Hello, dear readers of the business magazine “RichPro.ru”! In this article we will touch on the topic of how to become a millionaire from scratch, what qualities you need to have to achieve financial success and other useful information.
After all, one of the most popular queries in search engines is the question “How to become a millionaire?” If you set a goal for yourself to increase your well-being, then it is achievable. Just thinking about millions is not enough; concrete actions are needed.
The right goal involves developing a successful strategy. Do you have to be a special person to make a multi-million dollar fortune? All this will be discussed in this article.
From this article you will learn:
- How to become a millionaire, billionaire;
- What qualities do you need to have to become rich?
- Success stories of young millionaires.
So, let's look at each point in more detail.
In the article you will find tips and ways to become a millionaire (billionaire), as well as how young Russian millionaires started their business
Learn to understand a little bit of everything
I've noticed that basic ideas are 95% of the important information in any field. It was easy for me to take these ideas from all the major disciplines and make them part of my thinking process. Of course, it is not enough to know something, you need to use it.
I have practiced this approach all my life. I can't tell you everything he gave me. But he made my life more fun, and me - more effective and useful to other people. He helped me get rich.
But there are dangers in this approach: experts in different fields and, perhaps, your boss will cease to be authorities. You will know much more and find the right solution faster than them.
But none of this will work if you just memorize the information to get an A on the exam. You must understand these ideas well enough to use them in your thinking process. This is the only way you can use them in other areas of your life.
How to become a millionaire from scratch (Stage No. 1) - save and earn
It would seem, why does a millionaire need to save? But if you think about it, there is a certain amount of common sense in this. Therefore, everyone who decides to earn their first million should start by counting all their income and expenses . By the way, we wrote in more detail about how to save money in the previous article.
The first task is not so difficult to cope with - this includes salary with any additional earnings. So, you can earn extra money as a courier or ice cream seller. It’s a great success when you manage to find a part-time job in your free time or an additional source of income for the whole time.
Expenses:
- Communal payments . Gas, water and electricity must be paid on time every month.
- Loan repayment . If you need to pay off a mortgage or other loan, then such payments should be a priority.
- Payment for children's education . If a child attends a private school or paid clubs, money for educational purposes should be set aside in advance.
- Food . It is important to purchase everything you need to eat well.
In addition to these expenses, this list can be continued. It includes payments for mobile communication services and Internet provider . It is important to write everything down so you can see the exact amounts of money earned and spent.
You will need to do a detailed analysis in order to get closer to the coveted first million today. After analyzing the situation, a person will see exactly where he can save.
Most people, thinking about the opportunity to earn their first million from scratch, don’t even think about saving. Meanwhile, if you don’t save, you won’t be able to become rich quickly. Any savings should be considered as your profit.
For example, I wanted to buy my favorite sweets, but managed to resist the temptation. This action saved money.
An important step to becoming a millionaire is preserving and increasing your funds
Avoid extremes, don't become a fanatic
Another thing to avoid is reckless adherence to any ideology. You've probably seen people with limited views. For example, religious figures who hold opposing points of view on theology. They have one thing in common: they cannot go beyond the boundaries and think freely.
This also applies to political beliefs. When you are young, it is easy to get excited about certain ideas, to believe in them, to declare yourself a supporter of something. You can drive yourself further and further into the framework of ideology. This way you will forget how to think for yourself.
Every time I think about it, I think of the kayakers of Scandinavia. They successfully rafted down all the rapids in their countries and decided that they would achieve the same success in the USA, in Grand Rapids. They all died.
A big whirlpool is not a place you want to end up in. And I think the same can be said for really deep ideology.
How to become a millionaire (Stage No. 2) - save and increase
When there is a sum of money that has been saved, then it is important to make it work for you. If a person saves money every month, then there is no guarantee that it is beneficial for him.
Coins and banknotes deposited in a home piggy bank depreciate over time . Inflation will inevitably affect all such savings. The right decision to invest money in a profitable project. By the way, we wrote in this article where to invest money to receive monthly income.
Ideas for investing money in order to save and increase:
- Bank deposits . This is the most popular source of passive income. Today, bank deposits mean guaranteed income. However, the percentage of profit growth cannot be called large - up to a maximum of 15% per annum . It turns out that capital growth is slow - 1% per month. In this case, the first million will have to wait a long time.
- Mutual funds . These are mutual funds. They are bond, investment and mixed, venture, hedge and mortgage. When money is in circulation, you will not need to pay taxes. If necessary, a share can be sold in a couple of days and get good money for it.
