How to become a millionaire

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Stop whining and take responsibility for your financial well-being.

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Why exactly a million

A million is a treasured amount for many. Six zeros give status to savings and tickle your sense of self-importance. But there are nuances here.

Chances are you are already a millionaire

If you add up the cost of everything you have right now, the total is over a million. It's just that not all of your assets are liquid. Let's say that they will buy an apartment from you quite easily and, most likely, you will be a plus. But furniture, clothing, etc., if they are sold, it is clearly at a loss.

It turns out that you had a million and you spent it.

Are these costs always reasonable? Of course not, you are not a biorobot. But they could definitely save part of what they spent or invest in order to make the money profitable. So do not rush to scribble angry comments that you will not get rich with your income.

A million is a little

With a salary of 20 thousand, it looks like an unattainable peak. Even if you kept the entire earnings, you would have to save four years and two months. If you set aside 50 thousand a month, the term would be reduced to one year and eight months.

When numbers come into play, a million doesn't seem like such a huge amount.

To get a million, you need to turn an idea into a goal. Perhaps this will be an extremely long-term task. But you will clearly understand how and when you can achieve what you want. You will have to draw up a plan of action and follow it. And this is definitely more productive than whining.

The first million will be decisive

If you are a top manager of a state corporation with a salary of 500 thousand per month, then this is an exception to the rule. For the rest, a million will be a significant amount that will make them feel calmer and think about investing money.

Several hundred thousand rubles do not possess such magic, although a very small amount is enough for investment. First, you need to take care of a reserve fund that will feed you in case of unemployment or serious illness. Anything over a million is easier to count as surplus. They can be put into circulation.

You will also feel very different psychologically. You are not on the Forbes list, but you are a true millionaire.

Why poverty is a habit

You may be accustomed to scolding the government for not doing the right thing and putting a spoke in your wheels. To believe that you can become rich only through theft and bribery, and you are honest and therefore poor. Wait for the fairy godmother to arrive and turn your pumpkin into a huge fortune.

Begin with a real situation. The state really owes you a lot because you pay taxes. But resentment is not enough to achieve justice. Some get rich by dishonest means, and that is a crime. Others make money legally, for example, with the registration of an individual entrepreneur and without SMS. But the latter work a lot. And you rely too much on the fairy godmother, which does not exist.

Perhaps you really spend a lot of energy and not get rich. But if you do nothing at all, everything will definitely end in failure.

Here are a few habits that keep you from pushing off your bottom line and surfacing.

1. You think small

If you have ever watched a reality show about people from disadvantaged families, then you probably paid attention to such cases. A person gets a not so significant amount - 50-100 thousand rubles. And he says: “Finally I can buy anything! I've always dreamed about it. It's sad, but let's leave emotions aside.

To make a person's wishes come true, 50 thousand is enough for him. Does he have the motivation to try if the bar is so low? Everything seems to be better with you, but not much. You turn into a lifelong dream a goal that can be achieved in a couple of years or less.

Start thinking big, as if you have no limits. Determine the framework later.

2. You don't set goals

As long as you lie on the couch and dream of getting rich, this is an empty pastime. How much to get hold of, if you count in rubles? What should you do to get closer to your goal? What stages are appropriate to highlight in order to move towards a brighter future faster?

Perhaps you have goals, but you did not choose them. This is the other side of the same coin. You are trying to buy a car because you have to. But they have never thought about whether you personally need it.

Letting life take its course and being dissatisfied with it is much easier than at least trying to control it.

3. You spend all your money

The most typical habit of a poor person: as soon as additional income appears, this money is instantly spent. At first, it was because of necessity - there was simply not enough money. Later, the habit is carried over to higher earnings.

The phrase “I don’t understand where the money is going” has its legs growing from here. It is very easy to figure out where earnings are disappearing. You just have to keep track of expenses.

4. You are completely satisfied with what you have

If you take any steps, then only after a magic pendel from your family or employer. But that doesn't make you more successful.

Nobody is obliged to pull you. If everything is bad with you, then guess who is to blame? You.

5. You do not take responsibility

It starts with the little things and extends to bigger decisions. You never admit your guilt and are always looking for someone involved in your failures. You are late due to traffic jams, did not advance in the service because of the foolish boss, you cheat because your partner has ceased to look after himself.

When it comes to money, there is a direct link between willingness to take responsibility, quality of life, and earnings. Millions will not fall on you as soon as you change your attitude towards life. But the chances of making at least a small fortune will be greater.

6. You are afraid to take risks

The proverb about a tit in our hands has been hammered into our subcortex since childhood and prevents us from achieving success. This is not the best guide to action.

If you have an average job and salary, then leaving everything and starting something new is scary. You can lose the good in the pursuit of the best. But think for the future: are you ready to be content with this normal all your life?

Nobody calls to rush into the pool headlong. Any risky action must have grounds, calculations, calculations that increase the chances of success. But you need to do this in any case.

How to increase income

Grow professionally

You don't have to go into IT to get paid a lot. You can have a working profession, but you must be unique in it. If you do your tasks better than others, you will get paid. You will be looked for and lured into your company for a big salary, if you are worth it. But you have to invest in yourself, work hard and study.

