How do I become a millionaire?

Being a millionaire feels out of reach to a lot of us. However, it's not. With the right attitude and approach to money, you can become a millionaire. In fact, changing your mindset about what it means to be a millionaire is the best thing you can do to get started on the path to a richer life.

Surprising facts about millionaires

If you don't personally know someone who is a millionaire, then you may be surprised by the following facts that have emerged from recent research on millionaires:

  • Most millionaires are self-employed. They are entrepreneurs who work hard to earn their own money. They didn't receive this money from rich family members. They don't earn it in traditional jobs.
  • Millionaires generally spend below their means. They value financial independence over material wealth. When they spend their money, it is usually for the purpose of growing it through investment.
  • They don't give their money away to their kids. Millionaires teach their children how to save money and make money but don't just liberally give it to them.

What this teaches the rest of us

The alert and focused among us can use this information to gain insight into how to become millionaires ourselves. Things you need to start doing today if you want to reach this goal include:

  • Create a plan. Make a map to your millionaire lifestyle on paper. Figure out how to earn more and how to spend less. That's the first step towards growing your wealth.
  • Embrace the entrepreneurial mindset. Focus your energy on finding work that you love and launching your own business around that work. Be willing to take risks and take advantage of the business opportunities that come your way.
  • Spend time earning money. Most millionaires work at least full-time. The millionaire life isn't a lazy life. That's why it's so important that you find work that you love if you want to be a millionaire.
  • Spend your money wisely. The biggest mistake you can make that will prevent you from becoming a millionaire is to waste your money. Many millionaires have low rate mortgages in blue-collar neighborhoods and drive non-flashy average cars. Focus on living a high-quality frugal lifestyle rather than showing off your earnings.
  • Invest your money wisely. Open high yield money market accounts and other long-term savings accounts. Invest your money back in your business to grow your wealth. Use your money to make more money.
  • Focus on your net worth. Rich people are more concerned about their net worth than their working income. Learn to adopt this mindset if you want to become a millionaire.
  • Teach your children. Learn to talk to your kids about money. Many well-intentioned parents give their money to their kids when they should instead be teaching them financial independence. This is detrimental to your own millionaire potential.

What do you think is the best way to become a millionaire starting today (besides winning the lottery, which has pretty poor odds)? Inspire other readers with your thoughts in our comment section.

This Guide to Money answer includes the topics: Live, Income.

 
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