A Financial Advisers guide to becoming a millionaire

 

According to a “Coutts” report in June 2017 that about 821,000 households in the UK were Millionaires (around 1.25% of the population). That sounds like a lot of households, but it is a pretty low number, compared to the size of the population estimated to be 66 million in 2017. However, the chances are you know some of these people. As a financial adviser I have met quite a few millionaires over the years.

The odds are that they are some of your business contacts, clients or even your next-door neighbour. The trouble is, you often cannot tell by their lifestyle or how they dress or even by what car they drive that they are millionaires.

For most millionaires, what makes them different is that they have a very different way of looking at money and how they perceive that money actually works.

You may be reading this article because you would like to become a millionaire and are looking for the right mindset to become one. This is a financial adviser’s guide to how to become a millionaire.

Spend less

It sounds pretty simple, but you have to spend less than you earn.  This is the number 1 rule, which unfortunately this is the part that most people do not get right. It is far better to strive to be anonymously rich rather than deceptively poor.

Patience

Becoming a millionaire takes a great deal of time and patience. For most people becoming a millionaire is not something that will happen overnight, unless you win the Euro Lottery.  The key to success is to steadily accumulate assets over time and this can be over decades.

Frugality

Tempting as it may be to enjoy the best things in life, getting to become a millionaire will mean that you have to be frugal on the way. It will prove a great deal harder if you go on expensive all-inclusive holidays, rather than stopping in a caravan in Wales!

Clear your debts every month

Never ever fail to repay your credit card each month. Building up short term expensive debt can quite easily become a long-term debt that is very challenging to repay. So if you cannot afford it in one month, don’t buy it.

Contentment

We’ve all heard it before “money does not buy you happiness”, but that is only part of the picture. On the other hand, financial “financial freedom” has a far better chance of helping you achieve contentment if not actual happiness.

Zero your debt

So in the pursuit of “financial freedom”, being debt free must be your number one objective. Ask any financial adviser.

Keep Busy

Some people on their road to becoming a millionaire taken second and third jobs. I am not suggesting that you do this, but there is one thing for sure. The busier you are the less chance you will have to spend the money you are earning. A pound saved is as good as a pound earned.

It can’t look after itself

One of the biggest mistakes people make about is that money is like a teenager; it is incapable of looking after itself.  If you want your money to do its very best for you, you need to take some time out to make sure your money is properly managed. Speak to a professional financial adviser to make your all of your money is working properly for you.

Pay yourself first

You must pay yourself first. This means you must pay into your savings before you start to spend your money. Get into the habit of saving at least 10% of your take home income. Believe me you will soon get used to doing this and life will adjust accordingly.

Plan, plan and plan

Every successful person and aspiring millionaire will have a plan. So if you have no plan or strategy, don’t be surprised if you do not achieve “financial freedom”. Develop a plan today or this weekend about how you are going to become a millionaire.

Don’t be afraid to think big

Small plans lead to small results …… Big plans will give you much more chance of a big result. Do not be afraid to think big. Ask any millionaire that you know and they will tell you they were not afraid to think big. Well maybe just a little bit.

Mistakes will happen

Expect to make mistakes, but don’t worry about it. In fact some of the most successful people have made huge numbers of mistakes. It has been said by one famous entrepreneur, that “I have made lots of mistakes, in fact I am going to make lot’s more”. The mindset is such that they accept failure and mistakes as part and parcel of the road to “financial freedom” and success.

Protect against failure

If you are going to have failures and make mistakes, you better be ready. Things do and will go wrong, so make sure you are protected for such an eventuality. Think about what may go wrong and be ready.

Start young

You have to start young of you are going to make it to ranks of a millionaire. Start building up your nest egg as soon as you start to earn. Remember that 10% saving of your income. Start as soon as you can.

Automatic planning

So save 10% to 15% of your income. To make it easier for yourself, do this by automatically debiting your account as soon as you are paid. What you cannot see you cannot spend. This is the financial adviser golden rule.

If you really want to accelerate getting up to the millionaire ranks, think about what car you are driving and how much is it costing you. Great as it is to have a shiny car, is it really helping you become a millionaire?

Action Call

Are you concerned about how to become financially free and growing your wealth? Contact us to today. We can review your current situation and let you know what options are available to you.

If you would like to talk to about financial planning, please get in touch for a no-obligation meeting. Go to our website www.miadvice.co.uk and contact us via our “Get in touch” form on our home page or Contact Martin Dodd on 01902 742221.

Email us at financialplanning@miadvice.co.uk

It is advisable to take advice from a professional financial adviser when making major financial planning decisions.

Check out our other recent articles here

This article has been prepared in good faith and based on Midlands Investment Agency’s understanding of the law and interpretation thereof at the time of creation. The contents should not be regarded as specific advice and we always recommend that specific advice is sort from a qualified professional. No responsibility can be accepted by Martin Dodd or Midlands Investment Agency Ltd., for any loss that may occur by a person acting or refraining from acting on the basis of this article.

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