20 Tips To Become A Millionaire From Nothing

By Trista
20 Tips To Become A Millionaire From Nothing

The majority of working professionals worldwide believe that they’re better off sticking with their 9-5 job instead of ditching it to become self-employed. Most individuals prefer the security cushion of a regular job to venture into uncharted territory in an attempt to become a millionaire.

For most of us, giving up secured employment (with a paycheck to take home every month) to focus on establishing a startup is a big gamble. But if you research the lives of billionaires and millionaires, you’ll discover a common thread connecting them. Unlike most other people, they did not bank on their routine jobs to realize their dream of turning into millionaires or billionaires.

On the contrary, they started from scratch, setting up their business in a nondescript garage or shed, and slowly worked their way up to achieve success. Believe it or not, you do not need a ton of cash, but rather a millionaire mindset to become one. However, laying the foundations for a startup is certainly easier said than done. We broke down 20 tips that will set you up for realizing your vision to become a millionaire via Business Insider right here.

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20. Assess Your Financial Position

If you want to grow and develop, you first need to assess your present financial standing. That includes drafting a concrete strategy on what your future (financial) goals would be and how you wish to accomplish them. You’d be much better off making notes in your journal rather than making a mental note.

Your brain has to store and process near-infinite amounts of data and information continuously. So there’s always the likelihood of you failing to recollect the original blueprint you had in mind. 

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If you pen down your business objectives, you’ll be able to cross-check the same period to decide if you need to make any changes or updates. Once you put everything on paper, you could be able to figure out your earnings and expenses. Accordingly, you will be able to revise and update your scheme that will go a long way in preparing your next course of action.

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19. Develop Your Strategy

You need to keep several aspects in mind while you develop your strategy. Jot down your exact earnings or sources of income. Next, go through your current expenses. You need to keep track of your monthly payments as best as possible. You can double-check account statements for precise figures. Categorize your bills and identify the biggest ones. You can then sort out which ones you could forego. There is room for change within your bills, believe it or not. If you need help determining how you can use budget apps and expense trackers.

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After you decide which areas you can save, take the proper steps to set up, change, or cancel those accounts. It’s also important to account for miscellaneous expenses. The entertainment category may be the first to go. That doesn’t mean you can’t enjoy a yummy meal and a great movie at home.

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18. Plan a Practical Business Strategy 

Do you have a business plan? Without a financial proposal in black and white, your odds of making millions are nearly nothing. Once you have a real and tangible financial plan, you feel stimulated and encouraged to start. A written business plan is like a physical roadmap that helps you see where you’re heading clearly.

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If you seriously want to have a financial plan or business proposal that will pay off in the future, you’ll indispensably need to find the sweet spot between your earnings and expenses. Your financial planning will pivot around how much you earn and how much you expend. To determine the sweet spot for your month-to-month revenues, pay heed of these:

  • Establish the costs or expenses for operating your business
  • Make a fair estimate of how much you need to keep aside for yourself
  • Figure out the number of customers you’ll require for realizing your business goals
  • Plan for fixed costs such as rent, utility, taxes, and so on
  • Also, take into account the variable costs (expense heads that keep varying following your production or level of output, e.g., shipping, raw materials, and packaging costs)

The time and effort you devote towards creating a modus-operandi for managing your finances could mean the difference between success and failure.

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17. Plan On Augmenting Current Earnings

Once you have an effective plan, your next step would be to figure out how to accomplish it. In other words, you should now devise a method that will enable you to realize your achievements. One way to do so would be to explore all your opportunities based on your skills and work experience. 

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Luckily for you, the present-day trade and commerce world offers many opportunities to augment income. For instance, you can do a part-time job or invest in a business that can guarantee you a handsome ROI. These could be computer servicing, interior designing, or landscaping. You’re better off investing in a business enterprise when you first set your sights on becoming a millionaire.

The idea is to look at different ways of boosting earnings. It’s then about choosing the one that you think you can excel in with your skills. Ensure you have a clear plan that’ll enable you to grow and develop your business exactly how you want to. Keep a tight leash over costs and expenses. And remember to invest the proceeds back into the business as well.         

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16. Invest Wisely

If everything goes according to plan, you could have amassed a nest egg in a couple of years or so. At this stage, your best move would be to reinvest your money in the business. Another way would be to invest the profits in a mutual fund with a diversified portfolio. 

