When we think about becoming a millionaire, most of us think that it is not our cup of tea, unless we can manage to hit a lottery or inherit a huge chunk of property or money. But if we started at a young age and gave our best, keeping in mind our financial plants from the very beginning, it’s quite possible that we can become a millionaire within approximately 25 years of hard work. There is no hard and fast rule when it comes to the age bracket for thinking of becoming a millionaire. At any age, we can develop the financial plan that we are aiming at and then follow the healthy traits that can help in increasing the wealth accumulation and decrease the debts. If you start at an early age, it will help you to reduce your hard work to a certain extent because you will have a good number of days ahead in hand so that you can plan accordingly with the help of a financial advisor. On the other hand, if you are in your mid-30s or mid-40s, you can still think of becoming a millionaire, but in that case, you will need to work quite a lot harder than you can ever imagine.
Now let’s discuss the seven steps that can help you in becoming a millionaire when you retire:
- You need to develop a strong financial plan
- Channel your money in the right way
- Professional advice is mandatory
- Live within your means and don’t try to extend your monthly expenditures
- Start with your own business planning
- Save as much as possible
- Laying off the available credits
Clear off your debts now – Save money
As we all know that outstanding dues do not allow us to move ahead in life and we fail to keep up with our financial planning in life. If you have any debt amount in the market, clear it off as soon as possible and then create new plans for your financial goals. Living in a modest way and spending less can actually help you to save a lot of money. With every raise you get in your financial path, you should not push up your lifestyle ladder.
How to give a kick-start to your millionaire plan?
We all want to become wealthy but just saying it is not enough because you need to come up with a practical and workable plan in pen and paper. Having a plan in hand will give you the driving force to work hard and ensure that you can reach your dream of becoming a millionaire within the limited period of time you have been hand. A well written financial plan will include the amount you need to earn and save every month along with the investments you should make. This is not just a simple plan that is framed with the motto of giving you the driving force of becoming wealthy – but it is an entire thing -it’s your goals – it’s your options – it’s your dream.
Why should you have an emergency fund?
Always keep in mind that the end result of the financial plan you have in hand needs to be a systematic investment. You should develop your habit of saving money, and build an emergency fund in your money market account will help you in the time of crisis and emergencies. Having the necessary fund in your money market account will also not raid off the remaining of your investments and savings during unexpected expenses. It is advisable that you should save at least half of the appraisal you get.
How should you save money?
Initially, avoiding the overpriced designer shoes, clothes, jewelry, and sunglasses will help you to save a lot. Also, you should avoid your car and house payments to become the budget busters. Online modest calculators are available that can help you to determine the amount you can really afford. In short, the minimum expenses in life will help you with the maximum wealth accumulation for your future.
Investments are necessary – Ensure the right time and right channel!
Investing money is necessary if you want to increase it within a certain period of time because we all know that it demands money to create money. By this, I don’t mean that you have to invest and invest as much as you can. Just simply open a mutual fund account that avoids any sort of load funds and ensures low expense ratios. Creating a diverse portfolio is essential, and you can expect to get around 8 to 10% per year on the investments. Investing money in the stock market is also a preferable option with the help of a professional online broker.
Getting proper advice from a professional
With the help of a professional financial planner, you can definitely build your portfolio with the right kind of investments and dump the ones that are wrong or might put you under the risks of losing your hard-earned money. There is no need to relinquish the control, but it is mandatory to develop a good relationship with a financial expert who can help you in every step you take in your career path and financial investments. It is needless to say that this is a complicated arena and needs guidance at every step if you really want to fulfill your dream of becoming a millionaire within the next 25 years.
As per the surveys conducted, it has been found that out of 10 millionaire investors, 6 of them prefer to take help from financial advisors to manage as well as protect their wealth.
It could be quite a hassle when it comes to hiring the right professional advisor who can help you with the tips to scale towards your dream of achieving the 7-figure milestone. For some people, it is not possible in the initial stages to hire the services of a professional financial planner because their charges are quite high. In that case, you can look for someone who can review your existing financial portfolio and help you to give the necessary recommendations in a single sitting. Basically, wealth accumulation is not as easy as it sounds to me and so it is very much essential that you take the service of a professional financial advisor at every step,but in case you cannot afford it, a one-time review plan is also enough to last a few years. Later on, you can simply use a part of your accumulated work in hiring a professional again to help you double your wealth more easily in the remaining years.