It seems unrealistic to make $1 million. In fact, it’s easier than you think. You do not have to buy a lottery ticket or invest all your savings in some super profitable project. Entrepreneur has collected 10 tips that will help you earn your $1 million. Yes, you’ll have to make some sacrifices, but it’s worth it.
- Increase your savings
Every company has a goal of making more money. That’s the same principle you should follow. Some people put off 5-15% of their income. That’s not enough to make a millionaire. You have to cut back on expenses and set aside at least 50% of your monthly income. If you have two sources of income in your family, try to live on one salary and put off the other.
- Make a plan and stick to it
You need to learn how to invest properly, plan your investments and stick to your plans clearly. It is important not to be influenced by the crowd. Those who buy and sell more often earn less than those who buy and hold.
- Earn from your passion
Find what you are really passionate about, become a professional and make money from it. There is nothing better than having a hobby that brings you a lot of fun and money. For example, Steve Ells was into cooking. He borrowed money from his father and opened a little restaurant. In one month he sold 1000 burritos (scones with stuffing), and a few years later opened a chain of restaurants Chipotle Mexican Grill. Don’t worry if things don’t work out for you. Do what you love to do.
- Start investing as early as you can
The sooner you start investing, the more you’ll earn. If you buy shares in companies and reinvest dividends (buy more shares on them), it can make you a millionaire. It is important to invest in different promising companies. To do this, consult with professionals.
You can calculate how long it will take you to get 1 million dollars. For example, if you place 2000 dollars a month on a deposit or in bonds with a yield of 2%, it will take you 32 years. You start at 25, you’ll have the first million by the time you’re 57. Do you want it faster? Invest more or in more profitable instruments.
- Be patient
Regardless of the strategy you choose, it will take you a long time to accumulate large amounts of money. Investing is not a short 100 meter race, but a long 42 km marathon. Even the most successful business “shoots” not in one day. To earn the first million is always very difficult, but with the second will be much easier.
- Invest in real estate…
All rich people invest in real estate. It is important not to make a mistake about the place, the developer and the project. Start by buying a small apartment. Rent it out or resell it with an increased value. Increase the turnover.
- Do not spend money to show your status
Only foolish millionaires will ruin money, buy whatever they want until they’re bankrupt. Smart millionaires live modestly: their houses are not located in elite areas, they do not buy expensive cars and do not stay in five-star hotels. If you have free money, invest it for additional income.
- Build your wealth
You don’t have to be a super successful businessman to make big money. It’s enough to be a disciplined, hardworking and creative person. Start with a little: first try to sell your unnecessary things, then invest in stocks, then something else.
- Avoid the thought of failure
Set yourself up for success, but be sober. Thoughts of the bad will only get in the way.
Don’t think that you’re doing this for nothing.
Don’t think that everyone owes you one.
Don’t take a loan if you have nothing to pay it back.
Don’t be afraid of obstacles.
Don’t leave those who owe you money.
Learn all the time.
- Invent something
Can you come up with a new product or service? Do you have a lot of ideas? Pick one and try to do it. For example, Sarah Blakely became the youngest billionaire woman at 29 simply by creating comfortable underwear that can be worn under white pants. Her Spanx lingerie is sold in 40 countries around the world.
Remember that people need comfortable things and cool services that will solve their problems.