducive to building wealth, and the net worth increases will soon follow.

2. Commit to Continuing Education

If you’re truly interested in becoming a millionaire, turn off the TV and start educating yourself on how millionaires live, and what things they did and do that got them to millionaire status. Millionaires and other successful people live differently that 95% of the world: that’s why they have more money and success than 95% of the world. Start educating yourself on how they live life and make decisions; then choose to learn how to think like a millionaire.

3. Develop a Written Plan

If you’re serious about becoming a millionaire, it’s important to take the time and write down your plan to get to millionaire status on paper. After educating yourself about millionaires and how they live, work and invest, develop your own plan and write down the steps you’ll take to go from your current financial situation to Mr. or Ms. Millionaire.

Decide what you’ll do, what you’ll stop doing, what you’ll sell and what you’ll buy that will increase your net worth. Put a solid, smart financial plan in place and then follow the plan.

4. Stop Buying Depreciating Assets

Broke people, in general, have a habit of buying only depreciating assets. Instead of investing in real estate, they buy new cars. Instead of investing in index funds, they go to the casino. Instead of using windfall monies to increase their net worth by paying off debt or investing, they use the money to go on vacation. None of the above-mentioned things are bad in and of themselves, but a habit of buying depreciating assets as opposed to appreciating assets will surely squelch any chance of reaching millionaire status.

5. Start Living Below Your Means

Pick a percentage – any percentage – of your income, and make that your new income, putting the rest into investments or savings. Simply start living on, say, 90% of your income and pretend the other 10% doesn’t exist. Then use that 10% to make wise investment choices that fit your investing style.  It won’t be long before you are quite used to living on less and won’t even realize that the 10% is missing from your budget. In the meantime, that 10% will be working to make you a millionaire.

6. Start Viewing Your Dollars As Employees

Instead of viewing your money as something you have to play with, start seeing your dollars as employees. You can keep them and employ them to work for you, growing your wealth, or you can fire them (i.e. spend them) and have less employees to grow your business – the business of becoming a millionaire.  A smart business person works to grow and expand their business in order to provide future success. Be a smart business person and use your dollars as employees whose job is to help you build your wealth through smart investing.

7. Refuse to Conform

In the Bible there’s a verse in the book of Romans that reads “Do not be conformed to this world, but be transformed by the renewing of your mind, that you may prove what is the good, acceptable, perfect will of God.” When it comes to reaching millionaire status, it’s important not to be conformed to this world. The majority of this world believes that keeping up with the Joneses and showing off their success with “stuff” is the right way to achieve success, when in reality, their accumulation of depreciating assets is destroying their chance of becoming a millionaire. Don’t make that mistake and fall into the pack of “follow the leader”. Instead, pave your own road to financial freedom and show others how to follow you.

8. Learn How to Make Passive Income

There’s nothing like passive income to help you along on your way to reaching millionaire status. When you put your money to work for you in a way that requires little to no maintenance on your end, you’re free to find other ways to make money or free to simply enjoy life. Educate yourself on smart ways to make passive income and implement passive income ideas that fit into your lifestyle and your passions and watch your bank account grow.

9. Choose to Persevere

Anything worth having is worth waiting for. Your road to millionaire status will likely come with roadblocks and setbacks. Unexpected expenses will occur. Investments will lose money. Your job might change. Accept that these setbacks will occur, and when they do, choose to dust yourself off, get back up and try again. As the old saying goes: There is no failure except in no longer trying (Elbert Hubbard, an American writer, and publisher).  Choose to keep trying, in spite of the setbacks, and millionaire status will come.

10. Regularly Analyze Your Plan

Life changes, and so your plan to become a millionaire must be open to change as well. Analyze your millionaire plan on a quarterly or semi-annual basis. Determine what’s working, what isn’t and what needs more time to see if it’s going to pan out.  Reflect on how your goals and your life have changed during the last several months and see what adjustments need to be made if any, that will fit your current lifestyle and still help you reach your goal of millionaire status.

Learning how to become a millionaire does take time, but as so many have shown, it is a possible dream. For those willing to make the necessary sacrifices, implement a smart plan and persevere through the waiting, millionaire status is absolutely achievable.

What’s a big goal you’re working on currently? What is your advice for those wanting to become millionaires? 


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11 COMMENTS

11 responses to “How to Become a Millionaire in 10 Simple Steps”

  1. Brian @DebtDiscipline says:

    Start early! These are tips we are teaching our children. The sooner you can begin to build wealth the better.

    • Laurie says:

      That’s SO true, Brian!!!! I always think of that mathematical example they use of the person saving for retirement from age 18 to 27 and how much more wealth they grew by simply starting early.

  2. Alan B says:

    Passive income is the pillar of financial independence. But sometimes, it takes years to increase these revenues and start being financially independent… And I agree, anyone should save money on a monthly basis, 10% may not seem like much, but it will at the end of the year…

    • Laurie says:

      It all adds up much quicker than people realize, I think. They think, “Well, 10% is only x amount of dollars a year”, but when you throw in compound interest and the gift of time, the money simply grows.

  3. Benjamin McKnight says:

    What a great post! I think you really have to educate your desires. You have to understand what you want and make conscious decisions and actions every day in line with those desires. When you catch fire with ambition and are passionate about a concrete plan, the money comes.

    • Laurie says:

      That’s SO true, Benjamin! Many people think they want dinners out and the latest gadget at the electronics store, but when they sit down and really analyze their desires, they realize that they’d rather have financial freedom and trade in the gadgets and dinners out for freedom.

  4. Dee @ Color Me Frugal says:

    I am convinced that living below your means is one of the cornerstones of wealth building. If you can master that, you’ll make it! This is such a hard one for so many people, though. In the US I think it’s the fast food mindset – we want it all and we want it now!

  5. Laura Harris says:

    I love the visual of seeing my dollars as employees. WOW. That is going to stick with me for a long time – especially the next time I want to waste money on a candy bar at the gas station. I’m going to have to work on my CEO skills…

  6. Chella says:

    Undoubtedly, everyone wishes to be a millionaire. However, it is very clear that learning how to become one certainly takes time, although it is indeed possible. To those people who are so determined to make the necessary sacrifices, carry out wise plans and work hard. No matter how tough and long it may require, being a millionaire is obtainable.

  7. Kevin Oendo Bosire says:

    I want to be a millionaire, but I am not yet employed. I am looking for a job. I did my KCSE and attained a mean grade of D+.

    • Deacon Hayes says:

      That is awesome that you want to be a millionaire. The cool thing is, you don’t have to be “employed” to become one. There are many people who are entrepreneurs who are millionaires. For them, it is better working for themselves than anyone else. Consider looking into a small business that you could start that would require little to no money to get started.

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