With many new year resolutions for 2018, one very popular among us is to become a millionaire. Imagine now of you being a millionaire. Are you visualizing? What? You are counting million dollars or sleeping with them or sitting over it. Wait a minute. May be you are flying in private jet and living a luxury life. Well, whatever you are looking forward to is yet to accomplish and the road is still ahead of you to walk upon to become a millionaire. So it is better to know the secrets of those few self made millionaires and then follow on those footsteps for this new year dream.
1. Know where you’re going and keep the track
Jeff Harris is one of the millionaires who about thirty years ago hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. According to him he has seen tough times when they were so broke that they used to wash their clothes in the bathtub because they couldn’t afford the Laundromat. Now he’s a 59-year-old investment advisor and multimillionaire in York, South Carolina.
He always dreamed of being rich and this is what made him. With the fact that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff but few dream of being rich.
So Jeff’s secret is wanting to be wealthy is the first step and to abandon fear. People are afraid to think big, but if you think small, you’ll only achieve small things.
Jeff story of becoming a millionaire is that once he met a stockbroker at a Christmas party. “Talking to him, it felt like discovering fire,” he says. “I started reading books about investing during my breaks at the grocery store, and I began putting $25 a month in a mutual fund.” Next he taught a class at a local community college on investing. His students became his first clients, which led to his investment practice. “There were lots of struggles,” says Jeff, “but what got me through it was believing with all my heart that I would succeed.” So the moral is that you can succeed if you will and wish.
2. Educate yourself about finances
When Steve Maxwell graduated from college, he had an engineering degree and a high-tech job—but he couldn’t balance his checkbook. “I took one finance class in college but dropped it to go on a ski trip,” says the 55-year-old father of three, who lives in Windsor, Colorado. “I actually had to go to my bank and ask them to teach me how to read my statement.”
One of the biggest obstacles to making money is not understanding it. Thousands of us avoid investing because we just don’t get it. But to make money, you must be financially literate. “It bothered me that I didn’t understand this stuff,” says Steve, “so I read books and magazines about money management and investing, and I asked every financial whiz I knew to explain things to me.”
He and his wife started applying the lessons: They made a point to live below their means. They never bought on impulse, always negotiated better deals on their cars, cable bills, furniture and stayed in their home long after they could afford a more expensive one. They also put 20 percent of their annual salary into investments.
Steve’s Secret is to know the financial basics to become a millionaire with the zeal to move forward in money matters.
Within ten years, they were millionaires, and people were coming to Steve for advice. “Someone would say, ‘I need to refinance my house—what should I do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and learn something in the process,” he says.
In 2003, Steve quit his job to become part owner of a company that holds personal finance seminars for employees of corporations like Wal-Mart. He also started going to real estate investment seminars, and it’s paid off: He now owns $30 million worth of investment properties, including apartment complexes, a shopping mall and a quarry.
3. Be passionate in what you do to achieve your goal
In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.”
Jill, who lives with her son in Alexandria, Minnesota, owned a gift basket company and earned just $15,000 a year. She noticed when she let potential buyers taste the food items, the baskets sold like crazy. Jill thought, Why not sell the food directly to customers in a fun setting?
With $6,000 in savings, a bank loan and a friend’s investment, Jill started packaging gourmet foods in a backyard shed and selling them at taste-testing parties. It wasn’t easy. “I remember sitting outside one day, thinking we were three months behind on our house payment, I had two employees I couldn’t pay, and I ought to get a real job. But then I thought, No, this is your dream. Recommit and get to work.”
Jill’s secret is thus to be passionate, hard worker and be fearless even in tragedies.
She stuck with it, even after her husband died three years later. “I live by the law of abundance, meaning that even when there are challenges in life, I look for the win-win,” she says.
The positive attitude worked: Jill’s backyard company, Tastefully Simple, is now a direct-sales business, with $120 million in sales last year. Jill was named one of the top 25 female business owners in North America by Fast Company magazine.
4. Grow more money in every circumstances
How many of you think of having a money garden with dollar leaves hanging out from trees. But this is to make a real thing with firm determination. According to Loral Langemeier, author of The Millionaire Maker, The fastest way to get out of that pattern is to make extra money for the specific purpose of reinvesting in yourself. In other words, earmark some money for the sole purpose of investing it in a place where it will grow dramatically—like a business or real estate.
Secret of this millionaire is you need to pay yourself first, by putting money where it will work hard for you—whether that’s in your retirement fund, a side business or investments like real estate.
There are endless ways to make extra money for investing—you just have to be willing to do the work. “Everyone has a marketable skill,” says Langemeier. “When I started out, I had a tutoring business, seeing clients in the morning before work and on my lunch break.”
Thirty five years ago, Rick Sikorski dreamed of owning a personal training business. “I rented a tiny studio where I charged $15 an hour,” he says. When money started trickling in, he squirreled it away instead of spending it, putting it all back into the business. Rick’s 400-square-foot studio is now Fitness Together, a franchise based in Highlands Ranch, Colorado, with more than 360 locations worldwide. And he’s worth over $40 million.
5. Get up and keep going
Dave Lindahl is another self made millionaire though his dad now jokes, “I can’t believe we used to call you the black sheep!”At 29, Dave was broke, living in a small apartment near Boston and wondering what to do after ten years in a local rock band. “I looked around and thought, If I don’t do something, I’ll be stuck here forever.”
He started a landscape company, buying his equipment on credit. When business literally froze over that winter, a banker friend asked if he’d like to renovate a foreclosed home. “I’m a terrible carpenter, but I needed the money, so I went to some free seminars at Home Depot and figured it out as I went,” he says.
Secret of this millionaire to get started as soon as possible
After a few more renovations, it occurred to him: Why not buy the homes and sell them for profit? He took a risk and bought his first property. Using the proceeds, he bought another, and another. Twelve years later, he owned apartment buildings, worth $143 million, in eight states.
6. Stop spending unnecessarily
This is the last secret advised almost by all of the millionaires. That means this is common attitude for them who wish to save and become a million dollar person. Real estate investor Dave Lindahl drives a Ford Explorer and says his middle-class neighbors would be shocked to learn how much he’s worth. Fitness mogul Rick Sikorski can’t fathom why anyone would buy bottled water. Steve Maxwell, the finance teacher, looked at a $1.5 million home but decided to buy one for half the price because a house with double the cost wouldn’t give me double the enjoyment.
One common secret of almost all the millionaires is to avoid spending.
In a survey of affluence & wealth in America, it was found that some of the richest people “spend their money with a middle-class mind-set. May be that is why it is believed that Warren Buffett lives in the same Omaha, Nebraska, home he bought decades ago for $31,500.
Now follow these best six secrets to become a millionaire and keep the resolution to become one this new year.