How to be a millionaire? You may be a bum wishing to have a million bucks, or you may be an aspiring young professional who wants to know if you are on the right path. Whatever the case may be, here are seven ways people become millionaires. Some are by pure luck but there’s no need to worry as others are based much less on chance and more on planning and wits. With some effort, you can have a big fat bank account one day too.
First and the easiest, Win the Lottery – Without a doubt, this is the quickest way to become a millionaire. I was in Vegas the other day, and there are a ton of ways to strike it big as well. The problem? Your chances are one in a billion. Good luck and start rolling the dice if this is the way you want to pursue wealth.
Be Innovative – Most people believe that the easy inventions are already out in the marketplace but yet, new gadgets come out every day. Ideas are everywhere, so put on your thinking caps. If you aren’t the thinking type, you can always…
Learn from Madoff – You will also be on the front page of every newspaper and be in jail for 150 years but at least your wife can enjoy a good life with money you stole from other people.
If you take this path by the way, let me know so I can report you.
Corporate Slave – Okay, this is the first way to be a millionaire while avoiding the headlines. Many high paid professionals end up with significant wealth built up. Of course, they get beaten up at work daily as they climb the corporate ladder and then pay obscene amounts of government taxes afterward, but hey, nothing is going to stop you from becoming a millionaire right?
Forget Millions, I Was Born a Billionaire – Having rich parents aint’ a crime right? Even if you aren’t born that way, you might get a second chance by being adopted. Of course, no money is ever safe if you don’t know how to use it. Just ask this guy who blew $10 million in 10 years.
Marry Rich – If you go to any bars or restaurants that are within close proximity to high end neighborhoods, you will see many very attractive ladies at the bar. There are some fairy tales alright, but most die trying.
Save Your Ass Off Millionaire – You can keep trying, but this is exactly how most of us will become a millionaire. It’s not glamorous like winning the nobel prize but no one will bother you (that’s a good thing when you are wealthy) because no one will ever know you are rich either.
Since this is actually the most probable way of becoming a millionaire, I’ve outlined a few steps you can take.
1. Generate Some Income
All the rubbish about a penny saved equal two pennies earned is true because pondering about that all day will save you exactly two pennies. If you ever want to save enough money to make your family proud, start earning some to begin with. This includes:
- Stop watching TV. But everyone watches TV. Yes, couch potato the third, that’s why so few ever become millionaires. While you are watching TV, your competition, the more successful and the people you envy are all making money. Stop watching TV. In fact, cancel it if you always give in.
- Working smarter and harder at work – If you have to choose between the two, please err on the side of being smart. Be friendly and helpful to coworkers, know when you should work hard and when to say no to distractions.
- Get a side job – If you are earning less than $40,000 and trying to feed a family of four, you could probably write a book on money saving advice. Stop reading up on frugal living and write about it instead. Start your own business and earn more money (here are 15 ways to do so).
2. Save Some of It
Alright, what I said in step one was misleading (it wouldn’t be the first time so stop complaining). After you have decent income coming in every month, you need to save at least some of it. How much? It all depends on how fast you want to become a millionaire. There’s no right or wrong answer. No pain, no gain my friend.
Alternatively, you can also save more by reducing your current expenses. Do you still have your cable TV? You can try Netflix free with a one month free trial offer. At the very least, look for the AT&T U-Verse promotions and the Verizon FiOS promotions that seem to be all over the web if you already use their services.
Extra: What a tip? Start by resisting the temptation to improve your standard of living too quickly. It’s fun when you start going to fancier restaurants and living in bigger houses but there’s no going back (or at least without major pain). You can always spend more later, and there is absolutely no rush.
3. Investing It in Diversified Index Funds
I keep telling everyone that I’m becoming an index fund convert. No, I’m not those that liked index funds from the get go or someone who lost a bunch of money in the stock market betting on individual securities. In fact, I made a small fortune in the stock market. But it was risky, tiring, frustrating and stressful. I wanted a life. If you really want to be a millionaire, stick with index funds. You don’t need the crap and you don’t want to buy tissues after you bought Bear Sterns based on rumors that it was good value.
You are probably thinking right now – Tell me something I don’t know. Well, if you know everything already, why aren’t you a millionaire? Don’t be a smart bum that knows everything. Be a millionaire that got started reading and applying every common sense advice ever written.
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{ 54 comments… read them below or add one }
I think the best way of turning millionaire is to stick to the golden rule ” Spend less than you earn” or if you find it difficult to save more than ” Earn more than you spend”.
I have a monthly net income of $1,794 and am 32 currently. I have worked to reduce my current debts and should be completely debt free by February 2012. It is my hope and intent to have significant savings, boosted via compound interest by the time I hit 50 which is in the next 18 years.
What do you suggest I do in terms of saving and investing, i.e., how much should I put up in liquid cash for emergency money and how much in investment money to go towards retirement? I welcome any sage advice on this as I want to do it right while I am young and able to do so.