- Forex and PAMM accounts . Trading on the foreign exchange market, trust management or contributions to PAMMs requires knowledge of the financial market. To open a PAMM account and start making money on Forex, you need to correctly predict market trends and choose profitable money managers. A beginner can easily get burned by choosing the wrong trading strategy. Therefore, to begin with, we recommend reading our article on Forex trading strategies, which discussed in detail how to choose the right trading system. It is also important to trade through trusted brokers. This brokerage company is considered reliable.
- Purchase of bonds and shares . When purchasing shares, a person actually becomes a co-owner of the company. Bonds mean a loan to the issuer at a certain interest rate.
- Unallocated metal accounts . Such accounts can be opened in gold, silver or palladium. Interest is less than on bank deposits, and sometimes interest is not charged at all.
- Purchasing a share in an existing business . Profitability can range from 130% per annum. Analysis of the business in which you plan to buy a stake helps to minimize risks.
- Real estate objects . Buying a building and renting it out for offices allows you to quickly return the money spent. Read about investing in real estate here.
The main thing is to invest money that is not the last. You cannot invest borrowed finance if you have little knowledge about investments.
Keep an eye on prices: buy financial assets cheap and sell them higher.
In the last issue, we talked in more detail about what investments are in simple words and what they are. There is also an article on our website about where it is profitable to invest a million.
Get rid of envy, resentment and self-pity
Why would you envy, be offended, take revenge, feel sorry for yourself? These are catastrophic thinking patterns. And they quickly become familiar.
I have a friend who carries around a stack of cards. When someone tells him a self-pitying story, he takes one of them out and gives it to that person. The card says: “Your story touched me. I have never met a person with whom so many misfortunes have happened as with you.”
You can consider this a prank. But I think when you start feeling sorry for yourself, the reason is completely unimportant. Your child may be dying of cancer, but feeling sorry for yourself won't help you fix the situation. Just give yourself one of these cards.
When you learn to avoid self-pity, you will gain a huge advantage over others. Don't shift the blame to circumstances or other people. Learn to take responsibility for your actions.
Billionaire Advice: How to Get Rich Even If You Don't Have Rich Parents
There is a lot of advice on how to make a lot of money. But you should only trust those given by truly rich people.
Photo: Shutterstock
There is a lot of advice on how to make a lot of money. But you should only trust those given by truly rich people. Komsomolskaya Pravda collected statements from the most famous billionaires. Perhaps these rules will help you add another zero to your income or double your capital.
Rule #1
Do what inspires you
Not a single truly famous project became so only because the creator wanted to make a lot of money. As a rule, the goal was much more ambitious. Like the same Elon Musk, who wants to populate Mars, and this year he took first place in the list of dollar billionaires. Or Mark Zuckerberg, who built Facebook to unite all people on the planet. Or Steve Jobs, who wanted to create not just a phone, but a product that people would dream about.
Bernard Arnault
Photo: GLOBAL LOOK PRESS
- Money is just a consequence. I always tell the team: don't worry about profitability. If you do your job well, profits will come,” explains another billionaire, owner of the Louis Vuitton Moеt Hennessy holding, Bernard Arnault.
Rule #2
Work hard and don't get distracted
The same Elon Musk is a workaholic. Like most of his colleagues on the Forbes list, who created their fortune from scratch. The Tesla creator works 80-100 hours a week. But if rule No. 1 is followed, you will enjoy the work process. The main thing is not to get distracted.
Stephen King
Photo: GLOBAL LOOK PRESS
“If you want to be a writer, then you shouldn’t have a phone in your office, and you definitely shouldn’t have a TV or stupid distracting video games.” If there is a window, cover it with a curtain or lower the blinds, says Stephen King, author of 70 books and owner of a net worth of $400 million.
Rule #3
Surround yourself with the right people
Ideally, people close to you should pull you up, not down. If you live in a depressed place where everyone thinks about drinking, you're unlikely to become rich there (unless you sell them alcohol). For development, you need to choose those places where conditions have been created for this and there are people who have the same values as you.
Bill Gates
Photo: GLOBAL LOOK PRESS
“Surround yourself with people who challenge you, teach you and motivate you to be your best,” says Microsoft founder and one of the richest people on the planet, Bill Gates.
Rule #4
Try and experiment
Some people have become fabulously rich simply because they took a risk and tried something completely new. Someone was not afraid and bought bitcoins five years ago. Someone at one point decided to start a blog on YouTube, although everyone was at their heads and said that it was impossible to make money on it. And someone began to post their simple tips on Instagram and after a couple of years gained a million subscribers.
