Become a Millionaire This Year. Follow These 10 Tips

The information below was adapted from the post on Entrepreneur website. In order to increase your earnings, you need to implement some structure and reevaluate your mindset. These tips will aide in growing your income this year.

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1. Have an assessment of your current financial status.

It is important to identify what stage you are in your life, both mentally and financially. With a knowledge of where you stand, you can make adjustments in your life to reach your financial goals. You must be aware of your expenses and spending habits, and create a financial plan that will take you to your next steps.

Use the following as a guide to examine your finances:

Know your full income
Establish how much you spend
Be clear about where you could save
Use an online invoicing tool like sighted.com to track your finances.
Write down your financial and lifestyle goals

2. Work towards increasing your income.

It is important to have your goals written. Once you have listed what you will like to change, the next step involves your plan of action. Initially, look at your place of work. Are there opportunities to advance within the company? Are there positions you can apply for? It is not realistic to think you will increase your income by cutting down on minor purchases, however it is important to track your expenses. Additionally, it is important to look for a side hustle; an activity or idea that allows growth in the field and expansion of your income. There are people that use tools like Chattypeople to make chatbots on the side.

3. Create multiple streams of income.

It is impossible to rely on only one stream of income. Be creative on how you can attain more money. Start small and build from there. Ideas include:

Offering your expertise as a freelance consultant
Mentoring or teaching
Doing guest lectures or blog posts
Working a second job part-time
Renting the spare room in your home
Opening an online store
Editor
Sales/ Customer service representative

4. Save more and cut down on expenses.

Once you receive your income, make sure to separate into the following categories.

Living costs (bills, rent, mortgage, grocery shopping etc.)
Personal expenses (cinema, dinners out, holidays, etc.)
Savings
Charities and Donations

Your savings will be split into two accounts, these are your:

Retirement savings plan (401(k), Roth, IRA)
Emergency savings plan (personal savings account, money market)

Automation is a possible option so that you don’t have to transfer money each time you get paid. You can schedule a time and the amount of money that will be taken directly from your main account. Taking out your savings first, forces you to learn to live off the money available.

Depending on how much you earn, you want to aim to put 5 percent towards your emergency fund and 10 percent towards your retirement fund.

5. Gain new skills.

Learning should not be limited to your performance in your current job. It is a way of life and you can apply such knowledge when needed. Adding new skills can enhance your performance and give you an advantage. It can also create a door to more opportunities. Furthermore, it will allow you to become a well-rounded intellectual.

You can learn new skills by simply:

Reading more
Listening to podcasts
Attending events and conferences
Doing an online course
Having a mentor
Intern position
Shadowing a professional

6. Keep an eye for opportunities.

Opportunities will not be easily attainable by sitting in front of a screen all day. It is important to go out and be in the presence of other people. Learn and gain experience. People need to be aware of what you do and what value your product or service serves.

If you are keeping your current job, spend your extra time building that business or idea. Cultivate extra time on branding, educating, and meeting people that can help you in your journey. Be consistent, you never know what will be birthed out of your work.

7. Become more cautious with what you do with your money.

It is not how much money you have; It is how you spend it. You have to be wary on giving your money easily or buying fancy cars, at least not when you are taking your baby steps in your business/startup. It is important to reduce your expenses and look for way to make more sales/profit.

You can cut down in your spendings and manage taking part of luxury entertainment. Below are suggestions:

Start using coupons
Look out for freebies
Buy your supermarket’s own brand products
Start using public transport instead of your car or a taxi service
Cut down on restaurants and cook for your loved ones instead

8. Avoid debt.

Avoid incurring debt. Usually owing money is associated with high interest. And that means having less income. A mortgage is an investment for yourself and your family. However, a credit card bill means acquiring expenses that may be difficult to pay over time.

Change your outlook on your credit card. Only use it for emergencies or when it is the only option for payment. This will allow you to make decisions carefully.

9. Embrace boredom.

There’s nothing wrong with being bored. This is an indication that you have extra time. Outside of filling this void with activities that acquire expenses, you can devote this spare time to being productive on your goals.

You could:

Start meditating to enhance your concentration and clear your mind
Read a book
Exercise
Cook a nice meal at home
Research opportunities
Plan your week or day

10. Network

How many people are aware of what you do? It is important to create bonds and build relationships. People could just share similar interests. They don’t have to be experts in the same field as you. Share the services and products you sell. If no one is aware of what you do, how will you get clients and/or opportunities?

Here is how you can stay connected:

Sending a simple email
Using social media to contact them
Meeting them at events and conferences
Subscribing to their newsletter
Attending their webinars

In conclusion…

You can’t become a millionaire by being in the same spot every day till retirement. Make a change in your mindset. Begin your day with drive, focus, consistency, and determination. Figure out what sacrifices that must be made to reach your goals. Execute some of the tips listed above.

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Kimberly Ihekwoaba