Dear King Saver.
First of all, I want to congratulate you on becoming debt free at 32. However, you have a long life ahead of you, and to sustain this seems implausible. The fact that you are thinking of where to put your money is great. Firstly, you must protect yourself. Eg.. have Critial illness Insurance or Disability Ins in place before you start to “invest”. Secondly, have an Insured Retirement Plan in place. This is a life insurance vehicle that has investments growing inside it tax free until the day you die. If done properly, it will never be taxed as well.
Hi David,
This is good advice. Especially about increasing your standard of living slowly. I am almost 30 now and I have spent the larger part of my 20′s increasing my standard of living. While it has been great it has also come with a cost. So I say to everyone, control your spending.
Cheers,
Jeremy
It’s “never too late” and I hope that you’ve learned your lesson. It’s always more important to look in the future and in the past so good luck in fixing your spending.
Haha, great article.
I’m enjoying the lighthearted sarcasm.
The part about finding some side income has been a huge boon to our family’s finances.
I think your side income is soon going to take over as your primary income
It’s a strange but wonderful feeling I’m sure.
Right about not everyone watching TV…. I found it to be the biggest time waster ever invented
There is not time in my life for it. Period.
Hmmm.. I think I’ll just go for the first option
Or I’ll keep dreaming haha
Dreaming isn’t a bad option. I should have thought of that.
According in my situation right now, I prefer first and easiest option (similar as lottery game), that is money game.
It is not so much a big idea that makes it big but how to execute an idea, even a medicore one, well that is the key. I think its a bit misleading to think of an idea to make millions. Many a tech start-up has died terrible deaths with that thinking. A better approach is to take an existing idea or business model and improve on it. After all, MS has made billions being 2nd into the market.
Ning, it’s so true, especially the television stuff, where we can become more productive, if we spent less time on the TV programmes.
“While you are watching TV, your competition, the more successful and the people you envy are all making money.”
I love this. It doesn’t just apply to television. I have to limit the amount of time I spend aimlessly surfing the internet. Time flies when you’re wasting it.
What motivates me is thinking about all the people with seemingly successful businesses who, in my humble opinion, are far less qualified and competent than me. More important than anything else, these people take action. I’m learning to do the same.
Invest in the stock market and gain 4,000% like I’ve done in the last 6 months.
Dude, with whom did you invest and got those returns?
Great post. I did a similar one in the beginning of June. Here is my list:
Be born into it– pure luck of the draw
Marry into it– they say you earn every penny
Win the lottery– better chance of being struck by lightening
Be a celebrity– might end up waiting tables
Be an athlete– don’t bet on it
Steal it– like small spaces with bars?
Earn it– over an entire lifetime
Start saving and investing– from the cradle
Counterfeit it– did I mention small spaces with bars?
Be a business owner . . .
Investing in a well-chosen dividend shares in a diversiferad portpolio is enough and perhaps among the simplest and best way to become a millionaire. But one very important rule that one should re-invest the dividends. Otherwise it like investing in index fonds.
Sincerely
40percent 20years
When it comes to money, there are three types of people. Those who are happy with an average income and a safe, secure job, but ambitious; those who are a bit entrepreneurial and will take some calculated risk in order for the potential to enjoy limitless income; and there are those who have no goals at all and just assume life will take care of itself.
Another way to make money is to play to your strengths and start a very small venture based on it. I knit very well, and instead of starting a shop of my own, i sell the stuff i make to baby boutiques and make a nice profit. You could do the same with baked goods, artwork, or even decorations.
I love the first idea and i think i can make it if i may follow it. Thanks for that,but i don’t like the comment;”stop watching Tv” notify that you can get information from it.Meanwhile thanks a lot.
T V ? For the last 2 yrs we cut out our cable subscription and found out it was the best thing we had ever did.We spent more time together as a family . I also started to do more things at work and at home .I started to think about investing and staying home to take care of my family .Can investing be a life time stay at home job or a living . ? Can anyone give me a suitable advice .?
I think the ultimate way to become a millionaire is to EARN MORE and DESIRE LESS. Earning more increases your income i.e. (taking a second job, investing your money, buying assets that provide passive income, etc.) while desiring less lessens your spending (i.e. budgeting, frugality, etc.)
Make it a habit and definitely, you would become a millionaire someday
Is a great idea to have a second job,but what if you don’t have a job at all?With this economy we are lucky to make money just to have food to eat..MILLIONAIRE??…Nah,is just a dream…I need a job just to keep me alive.
Yes, TV is a time vaccuum… an it’s an addictive habit and not great for your brain.
Ask the question “What will a Million get me?” and you might not need it to get what you really want.
Do what you love and live within your means… Doing that is worth more than a million.
