First, this is not about getting rich quick. If you’re looking for advice on how to get rich quick, you’ll need to look elsewhere. Chasing “get rich quick” schemes is not wise and not sustainable. Suffice it to say, becoming a millionaire takes work. The good news is, becoming a millionaire can be done with two simple steps.
STEP 1 – Save.
There are plenty of things you can do to save money, but to become a millionaire you need to do more than save on a monthly basis. To grow your wealth you to make saving:
- A habit.
- Something you plan.
Making it a habit means you save every time you get income. Going further and planning exactly how much you are going to save each time you’re paid is a way to level up. To take it a step above, strategically plan how much to save on a quarterly and annual basis. A wise Financial Advisor will guide you through this annual saving strategy to ensure it helps you pay less in taxes and meet your goals.
Wondering how much you should save at your stage in life? Check out this blog.
STEP 2 – Control spending.
Yes, budgeting can help you control your spending. But if you want to be a millionaire you must understand the science behind spending and behavioral finance. In most cases, people spend for emotions rather than need. Too many people spend money because it feels good. Understanding this truth and creating a plan to spend money before the income comes in is a wise practice. This means monthly budget planning, but also long term planning. Controlling and preparing what you will be spending for vacations, vehicles, anniversaries, birthdays, Christmas, and purchasing a home helps build wealth on high levels.
PRO TIP – Have a safe and conventional investment strategy. It works.
Far too many people have lost a lot of money chasing “creative” investment strategies. Buying into a new, cool, or fun things because it promises high returns should be reserved for things like mobile apps, not investment strategies. More importantly, chasing returns rather than staying the proven course can prevent you from becoming a millionaire. Academic research has shown that chasing return can result in significant underperformance in a portfolio!
Here’s the bottom line – becoming a millionaire doesn’t require any complicated algorithm. It doesn’t even require a gigantic income. With enough time, almost anyone in America can become a millionaire. You just need to save strategically and spend intelligently.
GOOD NEWS! We help create detailed financial plans for people on the exact steps they need to take to become a millionaire. If you are interested in having a step-by-step plan to become a millionaire, schedule an appointment with one of our wise financial advisors below.