Sergey Brin
Photo: GLOBAL LOOK PRESS
“The more actively you try something new, the more chances you have of stumbling upon something really worthwhile,” says Sergey Brin, billionaire and founder of the global search engine Google.
Before you try something new, you need to somehow find out about it. This leads to another conclusion: rich people always learn something and spend a lot of time on self-education.
“If at the end of the day you come to the conclusion that you know exactly as much as you knew in the morning, it means you’re doing something wrong...” says Warren Buffett.
Rule #5
Save money. Always!
This can also be called the rule of Scrooge McDuck (the main character of the cult cartoon “DuckTales”). Rich people try to save money in different financial instruments and not keep everything in one place (even if it is their own business). Even if something happens to their main company, they will not go around the world with their hand outstretched.
Warren Buffett
Photo: GLOBAL LOOK PRESS
— Try to save 10-20% of your regular income and half of your excess income. Invest in stocks, real estate or your own education. A dollar saved is a dollar earned, says Warren Buffett.
BY THE WAY
Money can not buy happiness
This stereotype is firmly entrenched in the minds of many Soviet people. But, unfortunately, with the wrong subtext. Like, there is no point in striving to become rich, because large capital will not make you happy. In fact, everything is completely different. The meaning of the phrase was only that money cannot become the only basis for happiness. This requires other components.
- Even if you are a three-time billionaire... The fact is that you will still come to the conclusion that the most important thing is your health. Don't forget that everything you live for is next to you. And this is your family, close friends and loved one. What's the point of wealth if you only share it with yourself, says Warren Buffett.
According to him, working until you lose consciousness in order to earn an extra million, while denying yourself communication with your loved ones or rest, is a mistake. A certain balance needs to be maintained. And most rich people succeed.
— Only 20% of poor people exercise or do exercises. And among people with above-average income, there were more than 70% of them. Almost 100% of the poor and less than 50% of the rich turned out to be lovers of junk food, fast food and late-night snacks, writes John Gresham in the book “The Rules of Wealth.”
According to him, the rich also lead in other habits, which are much more useful. They try to read every day, keep to-do lists and fill out planners, and also educate themselves. More than 80% of wealthy people do this and only 8% of poor people do this. But the most important difference is in psychology.
“The rich always dream and think about the future, while the poor often like to reminisce about past times and do not even want to imagine their future lives, hoping that things cannot be better.” Some cite age, others – missed opportunities. Remember, it’s never too late to change your life, regardless of age, says John Gresham.
SMART THOUGHTS
10 tips from financial guru Bodo Schäfer
He is the author of the famous books “The Path to Financial Independence”, “Mani, or the ABC of Money”, “The Laws of Winners”.
— Wealth is not how much you spent in a casino, restaurant, resort or store. Wealth is what you have put aside and saved.
- No one becomes rich just because they earn a lot. You are only rich when you can live on the interest on your capital without having to work: the money works for you.
- You are not paid as much as you are worth? If you work for this money, that means this is how much you are worth. If something doesn’t suit you, change your job, your lifestyle, change yourself.
“It’s better to move towards your goal at a snail’s speed than to come up with excuses at the speed of light for why you’re standing still.”
- Half the effort does not give half the result, but zero result.
- Think about your health. Wealth without health will not bring joy.
- Constantly imagine that your work is being watched by a billionaire, who at that moment is deciding whether to make you a partner in his company.
— Many people plan their vacation much more carefully than their own lives. But there are only two possibilities here: either you plan your life yourself, or you give this right to others.
— People constantly find excuses: they say, I have large loans and two small children, I can barely make ends meet, and you offer to work even more. But these are excuses. To become rich, you need to change your attitude towards life. See not problems, but motivation and opportunities.
- There is only one way to predict the future: make a promise and keep it! The larger the goal, the more strength we receive and the more actions we take. Only ambitious goals make us think and find unexpected solutions. We begin to think: what kind of person must I become to achieve this goal? And we find answers.
Let capable people lead
Everyone will benefit if most of the work is concentrated in the hands of capable people who love and know how to learn. This is a prerequisite for the development of civilization.
You don't want to choose a neurosurgeon for your child among 50 applicants, only half of whom are real professionals. You don't want to fly in an airplane that was designed by unqualified people. You don't want mediocrity working in your company. You will want power to be in the hands of the right people.
The thinking and habits of rich people
Almost every rich person has a number of certain habits. It is noteworthy that these habits are more often characteristic of wealthy and successful individuals and are of little interest to the poor.
