Conservative retirement estimates indicate that most people need at least a million dollars at retirement. This is a daunting number for sure, especially for people who didn\u2019t begin saving at the ripe age of 16.<\/p>\n
Never fear! It\u2019s not to late to start learning how to become a millionaire. Like any big goal, breaking it down into bite-sized steps makes it more attainable. And, you don\u2019t need to earn big bucks to end up with a million dollars! There are stories of janitors, barbers and librarians amassing a million on an average (or less) salary.<\/p>\n
Whether you\u2019re looking to save a million dollars for your retirement or are hoping to learn some millionaire secrets so you can live in\u00a0financial independence in your 30s<\/a>, there are ways for you to bring your goals into reach.<\/p>\n Are you living like you want to become a millionaire? If not, now\u2019s the time to change. Becoming a millionaire means living below your means! In fact, it\u2019s difficult to recognize most millionaires, as they look like you and me. They didn\u2019t get rich by living extravagantly.<\/p>\n Consumerism is a difficult foe to tackle in this age of near-constant advertisements. We\u2019re frequently bombarded with messages that tell us we aren\u2019t worthy or successful if we don\u2019t have the latest gadgets, the trendiest clothes, or a sports car. Ignore those messages, and your bank account will thank you.<\/p>\n This is far from suggesting that you need to make painful sacrifices and live in misery for a decade or more. However, one of our millionaire secrets is that you need to be selective about where your money goes. Some ways to be conscious of your spending are:<\/p>\n Maxing out your 401(k) is one of the basic steps to becoming a millionaire.<\/p>\n First, if you don\u2019t at least take advantage of your employer\u2019s match, you\u2019re throwing money away. If you can\u2019t afford to max out your contributions (which is $18,500 per year as of 2018, plus a $6,000 catch up allowance if you are over 50), you should at least make an effort to invest as much as your employer will match.<\/p>\n This might be the easiest way ever to become a millionaire. If you can invest $18,500 per year and earn a 7% return on average, it will take you 23 years to become a millionaire. We have contributed the max to our retirement accounts for decades, and learned to live on the remaining money in our checking account. There were months where money was tight, but after many years using this approach, the results are well worth it.<\/p>\n Don\u2019t forget to weigh your options here; both\u00a0401(k)s and IRAs are good investment options<\/a>, as long as you aim to max them out. If you can max out both your 401(k) and IRA, your money will compound more quickly.<\/p>\n While we\u2019re on the topic of tucking away money, you may as well set up direct deposits or automatic transfers to your retirement funds. If you never see this money hit your bank account, you\u2019ll be less likely to spend it. If you can\u2019t access the money, you\u2019re likely to let it grow and compound for years.<\/p>\n I know we said tip #2 was probably the most important step to becoming a millionaire, but this tip is tied with maxing out your retirement funds as the most important millionaire maker tip.<\/p>\n Humans are typically lazy and once a behavior is set into place, we tend to leave it alone.<\/p>\n Free resource;\u00a0Become a Millionaire in One Step<\/a><\/strong><\/p>\n Setting up a direct deposit into a separate savings account is a good way to do this, but automatically investing in something that is much more difficult to access, such as an IRA and a 401(k), is much, much better. It puts your money to work right away, and keeps you from spending it on seemingly urgent expenses.<\/p>\n By automatically transferring money from your paycheck into your retirement accounts and possibly another emergency savings account, you can spend what\u2019s left. No need to budget, as your most important savings goals are taken care of.<\/p>\n This does not necessarily mean that you should work 80 hours per week at multiple jobs\u2014although picking up some extra work is definitely a good idea, particularly if you\u2019re aiming to pay off debt or rapidly save. Working the sorts of jobs that require you to physically work in some way are active income streams, and those won\u2019t always help you become a millionaire.<\/p>\n Instead, you should aim to diversify your streams of income in ways that help you work smarter, not harder. You\u2019re looking for passive streams of income, or sources of income that make you money almost autonomously. There are countless ideas for\u00a0side-hustle ideas<\/a>.<\/p>\n Examples of this include investing the savings from your 9-5 into a duplex or triplex. Live in one unit and have the other unit cover most (or all!) of your mortgage. Continue stashing away money until you\u2019re able to afford a second multifamily home, which you can rent out entirely. Investing is a perfect example of how the dividends and capital gains of your stock market or\u00a0REIT (real estate investment trust) investments<\/a>\u00a0continue to grow, without much oversight.<\/p>\n If you\u2019ve got a spare room, consider renting it out to defray the mortgage costs.