Open your business

Wage labor is relatively stable and reliable. But you always have a ceiling on your earnings, measured by your salary and, in some cases, a bonus. This is a plus or minus constant amount.

You begin to manage your income when it directly depends on your efforts. For example, you are a digger. If you work for a salary, it doesn't matter how much you dug. The salary will be the same. With piecework, you can dig a 10-meter trench in a day for 1,000 rubles or 30 meters for 3,000 - everything is in your hands.

Your business is not a walk in a chamomile field. Rather, a path along a slippery path in the middle of a swamp on stilts and with three bags of cement on his shoulders. And everything around is burning. But if you find the right path, there is a chance to get to solid ground, build a house out of cement, and fry a steak over that eerie fire.

Suggest something new

Look at all these millionaire youths who are on the news for some reason. Don't look at the children of billionaires. We are interested in startups, inventors and other guys who sell their projects to business sharks or successfully rule them themselves.

Their ideas are fired because they are new. Or old, but repackaged in such a way that people are still delighted. It is difficult to offer this. If, thousands of years before our era, it was enough to roll out the wheel to fellow tribesmen, now you will have to think about the project a little longer. And yet, the field for inventions remains.

Look for passive income ideas

The best way out: While you are making money, something else is filling your pockets. And if you stop working, the passive source of income will not stop.

What to do with money

According to Sergei Leonidov, general director of the financial aggregator Sravn.ru, the opinion that it makes sense to think about investments starting from a high amount is a myth. Even 1 thousand rubles can be invested in several ways. So start small. But you need to learn a few basic rules:

1. Understand what level of risk you are prepared for. The higher the risk of a financial instrument, the greater its profitability. Before investing money in the stock market, decide for yourself if you are ready to lose it. If not, then it is better to find fixed income options. The simplest is the contribution.
2. Determine the term for which you invest. In the short term, stocks may fall in price and the market may collapse. But with a long period of time, they usually grow. If you need investments in a year, then it is better not to experiment with the stock market.
3. Never invest in something you don't understand. If, after studying the question, you do not understand how the tool generates income, it is better not to invest in it. There is a risk that this is a pyramid scheme.

Among the simplest working tools for increasing savings, Sergei Leonidov names the following.

Contribution

Some Russian banks accept deposits from 1 thousand rubles, although the generally accepted minimum threshold is 10 thousand rubles. The rate, depending on the amount, remains almost unchanged. Now the profitability of deposits for the year is slightly more than 8% per annum.

Risks:low profitability, which may not offset inflation.

Cards with interest on the balance

Many banks issue cards with interest on the balance. An option for those who may need money during the year. If you close the deposit early, then in most cases the interest will burn out. This won't happen with cards. But the interest on them is usually lower than on deposits.

Risks:unlike a deposit, where the rate is spelled out in the agreement and is valid for the entire period, the bank can change the interest on the balance at any time.

Savings account

Another analogue of the contribution. Many banks can open a savings account right in the application and close it at any time without losing the interest already earned. Usually the rates on it coincide with the percentage on the balance. The convenience is that the money is isolated and you will not accidentally spend it.

In addition, many banks can set up automatic replenishment. For example, once a month from your salary. A good option for those who are not confident in their financial discipline.

Risks:As with a card with an interest on the balance, the rate on the savings account may change.

Mutual funds

Mutual investment funds (MIFs) are a constructor of several stocks or bonds, which is made by a management company. An investor can buy one share. The price starts from a few hundred rubles. Subsequently, this share can be sold - at an increased value, if all this time your shares and bonds have been generating income.

Risks: you have to pay a fee to the company every year, even if the fund suffers losses.

ETF

This is a tool similar to a mutual fund, invented abroad. He usually copies stock indexes, for example, of American technology companies. Indices tend to rise, so this instrument is considered the most reliable in the stock market for a simple investor. In Russia, the easiest way to buy ETFs is through the applications of brokerage companies. In all cases, there is a service commission.

Risks: in the short term, the rate falls are possible.

Bonds

Bonds are issued by companies, Russian regions and even the Russian Federation itself. If you don't want to understand the intricacies of this tool, you can open an account with a broker. Large brokers have consultants who will tell you how everything works and help you choose bonds. You will need a brokerage account to purchase. As a rule, you have to pay for its service. There are also commissions for the purchase of securities. Their amount depends on the broker's tariffs.

Risks: unpredictable yield, bankruptcy of the issuer that issued the bond.

Business loan

You support someone else's business with a ruble and receive gratitude in material terms for this. Now there are several sites where an ordinary person can lend money to a business. As a rule, this amount is from 10,000 to 500,000 rubles. For example, Alfa-Bank's Potok, City of Money, OZON. Invest is a service of the OZON online store, which should start working as usual in 2019. A similar service is launched by Sberbank.

Risks: the defaults of the companies you lent money to.

What it takes to become a millionaire

1. Stop whining and take action.
2. Reorganize to a different way of thinking.
3. Learn to set goals and take risks.
4. Don't stop half way and achieve your goals.
5. Making friends with math and analytics - if your actions are not supported by numbers, this is the road to nowhere.
6. Explore investment instruments and try different options.
7. Be prepared for the long road to riches and full of restrictions and plowing.
8. Stop being jealous of those who got rich easily: you have already failed. Pull yourself together and find your way.