The key to becoming a millionaire is knowing and making the right financial moves. According to a study published in FA-Mag.com, a lot of the millionaires today made it out on their own. This study was conducted by BMO Private Bank and it revealed that almost 7 out of 10 Americans with a high financial worth are actually self-made millionaires. That means they did not inherit their money. They did not get their wealth through the lottery or something similar. They did it through hard work and determination.
Of course, there is much more to getting rich than just working hard and staying determined to reach your goals. There is really no single formula to get rich but it does involve making the right financial moves. Becoming a millionaire also means you should start acting now. There is no use to being rich if you only get to enjoy it in your latter years. If you have to work hard now, why not do it so you can become a millionaire in 10 years time? It is possible for that to happen. While it is difficult to become an overnight millionaire, you can accomplish it in a couple of years. You do not have to work for decades so you can retire rich at the age of 60. You can make the right moves now and be rich enough to consider yourself financially independent. When you reach that state, you can decide to retire – or you can continue growing your net worth.
5 money moves to be a millionaire in 10 years
Of course, the question in your mind right now is what financial moves should you be doing now in order to become a millionaire in a decade?
There are 5 money moves that you should be concentrating on right now.
Focus on making money.
Start by focusing on making money while you are young. The younger you are, the more you should concentrate on just earning more. This is a great time to focus on that because you are at a point in your life when you have the least financial responsibility – at least, that is next to retirement. You do not have a family, kids and your parents are probably still able to support themselves. All you really have to think about and financially support is yourself. Your time is your own and you can choose to use it to party or to start growing your wealth. You do not have to rely on your day job alone. You can get a second career that will allow you to earn more. According to BusinessInsider.com, there are a couple of side gigs that will help you earn a lot. For instance, being a curriculum writer can make you earn up to $50 an hour. A sign-language interpreter can earn up to $36.50 per hour. If you work as a web designer by day, you can get extra projects on weekends and that can earn you an extra $32 an hour. Looking for online jobs is the best way to look for a side gig that you can do in your free time. You can be free to choose what you will do and when you want to take on more.
Save so you can invest.
With all the money that you are earning, it is tempting not to spend all of them. Well if you want to become a millionaire in 10 years, this is one of the financial moves that you need to do. Take note, you do not save so you can put it in a bank account to sleep. You will save so you can invest it. The power of compound interest will fuel your journey towards becoming rich. Make sure you learn how to invest though. It may not be as simple as you think and for a beginner, it can be confusing. If you have to hire someone to help explain it to you – do it. The rewards of investing are too great for you to pass up the chance just because you do not understand it.
Know the risks you should take.
Although investing is the key to help you become a millionaire in 10 years, it should be done with caution. Investing comes with a risk. The higher the risk, the bigger the return. You need to know how much you can risk so you can calculate the earnings that you can expect. If you have a little, you can choose to invest only what you can risk losing. Or you can split your money and put half into a high-risk investment and put the other in a low-risk account. That way, you do not lose everything. If the high-risk investment turns out okay, you can decide how you will use it to grow your finances.
Invest in yourself.
This is actually one of the financial moves that people underestimate. Investing does not only involve the stock market. You should also think about investing in yourself. This could mean paying for additional education or training. Of course, you do not want it to choose an investment that will stop you from earning. Make sure you have the freedom to continue earning and that this training will not put you in debt.
Set a big goal.
Finally, you need to set a big goal. If you want to become a millionaire, make sure you aim high. That way, if you cannot hit your target, your efforts will still take you high. Instead of just 1 million, aim for 10 million. A bigger goal will help motivate you to make a bigger effort and that usually produces more output. Just make sure not to stress yourself too much or expect that you will fail to meet your big goal. Find a balance that will help you achieve more than you really need without pushing yourself to the limit.
As you can see, most of the financial moves that you need to do involve investing. That is because it is one of the things you need to achieve financial independence – which is basically one of the ways that you can achieve the millionaire status.
5 qualities that will help you make the right financial choices
When making your moves to be a millionaire, you need to make sure that you have the right qualities to help you make the right choices about your finances. There are 5 qualities that you need to have in order to do this.
Be an expert. Start by having an expertise. Nobody is good at everything. If you concentrate on one thing, you can work on perfecting the knowledge and skills involved in that field or industry. If you know it well enough, you can make the right decisions about it.
Have the financial knowledge. Another quality that you need to have is to know your finances. You cannot make the right decisions if you do not know your own finances. You need this so you will know where to start in building your wealth until you become a millionaire.
Be courageous with your decisions. According to a blog article published on BrianTracy.com, some people do not become wealthy because they never make a decision to become one. Sometimes, working on the changes needed to be a millionaire is what stops people from improving their lives. Do not be scared of failing and all the obstacles that you have to go through. You have to take a leap of faith because taking a risk involves courage.
Be persistent. When you find the courage to make a difference in your life, it is important for you to be persistent as well. As mentioned, there will be obstacles to overcome before you reach your goals. Your persistence will help you through all of them.
Have the right mentors. Finally, you need to choose the mentors who will guide you as you make your financial moves. Money experts can be very helpful as you try to build your wealth. Becoming a millionaire is not easy and you need all the help you can get. Having someone to look up to will help direct you to make the right choices as you pattern it with their own.
Here is a video from the Wall Street Journal as Robert Frank discusses the three traits that the wealthy possess to become a millionaire. These traits were observed and divulged to him over the years by millionaires and billionaires.