“The Daily Telegraph” reported in July 2013 that around 1% of the UK population are millionaires, so about 600,000 people depending on how large the population is. That’s a pretty low number, however the chances are you know some of those 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 mind-set to become one. This is a financial adviser’s guide to how to become a millionaire.
1. 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.
2. 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.
3. 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!
4. 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.
5. 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.
6. So in the pursuit of “financial freedom”, being debt free must be your number one objective. Ask any financial adviser.
7. 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.
8. One of the biggest mistakes people make about is that money is like a toddler; it is incapable of managing itself. If you want your money to do its very best online tramadol 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.
15. So save 10% 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.
16. 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?
So there you have it. That’s how to become a millionaire the financial adviser way.
The above article should not be construed as advice and should not be seen as such. Always seek professional financial advice before making any decisions.
If you require investment advice for future planning please contact us as Midlands Investment Agency or call us on 01902 742221.
