A Guide To Becoming A Millionaire In 2021

Becoming A Millionaire

Who wants to be a millionaire? You, me, everyone does. 

Becoming a millionaire is a universal goal shared by many. Goal-oriented individuals are more likely to become a millionaire. They have a millionaire mindset, and they’re a go-getter. Even when certain financial decisions may present risks, they know how to weigh their options to fully understand that the returns are always higher than the risks. 

If you’ve long been dreaming of becoming a millionaire, perhaps, the year 2021 is your year. This guide gives you some tips on becoming a property millionaire without anything to do with your parents’ wealth. On your own, you too can achieve financial success.

Invest Your Money

Millionaires didn’t acquire their financial wealth by keeping only savings. They were wise with their money and investments. If you want to be a millionaire yourself, you also have to learn to invest your money in various asset types. Do not just focus on one category. The more you diversify, the higher the chances you might achieve higher returns on your investments. 

You can choose from assets like:

  • Stocks;
  • Real estate;
  • Bonds;
  • Mutual funds.

Start early, even when you’re still young. By doing so, you’re giving your asset investments a higher chance to grow and earn returns. If a beginner, you may feel intimidated by the prospect of investing as perhaps you may not have a lot of knowledge about it yet. Don’t be. Millionaires were once in that position too. But they were not afraid to give investments a try and keep learning. If you want to be on the safe side, you can always ask for tips and advice from a financial advisor who can guide you more on understanding the different investment types.

Stay Away From Debt

Falling into debt might be very easy nowadays. Loans are for almost everything, from small purchases through your credit card or bigger mortgages like your car and house. Before you get lured into the tempting ads by credit institutions, take a few steps back. Think and ask yourself if it’s worth falling into debt for those items. Or, can that purchase wait until you have enough cash saved for it to avoid any hefty interest rate? 

Millionaires do their best to stay away from debt as much as they can. They understand that falling into debt is the ultimate quicksand to your financial dreams. So, strive to follow that example as well.

To start with, here are some tips you can apply so you too can successfully stay away from debt:

  • Pay with cash whenever possible;
  • Avoid any impulse buys;
  • Compare prices before making any big-ticket purchase;
  • Avoid putting ‘staple’ purchases on your credit card;
  • Avoid applying for multiple credit cards at any given time.

Don’t Fear Failure

A millionaire isn’t one who doesn’t fail. They’ve failed too, many times. They may have even made poor and bad financial decisions in the past. But those failed decisions are key attributes to learning from their mistakes and understanding what it takes to make better financial investments. 

If you want to be a millionaire, then a huge part of exhibiting a millionaire mindset is never to fear failure. There are many threats you’re going to come across in your pursuit, given innate economic challenges of today. It’s your job to work hard and move on past those threats, rather than fear taking the plunge. 

Becoming A Millionaire

If you’re consistently failure, then you may be depriving yourself of possible financial returns that are now missed financial opportunities. Taking risks is inevitable in your pursuit of becoming rich.

Build An Emergency Fund

Yes, you may have funds in the bank. But do you have one specifically dedicated as an emergency fund? Millionaires are the masters at managing their risk exposure. And, one of the best strategies to achieve that goal is through an emergency fund.  

When you have it, this means you’re financially sound and ready to face whatever economic hardships may come your way. Emergencies are not just medical concerns that may be covered by your health insurance. Emergencies can include situations like business closures, losses in investments, or job loss. Your emergency fund should give you at least six months of financial stability when you have little to no income at all during those difficult times.

Final Thoughts

If you previously thought of becoming a millionaire as only an impossible dream, now’s the time for you to think otherwise. Even when you’re young but financially stable, there are many financial habits you can apply that’ll lead you one step closer to becoming a millionaire. Who knows, 2021 might be your year – albeit having only a few months left in the year. While becoming rich overnight is close to impossible, working hard and smart to achieve such is doable. You can’t go wrong with sound financial habits like those above.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.