Sunday, August 9, 2009

10 Ways to Becoming a Millionaire

1. Reduce consumption and increase investments. This is the most fundamental equation in increasing net worth.

2. Create a budget and stick to it. It is important to know where you spend your money.

3. Increase your financial knowledge. Read as much as you can about personal finance. It will soon become habitual and you will automatically act in ways that are beneficial to your financial success.

4. Make contributions to your investment vehicles on a consistent basis. Keep focused and continuously put money into your investments. Dollar cost average + time can increase returns significantly.

5. Start a part-time business to increase income and take advantage of tax write-offs. Starting a business is a great way to achieve financial independence. Being frugal is great, but ultimately you have to increase your income to be wealthy; starting a business is a great way to do so.

6. Surround yourself with like-minded people who believe and support your goals. One of the best ways to achieve a particular goal is to put yourself around people who have already achieved it, or people who have similar goals. It helps keep the focus and the experienced may provide priceless advice when it comes to financial decisions they have made when they were at your level.

7. Find great CPAs and other trusted advisors. There comes a point where it is wise to seek financial advice. If you have a friend or mentor that has these qualifications, seek advisement from time to time. Make ample use of your network.

8. Set short and long term goals. Setting short term goals helps you see more readily attainable tangible results and keeps you on track to your long term goals.

9. Make a commitment to become a millionaire. There is nothing more important than the declaration of becoming a millionaire. Clearly stating that you want to become a millionaire actually increases the possibility of that actually occurring; all part of the Heisenberg Principle.

10. Start now. Time is your friend when it comes to investing. The earlier you start, the faster you can reach your goals. The power of compounding begins to work its magic.

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