“If you were born poor, it is not your mistake.
If you die poor, it is.”
– Bill Gates
Most people mistake being a millionaire for simply being filthy rich, but there is so much more to being a millionaire than the riches. Here we will look at the three primary steps involve in becoming a millionaire in five years. Believe us, sustainable wealth is so much more than just the money, and you can have it even if you are starting from $0.00.
STEP 1: THE MILLIONAIRE MINDSET
Can you become a millionaire in 5 years? Of course you can! It is no secret that you can be a millionaire in any time frame within which you seriously aspire to become one. However, before you even begin to think in dollar signs, ask yourself which comes first: the millions or the mindset? The real million-dollar question is “do you have the mindset required to become a millionaire?”
You will never be able to attain a millionaire status in five or twenty-five years, if you are not thinking like a millionaire. A single limiting belief with regards to your ability to succeed, will be the one insurmountable obstacle between you and your millions. You do not need to have money in the bank, nor a big network to begin with. In his book, The Ultimate Guide to Becoming Rich, M. Farouk Radwan stresses the point that self-made millionaires know that raking in those millions has absolutely nothing to do with luck, inheritance or the people you know. It is all about how you think. Believers of universal laws will tell you that how you think attracts good or bad, abundance or lack in to your life. Then there is also the old adage, “Change the way you think and you will change your life”.
Think like an entrepreneur
You will rarely find a self-made millionaire who attained their millions working for someone else, If you find them, that person is likely to have passed the age of retirement. Nothing is wrong with that, but if you would rather make millions now, then begin thinking like an entrepreneur and start your own business.
Think big and work hard
Rich people do not simply aim to increase their monthly income by a couple hundred. No, they aim for projects with unlimited potential, and they do so despite how crazy anybody else thinks they are for doing so. Now, if you are a simple dreamer or simply love to dream, that alone will not do. You need to couple dreaming big with working hard then get up each and every day and work towards making that dream a reality.
Harbor no false beliefs about money
If you believe that money is evil, rich people are just lucky or thieves or lucky thieves, then how do you expect to make millions? Get rid of those false, limiting and negative beliefs, because they will only hold you back.
Stop thinking that rich people are the ones who make more money
Yes, it is a popular misconception that the rich make more money than everybody else. The real truth is that the rich make what little money they have, make more money for them. It is called investing in your future. People go broke spending the few thousands they make as soon as they make it. The smart and the rich, on the other hand, know that a couple thousands will be done in the blink of an eye, so they invest that money and live off the interest that money makes. To become a millionaire you need to say no to flaunting and yes to investing. Don’t go buy a huge house and the latest car then live in debt, because that makes no sense. Yes, it is good to celebrate your accomplishments, but do so wisely. If you must be in debt, that debt must be leveraged to help you make more money.
STEP 2: DEFINE YOUR GOALS AND HAVE A PLAN
Become a millionaire in five years and not two or three
As humans it is natural to have many dreams and aspirations. However it can take a lot of time to muddle through the mental chaos in order to pinpoint the one that is most feasible amidst the confusion. You need to allow yourself time to figure out which option is best for you. You will probably spend a year trying this and that, before you finally figure out what it is you really want to do and where your talents lie. Then once you have done that, you will need to lay the groundwork and map the route you will take to get there. Mark Zuckerberg , one of the creators of Facebook, has said in many of his talks “to create sustainable wealth, you have to be sure that what you are doing is what you want to do and something you enjoy doing.” In addition to that, you must have a plan, and each plan must have a backup.
You have to allow yourself time to fail, recuperate and go at it again
In two or three years you will probably fail more than you succeed. Hence, by the time you get to the three-year mark and you are not where you want to be you are likely to want to give up out of sheer frustration and sense of defeat. The sad thing is that at that point, all you probably needed was another two years to get it right. The renowned magazine, Business Insider, has said, “Success is as much about financial strategies as is about the right amount of time”. Shorter time frames create a sense of rush and you might find that in a hurry to get rich quick you do not build a firm or sustainable business model. Do not rush. Give yourself the time to work out all the present and future kinks and whilst you can’t plan for everything, you can certainly try. This makes it easier to side step a crisis, if and when one presents itself in the future.
You will need time to create the right and compatible financial strategies
Investopia writes “you need to know what your available resources are, how much you have to risk and what your projected outcome is. From there you can develop profitable and sustainable investment portfolios. This way you will know how to make your money make more money for you without incurring significant losses.”
You need time to study the economy of both your target country and niche
It is necessary to know your target audience and have strategies in place to move with a market shift. It is one thing to have a business and quite another to provide what your clients want when they want it. Humans are fickle, so your business must be strategically nimble to be able to move when the market does and even predict the movement of your market. For this you don’t need a financial degree, though one doesn’t hurt. You need to be well-read and well-researched and this takes time. You can and will learn on the go, but you must spend the time to know what you are doing before you do it.
STEP 3: NEVER FEAR FAILURE
The November 2014 issue of Psychology Today stated, “Fear, in and of itself is one of the most crippling emotions. It creates mountains out of mole hills, monsters out of teddy bears and failure where there could be success.” When you couple fear with failure, that’s a recipe for stagnancy. Oprah Winfrey has said time and time again, that the fear of failing will inevitably lead to your failure, which is true. When you fear failure, your mindset is one of self-doubt in your own ability to succeed, and this takes you nowhere very fast.
As a prospective millionaire, you need to change the way you look at failure
Failing time and time again is a good thing, and like rapper Jay-Z has said, “you learn more through failure than you do through success.” Failure cultivates perseverance while teaching you what NOT to do if you intend to succeed. Then when success comes, your failures will make you more appreciative and keen on sustaining your wealth, because you know how hard you worked to get there. Failure also shows you your strengths and where you need to incorporate the help of others. You will never be good at every single thing. As a millionaire you need to understand what your weaknesses are and how to turn them into strengths or compensate for them elsewhere. Embrace failure. You will be the better for it.
Take a look at Walt Disney, who became one of the highest paid animators in movie history. What most of us do not know is that in 1921, he started a company called Laugh-O-Gram, and filed for bankruptcy 2 years later. He himself has said that his failure taught him how to do it right with Disney. Now he has left a legacy that is comparable to only a few others.
Do not fear failing, it means you are doing something right. Keep going at it and watch the balance in your bank account grow. Self-made millionaires are not lucky; they are the ones who never stopped trying.
Top 3 Takeaways
- Don’t show off. Show up and save to invest. The things you buy do not define success; it is defined by your work ethic, so cultivate a good and consistent one. Then when you make money, do not just save it for saving sake, invest it.
- Do not assume debt that does not make you any money. Millionaires often have huge debts, but those debts are leveraged for investments. Hence, borrowing twenty million dollars to build a shopping mall is okay, because the business it will attract will pay back the loan. Borrowing $200,000 to buy an expensive car just means you have to take money from whatever you earn to pay your loan each month. That is not being money smart.
- “If you were born poor, it is not your mistake. If you die poor, it is.” – Bill Gates Do not subscribe to the limitations of the socio-economic status you were born into, you can do better so choose better. “Poor” is not a definition of who you are nor what you are capable of, it is simply a state of being. And like any other state of being you can change it. Yes, there are limitations in any individual situation, but if you stay rooted in the belief that you can do then you will do. Part of becoming a millionaire is about learning how to outmaneuver the odds stacked against you. It is about turning obstacles into stepping-stones as you move on to accomplishing your goals.