How to Become a Millionaire

Becoming a millionaire involves discipline, hard work, and financial education. A lot of us are dreaming to become a millionaire and I was one of those. That is why I simply created this blog entitled Millionaire Acts – to know how a millionaire acts and to mimic their success.

Based on the book that I read entitled “The Millionaire Next Door”Personal Finance Books)
in which the authors conducted a study on how millionaires live, we can deduce what these millionaires undertook to achieve their “millionaire” status. And I will summarize it together will all the lessons I learned on how to become a millionaire.


Millionaires know how to pay themselves first. If you are an employee like me, the first thing you should do is to pay yourself first whenever you received your paycheck. Set aside enough savings first before you spend the rest. Use the equation INCOME minus SAVINGS equals EXPENSES.

A good way to know how much you should save is by using the universal rule called Pareto’s Principle of 80/20. In business, you must put most of your efforts on the 20% that bring in 80% of the income. In saving, 80% of your savings come from 20% of your frugal living. In other words, you should live within 80% of your income and set aside at least 20% of your salary every payday.

Millionaires live below their means. Most millionaires are not fund of showing their wealth by living a lavish lifestyle. We are oftentimes compelled by media to live extravagant because that’s how media portrays how millionaire lives – large houses, luxurious cars, expensive jewelries, etc.

However, a lot of millionaires are simple. They wear simple clothes, live in a simple house, drives simple car and yet you will know they are already a millionaire by examining their bank accounts, their stock portfolio and other investments.

Millionaires know how to budget. One way to live below your means is to budget your income. You should assign every peso for each of your expenses every month after taking out your savings from your income.


Millionaires know how to invest. The first thing to be financially literate is for you to know that the value of money depreciates over time because of inflation. And that is why you need invest. You need to let your money work for you because you worked hard to earn it. You should know how to read numbers and to understand some basic accounting terms.

Millionaires are familiar with the terms active income and passive income. You should have a lot of income streams. If you lose one, then there could be other streams that can support you. You should not just put all your nest eggs in one basket but in a diversified portfolio that may probably contains stocks, bonds, real estate, and other investment vehicles. Educate yourself with these types of investments and how these investments provide returns for you and what are the associated risks involved.

Millionaires start early. You should be informed that time is essence in becoming a millionaire. It’s not a quick-reach step on top of a ladder but it involves a lot of time. It’s not an overnight success.


Millionaires have goals. You should start with a goal. It will serve as your target and gives direction to your actions. There will be a lot of temptations out there that can sway you away towards reaching your goals but it’s just a test of how determined you are. You must possess the drive and the will power to overcome these challenges. You should have the discipline to achieve success. Overcome your fears. Believe in yourself that you can become a millionaire! You can do it!

Millionaires have mentors. You should get yourself a mentor. He will serve as your guide to become a millionaire. He might not be physically present all the time to teach. You can buy his works of art like books in which he shared all the things that he went through in order to achieve his millionaire status.

Mingle with the same people who have the same mindset as yours. Learn from each other. Create value to each other. Surround yourself with positive people, people who can help you and teach you to reach your goals to become a millionaire. Read books that inspire you, that keeps your drive in flame.

Overall these are the collective thoughts I knew on how to become a millionaire. But I can summarize all these in one line – EARN MORE and DESIRE LESS

Last September 4, 2012, I had the chance to be interviewed as TV guest at ANC’s personal finance show “On The Money” where I explained how I was able to achieve my first million through frugality and investing.

Are you ready to become a millionaire? Are you a millionaire in the making?

I would suggest to read on the following articles to increase your financial intelligence and to become the millionaire that you’ve been dreaming to be.

1. What Makes Rich Gets Richer?

2. Secrets of the Rich: Active Income vs. Passive Income

3. Rich Dad Poor Dad and Cashflow Quadrant

4. Cashflow 101 Egame

5. Game of Money – 4 Quarters of Life

6. Singapore’s Youngest Millionaire

7. Frugal Ideas on Your Water and Electric Bills

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Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

71 responses on “How to Become a Millionaire

  1. Great post! I read you went to Ateneo. Well I went to Assumption HS in San Lorenzo. 🙂 Most of my male friends went to three schools: La Salle, Xavier and Ateneo. Great blog and I’ll be visiting often.

  2. Hi Reynz! Thanks for the recognition. Thanks a lot for voting my blog as one of your top 10 choices for top emerging blogs for 2009. It made all my efforts worthwhile. I hope I can gather more votes. 😀

    To Dinah and Jason: Yeah, we must have the right mindset and the body will follow and makes its own actions. 😀

    To Digerati: Hello there! Thanks. You’ve got a great blog too. And I believe yours is one of the top personal finance blogs in the blogosphere. More power to you also.

