Tuesday, October 4, 2011

How to Become The Next Millionaire

Regardless of where you go in the world, money is the basic universal measurement for being "rich", or becoming a millionaire. And it seems like everyone wants to be a millionaire these days. So why not give it a try?

I went trough almost everything written, related to becoming rich, I could find in the net and discovered, that basically all say the same. Obviously there are only a few ways to become rich, all well known but not regularly practiced by most of us and therefore only few actually become millionaires.

Here is a fine resume on the basic techniques for us to follow so that we all become the next to top the most rich of lists of funny magazines.

Please let me know if you do follow these steps and when you get your first million together.

Steps – The Do’s
Open a savings account! Having a savings account is one of the many ways where you can set your money up to work for you. Your initial deposit of money grows whether or not you make additional deposits by interest. Learn the different types of accounts, including accounts like IRAs.
Buy stocks! If you are gung-ho for individual stocks, you should buy stocks of the companies whose products and services you use or purchase. One of the best ways to invest in individual stocks, is through an investment club; you may want to consider forming one with your friends.
Buy mutual funds. Mutual funds are really an investment of other investments. When you own a mutual fund, you actually own the securities (stocks, bonds, cash) within the mutual. With mutual funds, you are pooling your money with other investors and diversifying your investment.
Audition for game shows. Game shows earn their money by the audience, not the contestants.
Find a "system" that has been proven to make people become millionaires. The top five producers of millionaires today are: technology - internet marketing, direct marketing, home-based business, product distribution, and investments (stocks, bonds, real estate investment / development). Usually, the most stable and reliable forms of income would be from internet marketing, technology, and real estate, with internet marketing, and home based businesses requiring the least money to set up. Investments like real estate and stocks are usually quite risky and time consuming.
Find a mentor who has walked the walk and seek advice. Surround yourself with already-made millionaires. They can be found in several places, there's even a private online club where you can have a millionaire mentor personally show you how to make money in many areas online.
Win who wants to be a Millionaire. If you don't know the answer to the question, just guess you have a 25% chance of getting it right, if you do know the answer, then say it.
Have Fun. When you become wealthy doing something you love, your life will be much better than if you were to do something you hate or don't care about. Make a smart decision.

Tips – The Don’t Do’s

  • Don't use a credit card much, all of the excessive spending will come back to haunt you, and you may end up in debt. Try getting a debit card for daily purchases, they're a lot easier to deal with. Use your credit card only for emergencies, and to establish your good credit.
  • Try not to take any big loans, because that's "big" money that you'll just have to pay back, and you could end up in debt for that also.
  • Control your expenses. You get rich on the difference between that and what you make
  • Make it a game. Looking for opportunities to make money is supposed to be fun. Never sweat it.
  • Read. The more you know the more you will perceive to be possible, the more you can make.
  • Make it about something else than money. It has to be fun. Fair enough you are doing it to become financially well off but few wealthy get off on that alone.
  • Make friends with people who share the same goals and values. It will reduce your downtime, and give you pleasure when you are down.
  • Make friends with people who are different than you. They can be the greatest source of inspiration and guidance if you are open to their different perspective.
  • Help others. Learn to be a caring individual that makes the world better for people around yourself. It will lead to more positivity coming your way. Also, donating to charities can come back to you in the form of tax deductions.
  • Plan. Define what you want, Act on it, and Evaluate often to see how you are going.
  • It is OK to be cheap, but never be cheap on things that give you value.
  • Never invest more than you are willing to lose. This is particularly important when you start. The older and more experienced you get the less risk you are likely to take, or the better you are capable of taking it.
  • Think a lot on why you want to become rich, what exactly you want to buy, what lifestyle you want. Make it specific, and date your time for having it and why it matters to you.
  • Money represents value. You might come to the understanding that you make money on giving something that other value more than what they pay. You spend the money to get something that is more valuable.
  • If possible, make the maximum out your retirement fund provided either by your government or your work. Then proceed to put as much money in to an account like a Roth IRA.
  • Whoever said money can't buy happiness has never driven a sports car!
  • Money can never buy true happiness. Do not lose your friends and family over making money.

 Warnings – The Wake Up’s

  • Unless you are the wealthiest person in the world, there will always be someone with more money than you; there will always be someone with less money than you.
  • Be prepared to make choices that are different than most people around you.
  • Keep riches and wealth in perspective i.e. don't kill the goose that lays the golden egg. In other words, avoid neglecting the source of the wealth e.g. decent health.
  • Money doesn't always buy happiness (but it can take care of almost everything else).
  • Never steal money. So don't get any ideas about robbing the bank.
  • Do not brag about how much money you have. Thieves will be more likely to target you.
  • Outside of saving your money, there is no guarantee that you will make money through stocks. You should be wary of anyone who tells you otherwise.
  • The internet is full of scams. Do not invest any money in them unless you know they are legit.
  • Have a clear conscience, and make sure you as well don't lose all the other important things in life like relationships and social interactions. Money has no worth without these.

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