Dream Of Becoming A Millionaire

Money is not simply a means to an end but sometimes the end itself. Basically, many people have just one dream – to become a millionaire. You may think that you will never become a millionaire unless you win the lottery and have a huge windfall. However, becoming a millionaire is within your reach. All you have to do is start thinking about investing from a young age and develop the right habits. Having said that, age is definitely not a barrier to becoming a millionaire. Anyone can develop the trait that can help acquire, grow and preserve wealth.

Six Steps to becoming a Millionaire

- Develop a financial plan – be a man/woman with a plan. You are never going to hit the bull’s eye on a consistent basis if you continue to shoot arrows in the dark. Put together a holistic financial plan that reflects and quantifies all your needs/goals, accurately assesses your risk profile and provides clear direction in terms of investment choices.

- Save and invest – the very bedrock of wealth building is saving and investing your hard earned money. Money does not grow itself. On the contrary, over time it loses value due to the ill effects of inflation. Thus, it becomes imperative that you save a part of your income and then invest it in instruments that can potentially generate inflation beating returns. However, ensure that the investments you make are aligned with your risk profile.

- Learn to make choices and prioritise – we cannot ignore the fact that we have multiple expenses. Some of these are non-discretionary, while others are discretionary. It is important that we learn to prioritise our needs and cut down on discretionary expenses. 

- Be disciplined – everything is for nothing if you do not stay disciplined and adhere to your financial plan. While many of us will definitely stray from our financial plan over the course of our lives, it is important to stay disciplined a follow it the best way that we can.

- Avoid excess debt – with easy credit facilities like loans and credit cards, we do not think twice before taking on debt. However, debt can be a long-term burden if taken without due consideration. While taking a loan for a house, vehicle or education, ensure that you have sufficient savings to fulfil the EMI obligations for atleast a year. In case of credit cards, try to use it infrequently and definitely pay the dues on time to avoid large interest costs related to delayed payment.

- Seek professional advice – the most important one, do not shy away from seeking professional advice. A good financial planner can help you create a robust portfolio that will keep you on track to becoming a millionaire.

Anything is possible as long as you approach your goal with a robust plan and execute it in an efficient and committed manner.