How to Become a Millionaire in 2020

How to Become a Millionaire in 2020

Have you set your resolution for this year? If you are still looking for ideas, how about ‘become a millionaire’? It is not impossible, especially because there is an enormous amount of personal finance information available to anyone these days, and for free at that, thanks to the internet.

Though admittedly, some tips clash against each other. So your best bet is to take advice from experts who have become millionaires themselves, turning their meager finances into mountains of cash. Truthfully, the wealthy have similar hobbies that paved the way for them to become self-made millionaires.

Everyday habits of millionaires

It is a lot different when you transform yourself into a millionaire without the help of an inheritance. You can be rich by getting money from your family, but reaching the millionaire status through your own efforts is saying a lot more.

In the book “The Millionaire Next Door”, authors Thomas J. Stanley, Ph.D., and William D. Danko, Ph.D. identified the habits of self-made millionaires and they include surprising items such as: buying a house that is below your budget, marrying a partner with the same frugal values, never leasing a car, driving used cars, focusing on business potential rather than fads, owning a business or having a side-hustle, and frugal living.

The biggest secret to creating millions

The one thing most self-made millionaires do is budgeting. They track every penny – how much is spent on gas, groceries, utilities, and so on. Planning and tracking spending are the keys to building wealth. Operate your household and your life like a business – have a plan and go in one direction.

It is also important to understand the value of money. Keep your expenses to a minimum and prioritize your savings and investment goals. Do not spend too much on a house, car, or anything that ultimately will not add value to you.

Always look at the bigger picture. Focus on what you want to achieve and why you want it. Write down all your financial goals and figure out a budget that will help you reach all these goals.

It may mean clipping coupons, not buying new clothes for a year, commuting to work, or living below your means. The point is to design an environment that is just enough, without any waste.

Like a millionaire, you can live every day with a budget in mind, track your money, and look for ways to save and invest more. These simple things will eventually build your wealth and allow you to reach their self-made millionaire status.

Ian Schindler