Every once in a while someone becomes an instant millionaire by getting lucky. They might inherit a bunch of dough, create a product instantly wins popularity contests, or hit the lotto. For most of us though, becoming a millionaire is hard work. It takes time, discipline and some patience.
But for those who are determined to retire young and retire rich, it can be done. And becoming a millionaire does not require a high income. While that helps, building wealth is ultimately the ability to manage your money properly.
Here are some tips to get you started today:
1. Reduce consumption and increase investments.
2. Create and stick to a budget.
3. Increase your financial IQ.
4. Make contributions into investment vehicles on a consistent basis.
5. Start a part-time business to increase income and take advantage of tax write-offs.
6. Surround yourself with like-minded people who believe and support your goals.
7. Find great CPAs and other trusted advisers.
8. Set short-term and long-term goals.
9. Make a commitment to become a millionaire.
10. Start now. Time is your friend when it comes to investing.
Making your first million dollars is the hardest, but it will never come if you don't take action. Continue to increase your financial literacy by subscribing and visiting financial websites, but don't get stuck in "analysis paralysis" mode. While the information on these websites, magazines and new related TV programs can be very valuable, the prescription to making money is actually very simple. It's just a matter of knowing the fundamentals and how to apply them.