Here are some ways you can reach millionaire status but… it’s going to take some patience. Few things of value happen overnight.
In a study commissioned by BMO, almost half of Canada’s millionaires are new immigrants or first generation Canadians and two-thirds of them were self-made, with only 20 per cent getting a part of their wealth from an inheritance. That gives the rest of us some hope.
1. Keep learning
Keep investing in your education, even if you have a degree. Read success books and attend motivational and other seminars to keep your momentum going…The more you read about the path to success of others, the more motivated you will be to pursue your own dreams.
2. Discipline yourself
Don’t spend money on luxury items you can’t afford. If you want to earn yourself into a millionaire then you need to live a disciplined life. Think Zen!
3. Follow your bliss
Do what you love and the money will follow. I know, it might sound corny, but if you’re doing what you love, whether it’s your job or hobby or side business, means you will stick it out during the ups and downs [and have a much greater chance of becoming a millionaire]. Again, think Zen!
4. Save, save, save
Did I mention save? To live within your means is the hardest thing to do in a society of instant gratification. You have to move beyond the paycheque to paycheque mentality. Millionaires pay themselves first.
5. Reduce personal debts
All debt is bad, but some debt is not as bad as others. Mortgages, business loans and student loans are not so bad but high-interest credit cards and lines of credit will stand in your way to becoming a millionaire. Pay them off.
Financial markets yield good returns whether you’re a conservative or an aggressive investor. Long-term investing usually yields better returns and is less risky than short-term investing. Start with companies you know…. like banks, yeah banks!
7. Invest long-term money
Only invest what you can afford to lose. Don’t use the money you need for your day-to-day living. How to free up cash? See items four and five – pay off debts and save. Don’t incur debt by using your credit facilities to invest.
8. Own your home
A person’s home is their castle – and it can be as valuable as one. Homes appreciate in value over time and are a good investment. According to MSN Money Central, 95 percent of all millionaires own a home.
9. Open a retirement savings account
As soon as possible – the earlier the better! Retirement accounts use compound interest, which means you continually earn interest on your interest. The earlier you start contributing to your retirement account, the more money you can accumulate because you have more time to take advantage of compound interest. [It makes becoming a millionaire that much easier.]
10. Don’t put all your eggs in one basket
Millionaires believe in diversification, meaning multiple streams of income so read up and learn the many ways you can diversify your millionaire portfolio.
The comments above are edited ([ ]) and abridged (…) excerpts from an article by Gina Monaco
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