There are only a few steps required if you want to become a member of the Millionaires Club.
So you want to be a member of the Millionaires Club.
Know that unless you already have the one million dollars, it’s going to take time to get there. But it is possible, and it does not require luck to accomplish it.
There are countless numbers of wealthy people who have written the “How To’’ on joining the Millionaire club, but most of them follow the same tenets of getting to that lofty position.
One piece of advice that is usually offered is to figure out why you want to be a Millionaire, and what you are going to do once you reach that net worth goal. Determining the “why’’ helps focus the effort on “how’’ to get there.
To get to the million-dollar mark, you should determine how much money you need by determining how much money you already have. This would be money saved, either in a savings account or a retirement account or in some other savings form.
Having that number will allow you to determine how much you need, and will help you determine how long it will take to get to the Millionaires club.
Once those parameters are set, you are ready to begin the process. According to Ryan Guina, editor of CashMoneyLife.com, there are four easy steps: Earn money, spend less than you earn, save, invest, repeat.
Earning money is the first step, and if you have an extra avenue to increase income, you should take it. If reaching one million dollars is your goal, then you have to invest the time it takes to increase you increase to reach that goal.
The key to getting to the Millionaires Club is to increase your bottom line regularly, which means you have to earn more than you spend. Your bottom line needs to increase step-by-step, and that means that income must exceed expenditures daily. A close examination of expenditures, making cuts or finding less expensive alternatives in necessary spending will help improve the bottom line.
The next step is to start saving, or saving more than you presently do.
One easy way to increase savings is to maximize your use of your company’s 401(K) by contributing the maximum amount allowable. If there is a company match policy, you are maximizing the amount of “free money’’ you can acquire.
Merely saving money in interest-bearing accounts will limit the amount of extra money you can acquire. That’s why it is important to invest some funds in accounts that have a higher rate of return than simple savings accounts.
While it may seem cost effective to do your own investment research and make the financial transactions yourself, time is money, and the time you spend educating yourself could be used more wisely by employing a financial advisor who already knows much of what you are going to learn.
A financial advisor can assist you in determining the best way to increase income with the lowest possible risk of loss. Unless you are an expert on the topic before you get started, mistakes can be made that will put you multiple steps away from your goal of getting into the Millionaires club.
Once you determine where you are going to invest funds beyond savings, there is a next and final step. You must monitor your investments. Any fund that offers more in terms of revenue than basic interest can fluctuate, and some investments out-perform others. Jumping from one investment to another without forethought is not a good idea, but if the goal is to maximize profits, staying abreast of what is happening with your investments, and keeping a constant eye on market activity, can only help you get membership into the Millionaires club.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.