Becoming a millionaire is a dream of every other individual. However, not everyone can become one. A dream to be worth a million is very tedious, unrealistic and mostly a laughable goal, especially for a common man.
Since we are not born into the royals, we have to work our way up in this life. But, if becoming a millionaire is your ultimate goal in life, then you need to readily invest your time and efforts into achieving it.
And we are here to tell you how.
Here are a few steps that will help you achieve your goal of becoming a millionaire.
1: Start Early In Life
The key to achieving this goal is by starting early in life. The earlier you start striving towards this goal, the greater your chances are in collecting the wealth you need. This mean, you have to start spending wisely from the very beginning. Apply the long term calculation to your spending habits. This will give you a clear picture of whether your habits are helping you save or decline your wealth.
For instance, if you are spending INR 100 on coffee daily for five days a week, that accounts for INR 500 by the end of each week. This, in turn, means that you will be spending INR 26,000 by the end of the year. Now, do you think this amount is worth spending?
Look for ways to cut costs and adjust a little bit. Keep a monthly budget and try sticking to it. Also, keep track of your expenses and see whether you can save money in any way.
2: Learn To Spend Less
Millionaires follow a strict budget. They do not spend more than they need to. As a matter of fact, they spend only 10 percent of their monthly income. The remaining 90 percent of the income is either invested for higher returns or reinvested in their business for profits.
If you want to achieve this dream, you will have to learn to live below your means, just like other millionaires. This gives you a chance of saving more for later. Moreover, you can look for investment plans and start investing from the start of your career. Once the policy matures, you will have more money to add to your net worth.
3: Financial Freedom over Displaying Status
Why buy things that you cannot afford? Is it really necessary for you to own certain items, for the mere reasons of showing them off? Unaffordable luxury items can surely uphold your high-status in society, but at what cost?
It is sheer stupidity to spend on items for maintaining social status and then spending your income on paying off the loan. You cannot achieve your dream of becoming a millionaire if you still continue doing this. Instead, use whatever amount you have to build your own corpus.
4: Have More Than One Source of Income
You cannot be a millionaire if you rely on a single source of income. Build your wealth from multiple avenues over your lifetime. It can be via rental income – in case you own a house, interest earned, dividends earned, a side business or capital gains.
If your source of income is your job and you plan to continue working the same, then it is wise to start looking for different investment options.
Look for investment plans that allow you to earn dividends and interest for a long-term, especially an option that provides both – insurance as well as investment. In fact, ULIP that is Unit Linked Insurance Plan does just that. Many providers offer ULIP plans that differ in nature. Choose a ULIP policy that is best suited for your needs and start building your wealth right away.