Ten habits of rich people:
- Reading
. Almost all successful people spend a lot of time reading, without considering it a waste of time. The literature chosen is not entertaining, but educational: motivational books, biographies, historical works. - Sports
. Most successful individuals do not neglect sports activities. Running, fitness, exercise, yoga, etc. are good not only for the body, but also for the mind - sport gives the necessary energy. - Communication with successful people
. Millionaires prefer to associate with individuals who have a positive outlook on life, tend to be enthusiastic, and are goal-oriented. Avoid negative people (pessimists), for whom it is almost impossible to become rich. - Determination
. Financially secure people reach their goals without being guided by the opinions of others. It is almost impossible for doubting people to become rich and keep money for a long time. - Early rise
. There are exceptions, but more often wealthy and self-satisfied individuals wake up a couple of hours before the start of the working day. You manage to accomplish more of your planned activities and feel complete control over your life. - More than one source of income
. The rich have several industries that generate income - this is the only way to achieve constant profit. - A competent mentor
. If you want to become rich, don’t try to convince everyone that you can handle any task yourself. Is a competent mentor ready to help you? Don't refuse advice. - Optimism
. Success is guaranteed to individuals with positive thinking. They believe in the best and do not give in to failures. - Sense of tact, good manners
. A successful person is revealed by his manners and knowledge of etiquette. It's a pleasure to deal with people like that and just communicate with them. Many have seen boorish and ignorant rich people, but if they had manners and tact, their wealth would be much greater. - Mutual assistance
. A successful person thinks not only about his own good, but also helps others. Subsequently, it is easier for them to create a team to move towards the goal.
Trust people
This is the last idea I want to share with you before you become lawyers. Procedures and precautions (all of which are so abundant in your profession) are not the highest form of civilization. The highest form of civilization is a system of earned trust. The main thing is that people can completely trust each other, and not blindly follow strict rules.
If a whole crowd of lawyers conducts the process and everyone pulls the blanket on themselves, the case will be lost. There should be trust in your personal life as well. If your version of a prenuptial agreement is 47 pages, I advise you not to get married.
Millionaires in the world and in Russia - table of dollar millionaires
Let's take a closer look at how many dollar millionaires there are and in which countries they live. (According to data for 2015-2016)
| A country | Number of millionaires |
| 1. USA | 5 930 000 |
| 2. Japan | 1 520 000 |
| … | |
| 16. Russia | 134 000 |
We recommend watching the video - “Who is the richest man in the world”:
Circle of friends
You can judge a person by his close circle - this is not a new truth. We do not encourage you to choose only rich people as friends, but your social circle should consist of people from whom you can learn something useful. Poor and indecisive people can tell you in detail why your plans never come to fruition. Your task is to persistently follow your chosen path, listening only to the opinions of those who have already achieved financial success, and not paying attention to the lamentations about the difficulties that await you.
4. The power of refusal.
Brian Chesky, CEO and founder of the billion-dollar real estate company Airbnb, considers rejections to be one of the main factors that help entrepreneurs move forward.
“On June 26, 2008, our friend introduced us to seven famous investors in Silicon Valley. We were then trying to raise $150,000 to develop the company. Then we were no longer just a startup; the company's total valuation was $1.5 million. This means that for $150,000 you could buy 10 percent of Airbnb.
We received five refusals, and two investors simply ignored us. They were smart people because the company wasn't very impressive back then. However, their refusals provoked us to work even harder and become even better. As a result, Airbnb is now worth $30 billion.”
Be grateful.
Gary Vaynerchuk, an entrepreneur and author of a New York Times bestselling series, argues that motivation comes from gratitude for your work.
“More often than not, when people ask me about motivation, I attribute 80% of it to gratitude. If you really want to win, be grateful.
The ability to appreciate my work is what motivated me during the most difficult moments in business. Whenever I have success or see income in my firm, I am grateful. It’s impossible not to stay motivated when you’re feeling grateful.”
Spend less time negotiating
Most of our usual meetings last an hour or more. Richard Branson's meetings take 5-10 minutes. The billionaire often mentions Why you should stand up in meetings about his aversion to long, useless conversations:
I have never been a fan of long negotiations. That's why I prefer to conduct meetings standing. Firstly, this makes the discussion shorter, and people are forced to say the most important things right away. Secondly, excess physical activity. I also don't like PowerPoint presentations.
In his book 15 Secrets of Time Management, Kevin Kruse, who interviews rich people about their habits, says that Jack Dorsey and Steve Jobs also tried to keep meetings shorter and on the go.
In addition, this also applies to correspondence. Sheryl Sandberg sets herself limits on the length of her emails. She claims Sheryl Sandberg reveals her No. 1 timesaving work hack that prefers to type a short, quick and incomplete answer, rather than sit and think of what else to say.
