Things You Should Know
Set goals for yourself, like starting your own business and earning $1 million by 30. Then, seek business advice from mentors or read millionaires’ books.
Save money by living below your means and buying only the things you need. Put the rest of your money in a savings account and invest it in stocks and funds.
Start a business by identifying what customers need and want. Keep your start-up costs low by renting an existing office and monitoring your cash flow.
Set yourself concrete goals. Good preparation is an absolute necessity when it comes to endeavors as big as becoming a millionaire. And it all starts with giving yourself concrete, measurable goals that you can keep your eyes on.[1]
Perhaps you want to reach millionaire status by a certain age, like 30.
Or perhaps your first goal is just to be out of debt within two years.
Break bigger goals into more actionable smaller goals. For example, if one of your goals is to have a growing business in a year, start with the goal of fleshing out a business model within the first month.
Take care of your health. Making money and making good decisions that create more money in your life require that you are in good shape. Keep fit, eat well, and take good care of your body. It is your health that will provide you with the energy and resources needed to keep going on the commitment to becoming a millionaire.
Read the advice of those who've made it. Benefitting from the wisdom of the successful can never hurt, but be careful not to get caught up in the planning and preparing stage. The most important step is taking action. However, do spend some time reading other millionaires' advice. Some suitable books to read include:
Stop spending and be thrifty. This is a key element of becoming a millionaire. Either you have the money in savings or you're spending it on things. You can't have both if you're aiming to become a millionaire. Most millionaires (a net worth of $1 million to $10 million) are living a very frugal and cost-effective life, without hyper-expenditure.[5] This includes:
Live beneath your means. A good rule of thumb for your living situation is to spend no more than one-third of your monthly salary on rent.
Buy quality clothing but don't pay ridiculous prices. A suit under $400 will do you just fine.
Wear inexpensive watches, jewelry, and accessories.
Don't collect things.
Drive a reliable but affordable car of an ordinary brand.
Avoid prestige and luxury brands.
Stop comparing yourself to others and trying to keep up with them through spending.
Invest in stocks. If you're gung-ho for individual stocks, buy stocks of the companies whose products and services you use or purchase. One of the best ways to invest in individual stocks is through an investment club; you may want to consider forming one with your friends. However, whatever way you choose to buy stocks, get really sound and good financial advice first. Do your due diligence on that financial advisor - check their reputation and record of accomplishment first.[8]
Blue chip investments may be slower and less exciting than other stocks but in the long-run, they're sounder.
Buy mutual funds. Mutual funds are an investment in other investments. When you own a mutual fund, you own the securities (stocks, bonds, cash) within the mutual. With mutual funds, you are pooling your money with other investors and diversifying your investment.
Look at what people need, not necessarily at what you want when deciding on a business. There will always be things people need and they need them to be done well. Things like garbage disposal, energy creation, providing products to the health and dying industries, etc. In addition, the certainty of customers should not be overlooked lightly. Choose a business that provides what people really need and be prepared to put in the effort to make your products and services either the best, the most price efficient or unique.[9]
Have a frugal startup. There is much talk about "looking the part". There isn't much point looking the part if it cost an arm and a leg to get it and you lack clients to pay for it. Get yourself a fabulous suit that is worn every day and makes you feel confident and ready to meet people but be very careful with your office fit-out and other business elements.[10] Here are some ideas to help you initially:
Consider renting offices that someone else furnishes, cleans and that get shared around. Spend only the time needed in them, to cut costs.
If you do have your own offices, rent furniture or buy it cheap at auction.
Lease anything that needs to be constantly updated, computers being number one in this group.
Keep staff expenses under strict control from the beginning.
Fly economy. Or use Skype and other online forms of virtual conferencing and avoid flying at all.
Be eco-aware and turn off unused items all the time. Save the planet and your bottom line.
Step 3 Monitor cash flow with an eagle eye in your start-up business.
3
Monitor cash flow with an eagle eye in your start-up business. This is one time in life where obsession is a good quality. Every cent counts and if it's not in your savings or being churned back into your business, it's in someone else's pocket.[11]
Don't neglect the viability of your business. Always pay attention to what isn't working and remedy it at the earliest possible opportunity.
Don't neglect the mundane but essential parts of running a business, like timesheets, tax, petty cash, invoicing, etc. Do them with clockwork regularity or employ someone who is capable to deal with these things.
Deal with bad debt as soon as it rears its head. It isn't going away, so the earlier you face it, the better.
Find your business sweet spot. There are only three pieces to this. First, know the strengths that are unique to you, or at least where you can add unique value. Then find a market, a group of people, who want what you have to offer. Finally, you have to make sure those people will pay money for what you have to offer.
Define your brand. A brand is nothing more than a belief system that people have about you and your business. People will want to do business with somebody or some company they believe will solve a specific problem they have. You must be seen as the solution to that problem.
uild systems and scale up. This a key entire secret to a massively accelerating your income growth. If you create a product that sells for $100, and you know that $50 spent on advertising consistently produces one sale, you have a winning model, as long as you've picked a large market. Scale up.
Hire great people. One of the biggest ways to go from a $60,000 a year income to a multi-million dollar business is by hiring great people. This is why all the large corporations focus on team-building and leadership. It is the only way to have a great team is to be a great leader.
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