1.Develop a written financial plan
One of the main reasons why you can not become a millionaire is because you have not written a financial plan. Developing a financial plan will force you to take action, take action and stop talking. It will also guide you in the decision-making process to achieve your goals.
When planning your financial strategy, feed two concepts that are indispensable: how much money do you have and how much do you spend? It does not matter that you start from limited capital. All you need is to spend time and effort in creating a plan that puts your present and future finances in order. You must forget about the past and concentrate on the future to anticipate how much money you will need to live.
2.Focus on increasing your income
The groundwork to become a millionaire is to put all the means at your disposal to increase your income and do it in such a way that, progressively, you multiply the amount. Follow the money and when you have an impressive amount, invest it.
You will find some investment advice on "4 bad habits that will lead you to ruin".
3.Increase your income sources
After five years studying the millionaires, Thomas Corley, author of "Rich Habits (The Habits of the Rich)" discovered that 65% of self-made millionaires had three sources of income. 45% had four or more and 29% had five or more.
This implies that you must work in more than one place at a time. You can start a business on your own, keep your work part-time salaried, bet on investments and rent all your goods, from your home to your car, going through some household items.
4.Improve your skills and knowledge
Read at least 30 minutes a day, listen to relevant interviews and find the best mentors. It is necessary that you become a genius capable of talking about any topic, be it financial, political or related to sports. Get knowledge as if it were the air you breathe.
5.Live below your means and say no to credit
It is widely known that the richest people in the world do not spend too much. Always feed exceptions but, normally, they do not tend to splurge on designer items. They use discount coupons. And they know how to live below their means by buying houses and modest vehicles.
They are also known to keep their debt under control by using credit sparingly.
A good tactic to limit spending is to pay with cash whenever you can, it is easier to control and in this way you will limit your expenses to what you really need.
6.Change your expenses for investments
The rich do not spend their money. They invest it. They know that tax laws favor investments instead of expenses. You can buy a house and maybe you deduct something in the income statement. But it is much better to buy an apartment building that makes a flow of money and offers rebates year after year.