8 Habits of Millionaires
January 30, 2011 2 Comments
Here is a to – do- list that can make almost anyone a millionaire.The operative word is millionaire as in a person with a few crore rupees.This list does not require a person to be specially talented with money.All that is required is the will to become a millionaire and the discipline and persistence to stick to doing small things repeatedly till you master them.You won’t get to live the life of the Rich and Famous but you and your family will be comfortable later in life.
Earn to Invest, Not Earn to Spend
The first skill you need to master is to learn to control your impulses and delay gratification.Just force yourself to postpone buying unnecessary things for longer and longer periods .Allow yourself to buy those things only when you have saved up and invested a certain amount of money first.After a while you will find it easy to first invest money and then spend the remaining.If you have debts, force yourself to invest first , pay your EMIs and then spend, in that order.
Have a Plan and Work the Plan
Then use this calculator http://wealthymatters.com/2011/01/26/target-crorepati/ to figure out how much you need to save and start putting it away monthly to make your first crore.To find the best interest rates refer to this post http://wealthymatters.com/2011/01/19/interest-rate/ .Now that you know how much to put aside and where you need to do it,you have your basic plan in place to become a millionaire.
Develop Many Income Streams
A person can work only that hard and that long and only at that many jobs in a day to make money.So its important to start acquiring assets that make you money.So ,for example, you will have to consider buying a good mutual fund or some good dividend yielding shares.
Understand your Finances
Also you need to be aware of exactly how much you are making, how much you need to save and learn to develop a budget for spending.You need to know how to evaluate how your investments are doing.For that you can take the help of this post http://wealthymatters.com/2011/01/26/cagr-calculator/ .The more you know the more you can make out of your investments and the less people can cheat you.
Learn to Manage Risk
There is absolutely no investment that is risk- free. Just less risky and more risky investments.You just need to master how to maximize your potential to earn more while protecting yourself against the risk of losing some or worse all your money.
No notable fortune was built in a day and yours won’t be either.The going is slow at the beginning when you know less but as time goes on your experience will help you make better decisions.Also the power of compounding will help you as time goes on.For more on how compounding will help , read this post : http://wealthymatters.com/2011/01/24/compound-interest/
Have a Great Team
To help you make the best investment decisions and to encourage you on the way to making your fortune, you need a great team that is honest , competent and unafraid to speak its mind.You need to build this team.In the process you will run through a number of people till you find the people who are the best fit for you.
Invest Time In Studying Ways to Make Money
No one was born knowing how to make money or save it or invest it wisely.They just made it a priority to learn these things.The more you make it your priority too and the more time and effort you spend in studying ways to make money,the closer you will be to building your fortune.