How To Become A Millionaire

A private jet, a mansion overlooking the ocean, and a private island on the Caribbean; if there is one goal in life that is oblivious to the distinctions of race and geographical location, it’s to be abundantly wealthy.

However, achieving millionaire status is as good as praying for money to rain down from the sky.  You will not make any progress if you do not forge a determination to shed old habits and mindsets, and the discipline to do something about it.

For those who want to realise their dream of becoming a millionaire, it is not entirely far-fetched. Here are the do’s and don’ts that may help you in your journey to becoming a millionaire.

Do: Have the courage to work for yourself

While not completely impossible, most people can attest to the fact that the journey to becoming a millionaire is exponentially longer when working for someone else.

Being able to climb the corporate ladder and finding a company that can afford to pay you a high salary aside, working for someone else means you’re trading your time and skills for money; and since your time is limited, your ability to earn is also limited.

Don’t: Be impatient

The road to being a millionaire is paved with knowledge, experience, and knowing the right people; all of which can only be attained from years of working under someone (or a group of people) whom already possesses them.

Do: Believe in becoming a millionaire

Based on the law of attraction, the first step to become a millionaire is to start acting like one. Becoming a millionaire is as much the way you think as it is the actions you take. Everybody wants to be a millionaire but not everybody believes that they can be or that they deserve to be; and it is this lack of belief that causes wealth to elude them.

Warren Buffet, widely considered the most successful investor of our time says “I always knew I was going to be rich. I don’t think I ever doubted it for a minute”.

Don’t: Let your mindset weigh you down

As mentioned above, many do not believe they deserve to be a millionaire, in fact, many associate wealth with corruption, evil, and ignobility.

To be on track to be a millionaire, you should purge this mindset, stop undervaluing yourself, and know that you deserve the rewards of your hard work.

Do: Be tenacious and open to learning

Nobody ever said that becoming rich is easy – in fact, your journey to wealth is almost definitely going to be riddled with people who will get in your way, frustration, and even failure.

Hold firm to you beliefs, get up after every failure and most importantly, learn from your failures and the failures of other millionaires.

A good example of a tenacious wealthy man is Elon Musk whose vision for the future which included Tesla and SpaceX were so ambitious that he was on the brink of bankruptcy in December 2008 after putting over USD170 million in them. He even had to borrow money for his living expenses like rent. Today, the Tesla company is worth over USD33 billion while SpaceX is valued at USD12 billion.

Don’t: Be a self-absorbed snob

The biggest obstacle to learning is thinking that you already know everything there is to know. When you are unable to learn, you are unable to manage your wealth as it grows; every decision you make that concerns your finances must be built on a solid foundation of knowledge.

Quoting Warren Buffet once more, “It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours and you’ll drift in that direction”.

Do: Live beneath your means and enjoy the least expensive things in life

Part of becoming a millionaire is to be thrifty; because money spent on lavish and expensive things is money not going towards building your wealth.

Identify the things you enjoy doing now and continue to do those things, because if you can afford them when you’re not a millionaire, you can definitely afford them being one.

Don’t: Get caught in lifestyle inflation

Lifestyle inflation occurs when you raise your standard of living following an increase in income or wealth, which ultimately results in status quo (i.e. you’re no better off with more money than you were without) or worse.

A few pointers to manage lifestyle inflation includes:

• Don’t immediately spend more when you earn more.
• Don’t collect things that require substantial and continuous injection of funds.
• Get a car of an ordinary brand that suits your needs.
• Stop equating spending with happiness.

Read More: Can You Fight Lifestyle Inflation?

This article has been updated on May 28, 2024.