For most people, the thought of making a million dollars seems like a far-fetched goal they won’t achieve. However, successful millennials and entrepreneurs alike say it is possible. Everyone wants to be a millionaire, but how many people are really willing to put in the effort it requires?
Firstly, it’s important to have the right mindset. The first million is always the hardest, but if you start making smart financial decisions early in life, you could hit the mark before your 30th birthday. Some of these steps might seem basic and repetitive, but they do work. Stick to your goal, don’t give up when you face difficulties, and be patient with yourself.
13 Tips to help you make your first million
Increase your profit margin
Your profit margin isn’t just for business purposes, as it applies to your daily life as well. When you increase the gap between income and expenses, you have more profit, just like any business would. However, you can easily spend your way out of wealth. The secret is to save more than you spend. For instance, if you spend on snacks, coffee, eating out and other small luxuries, it makes it harder to save. To reach your goals, you’ll have to save up to half of your income, which requires disciplined choices to ensure future financial success.
Create an investment plan
The best way to prevent against self-sabotage is to create a plan and follow it. You must avoid pitfalls such as trading in and out of your investment and looking for shortcuts. You’ll lose more money if you trade frequently, compared to holding your stocks or bonds.
Prepare to deliver unexpected value
Your ability to earn more is dependent on your ability to deliver value – far more than anything the competition is currently offering. For most people, this involves exchanging money or working harder but that is a narrow mindset. You can actually achieve this goal by utilising connections with the right people in your industry, allocating time to problem-solving and finding a better paying job.
Build a progressive routine
Goal-getters always have a routine. If you want a Facebook business page with over 200,000 thousand followers, make this your goal. Subsequently, your routine will be to post valuable content, answer questions, share videos and grow your base, one user at a time. Remember to track your progress as you go and tweak anything that isn’t working. As time passes, you will reach – and even surpass – your goal.
Sell your value
To build relationships with key players in your industry, they should know about you. So, how do you become known and get your brand out there? Firstly, build your personal brand by showing people how you can provide solutions to the problems they face or offer engaging content/products that make their lives easier. A few tips include hosting a seminar, offering paid courses, monetising your blog, writing a book or becoming a consultant/coach.
Invest in real estate
There are many ways to make money in real estate, such as equity gains, appreciation of the property and rent from your tenants. When you buy stocks and the value drops, you only have the option to sell or buy more. With real estate, you can add laundry facilities, rent the garage, add vending machines in the building or sell the property when the value increases.
Start a YouTube channel
YouTube is a fun way to create and sell content. There are many people who have made millions from YouTube; for instance, Tabatha Bundsen (owner of Grumpy Cat), Ray William Johnson (comedian) and internet gamer, ‘theRadBrad’. Notably, Ray Williams Johnson makes over $1million a year from his videos alone.
Find legal ways to reduce your tax bills
Donald Trump is a master at finding leaky holes in tax laws and using them to his advantage. Subsequently, you can pay tax and reduce your bills to the barest minimum allowed by law. Taxes should be a quarterly chore – not something you look into at the end of the year. Be tax-aware; educate yourself on allowable deductions, changes in limits, as well as your withholding, which shows how you can keep more money and invest it.
View setbacks as a learning curve
If there is one constant across every successful business, it’s that they encountered some sort of setback(s) along the way. However, they were able to rise above and continue. Some errors cost a lot of money and can be heartbreaking, but the best way to move forward is to own your mistake and learn from it. So, press on until you reach your goal.
Learn to budget properly
According to Warren Buffet, the only rule to remember is to “never lose money”. If you fail to budget, this is what will happen. If you hate budgeting, ask for assistance from the pros. Track what you spend on gadgets, food, clothing and other expenses. At the end of the year, compare how much you spent against your income. The most important part of budgeting is to spend less and track everything.
You can make money from your passion
It’s easier to stick with your plan when you’re doing something you love. It’s also easier to become an authority in the field and create engaging content for your readers. This is a win-win situation, as you’ll be happy and successful. Steve Ellis wanted to open a fine dining restaurant in 1993, but didn’t have the funds. He got a small loan from his dad to open Chipotle and sold 1,000 burritos in the first month alone. His passion led to the opening of the popular restaurant chain known for affordable Mexican food.
Clear your debt
It’s impossible to build a business empire if you’re buried in debt. It becomes a prison that consumes your income, limiting your ability to grow. If you have student loans and credit card debts, pay the minimum and use the excess to invest and make more money.
Diversify your portfolio
If your portfolio only includes stocks or British companies, you need to diversify. There is ample financial activity in the global village, such as emerging companies in Asia and Europe that are just as promising as the UK. Diversifying your portfolio protects your investment; for example, if something happens to one investment, you’ll still have others to fall back on.
Regardless of any investment or entrepreneurship decision you’ve made, it takes time to grow. Success almost never happens overnight. Be patient, stay focused on your goals and remain committed.