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A broadly diversified mutual fund is formulated to help you make it easier for you to manage your portfolio and minimize investment risk. An all-in-one fund helps those who’re investing a fair amount of money for the first time. A broad spectrum fund such as a ‘Core Bond’ or an ‘Emerging Markets Bond’ can diminish risk via widespread diversification. No matter whatever type of an ‘all-in-one mutual fund’ you choose, it’ll automatically supervise rebalancing of your investment portfolio.

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15. Make the Most of US Federal Government’s Munificence

Another time-honored way of enhancing your revenues or income is to put your money in high-grade bonds like Roth IRA, 401(k), or 403(b). Such securities offer compound internet rates, thereby guaranteeing high returns by enabling your investments to burgeon quickly within a prescribed period. When you’re investing in such accounts, you’ll need to bear in mind that several variables have a bearing on the returns. These are beyond your control.

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Nevertheless, you can always leverage taxes and cost of investments. These critical attributes that can adversely affect returns over a long period. See that you take significant steps to keep both taxes and investment costs to a minimum if you intend to be a millionaire. Engage a brokerage firm or a reputed broker that charges modestly for every trade, and ensure that you trade once in a blue moon. If you’re employed and your employer has opened a 403(b) or 403(a), your contributions to that account will facilitate compounding of the money faster overall.

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14. Save As Much As You Can

Once your startup is operating normally and generating revenue, you’ll have to make a plan to maximize savings without compromising on personal expenses or living costs. Simply put, you’ll have to prepare a strategy that will enable you to apportion adequate funds for savings and expenses out of your earnings. You don’t want to cut corners when it comes to your mortgage, rent, and groceries.

You don’t have to give up on the elementary pleasures of life. On the other hand, you cannot afford to ignore the indispensability of saving as much as possible to realize your goal. With regards to savings, plan on investing in a retirement scheme {401 (b), 403(k) or Roth IRA}. 

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Simultaneously, put aside a substantial sum in a savings account for contingency or emergency expenses. And if you want to have absolute peace of mind about the above savings accounts, automate the accounts. Once the two versions are automated, you’ll not have to worry about withdrawing a portion of the salary to contribute to the savings accounts as it’ll happen automatically.   

Your cumulated earnings will determine how much you would want to put away in the retirement and emergency funds’ accounts. By rule, aim to deposit a sum in the retirement account double what you’d contribute towards the emergency account.   

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13. Take Advantage Of Opportunities

There are many good reasons why those who set out to be a millionaire eventually succeeded in accomplishing the goal. One is that those go-getting individuals went out of their way procuring opportunities. Don’t be under the impression that opportunities for enhancing your income will make a beeline for you while engaged in a sedentary job.

On the contrary, you’ll have to venture out and be on the lookout for new revenue sources. To put it in perspective, you’ll need to think beyond your 9-5 daily grind. You will have to comb for opportunities to augment your earnings and seize upon them. Today’s cutthroat commercial environment requires you to do much more than investing in ventures with high ROIs while you carry on with your routine job.

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If you’ve set as a goal to become a millionaire\, then you’ll have to focus on boosting your earnings incrementally. In case you’ve lately been thinking of starting a business but could because of your full-time job, then you can do it in your spare time. Please make the most of your leisure time by nurturing and developing the startup, and keep at it till it is feasible enough to generate money for you.  

Who knows? Perhaps one day this startup of yours may transform into a money-making business that enables you to make your first million.

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12. Keep Yourself Updated

One mantra you must follow to reach a lofty goal is to “learn while you earn.” Read everything you come across. After all, you’ll want to gain as much knowledge as possible in your chosen area of specialization.

You should read business books, self-help books, and inspirational volumes. Becoming a tycoon or magnate calls for making sacrifices on a persistent basis. You’ll have to resist your urge to dine out or vacationing once in a while. Devote your spare time reading books by businesspeople, motivational gurus, and captains of industry.

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You’ll need to do everything humanly possible to become an expert in your domain so that you’re thoroughly aware of what you’re doing. It’s true that the more you read, the greater your chances of succeeding are. Of course, you don’t have to register with a college or university to develop and honor your academic skills.

You can enroll in an online program, place an online order for books to read, show up at conferences and symposiums addressed by industry stalwarts, and listen to podcasts.

