I believe that Personal finance encompasses all the decisions a person might make when it comes to cash flow, budgeting, retirement, investments, multiple streams of income, and insurance protection. Every adult is bombarded with decisions to make when it comes to all these areas of life and I try to help with my thoughts and opinions on the various topics.
Maybe it’s not your specific goal to become a self-made millionaire, but there’s a good chance that one of your goals is to become financially comfortable. Whether you hope to earn millions of dollars or you merely wish to pay your bills, we all have the urge to make more money. This is just the way that humans are wired, especially humans living in Western consumerist societies.
Saying that you wish to become a millionaire is a lofty goal, but it’s certainly not impossible. As long as you have the education, determination, and passion for what you’re doing, making a million dollars is feasible. The road will be long and challenging, but these best-kept secrets from the world’s most successful self-made millionaires will help you get there.
Don’t Be Afraid to Take Risks
There’s nothing wrong with playing it safe. Billions of people choose to play it safe every single day by going in to work at a dead-end job, just to pay the bills. Playing it safe can even eventually make you a million dollars. But taking this path will take time, and you might not get there before it’s time to retire.
If you want to become a millionaire during your youthful years and actually enjoy the money you’ve earned, you need to learn how to take calculated risks. Taking calculated risks means that you’ve thought long and hard about a course of action. You eventually decide that, albeit risky, it is worth the risk.
The majority of the world’s self-made millionaires earned their money by taking a calculated risk. When we talk about risk, we’re not referring to spinning online slots for free. No, we’re talking about furthering your business career with an action that has the potential to bring you to the next level.
Stop Spending, Start Investing
In order to make money, you need to spend money. But in order to make millions of dollars, you need to invest money. Although the rich do indeed spend money, they also understand that the best way to continue being rich – or become richer – is to make wise investments. Part of the reason for this is that the rich understand that US tax laws favor investing over spending.
Just think about it…When you purchase a new house for personal use, you can’t simply write it off when it comes time to file property taxes. But when you invest in a property that produces income, it’s possible to write off the appreciation of the property. The same goes for purchasing luxury cars for personal use as opposed to company use. If you want to become a millionaire, start investing rather than spending.
Surround Yourself With Like-Minded People
This does not mean you need to surround yourself with millionaires and only millionaires. But you should at least be spending time with driven people who share a similar mindset. In other words, stop spending time with people who are complacent with living paycheck to paycheck. Becoming a millionaire isn’t just about hard work and smart investments; it’s also about who you choose to spend your time with.
Stop Putting All Your Eggs in One Basket
Focusing on one revenue stream or one source of income is fairly normal for the average person. But not for self-made millionaires. Most wealthy people of the world create multiple flows of income and never place all of their eggs in one single basket. Even if a multi-million dollar company has consistently been successful, that does not mean it will always remain that way.
Once you have a good amount of money in your bank account, think of an additional option for generating an income. Maybe this means investing in real estate, or perhaps it means playing around with stocks. Whatever you do, just remember that having one source of income is never a good idea, especially if you want to remain a millionaire for years to come.
Transform Weakness into Strength
We’ve all been asked that question at an interview. The one that goes something like, “Can you tell me about your weaknesses?” Most of us try to turn the question around by listing off weaknesses that could also be perceived as strengths. But this is actually not the best way to answer that question.
It is important to actually acknowledge that every human has weaknesses. Becoming aware of your weaknesses is an essential step to becoming a self-made millionaire. Once you have identified what your flaws are, you can work to improve those flaws, and eventually, you may even be able to transform them into strengths.
Take public speaking as an example. When it comes to speaking in front of an audience, you fumble over your words and begin to sweat profusely. As soon as you become aware of this flaw, you decide to take a public speaking class. After the 6-week course, you finally master the art of speaking in front of a crowd. In fact, you have acquired to tools and skills necessary to speak in front of others flawlessly.
Look at Millionaire Status as a Duty, Not a Goal
So many people view “becoming rich” as a goal, something to accomplish over time. If you want to earn millions, you need to get rid of this attitude and start treating it as a duty. You have a duty to fulfill, and that is to reach your fullest potential. Becoming a self-made millionaire is one of the best ways to accomplish that.