Wednesday, June 25, 2014

How to be a Millionaire in 10 Easy Steps

How to be a Millionaire in 10 Easy Steps

A lot of Americans dream of being "rich". And, when you ask them do they want to be rich, they say, "money isn't everything." Sorry pal, but in America, money is everything. You can get thrown in jail, for a lack of money. Just ask any ex-husband who's been fired and can't pay court ordered payments who his abled bodied wife.

Now what if I told you that becoming rich, or more specifically, being a millionaire can be achieved in a matter for 5 years.

Well, I have 10 very direct steps you can take, that if you really dedicate yourself to, will make you a millionaire in 5 years.

How to become a millionaire
How to become a millionaire
1. Here's the part where everyone tells you to pay off your debt. This is fine if you're not seriously going to tell people how to become a millionaire. So I am not going to tell you to pay off any debt right now, because, we haven't even evaluated if the debt you have is good or bad. My first step to you, isn't to go pay off your debts. In fact, you might be fined for paying off some debts.

The very first step you take to becoming a millionaire is to simply make up your mind to become a millionaire. Sounds simple right? Wrong! You must first write yourself a dedication, in hand writing saying you will dedicate yourself to becoming a millionaire in 5 years. Go get that paper laminated and put it by your bed. Make it the first thing you  see when you wake up.

You must really pledge to yourself that you will DEDICATE yourself to becoming a millionaire in 5 years. That means you have to give up all distractions for 5 years. You'll see why this is crucial later, but trust me, you won't have any time for distractions, so make that choice right now.

2. Your first TASK in this list, is to learn about money. You will need to study the following:

- economics: go look up the books that your local college / universities uses that specifically targets the subject in all 4 years to get a degree
- accounting: go look up the books that your local college / universities uses that specifically targets the subject in all 4 years to get a degree
- finance: go look up the books that your local college / universities uses that specifically targets the subject in all 4 years to get a degree

This seems like a lot of work, but if you dedicated every moment of your life, when you're not at work, to this task, you can complete it in 3-4 months, for all 3 subjects.

You need to not just know about money, but you must know how money is used, controlled and how to control it.

3. after step 2, you should already have ideas of markets you could do on the side to make you some easy money, let's say $10,000 for very little effort. That's the power of step 2. Once you complete step 2, the rest of this entire list will seem like a no-brainer.

So this step is the step for you to make AND save a little bit of money, on the side to get you going for the rest of the steps. The important points are:

- do something that has big pay outs, for short term work
- save that money for future investments

4. Here is where you really get started with making the big money... well, depending on what you settle on, it might be only $100 a month, but you're going to have to figure out a market that takes very specific knowledge, may require time, but that pays you income once you set it up.

This is setup by step 3, because you have money to invest right? You should be reaching this step by the end of year 1.

Real estate, comes to mind, as providing residual income.

So this step is: set yourself up in a specific long term market.

5. Now we get down to specifics. Figure out your financial status here. You see why this is put here and not first? Because here, you definitely have some money. If you tried this at step 1, some people may have no money.

Get your ledger out, that I know you now keep and go through all the debt you have, all the income you have and the interest rates on all of your debt.

For example:

- savings account balance and rate
- checking account balance ( and rate if you get one )
- all the debt you have
- all the credit you have
- the interest rates on your debt
- the interest rates on your credit
- any assets that pay you money every month

If you have assets that pay you money, you absolutely must calculate if:

- you took out a loan to buy more of this asset
- would the interest rate on that would be less than what the asset pays you each month

If it does, buy more of that, as many as you can.

6. Everything is in order, you've got your statements figured out, you have your market figured out. Time to set some short term ( 3,6,9 month ) goals and some long term ( 1,5,10 year ) goals.

Write these down on separate sheets of physical paper, in handwriting. Keep these in your home office. Put them in a place that your eyes rest on all the time.

7. Start replacing yourself in your business. Hire people, one by one, to do tasks that you do in your business. Start them out and low wages, with a part time schedule. When they have learned the specific skills that you had intended them to do in the company, hire them full time and give them a raise. Once they become proficient, going fast, at the tasks, give them a raise. When they no longer come to you for help and advice, give them a raise.

Be sure to only hire a person for a set of small, related tasks that you do. Hire as many people as it takes to completely replace you.

When you have completely replaced yourself and you're satisfied that that group is making you money, start expanding your operation to another group.

8. Look for outside funding for your business. Use other people's money. Take on investors in your business. And, once you have their money, keep it. Keep reinvesting their money and giving them a return on it, over and over. Try and keep them on board permanently.

These outside investors can make you increase you business tenfold, because now you're leveraging other people's money to make purchases for projects.

9. Reduce your tax burden. Constantly ask your accountant for ways to decrease your taxes. Have him go all of your transactions, eventually, and show you how to reduce your taxes for everything you do.

10. Once you have mastered this business and set it on automated, with the staff... SELL IT. That's right, you sell it. And then you repeat steps 1-10 all over again and again. Aim for $10 million, not $1 million.

A lot of people balk at the idea of selling their business. Yes things bring you money, but if you know how to start and run a business, you could keep doing that bigger and bigger, if you sell your business and get a huge lump sum. You also pay off any long term investors, who will also want to invest more and more IN YOU.


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