  3. hey tyrone, I didn’t get to meet you at iblog5!

    good luck to us in our quest to millions! like reynz, i’ll nominate you in janette toral’s project.

  4. Hi Ceblogger, yeah sayang we did not meet in iBLOG 5. I was at the back and I arrived late around 3pm. I almost forgot the event if not for the text of Jehz. Thanks in advance for nominating me.

    Silver, yeah malaking puntos yung pagkakanominate sa akin ni Kamahalan. 🙂

  5. It never hurts to get into the mindset of people who want to be millionaires. I don’t know anybody who’s a millionaire already. Maybe reading your blog will give me the real lowdown on these things.

    Before I forget, congratulations on your inclusion in RE’s Top Ten List. I’ve come from the palace and want to meet my co-nominees. “,)

    Nice meeting you, Tyrone. I’m a friend of Elmot, too. Hayan, nag name drop na. lol

  6. Maganda itong mga posts mo. Agree ako sa sinabi mo dun sa last part: Earn more, desire less.

    Kailangan maging iba ang perspective natin about money if we want to live like a millionaire, di ba??

    Add na kita sa blog roll ko as part of my social climbing sa iyo…heheh…

    More power sa blog mo Tyrone. Keep up the good work. I am sure I’ll be coming back for more here. 🙂

  7. Hi Jan, thanks for dropping by. Yeah, this blog is dedicated to all aspiring millionaires thru entrepreneurship, personal finance, investments, and self-motivation in achieving financial goals. Nice meeting you too. 😀

    Silver, thanks for the add in the blogroll, I also added you as part of social climbing. 😀 Yup, becoming a millionaire is all in the mind.

  8. Wow, you have a really nice blog here bro. Love it. I’m a fan of personal and practical finance (i’ve read so many books on it) and I appreciate bloggers like you who give value to their readers by giving advice like this.

    I’ll definitely include you in the list of my nominations for the top 10 emerging blogs project. If you feel like it too, maybe you can also vote for my blog, haha.

    Anyway, let’s meet up in the next blog event. Would definitely love to talk to you about some of your posts here.

    All the best,

  9. Hi Carlo, sure thing. I would love to meet more bloggers in the next iBLOG event. And I’d definitely love to discuss more on the field of finance and investments. 😀

  10. Serious stuff you got here Tyrone!

    honestly, I don’t want to be a millionaire… I want to be a zillionaire! lol

    I hope I can find time today to update my ‘Blogs I Read’ page so I can add yours… so I can easily get back here to read some more.

    I am an entrepreneur, but I do admit that I still have a lot to learn

  11. Thanks for reminding me!

    I had this realization and learned the same tips years back – yes, from Rich Dad Poor Dad. Up to know I still did not earn my first million, probably because I had been taking baby steps towards that goal. But I am on the way up there.

    Or with your point that I did not have the right mentor to lead me there.

    Have you already earned your first million?

  12. @Roy: Thanks. Maybe you can read some on my articles here on the topic entrepreneurship.

    @Gem: I haven’t earned my first million. They say that earning your first million is the hardest part and the next other millions wouldn’t be as hard as the first. Like you, I’m still taking baby steps to reach it. 😀

  13. Dude, it seems like most of the personal finance books are saying the same thing. I haven’t read this one yet but the points are so like the others. I guess it’s because it works.

    by the way, thanks for the tip.

  14. i like all your articles and my mom loved it too.

    every detail written is true…if you really want to become a millionaire ….this is a good guide.

    nice post.

  15. Hi All,

    I heard the audio tape (10x and I’m not kidding) – Millionaire next door and am a strict practioner of it. When I went to the ME to work, i only had one thing in my mind – I left Philippines to make money and not waste it. My worth income as per my auditor this year is P38M.

    Here are some things that guided me to this path:

    – read Pera ko Palaguin ko, Rich Dad Poor Dad & 4 Quadrants

    – make money work for you and not us working hard for the money

    – keep a simple life style. Learn from the Millionaire next door.

    – keep at least P5M as buffer/liquid cash for emergency use

    – once cash exceeds P5M – invest in real estate, stocks, business, treasury bills, etc.

    – always look for financial vehicle that can grow ur money – either u create it or u copy someone’s idea & enhance it.