Don’t delay meetings and negotiations by talking about all sorts of nonsense. Focus on discussing the most important issues.
Take small steps
Dramatic changes in life always cause unconscious rejection. Just yesterday you happily spent your entire salary the next day after receiving it, and today you decided to put half of it into your piggy bank? You will definitely have a reason to dip into your savings in just a few days!
All changes need to be made gradually: today you gave up a cup of coffee to go - more to come. If you drink coffee outside the home half as often, you are unlikely to regard this as serious deprivation. In the meantime, the skill of saving has already been mastered.
Chris Reining used when giving up unnecessary spending . He saved a million by cutting out unnecessary purchases, quit his job by age 35, and gained financial freedom.
Chris Reining:
“I know a lot of people say that you shouldn’t worry about little things like a $5 latte, but the more I think about it, the more I realize that not buying those things is the best place to start. It is small changes that will gradually allow you to achieve dramatic changes in your life.”
Where to get 50-60 additional thousand per year
Pursue your hobbies.
This is the key to success and motivating yourself! So says Chalmers Brown, co-founder and CTO of Due.
“Start-ups and entrepreneurs start their own business not only because they want to earn big money, but because they have an unrealized idea, we enjoy what we do. That's why we're willing to take on the risk of instability in exchange for pursuing our dreams. Doing what you love gives you motivation to work.
Unfortunately, your dream job may not always be the best decision financially. Sometimes your passions are best kept as projects in your free time for fun (and that's great!). If you want to try to turn your passion into a full-time job, then I can give you some tips to help you get on the right track:
- Maximize and continually improve what you already do.
- Study the market, find your niche and work on it.
- Share your passion with others - recruit a team of interested people and learn to influence your target audience.
- Stay happy and motivated.
- Don't be afraid to assign tasks you don't like or aren't good at to someone else. There will always be specialists who are passionate about their work and will be able to cope well with your tasks.
Benefit from nothing
A successful investor always asks himself the following questions:
- When will I get my investment back?
- What can I get on top of that for free?
The second question is the main meaning of the investor’s activity. It contains an assessment of the profit that can be counted on and, accordingly, an assessment of possible risks. Before you decide to spend money, ask yourself what exactly will you get in return and will this give you an opportunity for development? Understand this: investments, unlike expenses, will definitely open up new opportunities for you.
Surround yourself with motivated people.
Famous entrepreneur Mark Zuckerberg, founder of Facebook, believes that motivation appears if partners and other employees are also motivated at a sufficient level .
“Never run your company alone. The processes and enterprises that change the world cannot be carried out by one person. You need a team!
Look for people who are professionals or excel in areas in which you are not strong or have insufficient experience. You will need people who have these skills to ensure your firm is a leader in the market. No matter how talented you are, there are areas in which you will not be an expert.
People who are motivated in their work will help motivate you and bring your company to the forefront among competitors.”
Love your job
The chances of becoming a billionaire increase if a person is sincerely passionate about the business he is involved in. Organizational psychologist, Ph.D. Marsha Sinetar, in the book “Doing What You Love Brings Prosperity,” writes that a person must analyze what activities fill him with joy, bring pleasure and fill him with energy. This will help determine an area of activity that will bring moral satisfaction and stimulate further development.
Billionaire John Paul DeJoria says that a business will survive if a person is truly passionate about it. When business brings pleasure, it becomes part of a person’s life, and not his job. Then the results of the activity and the process itself bring true satisfaction.
Set big goals
It would seem that this advice contradicts the previous one. But in reality, you really have to have a bigger goal. What you will take all these small steps for. For example, a million dollars in the bank or a villa somewhere on the Cote d'Azur. Something should always warm you in moments of despair and not allow you to go astray.
INTO THE AM and iHeartRaves CEO Brian Lim suggests first defining your goal and then thinking about what steps will take you there.
Brian Lim:
“Define specific parameters for your financial freedom that you will accept as your ultimate goal. And then calculate how much you need to earn and save to achieve your goal within a reasonable time frame.”
Perhaps after these calculations you will understand that you need to earn more than you do now. Well, this conclusion can also become a starting point for your financial growth.
Watch your savings grow
Monitoring your savings will keep you motivated to save money. Microsoft founder Bill Gates , for example, attaches great importance to correct calculations.
Bill Gates:
“Over and over again in the past year, I have been amazed at how important calculations are to improving a person’s financial situation. You can make amazing progress if you set a clear goal and find the right way to measure to help you move towards that goal.”
Use special applications, a paper notepad or organizer, but be sure to control your finances!
How to Benefit from Merging a Payment Card with a Spending App
