Many people struggle how to become a millionaire. There seems to be an impression that if you’re a not a millionaire, you don’t work hard enough. While it is true that hard work may contribute to becoming a millionaire, it is more on the discipline and mindset in avoiding pitfalls and bad financial decisions.
Today is the 5th year anniversary of Millionaire Acts. I would like to thank all my loyal readers and subscribers. I still remember it was November 24, 2008 when I registered the domain MillionaireActs.com. It was a dream for me before to become a millionaire and I want to know how a millionaire acts and so the domain Millionaire Acts came to my mind – a short, easily to be recalled, and brandable domain name.
On April of 2009, my dream to become a millionaire was realized at the age of 26. I shared this journey during my first TV guesting at ANC’s ‘On The Money’ aired on September 2012. Currently at almost 17,000 views on Youtube, it has helped and inspired a lot of viewers to take their own journey towards financial freedom.
If you’re not yet a millionaire, don’t give up on your dream that you will become one someday. Take note of the reasons why until now you aren’t a millionaire and make the necessary changes on your actions that will make you obtain your first million, even just for an average person.
1.You Don’t Have a Goal. Goals provide direction. It serves as a guide us on a straight path towards a target. With that direction, we know what we want to achieve and what distractions that should be avoided. Setting my own goals was the first article that I posted in this blog on November 25, 2008, a day after I registered this domain name. Guess what my first goal was – to become a millionaire.
2.You Don’t Have a ‘Burning Desire’. A goal is useless without the will to achieve it. You must feed your will by having your own burning desire, your motivation why do you want to achieve that goal. For those who knew me personally, you probably knew that the early motivation that I had was to prove myself to my bosses before who used to humiliate and bully me. Develop your own burning desire and don’t forget to always keep the fire burning within yourself. Remember that ‘if you want to achieve something, all the universe will conspire in order for you to achieve it’
3. You Spend More Than You Earn. ‘It’s not how much you earn but how much you save’ is the number one rule of thumb if you want to become a millionaire. Always live below your means. Many people are trapped in the so-called ‘income trap‘. That is, they believe that an increase in income should always correspond to an increase in their spending capacity. The secret is delayed gratification. Delaying your immediate wants for the greater satisfaction in the future.
If you’re an employee, like most of us are, a good rule of thumb in saving is to use the equation INCOME less SAVINGS equals expenses. That is to pay yourself first. As soon as you receive your income, set aside for savings first before you spend. As to how much should be put into savings, a good rule of thumb is 20% of your gross pay based on the widely used Pareto’s Princple of 80/20.
4. You Don’t Have Multiple Sources of Income. Multiple sources of income is helpful in achieving your first million. Imagine you’re driving a car, and you don’t have an extra tire with you. What if you get flat at the middle of the road? Now, connect this to your source of income. If your only source of income, for example, is employment; what will happen to you if you get fired or the company suddenly downsized and you were laid off?
As you go along towards your journey of earning your first million, develop some skills in knowing how to multiply your savings through investments and other income-generating assets. Even the Bible is telling us about this. Remember the Parable of The Talents where a Master left his home to travel but before going, entrusted his property to his servants. The first two servants made their money worked and doubled the property they were entrusted with, and so they each were rewarded. The Lord said to him: “Well done, good and faithful servant. You have been faithful over a few things, I will set you over many things. Enter into the joy of your lord.”
Many people are blinded on the difference between ‘assets’ and ‘liabilities’. If you’re not sure if what you are investing is an asset or a liability, always ask yourself this question: “If I stop working, will this FEED me or will it EAT ME?”
5. You Are Not Networking With The Right People. According to Jim Rohn: ‘You are the average of the five people you spend the most with’. Others around yourself determine how you think, how you act, and ultimately how successful you will be.
If you want to become successful in life, network yourself with people who have been successful. Look for mentors who can guide you towards achieving your own success story. Surround yourself with energetic, happy, and successful people so that their success may rub off on you. Spending time with other people who share the same goals and aspirations in life can help fuel your passion and efforts to become a millionaire.
So what’s keeping you from your first million?