    – and most important is plan, plan & plan. 80% planning + 20% implementation equals 100% result. treat urself as a corporation. Make it a point to start budgeting/planning as early as August or September for next year in terms of income/expenses/acquisitions/business plans, etc. 4Q is the staging period to make sure Q1 targets are met.

    – think of urself as the CIO of ur own company – Chief Imagination Officer. All my financial ideas came from my imagination.

    – and finally decide, whether to be a filipino millionaire or an “american millionaire”. If u go for the latter, ur net worth should be at least $1.0M or P48M. If former, an income of P1.0M makes u a pnoy millionaire.

    I stil have P10M more to go for me to consider myself a US millionaire – Cheers & More Power!

    • Wow! I am very much impressed d vinci! I hope I can also achieve what you have achieved. And I think I can do so with the right attitude and discipline.

      I still have 14 years to go before I reach the age of 40, the so-called “Mid Life” by many. My goal is to retire also at the age of 40s. Not exactly at the age of 40 but between the age of 40 to 50. Thanks a lot for your tips. Coming from a self-made millionaire like you is such a great lesson.

      Thanks a lot for sharing and hopefully you visit my blog often and share some more tips for me and my readers. 🙂

  16. Hi, this is such a helpful blog for aspiring millionaires like me. I have one request, can you write about financing help we have here for the philippines? Those that extend help for aspiring entreps like you and me 🙂 thanks so much for sharing your thoughts!

  17. ok i will 🙂 i came across your blog when I was searching about the life of manny pangilinan.. your blog is very helpful and informative. Keep up the good work..

  18. Hi there Tyrone,

    I love your Tips here. They’re simple and direct to the point. These are essential tips on how to become a successful businessman.

    Parang alam ko na kung sino ang kukunin kung mentor.. 🙂


    • It would be better if you have $1 million in cold USD cash as they say, “cash is king” but it would be best if you have $1 million in passive income. 🙂

  19. $1mil a yr in passive income would be SWEET! Very hard to do though.

    I’ve only got about $24,000/yr in passive income for now, with a goal to get to $120-140,000 in 9-10 years. $1 mil would be tough.

    If I can pay off my rental prop, I’ll get another $30,000/yr which would be sweet.

    Just gonna take time!

  20. Yes, I want to be a MILLIONAIRE! In 2009, I paid off all of my credit card debt and am DETERMINED to live financially FREE.Five years ago, I had a life changing event and accepted the Lord in my life and began giving 10% of my income to the Lord. Recently I realized that I was NOT giving anything to myself. I was thinking the way Millionaires were thinking with the exception of forgetting the key factor-paying myself. As a single mom of 3, I am determined to become a millionaire so that I can live the way I want, doing what I most enjoy, surrounded by the people I love admire and respect. GREAT POST!

  21. hi tyronne,
    great post,am always looking for your post in fact i subscribe to your site already. Sana mag create ka rin ng forum hehehe,,thanks a lot!

    • Hi Greiga, I am looking to have a forum actually. However, I think forums are harder to manage and based on the feedbacks that I heard, forums are prone to hacks.

      Tagal ko na rin yan pinag-iisipan to have a forum. 🙂

  22. thanks for posting this article. i think this is almost similar to Robert Kiyosaki’s habit like “Buy an income generating assets that will pay for liabilities.” He is the author of Rich Dad and Poor Dad.

  23. Hey Tyrone, nice blog you have here. Though I’d say that the design has still a mansion of space for improvement. And I can see that although your posts are very well written, majority of content comes from books and mostly from Kiyosaki. I’d like to commend on your traffic generated though, not bad.

    Haha well, I’m not some authority checker to judge your blog but I’m here instead to question… Very well, you write good articles (whether ghost-written or not) and provide important and beneficial tips for readers.

    But, let me ask you, have you achieved the net worth of a million yet? Or at least, are you financially free? Since you did not state in your profile, I guess not. Aforementioned, I can see that you’re an avid reader of Kiyosaki or at least you did read his books.

    In ‘Cashflow Quadrant’, he says to be careful when receiving advice. Advice can come from only 2 different categories of people : Advisors and Mentors.

    You’re giving advice to people very generously, but only as a advisor. I’m sure you see the difference.

    So, as a fellow human, aspiring millionaire and all, I suggest you go ahead and achieve the million! Or at least, whenever you profit from investments, post your achievements up on this blog so that people can see that you’re reliable.

    “Always walk the talk.”

    To Your Success

    • Hi Daryl. I don’t disclose anything about networth or having a million or anything about figures but all I can assure you and to my readers in general is that , “I CAN walk the talk”.

