First of all, you must understand that there are no get-rich-quick schemes. You have to work hard if you wish to be wealthy. Games of chances, illegal methods of money making or any other kind of schemes will not pay off in the long run.
Long lasting wealth come by working hard and building good habits. Below are some good habits that will make you a millionaire.
1. Save 40% (or more) From Your Income: If you’re a salary earner, never spend all your salary but save 40% every month as it comes. You must save at least forty percent of your paycheck every month. You can easily achieve this by using automated saving apps. They automatically divert any amount you’ve stipulated into a piggy bank account and at the end of the year, you cash your money.
2. Invest: Saving isn’t enough, you must also invest your money. Investment is simply distributing your money in several places with the expectation of reaping future benefits. You can invest your money in certain industries like real estate, agricultural companies or in a startup business. Note, be careful and make sure that the startup business you invest in is viable and can be run by competent hands. So take that 40% you have saved and invest it in more than one source.
3. Don’t Let Your Expenditures Be More Than Your Income: You’ll be doing yourself great harm if you allow your spending increase as your income increases. If your expenditures becomes more than your income, your upkeep will be your downfall. You’re digging a grave for yourself, why spend more than you earn?
4. Take Your Work Bonus: Some organizations make loans and bonuses available to their employees. Don’t be so modest and think you don’t need it. Loans come with very low interest rates for members of staff, you can collect loans and build a side business for yourself. You can even get a house, a car or any property with the loan, instead of buying it at once with your hard earned salary.
5. Start A Side Business: If you’re an employee, you shouldn’t remain one for the rest of your life. If you can’t save more money, then make more money. Start a side hustle, that loan we talked about earlier, inject it into your side business and watch it yield returns.
6. Don’t Waste Money: So about buying a house, is it affordable? Is it a pressing need? Are there alternatives? One of the alternatives has been discussed in point 4. A percentage of your salary will be deducted every month to pay back that loan. I think that’s fair enough rather than buying at once with your income. If you’re an entrepreneur who is just starting out, do you really want to pay rent that is more than at least 30% of your income? Start small.
7. Renegotiate: I love this part. Renegotiation means to negotiate again so as to adjust interest rates or repayments to make more money. Renegotiate everything, your service provider, your cable company, your data services, the website developer, the construction agent, the electricity company etc. Cut back on your spending, let your family members understand that you’re going through a process, so they need to be patient with you.
8. Don’t Live Extravagant Lifestyle: You’re going through a process, the hotspots and party hubs are not for you. Leave the big life to the others, when you get to where you’re going, they will see. Although, you don’t have to completely avoid fun, you just have to be a bit frugal with spending.
9. Avoid Debt: Do not borrow to consume, don’t go into debt because you want to be wealthy. There are good debts and bad debts. Getting a loan and putting it into something that will bring returns big enough to pay back the loan and give you profit is a good debt, while borrowing to consume is bad debt, so be wise.
10. Stick With The Process: Continue with the process, don’t give up. Long lasting wealth cannot be built in a day, not even in a year. No matter how long it takes, the end result is pleasant, so stick with it. Don’t be in a hurry to become wealthy that you build your wealth on a shaky foundation. Believe in yourself and trust the system.