How to Become a Millionaire in 4 Steps

Today, in the podcast, you will learn how to think and show up like a millionaire. This article provides insight into making that a reality.

Summary: Wealth Inside and Out® Podcast – “How to Become A Millionaire”

Overview of what you will learn:

>> 3:20: The secret to accumulating a million dollars
>> 5:38: The 3 types of millionaires
>> 7:17: The Financial Freedom Formula
>> 15:50: The dopamine money loop

Welcome

Hi, my name is Annette Bau (bah oo).

I’m a Certified Financial Planner™ and founder of The Millionaire Insider®.

This is the Wealth Inside and Out® Podcast.

Your Next Step Financial Assessment

If you need help on the best next step to secure your financial future, click here.

FREE Financial Freedom Formula Guide

Our free resource is the Financial Freedom Formula Guide. You can download the guide here: Financial Freedom Guide.

This resource provides critical insight into securing a financial future and retirement you love. One recommendation for your financial journey is to get clear on your end goal.

This guide provides insight into the three elements of the formula and why your Worth Barometer is so essential. It also provides insight to determine what you want and how it looks. You will also gain insight into the three Levels and why they are critical to creating your dream life.

Download this free guide here: Financial Freedom Formula Guide.

Disclosure

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This information is for educational purposes only. It is not intended to replace any advisor or specialist or provide investment, financial, tax, retirement, planning, or healthcare advice.

By accessing this content, you agree to hold MillionaireSeries.com® and its affiliates harmless for results achieved or not achieved.

The 4-Step Journey to Secure Your Financial Future

1. Create a financial plan and identify your financial goals

2. Reduce expenses and know the amount of money you are spending each month

3. Increase income from all sources

4. Save and invest personally and in your retirement account

Let’s review these steps.

1. Create a Financial Plan

Creating a roadmap is one of the most critical steps to reaching millionaire status.

A successful financial plan begins by defining your goals, wealth-building strategies, and bottom-line numbers.

First, determine how much money you currently have, and then decide how much you want and the steps to get there.

This will require that you take an inventory of your current financial situation.

Include your assets and liabilities in your financial plan. Assets are the things you own, while liabilities are the debt you owe, such as a mortgage, credit card, or student loans.

Set up an emergency fund that can cover six months of your current expenses. Factor in your insurance, retirement, tax, and estate plan expenses.

Once you are clear on your current financial situation, determine your goal for becoming a millionaire. Then, set short- and long-term goals to get there.

For example, if you have a $500,000 net worth and want to increase it to $1 million, set a goal, such as “I, or my partner and I accumulate $1,000,000 with ease.”

Other goals may include a new or second residence, an earlier retirement age, or starting a new business.

The key is identifying the steps you need to take to reach your goal.

For instance, in the above example, one critical activity is to save money. Setting an affirmative action, such as “My partner (name) and I save 20% of our income each month.”

Continue to review your plan, make adjustments, and track your progress. The best financial plan is one that you update annually or as changes occur.

And while the best time to create a plan is yesterday, the second best time is today.

If you do not have a financial advisor or you need help creating a plan, go here:

2. How to Become a Millionaire by Reducing Expenses

While there are many ways to reduce expenses, here are some places to begin.

Make a budget and stick to it

It is important to create a realistic budget. Your spending plan should include essential expenses like rent, utilities, food, transportation, and other regular bills.

Once you have made your budget, stick to it. Predetermined consequences help many people stick to their budget. For example, if you achieve your goal, you get a massage or a round of golf on Friday. If you don’t, you donate to your least favorite political party.

Cut back on non-essential items

Non-essential items may include eating out, buying new clothes, or eating out for lunch. Limit your spending on these items and put the money toward your savings or investment plan.

Apply the 3-Day Rule

One of the most effective strategies in the Money Mindset Mastery is the 3-Day Rule.

The short version is to wait three days and confirm that you can afford the item you want before you purchase it.

Cook at home

Cooking at home can save you a lot of money compared to dining out. Try meal prepping or using a grocery delivery service to save time.

Take advantage of sales and discounts

Look for special offers and discounts whenever you shop for basics, such as food or clothing. Many stores offer discounts for certain items on specific days of the week.

Limit your use of credit cards

It is easier to overspend when using credit cards. To avoid this, try to pay in cash as often as possible and only use a credit card if absolutely necessary. If you have multiple credit cards, consider keeping just one with the lowest interest rate.

Use a budgeting app

Download a budgeting app to help you track your expenses and save money.