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11. The Proverbial Prodigal Son

If you think successful individuals all over the world lead a jet-setting lifestyle and splurge indiscriminately, then think again. The wealthy often tend to be the most frugal of individuals comparatively speaking. The millionaires and billionaires of this world know not to fritter away their hard-earned money on luxuries. 

The world’s wealthiest people swear by frugality and prudence and shy away from being ostentatious. You’ll be pleasantly surprised to learn and discover that businesspersons and magnates with deep pockets live in modest homes and drive ordinary vehicles. Therefore, you need to follow in the footsteps of those who made it by adapting to a thrifty lifestyle to become a millionaire.

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For a start, you’ll have to reduce your expenditure by doing away with your spendthrift ways. These can be compulsive shopping and buying only expensive branded products. Additionally, it would help if you made it a point to purchase goods and services using cash for keeping debt as low as possible. Some other habits you should cultivate for maintaining an economical lifestyle include:

  • Dining out sparingly and cooking at home as much as possible
  • Making the most of promotional offers, discount vouchers, and coupons
  • Using public buses, tramcars, tube railway, suburban trains, and bicycles for commuting
  • Purchasing groceries and other items of daily use by walking down to the local bazaar or supermarket instead of placing online orders
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10. Network and Socialize With Other Millionaires 

It pays to pay heed to the age-old adage, “A man is known by the company he keeps.” Perhaps the best and quickest way to become a millionaire is to rub shoulders with the famous and the wealthy. Just as “birds of a feather flock together,” the successful and wealthy people also prefer to network with like-minded individuals.

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Make sure you’re always seen in the company of people who are on the same page with you. Socializing with these peers makes you think and act like them. No wonder then the rich and powerful tend to hang out with people in high places. If you’re serious about augmenting your income and expanding the horizons of your cognition, then connect with those who are successful.

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9. Stay Out of Debt 

As you work your way through becoming a millionaire, you’ll gradually realize that you’ll have to stay out of debt at all costs. It could be that of late, you have opted for a credit card on impulse without considering whether you could pay it. By and large, most individuals choose to receive a credit card to boost their credit history but have no idea how to remain debt-free.

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The majority of financial experts and specialists emphasize the significance of keeping your expenses less than your earnings. However, they hardly ever suggest ways and means for staying out of debt in the long run. For a start, get into the habit of using the credit card on infrequent occasions, say during an emergency (when you don’t have enough cash for settling the bill).

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8. Help For Living Debt Free

Perhaps the best way to refrain from using a credit card would be to leave it at home. Instead, carry a limited amount of cash so that you’re not tempted to buy items you can do without. Whenever you use credit, make sure you have enough money to purchase an item.

This concept is an excellent strategy that’ll go a long way in enabling you to control the urge to use credit. Ensure to keep a strict eye on the ‘credit utilization ratio’ to stay updated on your credit card balance. Avoid the temptation of banking on your credit card when confronted with an unforeseen expense. 

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If you use your credit card for footing emergency expenditures, you could be staring at an invoice that you’ll struggle to pay back. You’d be better off making contributions to contingency savings account that’ll come to your rescue during a crisis. A strong proportion of millionaires have disclosed that as their earnings increased gradually, they found it extremely difficult to resist the allure of spending more. The necessity to stay out of debt has to do with restraining your craving for spending.

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7. Be Determined

Tucker Hughes, managing director at Hughes Marino, who was a millionaire by 22, advises budding millionaires to “avoid decision fatigue.” Hughes learned from experience that the best way to succeed extraordinarily is to stay creative and determined. Staying in focus all the time can lead to undue stress, which in turn can harm productivity.

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Your endurance and fortitude notwithstanding, your stamina will start diminishing. That could cause efforts to bring diminishing returns. So to cash in on your staying power, you’ll need to preserve your mental prowess and aptitude by making reversible decisions. Nearly all those who amassed wealth of over a million revealed they had cultivated the habit of making decisions on the spot.

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6. Use Your Nest Egg For Investing

The whole idea behind building up a nest egg is to invest the savings instead of continuing to save your whole life. To be precise, you’ll need to ‘save and invest’ and ‘invest and save’ simultaneously to stay competitive in the long-term. But in the short-term, you want to save to invest and eventually become a millionaire. Therefore, you should put away your savings in secured accounts.