  24. Hello,
    This is another good article. I have read many books like what you mentioned above, secret of the millionaires, rich dad poor dad but I think what I am lacking is to act. I am into savings lately and very frugal but what I want is invest my money in the right investment. By the way I have a blog like this before but it was closed by blogspot because of scam that I did not do.

  25. You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win.
    – Zig Ziglar

    All successful people men and women are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision, that goal or purpose.
    – Brian Tracy


    Don’t Quit

    When things go wrong, as they sometimes will,
    When the road you’re trudging seems all uphill,
    When the funds are low and the debts are high,
    And you want to smile, but you have to sigh,
    When care is pressing you down a bit
    Rest if you must, but don’t you quit.

    Life is queer with its twists and its turns,
    As everyone of us sometimes learns,
    And many a failure turns about
    When they might have won, had they stuck it out.
    Don’t give up though the pace seems slow,
    You may succeed with another blow.

    Often the goal is nearer than,
    It seems to a faint and faltering man,
    Often the struggler has given up
    When he might have captured the victor’s cup;
    And he learned too late when the night came down,
    How close he was to the golden crown.

    Success is failure turned inside out
    The silver tint of the clouds of doubt
    And you never can tell how close you are,
    It may be near when it seems so far;
    So stick to the fight when you’re hardest hit,
    It’s when things seem worst that you must not quit!




  26. Quite interesting blog and comments! According to the latest conversions I would be at around 4,533,612 /yr if I lived in the Philippines. Funny how people thought I was rich when I was in PI. I’m far from that in the US. I’m considered only middle class. Well, blessings and good fortunes to all! Oh, and Tyrone, never feed the Trolls:)

  27. Your post reminds me of the book Millionaire Next door but everything changed when I read about Kiyosaki’s books.

  28. That’s why the song “I wanna be a billionaire” is just plain crap. I mean he’s bene saying he wants to get rich, full of amibitions but he wouldn’t outline what his plans or course of actions would be. I think unless someone has set plans of how to achieve his goal, he wouldn’t really succeed in achieving it. So again, if you want to be a millionaire, you need not just want but work towards achieving it, identify the steps (some of which Tyrone discussed) and keep working, or at least die trying.

    No, ……….A BILLIONAIRE!!!!!!!!!!
    yehey!!!! With all these inspirations around me, here in this website, I will be one. It is not too late yet. At 63, I can still do many things for the good of mankind and be a billionaire. Thanks to all these millionaires around giving all their unselfish tips and inspirations to new aspirants like me.

  30. It is true that everyone want to become rich, to help alleviate the status of their family, to have lots of money, to buy what they want, to help those who are in need, and many others. But the question is how to become rich? If this is our goal then we must think how to get in there. To become rich we must have a positive and right mindset, we must believe in ourselves that we can do it, willingness to achieve our goal and hard work.

  31. Thanks for your ideas. Ang sarap basahin, very enlightening. How can i compute theh projected average yield of a bond?

  32. Hi! Can you make a success story of my idol Warren Buffet? I really love your blog here. Nice Work! keep it up!

  33. i appreciate your blog…i will learn a lot from this that may help me guide my life, dumating kasi sa puntong nawalan ako nang pag asa dahil sa pagkasira ng pamilya ako in short single father ako..hinanap ko ang sarili ko ng mag stow away ako sa ibang lugar natuto akong maging street vendor bilang tendero/maglako ng taho at puto sa kalye,palengke..hangang dito sa manila naging laman ako ng palengke ng pasig at devisoria, sa kabila na isa akong mechanical engineering graduate…hangang na kilala ko ang mundo ng direct selling which is don nag umpisa akong bumangon dahil sa mga leadership training na napapakingan ko, at ngayon nabasa ko site mo malaking bagay ito sa akin sa panibago kong business marami akong matutuhan topic dito na pwede kong e share sa tao ko…im on my way to my first million and i find it in network company…tanong ko maganda ba ang isang networking company ang maging stepping stone ko para maka ride ako sa ibang investment? naiintindihan ko na ang passive income na dati ay hindi salamat sayo at sana marami ka pang ma guide na taong katulad ko… i want to mentor may finances with you kasi di naman ako magaling…..thank you and god bless

  34. What a very nice blog for financial education and some among of your’s very inspiring,..from there you’ve got the milestone!..I’ll keep on visiting your blog..thanks once again…

  35. Great post! But I don’t think “Leaving below your means” is a wise choice. Most of the time, that limited mindset would keep ones from getting rich. I believe life’s abundant!

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