Anyone Can Become a Millionaire

“The only difference between a rich person and a poor person is what they do in their spare time.”  — Robert Kiyosaki, Rich Dad’s CASHFLOW Quadrant

It’s the American Dream: Stick to the grind, make good decisions, and retire a millionaire. The good news is this is very achievable. The bad news is that doesn’t mean it’s easy. To reach nest egg retirement goals takes planning and self discipline over the course of your unknown time on this earth. Make a plan and stick to it.

When you break it down, most millionaires share some basic traits. The first, and probably most important, is to reduce expenses and save, save, save¹. Then make that money work for you by investing it. Three out of four millionaires said that regular, consistent investing over a long period of time is the reason for their success². As you make more money, it’s critical to continue to live below your means to further your goals³. Building wealth comes down to keeping more than you spend. Then, in addition to all of the above, look for other income streams⁴. Keeping the entrepreneurial spirit alive helps build additional income opportunities.

As stated, this is very doable for the common person. One-third of millionaires never made six figures in any single working year of their career². That said, it does take hard work, self control, and planning. Start simple with the everyday. Say no to that super expensive daily cup of coffee and brew your own. Perform your own maintenance instead of hiring. Then think bigger. Take advantage of your company’s 401(k) and other programs. Meet with your financial advisor and go over your long term strategy. Review any debt or expenses and work to reduce them. Invest. Almost anyone can be a millionaire, but it’s up to you to make it happen.

Action: Review your expenses, company programs, and overall financial plan. Where can you do better?

Further Reading:

1. How Most Millionaires Got Rich
2. The National Study of Millionaires
3. 10 Habits Of Self-Made Millionaires
4. 10 common money habits this CFP says his wealthiest self-made millionaire clients have that normal people could copy