How To Become A Millionaire: The Best Ways

Best Ways To Become A Millionaire

As I’m writing this post, I’m sort of smiling to myself: in this economy (or even in times of economic expansion), becoming a millionaire is quite an exciting proposition. So why bother listing the best ways to become a millionaire? Well the answer is actually quite simple. Looking back at how many of the world’s wealthy have made their fortunes, you will find out that their success has been built on some traits they’ve had to hone. Developing persistence, following a vision, perfecting a talent, opting for a frugal lifestyle, I could go on and on… The fact of the matter is that if doing what you’ve done so far hasn’t turned you into a millionaire yet, most likely 20 years from now the same causes will be producing the exact same effects. In order for you to reach millionaire status, the very first prerequisite is acquiring the vision and mindset of a millionaire.

The Necessary Mindset To Become A Millionaire

Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad and other personal finance books, says that “if you can grasp the idea that money is not real, you will grow rich faster”. As it turns out, our entire financial system is a complete fabrication. The money we use as the basis for our financial transactions is not real, it’s fiduciary money, from the latin fiducia which means trust. The whole thing works because we all believe it does. But how does that relate to you becoming a millionaire, you ask?

Well the very same principle is at work for you. If you firmly believe you can be a millionaire, you most likely will. The main problem is that most people don’t believe they can be millionaires, they just wish they were. The difference between wishing to be a millionaire and believing you can be one is planning for your success. That means getting a clear picture of what success means to you because, let’s face it, you most likely don’t want to be a millionaire just so you can have a lot of money in the bank. You want to be a millionaire because of the lifestyle it can bring you.

Planning for your success will also help you avoid falling back into poverty after acquiring wealth, which is what happens to most people who literally get wealthy by accident. A millionaire mindset has nothing to do with how much money you have right now, and everything to do with how you manage the money you have right now. If you can learn to create a surplus that you can invest, then you’re halfway there. Creating that surplus is a mix of keeping your spending under control AND increasing your income. Acquiring good money habits is probably one of the most important skills you’ll have to master because whether you believe it or not, if you’re struggling financially, more money might very well increase your problems instead of solving them. Being unable to manage, say, $50,000/year is probably a good indication that you can’t manage $500,000/year.

But how do you actually get to make the extra money that’s going to propel you to millionaire status? I’m glad you asked. I’ve tried to categorize how most of the world’s successful people have made their money, but instead of going by industry, I’ve decided to go by “method”.

Methods to Become A Millionaire

Make Money, Save Money, Invest Money. In this category I put those who follow Warren Buffett and Peter Lynch’s philosophies. It’s very simple. You earn an income (either by getting a job or running your own business), you spend less than you earn, and you invest your surplus in bargain-prices, sound, and profitable companies. Your income increases and so does your surplus (remember that your expenses are under control), which allows you to invest more money. You create a virtuous cycle and wealth ensues. This is the simplest way to become a millionaire, and also one of the most fool-proof. Why don’t many more people do it? Because it’s BORING, and IT TAKES TIME. You’re most likely never going to make the cover of Forbes or Money. But make no mistake, it’s one of the very best ways to become a millionaire.
Personal Talent. I’m thinking Lebron James (basketball player), Tiger Woods (golf player), Will Smith (actor), David Beckham (soccer player), Jay-Z (rapper), Janet K. Rowling (author) and the list goes on. Those individuals have built their fame and fortune on the basis of a natural talent, whether it be athletic or cerebral. In this century, where mostly everything can be marketed on a global scale, and where technologies such as the Internet have opened up whole new opportunities to cash in on talent, the rise from rags to riches can truly be meteoric (50 Cent). What needs to be pointed out, though, is that the reason why they get to make that much money is because they’ve managed to reach the top. And by definition, there can’t be too many people at the top. Oh and, while they might, on the surface, look like they’ve become millionaires overnight, the reality often is that they’ve toiled for years before finally breaking through.
Recognizing Others’ Talent. Producers, agents, and managers are the people that come to my mind under this category. In the music and movie industries, producers are typically richer than the artists they produce (P. Diddy, Scott Torch, Jerry Bruckheimer). Agents and managers in sports, writing, and music (just to name a few) can make millions provided that they manage to build a portfolio of successful clients. There’s no doubt that you can become a millionaire by taking a (roughly) 10% cut on several million-dollar contracts that you negotiate for your clients.
Vision. Ever since he came back to Apple’s helm and presided over the company’s renaissance, Steve Jobs has cemented his visionary status. And has banked in not mere millions, but billions in the process. If you have the ability to come up with revolutionary products and/or services, you have a good foundation to turn that ability into millions in the future. Even if you don’t have that creative a mind, you can be inspired by Sam Walton’s success. He didn’t invent anything ground-breaking, but he brought about what would become the juggernaut known today as Walmart, on the simple premise of everyday low prices, and a ruthlessly efficient operation. Better yet, your money-making product or service doesn’t even have to be your idea. It’s reported that Bill Gates paid $50,000 in 1979 to buy the exclusive rights to a computer program called DOS, the disk operating system for minicomputers. His vision was that those little machines would eventually end up everywhere. Was he right or what?

More than anything, this is my personal take on the best ways to become a millionaire. I have no doubt that there are many other avenues to financial wealth, but I believe that in one way or another, they fall within one of those methods. I, of course, welcome any feedback or comment on the subject, especially if you disagree with me.