Home Finance 7 Best Strategies to Become a Millionaire

7 Best Strategies to Become a Millionaire

by Oma Alidu

Most of us wish to become a millionaire. Unfortunately, lots of us are unwilling to take even the smallest of steps necessary to reach this goal. That’s because we have some false ideas on how to become a millionaire.

Become a Millionaire

If that’s indeed your case, continue reading. Because in this article, I will be discussing seven best strategies to become a millionaire. And all these strategies are simple, time-tested and proven. As a matter of fact, I’ve used these strategies to achieve my financial dreams to the fullest. Therefore, you too could use them with confidence.

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Seven Strategies to Become a Millionaire

Regardless of where you live, using these seven strategies can actually help you become a millionaire. These strategies don’t require you to have a lot of money. As a matter of fact, you can start from the scratch and yet become a millionaire, by following some simple steps that I’ll be discussing here.

Make Your Written Financial Plan

I emphasize on the words ‘written financial plan.’ That means, putting on paper or your computer, where you stand now financially, all your short-term, mid-term and long-term financial goals and ways and means to go about achieving them all. This is perhaps the most difficult tasks on the way to become a millionaire.

However, you can start writing a financial plan by setting a deadline for becoming a millionaire- which could be anything from a year to five years. Because, the time would depend upon how much money you’re already making at this moment. Don’t take into consideration how much money you would make in future, because that something nobody can predict. Just start with what you have now.

A written financial plan serves as a constant reminder of where we wish to reach after a specific span of time. One very important feature of a written financial plan: always stick to it. Understandably, there would be times when you might encounter situations that might make you want to give up on the plans. It’s in those days that you need to stick to the plan more stringently if you wish to become a millionaire.

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Start Forced Saving

When I talk about forced savings, I’m not implying that you live like a pauper. Most of us save money from what’s left after our spending from our incomes. If you’re among such persons who saves only what’s left over from the income after expenses, try this formula: Income – Savings = Expenses.

This means, you have to decide how much money you wish to save every month. And deduct that amount from your income. You can use the remaining money to meet your personal or household expenses. Invariably, this formula always works wonders.

When you save forcibly from your income, you will have more money at hand for other purposes such as investing on savings and retirement plans, buying stocks, Exchange Traded Funds, Mutual Funds and other financial instruments that pay rich returns over a period of time.

Cut Your Expenses

If you take stock of your monthly or even daily expenses, you’ll find there’re several areas where you’ve spent unreasonably. Therefore, work towards eliminating such useless expenses. Some of these useless expenses could be your subscriptions to magazines that you seldom read, TV channels that you rarely watch, gym memberships you barely use and lots more.

You can download any superb financial planning and expense tracker app from Google Play or Apple Store. Make various expense heads on these apps and allot a budget for your spending. Usually, these apps sound an alert whenever you’re crossing the set budget for a specific expense.

Also, revisit your shopping list for the household and find out how many things can be simply eliminated without making any changes in your lifestyle. Lot of us have this nasty habit of buying stuff that we don’t really require or seldom use. Wipe off those expenses too and save the money.

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Get Rid of Debt

One of the best ways to become a millionaire rather quickly is to get rid of all debt. I’m not saying that debt is bad. Some debt may in fact be necessary such as housing mortgage.

However, the worst kind of debt is on credit cards. That’s because credit cards attract something known as Annual Purchase Rate (APR) which can run as high as 36 percent per annum, if you don’t settle the dues in full.

The accumulated APR earns more APR. And as a result, you could end up paying many times more for what you bought with credit card.

You can step up credit card payments to reduce outstanding dues and gradually bring them to zero. And if you use a credit card later, always remember to pay off the full dues right before the due date. That could definitely help you save a lot of money that would otherwise be spent without any reason.

Use Investing Apps

There’re superb apps that allow you to start your investment journey with as little as $5. You can easily download these free apps and start investing on stocks, ETFs, Mutual Funds, currencies and commodities.

These apps are very simple to use. You cannot buy a full stock or ETF or Mutual Fund unit for $5. Instead, you will get a fraction of these financial holdings. And the more money you invest, these fractions add up to give you one full stock or unit of ETF or Mutual Fund, among others. This is the best way to start your investment journey with very little money at hand.

Some apps also provide expert advice about the stocks and ETFs to invest upon and get high returns. And others go as far as giving you a free, precious stock if you invest a specific amount of money through them.

Make Money Online

There’re various ideas to set up an online business to make money. You can try any of these. And some businesses such as blogging or YouTubing requires almost zero investment.

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There’re several ways to make money online through dropshipping, affiliate marketing or even opening your own marketplace on Etsy, Shopify or Facebook Marketplace.

One of the best ways to make money online is also through online tutoring. In fact, several online tutors have become millionaires by teaching high-demand subjects such as English, Math and Science to students from around the world.

You could join any of the top online tutoring websites and work as an online tutor. However, you will require some qualifications for this business.

As I mention earlier, there’s no shortage of ways and means to make money online. You can make a few Dollars by taking online surveys or take a part-time online job during your spare time to earn an extra income.

Enlist a Financial Advisor

Yes, financial advisors do cost some money to hire. However, consider the expense on a good financial advisor as your investment. That’s because they can show you how best to invest your money and make it grow to provide amazing returns.

Usually, financial advisors have tie-ups with banks and other financial institutions. Therefore, they can get you the best rates for an investment plan and provide sound advice for building wealth. That’s because they can offer you a vast range of savings and investment plans from multiple companies to suit your individual needs.

Financial advisors are generally freelancers. Therefore, you need to pay them on an hourly basis only. Following their advice on investment and financial planning can make you a millionaire faster than you could dream.

In Conclusion

To become a millionaire, I would recommend you use all the strategies that I mention above. After all, it’s your hard-earned money and you can make the best of it with proper planning and financial discipline. These ways to become a millionaire are very effective and work well for everyone.
Ends.

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