I agree, living within your means and managing your money is important to get ahead financially. Another suggestion for how to become a millionaire is to collect your debts promptly and efficiently. Remember, if someone owes you money, it could be sitting in the bank earning you interest so they are really taking you to the cleaners the longer the debt goes on.
hi thanks for sharing… But what about offering some legal and prospect-friendly business opportunity, could you offer some?
Well the majority of this post makes becoming a millionaire sound pretty far-fetched, but there is some good advice buried in the wit. Thanks for the post.
Here is something to consider. Your odds of becoming rich are higher if you buy a $130 lawn mower and start cutting grass, as opposed to getting a job working for someone else as an employee.
where’d you read that? I’d love to see the article
Great article. I love that one: “Get adopted.” haha
it is not easy but its worth trying, easy to find but the task of maintaining your millions is not as easy finding
Another tip: Pay for everything in cash, never finance with loans or with credit cards. Save up the money first, then make your purchase. People would be shocked if they actually calculated up how much money they spend on interest every year on all those credit cards, car loans, etc.
I’d say the one exception to this is maybe a house. Even with that, only take out a 15 year mortgage and try to pay it off early.
This is really good advise “Think Positive, Make Goals And Act To Do Something” Dont waste the time to watch the TV. Contact me for a good opportunity ..Thanks.
Focus on your goal, and keep working without any expectations.You will one day become a millionaire for sure. Expectations will make you back off if you dont see results early
Great advice. couldn’t agree more… the hardest part is not about knowing the secrets, but about if you are able to apply the rules or not.
Another option is listen to people who have been where you are and have what you want. This is what I have done to make more money and increase my quality of life. I am currently being mentored by multi-millionaires from all different backgrounds on a daily basis. A key point in becoming successful is believing you can. Napoleon Hill said it best “Whatever the mind of man can conceive, and bring itself to believe, it can achieve.”
Great read..It took me a little longer to slow down the improved qualitiy of life pace..I am now 40 have over 150k annually income but just starting out on the savings & retirement..No wife, kids or debt..but what chance do I have to retire at 60?
Chuck – you have EVERY chance….. Just learn to live frugally now – say on $20,000/yr, and SAVE ALL the rest…
I never made over $25000/yr, except 2 yrs at $30,000 – and I’m semi retired at 55, just working very part time for the health insurance til I decide not to.
Well that is your good luck Chuck..You still got more than 20 years to retire,i’m sure you’ll be a millionaire pretty soon.Lol,plus you are lucky that you got no kids or wife..or debt.
Chuck, what is the point of being a millionaire if you do not have the main beauties of life? No family no kids where you can come after work and enjoy. I do not envy you at all. Your life is nothing but work.
Chuck, do not retire. What you will do at home alone? Work until you die.
1 : 0.01$
2: 1$
3.10
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7.100,000
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a jugs fills frop by drop ~ get it ?
i am not happy by this artical because it hasnot the main subject that i ask about
Great article.
TV is indeed a real time-eater if you’re watching out of boredom. Better make some second income by cultivating a hobby you love.
For me the secret to become a millionaire is to work hard, look for better opportunity, save more and most especially don’t spend beyond on what you are earning.
I still believe that the easiest way to become millionaire is to bet on the lottery.
How about, wasting time reading “How to Be a Millionaire” articles on the internet and just follow the basics you have learned already and stick to it
.
Just do it. -Nike
My two cents… Start a side business while you’re still at your day job. Pay off all debts. Allocate your profits wisely – 30% Keep, 30% Growth (reinvest), 30% Dreams, 10% Play Money.
Keep your plan simple and stick to it. First years are grueling, 3rd year things start to materialize. Biggest problem I see with today’s generation is everyone is so damn impatient and a bunch of “on-demand” kids. Everyone wants to get rich, famous quick instead of putting in the work. They quit just when things are going to happen for them. #weak.
Motivation is really important thing.
Self-motivate yourself is not easy. But staying motivated more difficult.
if you save $1 day, for 15 years with compound interest you make a million dollars. Some kind of myth or something.
But everything is possible.
Lottery sounds fun, but unlikely. Slow and steady isn’t flashy, but wins the race.
I am earning 4000 per month. Is there any possibilities of becoming a billionaire?
I recently stopped contributing to my 401k. My company does not match it and my investment options were limited. Instead I now take what I was saving and put it in index funds and ETFs. Uncle Sam takes more now, but my returns will be bigger in the long run. Plus I have control over what I invest in. Non-matched 401ks are nothing more than a savings account at the mercy of someone else running it. Growth opportunities and disciplined saving doing it myself far outweigh any tax advantages of my 401k over the life my saving.
By working for someone you can never become a millionaire.
Your article is both funny, and true. The humorous ways you outlined in the beginning really will make you a millionaire, they are shortcuts, no doubt, but what’s wrong with that? No need to sneer at those who succeed the easy way!