Make a financial plan
Making a financial plan is like making any plan, because without a plan you plan to fail. Everyone can say, “I want to be a millionaire”, but what do you need to do to achieve that goal? It is not enough to want it, because what does it mean being a millionaire? It is an abstract and existential construct that has no true reality for the majority of the population. So, if you have never had that sort of money before, how do you know you want it and how will you achieve it if you decide you do want to be rich.
The only solution is to create a plan that already relate to your existing dreams, goals and aspirations. Then find out what you need to do to achieve that goal, such as how much time and money needs to be invested in the project.
Save as much money as you can
During the financial planning process you should have realized that you are going to need money. Every amount of money you receive should be considered as an opportunity for investment. Yes, I know saving sounds very boring, but if a financial crisis is going to happen as it always does, you should be prepared.
Do not spend more than you earn
A great quote by the famous 19th author Charles Dickens, says it all, “Annual income £20, annual expenditure £19.6, result happiness. Annual income £20, annual expenditure £20.6, result misery”. Having unnecessary payment or debt will create a strain on your business and slow the journey towards financial freedom.
This returns to the subject of choices, such as do you really need a new car on credit or will a used car paid with cash be just as good? You only need to calculate the full cost of credit to know that you are paying far more for a house or car than the original price. So, as yourself, can you really afford it?
The fastest way to become a millionaire is avoid credit
I am standing in the queue at the supermarket at the end of the month just before payday. I am always surprised at the amount of customers paying for their food with credit. This simply means they are paying more for the basics, things they must buy to survive. Credit should be avoided at all costs, but if you need credit, you should only take it if it can be repaid within three months.
Remember that the classic credit card is a con and so do not get more than one. The more debt you have the slower it will take for you to become rich, because it reduces the flow of money through your business and investments. So, again if you don’t really need it, don’t get it.
How to become rich fast by investing your money
Investment do not need to be high risk. So, it is very possible to invest a modest amount of money mutual fund companies. With a diverse portfolio you can expect to earn for your investment between 8 to 10 percent annually over the long term.
However, my preferred option is investing in real estate. My wife is a real estate agent and she is always on the lookout for a property good for short and long term rent.