You know 7 steps to becoming a millionaire:
- Develop a written financial plan
- Save, save, save
- Live below your means
- Lay off the credit
- Make your money work for you
- Start your own business
- Get professional advice
But The important 10 Steps
1. Follow the money. In today’s economic environment you cannot save your way to millionaire status. The first step is to focus on increasing your income in increments and repeating that. . Start following the money and it will force you to control revenue and see opportunities.
2. Don’t show off -- show up! they didn’t buy their first luxury watch or car until their businesses and investments were producing multiple secure flows of income. They were still driving a Toyota Camry when they have become a millionaire. Be known for your work ethic, not the trinkets that you buy.
3. Save to invest, don’t save to save. The only reason to save money is to invest it. Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year,
4. Avoid debt that doesn’t pay you. Make it a rule that you never use debt that won’t make you money. they borrowed money for a car only because they knew it could increase their income. Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.
5. Treat money like a jealous lover. Millions wish for financial freedom, but only those that make it a priority have millions. To get rich and stay rich you will have to make it a priority. Money is like a jealous lover. Ignore it and it will ignore you, or worse, it will leave you for someone who makes it a priority.
6. Money doesn’t sleep. Money doesn’t know about clocks, schedules or holidays, and you shouldn’t either. Money loves people that have a great work ethic. The store closes at 7 p.m. Most times you could find them there at 11 p.m. making an extra sale. Never try to be the smartest or luckiest person -- just make sure you outwork everyone.
7. Poor makes no sense. I have been poor, and it sucks. I have had just enough and that sucks almost as bad. Eliminate any and all ideas that being poor is somehow OK. Bill Gates has said, "If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake."
8. Get a millionaire mentor. Most of us were brought up middle class or poor and then hold ourselves to the limits and ideas of that group. I have been studying millionaires to duplicate what they did. Get your own personal millionaire mentor and study them. Most rich people are extremely generous with their knowledge and their resources.
9. Get your money to do the heavy lifting. Investing is the Holy Grail in becoming a millionaire and you should make more money off your investments than your work. If you don’t have surplus money you won’t make investments. The second company they started required a $50,000 investment. That company has paid them back that $50,000 every month for the last 10 years. Their third investment was in real estate, where they started with $350,000, a large part of my net worth at the time. they still own that property today and it continues to provide them with income. Investing is the only reason to do the other steps, and your money must work for you and do your heavy lifting.
10. Shoot for $10 million, not $1 million. The single biggest financial mistake I’ve made was not thinking big enough. I encourage you to go for more than a million. There is no shortage of money on this planet, only a shortage of people thinking big enough.
Apply these 10 steps and they will make you rich. Steer clear of people that suggest your financial dreams are born of greed. Avoid get-rich-quick schemes, be ethical, never give up, and once you make it, be willing to help others get there too.