How to become a millionaire?

**greenskeeper** · 12-01-2012, 05:15 AM

we'll all be millionaires someday, just wait for inflation to kick in....

**Bades** · 12-01-2012, 06:08 AM

I'm no millionaire, but my father is very wealthy.

The fastest way to becoming a "millionaire" is owning your own business. Unless you are a top level exec at some large financial firm, you'll probably never see the paychecks that owners of businesses do when working for someone else.

I read an article/study once along the lines of why the rich are rich and the poor stay poor. It was very interesting. People from wealthy or well-educated backgrounds KNOW that it's an actual achievable goal, that it's not impossible, they can envision it, and THEY TAKE ACTION.

People in the lower income backgrounds tend to picture being very wealthy as some dream in their head. They may dream about it, but they never truly accept the dream for something that could actually become reality.

My dad is a wealthy guy, so I have no doubt in my mind that I can't become just as wealthy one day.

And here is the fundamental difference I believe - People with lower incomes are focusing on the present, paying bills, paying off that brand new car, etc. Where as people with the "wealthy mindset" (and they don't even have to have a lot of money to begin with) are looking to see how they can make more money, they are constantly looking towards the future for new opportunities. I know it sounds corny, but basically the main message really is about having that positive attitude versus having that negative attitude that you'll never get there one day, so that's why it remains some dream or lottery ticket idea in someone's head.

**Bades** · 12-01-2012, 06:13 AM

Originally posted by newguy View Post

Does 'being a millionaire' means they have one million dollars or more in cash? or that's including assets like house, investment etc.?

Hard to say what a millionaire is...

A million dollars is quite achievable these days with the correct retirement plan. That's being said you'll never live like a millionaire, because it's supposed to support for your retirement.

I would say a true millionaire would at least have a net worth of a few million, in cash, investments, real estate & property, and probably owns more than one business of which those are worth a lot too. Think very diverse.

**snafu** · 12-01-2012, 09:17 AM

Wealthy people are almost obsessed with learning and personal development. Mind is the hub of their financial wealth. They read, listen to audio CDs while driving, attend seminars and free/nearly free programs to learn more about areas that interest them plus network and meet powerful people. In less than two years the political machine will gear up again for mid term elections and you might benefit from being a volunteer on a campaign.

I suggest you try to think about old problems in new ways. How are you adjusting to the new culture?

**MakeAStash** · 12-01-2012, 09:52 AM

Compounding is magic. Beginning at age 21, add $5000 to your IRA each year, get 8% annual growth, and you'll be a millionaire at age 55.

**SavingSweetOneL** · 12-01-2012, 10:57 AM

Hi NewGuy,

Read the Millionaire Nextdoor, and The Millionaire Mind.

SweetOneL

**moneybags** · 12-01-2012, 03:14 PM

Start saving early on, no matter what your salary is, pay yourself first, and don't grow into any raises you get (save the additional income). If you don't have the money, don't buy it. Other than mortgage interest, interest paid is like throwing money in a garbage can.

So many people take too long to figure this out. They run up the credit cards and spend whatever they earn. Start out differently early on, and you won't have to play catch up later.

**newguy** · 12-01-2012, 04:48 PM

Yes, I actually read 3 books a while ago.

The Millionaire Code by Paul B. Farrell
Secrets of the Millionaire Mind by T. Harv Eker
The Naked Millionaire by David Taylor

I'm still young, have a decent job, and I'm learning a lot right now. I'm starting to contribute in my 401k right now, and planning to start investing and probably start a business. I have some savings too and I don't have any debts. I know I have what it takes to be a millionaire, and I want to be one.

@snafu

I forgot to mention on my first thread that I'm already well adjusted here in California. Eventhough I'm an immigrant and English is just my second language, I've been here for 2 years now, I speak the language fluently and I'm familiar with the culture (I speak English growing up and watching American movies growing up.) So there's no problem at all and I really like it here so far. Thank you for asking.

Thanks for the reply guys. Keep it coming.

**Blessed** · 12-01-2012, 05:38 PM

Real boring and slow and steady has been the path for us since we dont have a huge income. However we are not millionaires yet. We are only at about $600k at the moment but growing. For us the biggest way has been to not have debt so you actually get to chose where your paycheck goes.

The millionaires I know personally would never stick out in a crowd and were pretty methodical and diciplined to get there.

**chrisburke21** · 12-01-2012, 07:27 PM

Step By Step Guide

Step 1: Save $670.98 per month in your 401K and continue to do this for 30 years.

Step 2: Find an asset allocation where you will earn at least 8% per year average.

Step 3: Collect your one million dollars in 30 years.

Step 4: Give a big piece back to Uncle Sam.

Doh

**senter** · 12-02-2012, 10:09 AM

Originally posted by newguy View Post

I'm still young, have a decent job, and I'm learning a lot right now. I'm starting to contribute in my 401k right now, and planning to start investing and probably start a business.

Contribute the maximum to your 401k every year while you can. One day you will be married (if you're not) and will have kids. You'll be saving for "a rainy day" and for college for the kids. You'll be saving for the next car you'll need, property taxes, and many other expenses, and it will be difficult to save to the max then. Learn to use a spreadsheet to project your savings accumulation and your expenses. I have about a dozen different spreadsheets for different needs, one of which is a retirement needs projection. CAUTION: learn to create your own retirement calculator or consult a good financial planner. Some online retirement calculators are horribly wrong and depending on them could be disasterous.

I'm retired now and retired with a million dollars in net worth by doing these things.

Realize that $1 million in principal, lump-sum amount can only produce $40,000 or so per year for income for life, starting at age 65 (and adjusted for inflation annually).

A business may help, but not always.

Full disclosure: I worked as a financial planner at one time in the 1980s.

Good luck.

**EarlyRetirementJoy** · 12-02-2012, 10:21 AM

Learn to live on less than one income, and work to stay there, regardless of future raises, bonuses, or contributions from a second paycheck (i.e., spouse).

Make your first home purchase your forever home purchase, and pay it off as quickly as you can.

Continue to enjoy the heck out of life while this is all going on by focusing on low cost/high enjoyment activities. There are many, many out there - it's not necessary to spend boatloads of money to live a fun, joy filled, and/or meaningful, life.

**EarlyRetirementJoy** · 12-02-2012, 11:10 AM

Originally posted by Bades View Post

Hard to say what a millionaire is...

A million dollars is quite achievable these days with the correct retirement plan. That's being said you'll never live like a millionaire, because it's supposed to support for your retirement.

Absolutely correct, and the foundation of the message in The Millionaire Next Door, a terrific primer for how an average Joe or Jane can become a millionaire.

**Bades** · 12-03-2012, 06:39 AM

Most millionaires have multiple incomes streams and very good accounting methods setup mostly through the use of various LLC's.

How to become a millionaire?