How you can realistically become a millionaire
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Everyone wants to be a millionaire, right? More than 10 million Americans are part of the club, and we want to get our membership card, too.
But how to achieve millionaire status? And how to retain it once you get there? We turned to the experts for some money-saving hacks that will help you boost your bottom line.
Double down on your career
“The first thing to remember when you set out to become a millionairess is that get rich quick schemes seldmon work,” Bianca Hartge-Hazelman, whimn’s finance expert and founder of Financy, reminds us. “What’s important is building wealth and to do that with persistence. There are so many money saving ideas out there, but there’s no point living on baked beans if you are not thinking about building wealth across three main areas.”
The first one of these is your career. It might seem boring, but in fact you need a “good secure job” in order to build the funds to invest and save. “So take the time to think about your career choices and pay opportunities, whether you are prepared to work two jobs, or whether you want to have a crack at running your own business.”
Get serious about budgeting
“Regardless of how much money you make from a job or assets, it’s going nowhere unless you save or spend it wisely,” Hartge-Hazelman adds. She advises using budgeting apps and tools to look for where savings can be found, such as on your home energy or insurance bills.
“Try to set a budget where you are in control of your outgoings, and not spending needlessly on things you don’t really need, such as clothes or lunches with the girls – I’m generalizing here, but you get the point!”
Embrace the deal
Everywhere you look retailers are offering fantastic deals, and most consumers don’t take advantage of them. But serious inroads into your savings goals can be made by throwing your traditional consumer patterns out the window and embracing a more haphazard approach that favors following the deal wherever it might be.
Like to dine out? Download the Entertainment Book app and use their coupons to find your next meal. Seek out your neighborhood’s local pubs and head there on 2-for-1 steak night. Can’t quit your shopping habit? Indulge yourself… But only when you have a discount code in handy, thanks to scouring the internet.
Quit the plastic
Credit cards are not your friend. They are the enemy. In fact, any kind of system whereby your spending money you don’t actually have – including personal loans – is likely going to be more of a hindrance than a help on your way to savings success.
So, leave the credit card at home when you go out of an evening. Chop it up if you can. If you can’t, hide it somewhere in your house so that it’s on hand for absolute emergencies. But if your savings scheme goes according to plan, that emergency will likely never arise.
Flex your savings muscle
Don’t expect million-dollar windfalls to happen overnight. AMP financial adviser Darren James says that the most important thing is to set yourself up for success by starting with simple savings goals, such as spending less than you earn.
“You would never start off by trying to run a half marathon if you had never been on a run before, so start by putting aside a small amount each month,” James says. “People often come unstuck when they try and save too much too quickly. You’ll be surprised at what balances you grow when you save a really small amount. Realistic saving habits are more likely to stick.”
Visualize your goal
“There’s nothing like having set goals to focus the mind,” James adds. “Many of us start saving for something without set goals in mind and this can make it hard to keep your eyes on the prize. Whether it’s the trip of a lifetime, your wedding, a boat, or that car you’ve always wanted, knowing what you want your money to do for you gives your goals a better chance of being reached.”
And don’t be afraid to ask the experts
“An adviser is like a personal coach for your money. They bring the right knowledge, expertise and guidance to identify your specific goals and help you achieve them,” James says. “And a little planning early on can go a long way.”
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