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Once you have deposited your savings in accounts, do not think of withdrawing from them. Just know those accounts are inaccessible for a prescribed period. You’ll be compelled to look for avenues to increase your income on your way to millionaire status.

Contrary to popular belief, investing is not as challenging or intimidating as it is made out to be. You can start by making contributions to your 401(b) or 401 (k) account offered by your employer. After that, you can consider opening a Roth IRA or an individual retirement account depending on your income or earnings.

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5. Set Goals That You Can Achieve

Simply setting goals to slowly and steadily augment your earnings may not suffice if you want to be a millionaire. It helps to chalk out an effective plan or clearcut scheme to realize your goals. However, before you can start working on your project, it is far more crucial for you to figure out whether the goals are really achievable.

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Setting down goals on a piece of paper is one thing but preparing yourself mentally to achieve them is a whole new ballgame. Remember nobody’s perfect, and hence you must carefully analyze your virtues and downsides before you get down to listing your goals. You must be confident that you’ll be successful in achieving plans to be a millionaire in the long run.

You’ll need to stay focused and gain a sound knowledge of the field you intend to specialize in and work with dedication. You cannot afford to lose sight of your ultimate goal to become a millionaire.

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4. Work for Yourself 

If you’re aiming to be a millionaire thanks to your day job, then you’ll be disheartened sooner or later. There, you have to function as per your employer’s wishes. That hard work contributes towards the company’s growth and development rather than your own.

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Of course, many working professionals have become CEO of the organization where they worked for years. However, instances of employees advancing to take the CEO mantle are few and far between. So if you’re thinking of making a million by staying put, in all likelihood it might take a lifetime.

Remember that you’ll need to work for yourself to accomplish your dreams. If not, you’ll spend the entire life helping others achieve theirs.   

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3. Change The Way You Think About Money

All those who became immensely wealthy or successful by their efforts think that their attitude towards money had a significant bearing on their success. Every individual on the face of this earth has the potential to become rich. Unfortunately, only a few succeed in becoming millionaires. It’s how the successful and wealthy people think that sets them apart from the masses. Normal folks think that becoming inordinately wealthy is impossible. On the other hand, ambitious individuals firmly believe that they can earn millions.

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Self-improvement is the best way to set yourself on the path to accomplishing your goals. The more you try to boost your knowledge and develop your personality, the greater your chances of attaining success. A good number of affluent and well-off individuals dedicate the better part of their working day reading books, studying an online program, participating in webinars, and so on. Aim for the sky to reach the treetops. Do not draw the line at making a million, but set your sets on becoming a multimillionaire. Once you become a millionaire, raise the bar by aspiring to become much more. 

Individuals who struggled for years to become incredibly successful and well-to-do tend to be humble. You’ll rarely come across a self-employed billionaire or a millionaire who happens to be ostentatious and leads a flashy lifestyle. These individuals did not set out to become rich to display their wealth and prove that one can become successful through hard work.  

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2. Think About New Sources of Revenue

There’s another attribute that most of the millionaires all over the world have in common. If you study the lives of millionaires, you’ll find that the majority continually explore and exploit different income-generating sources. One author who took time to look at well-to-do lifestyles observed that 29% tapped more than five heads, 45% harnessed at least four starts, and 65% exploited nothing less than three references.

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So if you’re sincerely looking forward to becoming a millionaire shortly, you can start exploring a side hustle. You can take up a freelancing position or a part-time job that’ll fetch you a supplemental income besides your monthly salary. However, make sure you don’t choose a side hustle randomly. Instead, opt for a side hustle that you’re incredibly passionate about. Find something that allows you to fulfill your creative urge.

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1. Aim For These Side Hustle Options

Side hustles have one marked edge over regular part-time jobs. They offer the leeway of deciding how much you want to work and make. Significantly enough, a side hustle can not only serve as an effective way of making yourself debt-free, but also let you evaluate your entrepreneurial skills. 

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You can explore a wide range of side hustles, including but not limited to:

  • Freelance content writing
  • Tutoring online
  • Walking dogs
  • Babysitting
  • Making and promoting handicrafts
  • House cleaning 
  • Catering
  • Survey taking
  • Mystery shopping
  • Social media influencer
  • Photography services

You can explore any of the above side hustles for making a little extra without giving up your full-time job.

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