Financial Success

10 Steps How to Become a Millionaire (Continue)

August 9, 2008 , 8 Shawn

This is the second part of 10 Steps How to Become a Millionaire. If you miss the first part, you can always read it here.

5. Learn and Keep on Improving

The road to becoming a millionaire is not a race, it is not a sprint, it is a marathon. You will need time to make yourself and transform yourself into a millionaire. It is not like one day you wake up and you have $1 million in your bank account. The process of becoming a millionaire is a continuous process. Therefore, if you want to achieve this goal, you will need to constantly learn and improve yourself all the time.

Nothing can beat continuous improvement. If there is one thing that can bring you unlimited wealth, it is the power of constant and never ending improvement. The moment you stop to learn, you stop to grow. Learning is so much important in your life, it is only through constant learning, you will keep yourself better everyday. If you want to be a millionaire today, then learn and read about what other millionaires do. Follow their footstep and you will be the same just like them.

6. Set a Clear and Specific Financial Goal

You must have a clear and specific financial goal if you want to be a millionaire today. Just like every other goal, you must have one. If you are not clear about how to set goals, how goal setting can help you in your road to success, read my Goal Setting and you will be clear about it.

Do you know how much you want to earn? Do you know how much your net worth is going to be in 3 years time? If you don’t know all this, stop and think for them right now! If you don’t know how much you are going to make, you will never make it, because you don’t even know the amount. Many people say that their goal is to become rich, to make a lot of money. This is not specific enough.

For some people, $1,000 for them is a lot, while for others, $1,000 is very little. Therefore, how much is ‘a lot’ for you? You need to have an exact value for your mind. When your goals are not clear, you are sending blurry message to your mind. All those blurry messages are going to make you confuse, your mind will be having a hard time to come out with a clear strategy and plan on how to achieve it.

7. Track Your Incomes and Expenses

This is what most people will never do, and this is why they are not a millionaire. You need to be serious in dealing with money if you want to become a millionaire today. Learn how to track your incomes and expenses. Just spend around 10 to 15 minutes to do this everyday. It does not matter how you track your incomes and expenses, you can jot them down in a note pad, in your diary, or even into your mobile phone. The key here is the habit. Again, it is your habit that will affect your life.

Did you actually know that most people spend 30 minutes a month into managing their wealth? This is a good thing, but they spent it the wrong way. Most people spend 30 minutes each month paying bills. Yes, most people will manage their incomes and expenses, only when the time they pay the bills. If you want to be rich, you must start from your habit of managing money. If you cannot manage your wealth, you cannot be rich.

Like I said above, you need to learn to do this. No matter how much you are earning and no matter how much your expenses are, it is the habit that you need to master. Even if your earning is very low, you have to track them. By doing so, you are sending the message to the universe that you know to manage wealth and you are ready to receive more. Therefore, start doing this from now on. Learn how to manage wealth, and you will become a millionaire eventually.

8. Debunk Your Millionaire Myths

There are a lot of myths in your beliefs that actually hold you back in achieving more wealth in your life. For example, the most common ones, a lot of people have this myth:

Money will not buy you happiness – True. However, not having money will not make you happier as well. Isn’t it better to be unhappy with money than unhappy without it?

Money isn’t everything – This is the top excuse given by poor people who are in denial. The truth is that everything is money. Without money, you cannot maximize other important values such as family, career, health, spiritual and relationships.

Rich people are materialistic, they worship money – It is the people who lack money who worship it. Who works all day, year after year in a job which they hate, just for the money? Who is wishing they had more money? Who is constantly worrying about money? Who are those who constantly sacrifice their health and family to make more money? It is those who are wealthy or those who have no money? In fact, the rich rarely work because of money. They work because of passion and a sense of personal mission. Bill Gates, Warren Buffett, George Lucas, Michael Jordan and Steve Jobs certainly don’t work for money… they don’t need to.

Money will make you less spiritual – Again, if you are by nature a spiritual person, having money will allow you to touch more lives and help you do more of god’s work. In fact, the wealthiest people in the world are extremely spiritual. Not having to worry about money anymore allows many of the rich to focus on the more important things in life. Many truly wealth people believe they don’t own their money. They are just custodians of God’s wealth.

Money will bring you worries and problems – The majority of the problems people face in life (relationships, health, and career) are the result of the LACK of money.

Money is the root of all evil – The lack of money is the root of all evil. The number one cause of murder, cheating, stealing, lying is poverty (the lack of money).

These myths are grabbed from Adam Khoo’s Secrets of Self-Made Millionaires, you can download The 9 Millionaire Habits from my blog.

9. Create and Compounding Your Wealth

Trust me, of all the 10 steps, this is the toughest and the most challenging step to becoming a millionaire. However, in real life, most people choose this path and are trying very hard with this step. Many people thought that they can only become rich if they can earn a lot of money in their life. In fact, this is a more offensive way, saving and living a frugal life is a more defensive method.

If you apply both offensive and defensive methods, you will multiply your net worth and become rich in no time. There are actually 5 ways you can make money, I called them the Millionaire Mountains. Read my post, The Millionaire Mountains to find out the 5 ways how you can create wealth in your life.

This step involves a lot of hard work and smart work. You need to put in a lot of action before you can see the results that you want. The problem with most people is, they are lazy, they are not committed, they procrastinate, and they don’t have the millionaire mindset. Creating wealth is not as difficult as you think if you are willing to learn and take action. Learning is the first step, the knowledge works as the vehicle that brings you to your destination. While taking action is the second step, it is the fuel that will drive the vehicle to where you always wanted to go.

Many people have the limiting beliefs that saying they cannot be rich or become a millionaire. However, this is not true, you can become a millionaire even if your earning is low. How? By managing your wealth and creating more income streams in your life. As long as you do what you should be doing, money will come to you.

10. Give and You Shall Receive

One of my favorite quotes. If you want to become a millionaire, help others to become a millionaire or solve their problems, and in return, they will make you rich. This is the golden rule of life, “Do not do unto others what you do not want others do unto you”. Always remember, when you have become rich, don’t forget to help people to become rich as well. If you are willing to help and teach people, you will become even richer.

Just like if you take the elevator up to the top floor, don’t forget to send it down so that other people can take it up as well. The journey to becoming a millionaire is not an easy one, you will have to meet with a lot of people in your journey. Treat everyone nice on your way up because you will not know who you will meet on your way down. The more you give, the more you will receive.

These are the required 10 steps how to become a millionaire that you can follow if you really want to be a millionaire. Well, it is easier said than do. You have to take a lot of determination and action to make your dreams come true. Creating wealth and becoming a millionaire is not something like a sprint, it is a marathon.

Number One Reason Why Most People Fail to Become a Millionaire

Like what I have said, the road to become a millionaire is a long one, it is an on-going process, you need to spend time to develop and improve yourself, take action and move closer toward your goals. The number one reason most people fail to become a millionaire is because they give up in the half way. You need to take continuous action for a long time. It is not possible for you to become a millionaire overnight.

Even if you hit the lottery and became a millionaire overnight, your wealth will not stay long with you because you don’t have the knowledge and skills to manage it. The road to become a millionaire is the training ground for you, when you are ready, the wealth will come to you. Many people hope that they can be rich instantly, but as you know, this is not possible, there is instant riches or any free lunch in this world. If you want to be rich, you will have to pay for it, you have to sacrifice your time and energy to achieve it.

I hope this article can help in your journey to become a millionaire. Read the first part here.