Tip 1: Develop good habits early
Carter Wood, a blogger who made $ 7 million in seven years, saved money and lived frugally when he was working hard to start his own business in the technology industry. The 49- year-old said that many people rely too much on credit card loans when they are young, and the result is that loans eat up their savings and they can never save money. He believes that if people want to live a wealthy life, they should not buy whatever they want when they are young and let themselves be manipulated by the satisfaction of material desires. If you can develop good financial management habits early in your youth, the money you earn will stay in your pocket and you will truly become a millionaire.
Tip 2: Have confidence in yourself
Corey, the author of the book “Make $ 1 Million Before 30 “, read almost all the biographies and autobiographies of millionaires on the market when he was young, and was inspired to start investing in real estate. As a result, he became a millionaire before he was 30. Corey said that he used reading to find the common characteristics of these wealthy people’s success in their careers, which could help him choose the most suitable path to wealth. In the end, he found that almost all wealthy people have one common characteristic, which is that they have great self-confidence and believe that they can definitely achieve great financial success. This discovery really helped him realize his dream of becoming a millionaire at a young age.
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Tip 3: List the specific details of your dream
Smith, a columnist for the blog Rich Auntie Next Door, believes that if you want to become a millionaire, you must have such a dream. If you don’t have such a dream, the dream of becoming a millionaire is really just a dream. But just saying that you want to be a rich person is too empty. It is better to imagine it in detail, imagine what your life will be like if you are a millionaire. For example, you need to have 2 million yuan to invest, and then you can live a good life just by relying on the income from the investment. In this way, you can quit your job, do volunteer work, travel, learn to play tennis and paint, and have a picnic on the beach with your family. Smith’s dream of becoming a millionaire is to be completely financially independent before having children, and to live a good life without working. Smith cut out pictures of the places she most wanted to go or the things she most wanted to do from magazines, and placed them in a prominent position in front of her desk to remind herself to work hard to achieve her dream. In the end, Smith did realize her dream. A survey shows that although the United States is the country with the largest number of millionaires in the world, most Americans do not have the desire to become rich, and they are very satisfied with a well-off life. Therefore, in the United States, some people could have the conditions to become rich but ultimately missed the opportunity. This has something to do with people’s mentality.
Tip 4: Buy insurance to protect your property
Many people go bankrupt because of divorce, death of a family member, disability or illness, or family members being unable to work. Some people also pay high compensation fees because a guest falls down at a party at home, and their hard work goes to waste. On the other hand, buying insurance for these unpredictable accidents can protect your wealth. White, the author of Ping An Millionaire and a famous financial columnist, pointed out that many people do not buy enough insurance for what they need, or buy unnecessary insurance. These are all because they do not understand insurance and its role enough. In the United States, if you buy a house with a high house price, the insurance company will recommend that the owner buy a million-dollar umbrella insurance for the property. The biggest advantage of this insurance is that if an outsider has an accident in the owner’s private residence, the insurance company can bear the relevant compensation costs. Some cases in the United States show that even if friends gather together or hold a party, the owner has legal responsibility for all guests. Once a fall or collision accident causes personal injury, the owner needs to pay compensation.
Tip 5: Work hard
Many people believe that the reason why rich people are rich is mostly due to good luck. But billionaire Trump believes in his new book Think Like Trump that his success is not due to luck. Trump believes that the most basic reason for his success is nothing else but hard work. He said that hard work will bring good luck, because hard work will mostly lead to success, and then people think that good luck brings success. Even so, it is because you are lucky enough and you are smart enough to know to work hard. The same concept was advocated by Benjamin Franklin in the 18th century . He once said that the harder I work, the better my luck.
Tip 6: Practice budgeting
Smith keeps a monthly account, and she also recommends that people practice doing the same, listing the details of their spending every month. In addition, she also believes that maintaining a good credit score is also helpful for becoming a millionaire, because a good credit score can save money for yourself in many ways, and the money saved in a lifetime will reach tens of thousands of dollars.
Tip 7: Follow your heart
Working in finance may bring high salary, but it may not bring great sense of achievement if you don’t like it. Therefore, Corey recommends that people must do what they want to do. See what kind of books, magazines or information you like to spend time reading after get off work. That may be what you really love, and it is worth considering entering the relevant workplace. For example, if you like reading fashion magazines very much, working in fashion-related jobs may bring you opportunities for development. Sometimes a career may not be very attractive in terms of salary, but as long as you really like it, you are likely to have extraordinary performance and become a leader.
Tip 8: Decide how much money you need
Most people only say that they want to be a millionaire, but for many people, $ 1 million is not enough. Especially for young people under 40, with inflation, when they are 65 , $ 1 million is not enough to live a comfortable life. Therefore, it is best to first concretize your ideas, including what kind of house you want to live in, what kind of travel you want to do, how much mortgage you want to pay, what kind of university your children want to go to, etc., and sum up a number, which will help you achieve your goals. What is being talked about here is actually setting financial goals, and then breaking down the goals you pursue and want to achieve in your life, and gradually making your dreams come true. In real life, many people lack a financial stability plan or goal for their lives, and often live one day at a time, and they think that having a house to live in and three meals a day is life.
Secret 9: Contrarian Investing
Corey suggests that you should go against the majority in terms of investment. If the stock market is falling badly now, many people are desperate to sell it. If you dare to buy it at a low price, you may reap a great harvest in a year or two. This investment method is not limited to the stock market. The same principle applies to real estate investment. If you dare to buy a foreclosed house at a low price and rent it out, you may get a great return in the future. Corey is talking about an investment strategy, but for many people, the key is to form the concept of investment. Chinese people have the concept of saving, but the concept of investment is still in full formation. Investment does not necessarily mean investing money in real estate, stocks and securities. Retirement funds are also a good investment direction. Many American financial experts recommend that people invest a certain proportion of their income in retirement funds from the beginning of their work. After working for 40 years, the amount of effectively managed retirement funds can be more than 1 million US dollars by the time they retire.
Tip 10: Live within your means
Even big stars like Eminem are careful with their money and don’t want to spend money recklessly. Once Eminem saw a watch he liked very much and it was worth $ 15,000 . He wanted to buy it. But later he thought that he should keep the money because he didn’t want to spend it all. He wanted to have money to support his daughter’s college education. Many big stars ended up in debt because they didn’t have this idea. Millionaire Smith said that her financial management experience is not to spend all the money she earns every month to keep up with the fashion, but to find ways to save 10% to 25% of her income . To do this, don’t follow the trend, don’t buy those so-called status symbols, such as fashionable sports cars, luxurious manors, and don’t buy too many brand-name handbags, shoes and clothes.
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