Today, you have a double bonus! First, the podcast dives into insight on how to think and show up like a millionaire, then this article provides you with more insight into making it a reality.
Here is a sample of what you will learn in How to Become a Millionaire:
[02:20] Why most people do not achieve their goals
[03:20] The secret to accumulating any amount of wealth
[05:38] The 3 types of millionaires
[06:33] The biggest takeaway on living wealthy and fulfilled
[07:17] The Financial Freedom Formula
[11:35] Common money stories that are keeping you stuck
[15:50] The dopamine loop
[17:25] Solutions to a dopamine money loop
[15:50] Common money stories that are keeping you stuck
These four steps are a great place to begin your financial freedom journey:
1. Create a Financial Plan
2. Reduce Expenses
3. Increase Income
4. Save and Invest More
Let’s review these steps.
1. Create a Financial Plan
Creating a roadmap is one of the most critical steps to becoming a millionaire.
A successful financial plan begins by defining your goals. First, determine how much money you currently have, and then decide how much you want.
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 cards, or student loans.
Once you are clear on your current financial situation, determine your goal for becoming a millionaire. Then you need to set short and long-term goals so you can achieve them.
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.
2. How to Become a Millionaire by Reducing Expenses
While there are many ways to reduce expenses, here are some places to begin.
1. Make a budget and stick to it
Creating a realistic budget is important. It 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.
2. Cut back on non-essential items
Non-essential items may include eating out, buying new clothes, or eating out for lunch. Limit spending on these items and put that money towards more important bills.
3. 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 before you purchase it.
4. 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.
5. 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 or days of the week.
6. 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 and limiting your spending.
7. Use a budgeting app
Download a budgeting app to help you track your expenses and save money.
8. 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.
9. 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:
10. 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.
11. Consider downsizing
If you live in a larger home than you need or drive an expensive car, consider downsizing to save money on your monthly expenses.
12. 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. Examples include writing a book that you sell online. You will have to take time to research and write the book, but then you make money whenever you sell it.
While there are numerous ways to make money, here are some popular ones:
1. Negotiate a raise or promotion in your current job
Ask for a raise or promotion based on your performance and contributions to the company.
2. Find a new job that pays you more or includes an option for a bonus or promotion.
The more you can increase your income through salary, bonuses, or promotions, the more you will have to save and invest.
3. Get a part-time job
Taking up a second job can provide an additional stream of income.
4. 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.
5. Rent out a room or space
If you have a spare room, garage, or parking space, consider renting it out for extra cash.
6. 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. It is critical that you invest your money based on the level of risk appropriate for your situation.
7. Sell items you no longer need or use
Decluttering and selling items online or at a garage sale can bring in some extra money.
8. 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 it as 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.
9. Take on freelance or consulting work
If you have a skill or expertise that others find valuable, you can provide consulting or freelance work.
10. Participate in the sharing economy
11. 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.
12. 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 to create and follow your budget. This will help you to 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, it is important to be patient. Creating a financially free life you love takes time and dedication, so stay focused on the life you are creating.
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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Free Resource: Your Next Best Financial Step
Congratulations on taking another step to create a financially free life you love. Are you unsure about your financial future or that it’s in order? Or are you ready to stop worrying about money or possibly the fear of becoming a bag lady and ending up broke in retirement?
If you are ready to know your financial house is in order so you have a secure financial future, please go to https://themillionaireinsider.com/nsf.
And that doesn’t stand for non-sufficient funds.
It stands for Next Step Finance. It’s the next best step of what you need to do so you can avoid an NSF notice in the future.
The number of women who were not broke or poor while working or married is staggering. Our mission for The Wealth Inside and Out® Podcast is to ensure you have critical information for you, your family, your friends, and anyone willing to listen to it and apply it to create a financially free life you love.
Click here to access your Next Step Financial Assessment:
Thank you so much for joining me for
How to Become a Millionaire.
I’m Annette Bau (Bah oo).
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Bye for now.