Many of us dream of becoming a millionaire. We think of how great life would be with all of that money. But then we pop the bubble because we don’t think it is possible for us to actually become a millionaire. But it is possible. You just have to be smart about things.
So how exactly do you become a millionaire? Since most of us won’t be inheriting a million dollars, we are going to have to achieve millionaire status the old-fashioned way, through hard work. But you can accelerate the process if you follow the 3 tips I outline below.
3 Tricks To Growing Your Wealth And Becoming A Millionaire
We all live busy lives. If we don’t do something when we think of it, odds are it won’t get done, especially when it comes to saving money. How do we overcome this? We automate as much as possible. Automating your finances is the best thing you can ever do for yourself.
Since most people don’t find enjoyment in financial matters, it makes even more sense to automate. When you do this, you set it and never have to touch it again. It’s the exact reason why more and more companies auto-enroll employees into their 401k plan. Left on their own, most won’t invest. But when you automate the process, it ends up sticking.
So, you need to start automating your finances. Set up transfers to your savings account so you can grow your emergency fund and basic savings. Automate your investments so your money grows over time and you can afford to retire one day.
Since I have started automating my savings and investments, I have seen great growth in both. In fact, I forget about my savings account and every couple of months when I look at the balance I have to do a double take because I can’t believe how much money is in the account.
The bottom line is that automating works and if you aren’t taking advantage of it, you are missing out.
#2. Question Purchases
It’s easy to see a commercial or ad and think you need the item in question. The truth is, firms spend millions on advertising to figure out how to get us to spend our money. They know how to push our buttons to make us buy things we probably otherwise wouldn’t buy.
Then there is human nature. We make an emotional decision to buy something and later we regret it when our brain is fully able to weigh the pros and cons.
It is no wonder then why many of us can’t get ahead financially as we buy a lot of stuff we really don’t need. The trick to overcoming this and keeping more of your money is to start questioning purchases. Before you buy something, stop for a minute (just a minute) and think about why you are buying it.
Ask yourself if you really need it. Chances are you will realize you don’t need it. In the event you are unsure if you need it, just don’t buy it and wait. In a day or so if you still want it, you probably should get it. But odds are you will find you completely forget about it.
For me, this happens all of the time. I’ll see an ad and think that I really need something. Then I will jump online and read all about it and get excited. But then I wait. A day or so later (and sometimes later that same day) I will have completely forgotten about it. Then I will see the ad again and will remember that I wanted it. It shows me that the marketing of the item is really effective.
Learn to question or delay purchases and you will find you have a lot more money left over at the end of the day.
#3. Take Chances
If you want to become a millionaire, you are going to have to take some chances in life. This isn’t to say fly by the seat of your pants, but rather take calculated risks and chances in life. In many cases, they will pay off for you big time.
For me, a great chance I took was back in 2010. I was working for a financial services firm and we were just recovering from the market collapse a few years earlier. I was a top employee so my job was fairly safe. I had the opportunity to switch firms though and start working for a very small financial planning firm. I was nervous about it because of the job market and the economy. After a lot of thinking, I took the job.
Over the next 3 years, doing so paid off big time for me. I earned a lot more money and loved every aspect of the job. Had I not taken the job, who knows where I would be today.
The point is that change can be scary for many people. While it doesn’t make sense to take every chance that comes along, you have to learn to identify which ones make sense and then go for them. In the long run, you will find that they work out in the end.
Overall, becoming a millionaire is not an easy task. If it were, many more people would be millionaires. But that doesn’t mean you can’t become one. With hard work anything is possible.
And if you can learn to use the tips I laid out above – automating your savings, questioning purchases and taking some chance in life – you will find that your progress to reaching your goal of millionaire status will greatly speed up.
So what are you waiting for? You can tackle automating your savings right now and be done in 10 minutes. Is that worth it to you to improve your finances? I think so.
Jon writes at Penny Thots, a personal finance blog that helps readers improve their finances one day at a time.