<\/p>\n The key to becoming a millionaire is to make your money do the work for you. Pursue it diligently, but not at the expense of your time\u2014the sooner your income streams turn passive, the better.<\/p>\n Mom\u2019s advice from your teenage years still holds true: you become like the people you spend the most time with. Spend your time with other millionaires if you want to become a millionaire.<\/p>\n This tip doesn\u2019t mean you need to surround yourself with millionaires. What it does mean is that you should surround yourself with those that share your values and goals. If you\u2019re striving to build wealth, and all your friends are living and spending for today, it\u2019s tough to stay focused on your own goals.<\/p>\n The millionaire habits you create, can become embedded in your behavior and lead to wealth.\u00a0My Dad was very poor<\/a>\u00a0growing up. His goal was to become a millionaire, and he achieved that goal. His millionaire lifestyle habits were ingrained in my lifestyle. Our family made deliberate lifestyle choices to facilitate the millionaire goal. Dad drove a luxury car, but bought it used. My parents bought a big house \u2013 that needed work. They rehabbed the house to create value.<\/p>\n Learn;\u00a0How to Calculate Your Net Worth<\/a><\/strong><\/p>\n Of course, you\u2019ll want to avoid people who spend millions of dollars. If you\u2019re looking for millionaire secrets, look for people who live frugal and intentional lifestyles, and who can be both mentors and sources of inspiration for you.<\/p>\n Working an extra few hours a week for minimum wage won\u2019t get you to millionaire status. Cutting Starbucks visits won\u2019t help much, either. In order to become a millionaire, you need to think bigger picture and take some steps that might seem scary.<\/p>\n Some things that might seem scary but could pay off are:<\/p>\n Always weigh potential risk against potential reward, and make sure you have some a backup plan in case things don\u2019t work out.<\/p>\n A wise person once pointed out to me that there is a big difference between making an excuse and stating a reason.<\/p>\n We all have reasons that our net worth might drop; maybe your car needed substantial repairs, or a series of micro-emergencies drained your hard-earned emergency fund. These are good reasons for your financial setback, and all you can do to compensate is try to plan for the unplannable, or pick yourself back up after these events occur.<\/p>\n Excuses, on the other hand, are less, well, excusable. Have you ever thought one of these things about yourself?<\/p>\n Ideas:\u00a0Where to Find Scores of Side Hustle Jobs<\/a><\/strong><\/p>\n I can\u2019t make a million dollars\u2014I\u2019m not smart\/innovative\/creative enough.<\/p>\n I\u2019d love to enact these ideas, but I just don\u2019t have the time.<\/p>\n Sure, this works for other people. I\u2019m just too focused on my *real* job to make any extra money right now.<\/p>\n These excuses are ways you are selling yourself short. Essentially, you are in your own way to becoming a millionaire.<\/p>\n Which excuse tends to stop you from pursuing your dreams? Identify it, then try replacing the thought with something more positive. For example, \u201cI don\u2019t have the time\u201d can become \u201cI have 15 minutes right now: what can I do in that time that will help push me toward my financial goals?\u201d<\/p>\n You might be surprised at how small simple changes can lead to big results.<\/p>\n Bonus;\u00a0Simple Tips for a Wealthy Life<\/a><\/strong><\/p>\n These 7 secrets to becoming a millionaire are stepping stones to cultivating your first million dollars.<\/p>\n Some of them can be completed immediately, like changing your behaviors, setting up automatic deposits to max out your retirement accounts, and seeking out opportunities to network with like-minded people. Millionaire interviews are a great way to learn about how others have reached this goal. Over at\u00a0ESI Money<\/a>, John gets granular when interviewing millionaires.<\/p>\n Other millionaire secrets include not making excuses and diversifying your streams of income to generate passive income. Keeping the big picture in mind and acting accordingly will also help you on your trek to becoming a millionaire.<\/p>\n And of course, implementing our \u201cWealth Tips\u201d will keep you on track. They\u2019re included, for free, with the following download:<\/p>\n1. To Become a Millionaire \u2013 Check Your Behavior<\/span><\/h2>\n
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2. To Become a Millionaire \u2013 Max Out Your Retirement Funds<\/span><\/h2>\n
![\"Become](\"https:\/\/barbarafriedbergpersonalfinance.com\/wp-content\/uploads\/2018\/10\/Become-a-millionaire-at-any-age_4.png\" "\\"Maxing\\"")
<\/a><\/p>\n3. To Become a Millionaire \u2013 Automate Your Savings<\/span><\/h2>\n
4. To Become a Millionaire \u2013 Diversify Your Streams of Income<\/span><\/h2>\n
5. To Become a Millionaire \u2013 Surround Yourself with Like-Minded People<\/span><\/h2>\n
6. To Become a Millionaire \u2013 Think Big, and Act Accordingly<\/span><\/h2>\n
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7. To Become a Millionaire \u2013 Stop Making Excuses<\/span><\/h2>\n
You Can Become a Millionaire at Any Age \u2013 Wrap up<\/span><\/h2>\n
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