The thing you must remember about wealth is that money is a tool. Money is a tool that affords you options in life, nothing else. The saying goes, “Beggars can’t be choosers.” Having money is not a sin, the love of money is a sin. If you only want money to spend it as fast as you earn it, then you will always lose it.
Do you want to learn how to become a millionaire in 3 years? It’s a possible yet improbable endeavor based on your mindset, strategies, and how well you decide which calculated risks to take and which not to take.
Being a millionaire is not about being a celebrity or buying a fancy car that will rapidly lose its value the second you start the ignition. Acquiring and retaining wealth is something you can do if you treat money as a tool, save, invest, and actively try to make more money and live below your means. Here are 10 ways you can learn how to become a millionaire in 3 years.
1. Start Getting Out of Debt Today
Rich people do not have crippling debt. Even phony people who show off and only pretend to be rich strive to keep their crippling debt secret. If you have crippling debt and a larger proportion of your paycheck is delegated for paying bills than saving money, then start dealing with the issue now. You can reset the clock on learning how to become a millionaire in 3 years and restart it later.
Consult with a financial advisor or debt management expert. Do not pay others to consolidate or eliminate your debt on your behalf. Contact all of your debtors and try to arrangements to pay off debts on a delayed schedule, don’t ignore them. Eliminate all debt, or at least get on that road, before worrying about becoming a millionaire.
2. Repair Your Credit
You may need to apply for a loan, get a cosigner for a loan, or have your credit rating examined for a future business venture opportunity in the course of trying to become a millionaire. Failing to prepare is preparing to fail. It can take a decade for a bankruptcy to automatically delete itself from a credit report. You can get a secured credit card, which requires a cash deposit to draw upon, to slowly build up your credit score with timely payments. Depending on how bad your credit score is, it’s a process that can take years.
3. Start Saving Money
If you have debt problems or issues with financial literacy then you need to take these initial steps to appreciate money as a tool, not an end within itself. Many people who win large-scale lotteries lose every penny within three to five years. If you can’t save a few bucks from every paycheck without wasting it, how can you hold onto millions of dollars?
Save a few bucks from every paycheck. Online banks allow you to auto-pay bills and auto-transfer predetermined amounts into savings accounts at your discretion. Try to save 5% to 15% of every paycheck.
4. Live Below Your Means
Bill Gates is arguably the 5th richest man in the world and has a net worth of about $154 billion. Gates dresses like an office worker with so sense of fashion style. If you had no idea what Gates looked like, you probably wouldn’t believe his image matched the name if someone showed you his photo. Rich people save and hoard money and live below their means to expand their wealth as much as possible.
Live below your means and downsize your life as much as possible. Stop buying brand-name goods and buy generic. Stop trying to keep up with the Joneses. You can learn how to become a millionaire in 3 years by following these principles.
5. Generate Multiple Income Streams
Your best chance of learning how to become a millionaire in 3 years is to become your own first investor. Leverage any skills or certifications you have in the online gig economy. You should at least try to work one job and a side gig to increase your income. Brainstorm how to incrementally and realistically increase your present income. If you can make a little money now, you can make a lot more money later with the right vision.
6. Develop Business Plans
The most crucial way to learn how to become a millionaire in 3 years is to develop ambitious but realistic business plans. What kind of business could you launch within a year? Do you qualify for a business loan? What product or service can you offer that would differentiate you from competitors? Do you have a business plan that identifies your demographic and how to keep them? Unless you win the lottery, you need to develop a business that will prosper based on local market conditions, your ability to source supplies, available demographics, and your skill set.
7. You Don’t Need a Lot of Money to Launch a Business
Facebook started in a college dormitory; half of the planet is now connected to it. Amazon was launched in Jeff Bezos’s garage. Both companies are worth hundreds of billions now. Big things start in small ways, so don’t get ahead of yourself. There are many businesses and small franchises that you launch for $25,000 or a lot less. No dream is realized without money so just put as much focus on the viability of your business plan.
8. Consult With Experts
You might know more millionaires than you realize. The average net worth of a millionaire is $2.2 million. The average dentist, restauranteur, laundromat owner, or other small business owner in your neighborhood may be a millionaire by those metrics. You may walk past them every day.
Talk to local business owners willing to chat with you about their experiences starting a business. Ask them questions relevant to your own ambitions to learn how to become a millionaire in 3 years.
9. Most Millionaires Don’t Have Millions in Cash
To calculate net worth, you must add up the value of all your assets, like money, investments, property, stocks, fine art, and vehicles, and then subtract any debts you have. A lot of millionaires are millionaires because they have expensive property, stocks, and investments that can be liquidated. Many millionaires never carry cash as a flex.
For example, owning a $1 million home and half a million in investments can technically make you a millionaire even if you only have tens of thousands in cash on hand. Being a millionaire does not necessarily mean having literally millions of dollars on hand. Making a shrewd business move at the right moment can make you a millionaire sooner than you think.
10. Invest
Study and research how other millionaires made their fortunes. Most merged shrewd business plans with investments. Take time to carefully research potential investment opportunities before making final decisions. Having a business, multiple income streams, and smart investments will make you richer sooner than later.
How to Become a Millionaire in 3 Years
Anything is possible in life, but nothing will be handed to you overnight, especially wealth. No one becomes a millionaire by accident and most lottery winners lose all their money. Get your finances in order. Make business plans and invest. Think about how to realistically implement your plans and goals and even you could learn how to become a millionaire in 3 years.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.