How to be millionaire

16 December 2009 - 18:22

Forms to be millionaire there are several, we can create a famous company of world-wide success, to be singing or actors, to be sport successful, to inherit a great fortune, or to gain the lottery.

But a form common to get to be millionaire, and within reach of any person is following the method that we will present/display to them next.

This method is conformed by 5 steps, and is based on the recommendations offered by millionaires and dedicated people to study them; reason why we followed if it seriously, they will increase our possibilities of being what so many yearn for.

1. To put the objective of being millionaire

The first step to be millionaire is to put the objective of being millionaire, which not only implies to make the decision to be millionaire, but also to motivate itself to being it, and being convinced that it is really possible.

The idea of being millionaire must be recorded in our mind to such point that all our acts or decisions are congruent with that objective.

In order to fulfill this step it is possible to establish secondary targets or goals that help us to fulfill our primary target, for example, we can put to us the goal to initiate a new business before finalizing the year, or having monthly income by a certain amount of money within 6 months.

Once fulfilled these goals, we will happen to establish new more ambitious goals, always considering our primary target that is the one of being millionaire.

2. To generate the greater amount of possible income

The second step to be millionaire is to try to generate the greater amount of possible income, or through our use, our business, or any other source.

If, for example, the income that we generated with our use are not sufficient, we must make an effort so that these increase to us, or looking for an ascent or looking for a new use.

But before to generate income through a use, the recommendable thing to fulfill this step is to generate income through a small business that does not imply a greater investment in its creation.

The idea is to generate sufficient money like saving a good amount of this one, and later investing it, as we will see more ahead.

3. To save

The following step to be millionaire is to save; don't mention it serves to generate good income, if the money is squandered in luxuries that perhaps at the time make us feel millionaires, but who in fact move away to us to fulfill our objective.

To save implies two things: to live an austere life (to avoid the luxuries or unnecessary expenses, and to spend and to consume less possible), and to destine a percentage or a part from our income to a saving stock market (the recommendable one is to destine a minimum of 15% of our income).

In order to fulfill this step the recommendable thing is to elaborate a monthly personal budget, which helps us to control our expenses, and to have the discipline to reserve to the month a certain amount of money as saving.

In order to learn to save, we invited to you to read articles: how to save, and advice to save.

4. To invest

Once we have generated and saved sufficient money, the following step to be millionaire consists of investing the saved money.

Before to invest our money in some assets that generate a gain to us at the time of selling it, he is preferable to invest in some assets that generate a flow to us of constant income; for example, instead of to buy real estate later to sell it to a greater price than the price of purchase, he is preferable to buy real estate which we pruned to thus rent and to generate monthly income by rent.

The three main investments that recommend the millionaires and experts to initiate the way towards the wealth are the businesses (or creating them or buying them), real estate and the actions.

But before beginning to invest it is necessary to acquire the knowledge and the suitable financial preparation that allows to know how how to invest us (so that we know how to identify good opportunities of investment, and to obtain the greater possible yield), and how to secure and to use external financing (so that we know how how to secure and to use the money of others to acquire our investments).

5. To create a portfolio of investments

The following and last step, and that one that will do millionaires to us consists is to construct to our portfolio or portfolio of investments, that is to say, not to conform to ours first investment to us, but, to acquire many more.

Once we have acquired ours first investment, and we began to be successful with her, all the others will be easier.

To be millionaire we must count on an ample one and diversified portfolio of investments; for example, once we have acquired our first real estate and begun to be successful with him, we must come to look for new real estate in which to invest.

Also, in this point we will have to improve our financial ability still more, mainly, with regard to the capacity to use the financial leverage (and thus to be able to acquire more investments without needing having to use our money), and with regard to the capacity to cause that the money moves quickly (and thus to be able to have more money available to invest in other assets).

Labels: Personal finances, Finances, Step by step

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