Look for alternative ways to save

Consider alternative methods to reduce expenses, such as carpooling, taking public transportation instead of driving your vehicle, or changing providers of services like internet and phone plans. Also, try to find free activities you can enjoy with your family and friends. Having fun doesn’t have to be expensive or complicated.

If you haven’t funded a Roth IRA, consider it. If you don’t qualify, research a backdoor Roth.

Track your expenses

Keeping track of your spending is essential to sticking to your budget. You have multiple options for tracking your purchases and payments. Examples include using an app, a spreadsheet, or a notebook. This will help you identify areas where you can reduce expenses.

If you would like to see the budget template millionaires use, click here:

Create a plan for paying off debt

If you have accumulated debt, create a plan to pay it off as soon as possible. Start by paying off high-interest debts first, then work down the list. This will help you reduce your monthly expenses, freeing up more money for saving and investing.

Consider downsizing

If you live in a larger home than you need or drive an expensive car, consider downsizing to reduce your monthly expenses.

Shop around for better deals

Shop for better deals on recurring expenses like insurance, cable or phone plans, and banking fees. Feel free to negotiate to get a better deal.

Many people believe that it is difficult to save money. To dispel this belief, I created a training on Ways to Save Money. In it, I share simple strategies that can help save thousands of dollars.

By following these tips, you can’t help but reduce your expenses!

3. How to Become a Millionaire by Increasing Income

Once you have a plan and strategy to reduce your expenses, the next step is to increase your income. This will increase the money you have available to save and invest.

A significant difference between millionaires and others is that millionaires do not increase expenses as they make more money. While most people spend more money as they make more, wealthy people do not make this fatal mistake.

As you review options to increase your income, consider options that allow you to leverage your expertise. One example is writing a book that you sell online. You will have to take time to research and write the book, but then you will make money whenever you sell it.

While there are numerous ways to make money, here are some popular ones:

Negotiate a raise or promotion in your current job

Ask for a raise or promotion based on your performance and contributions to the company.

Find a new job that pays you more or includes a bonus or promotion option.

The more you can increase your income through salary, bonuses, or promotions, the more you will have to save and invest.

Get a part-time job

Taking up a second job can provide an additional stream of income.

If you struggle with money or your mindset, download our free guide here:

Freelance or start a small business

Starting a side business, such as selling handmade goods or providing services, can be an excellent way to earn additional income.

Rent out a room or space

If you have a spare room, garage, or parking space, consider renting it out for extra cash.

Invest in the stock market or other investments

Investing your money wisely can generate passive income. If you are not an expert at investing, hire a professional. You must invest your money based on the level of risk appropriate for your situation.

Sell items you no longer need or use

Decluttering and selling items online or at a garage sale can bring in some extra money.

Monetize a hobby or identify a need

If you have a hobby such as photography, blogging, or crafting, consider monetizing it by selling your work or offering services. If you see a need, consider offering a service. One woman shared that she continued to hear that finding attractive plus-size clothes was difficult. She did some research and created an online business that she grew into a six-figure income.

Take on freelance or consulting work

If you have a skill or expertise that others find valuable, you can provide consulting or freelance work.

Participate in the sharing economy

Join platforms such as Airbnb or Uber and offer your home or car to others for a fee.

Offer tutoring services or teach classes

You can provide tutoring or teach classes if you have a skill, such as a foreign language or music.

Consider becoming a nanny or dog sitter.

Consider working as a nanny if you have small children and do not want to send them to daycare. I have met several women who have small children and love it. If you love animals or are willing to sleep at the dog owner’s home, consider making it a side hustle. The average fee is $75 per night, allowing you to work at your day job.

4. Save and Invest More

A critical step to building wealth is creating and following a budget. This will help you identify areas where you can cut back and save money.

Look for ways to reduce your expenses, such as cutting back on dining out or canceling subscriptions you don’t use. The money you save can be invested.

One of the most effective ways to save or invest more is to automate it. Set up automatic monthly transfers from your checking account to your savings account. This will ensure that you save or invest your money regularly.

Conclusion – “How to Become a Millionaire”

First, create and monitor your financial plan. Next, reduce expenses and live below your means. Then focus on saving for retirement and increasing your income and streams of revenue.

Make saving and investing more money a top priority. Create habits such as consistency and discipline. Also, focus on building a strong network of successful people who inspire and guide you in your journey.

Lastly, patient is essential. Creating a financially free life you love takes time and dedication, so stay focused on your dream.

If you want more insight on becoming a multi-millionaire, click here.

Until our next episode, take one action that will help you create a secure financial future and retirement you love.

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