If you want to know how to be a millionaire, you need to study those who have already made it. How did they do it? What do they do differently? What sets them apart?
First let’s look at three of CNN Money’s “key stats” of millionaires:
- 8.9 million U.S. households have a net worth of at least $1 million, not including equity in a primary residence
- 46% of millionaire households own investment real estate
- The average household income for millionaires is $209,000
So, the answer to “how to be a millionaire” isn’t as complex as you may have thought!
The U.S.A. has the largest population of millionaires in the world. Of those, the majority became millionaires through creating wealth of their own, i.e. they’re business owners.
Over 80% of millionaires are first generation, which means they worked hard and smart for their money. Two-thirds of millionaires are self-employed and 75 percent are entrepreneurs.*
If you want to know how to be a millionaire, take a look at what millionaires do to help them reach that financial status.
Millionaires have a plan.
A financial plan is your road map to money. Be specific and learn to adapt and recognize opportunity. You need to stay the course.
That’s right. You’re going to have to work. You’ve got to get serious, be consistent, and put in the time. The majority of millionaires are business owners and entrepreneurs that work no less than 45 hours per week and usually more.
Millionaires don’t spend what they don’t have.
Millionaires shop smart. They look for deals. The smart ones live on a comfortable middle class spending plan. Fact: 43% of millionaires have a Sears card. On that same note, most only carry one major credit card and pay it off at the end of each month. If they want something they devise a plan to get it without going further into debt.
Millionaires make sure every dollar goes to support continued wealth.
Simply put, you need a cash machine, a business that will sustain a continuous flow of income. And you need to put your money to work for you.
Millionaires are in a cycle of continuous learning.
In fact, most millionaires have a mentor or copied a successful business and or personal strategy model. You’ve got to keep up with the times and watch for new opportunities.
*Are you curious about the difference between self-employed and entrepreneur?
The difference is not as subtle as you may think it is. It’s about earnings. If a self-employed person doesn’t work, he or she doesn’t get paid. An entrepreneur, on the other hand, runs at least one business and employs others to work. If he or she goes away for any amount of time, the money still comes in.
Either way, your chances of becoming a millionaire are still quite good.
There you have it: Five quick tips on how to be a millionaire.
A few may be able to accomplish that goal simply by reading this post and getting to work on each of the tips. Some may do it by reading a few good books on the subject. (Check out my best-selling Millionaire Maker series of books.) But most people will need much more help.
How about you?
What kind of help do you think you need to answer the question, how to be a millionaire?