My definition of becoming a millionaire
Most of the readers coming to this site don’t have a definition of what is a millionaire. Yes, it may be as simple as having $1,000,000 in the bank. But it could also mean having assets that is worth a million bucks. The thing is if you don’t have a definition of what you want as a millionaire, it is going to be extremely difficult for you to achieve it.
I’m just going to share with you my definition of becoming a millionaire.
“Having investment assets that are worth a million dollar and having a positive income every month even when I enjoy the lifestyle I want.”
Investment assets in my definition means assets that can bring in income or grow in value. It can be investment property, stocks, precious metals, business, cash or other kind of assets.
And there must be a positive cashflow otherwise I’ll be living off my assets and the million dollar will be gone one day.
You might not understand the importance of defining being a millionaire. You see, if you don’t define so, there are many ways you might have thought becoming a millionaire is.
1) Making $1,000,000 but you allow yourself to spend $500,000 on the journey as lifestyle expenses.
2) Having $1,000,000 in cash and the rest of your assets are not counted.
There’s no right or wrong in your definition, but rather it is about having a clear sense of direction of what you want to achieve.
Understand that the above 2 examples represent different intensity of achieving a million dollar goal.
The first example is just solely on the money you have made without taking account of your expenses while the second example has already taken account of your expenses (If your expenses are $200,000, you have already made $1,200,000 in income).
So right now, as you have learned about creating your own definition of millionaire, what is your definition of a millionaire?
Take some time and create your definition of millionaire.
After you have created your own definition of millionaire, how do you get started towards becoming a millionaire?
The #1 Important Factor of Becoming a Millionaire
At the time of writing this, I’m 26 years old and as I looked back, I asked myself “What’s the #1 important factor of becoming a millionaire?”
Most of you would say that it’s very easy to become a millionaire if you have money from parents. But what if you are starting from scratch with just a few hundreds of dollars?
And what I realized is that the #1 important factor to help most people to become a millionaire lies with the initial active income in the first few years.
Even if you are doing a business, your active income from your business would affect you becoming a millionaire or not.
For instance, if you are a normal employee, do you think it’s faster to become a millionaire making $40,000 per year or $100,000 per year?
Duh… Of course it’s $100,000…
But the thing is how hard have you tried to get a higher paying job than your current job?
Even you were to get part time jobs to supplement your income, it is difficult for you to make much more income that will help you to become a millionaire in no time.
For example, if you are making $3,000 a month, and having part time jobs that give you an additional of $1,000 a month, you’ll just be making an additional of $12,000 a year.
That isn’t going to bring you anywhere closer towards a millionaire right?
You might say, let me invest my money and I’ll become a millionaire in no time.
Let say you have a super investment that gives you a return of 20% per year.
And you can invest all of your $48,000 income in that investment every year.
Using these assumption, it still takes you 9 years to make $1,000,000. And note that it is impossible to have a guaranteed 20% return of investment.
What I’m trying to show you here is that there is no way for you to become a millionaire in 3-5 years time via working as a normal employee and investing your income.
To become a millionaire in just a few years, there are a few ways you can do so –
- Go for a highly paid sales job that pays you on commissions (huge commissions)
- Start your own business
- Internet business (kindle publishing, youtube, facebook, ebay, many many more)
What I’ve listed above are just a few examples of becoming a millionaire. And most of them will help you to increase your active income when you master it.
And to do that, you need to master any one of them.
What Becoming a Millionaire is NOT?
1. Becoming a millionaire is not without hard work. If anyone were to tell you that you can become a millionaire easily, you probably got to be wary of that. When you determined to become a millionaire, you need to put in a lot of time, money and effort to make it work. You will experience many times of failures and even as you fail, you need to stand up by yourself and change your game plan. I talked to many millionaire friends before and I can tell you that they work very hard in the beginning to allow them to reach this stage.
2. Becoming a millionaire does not make you happy. If you think that becoming a millionaire will make you happy, so that you can buy your favorite car, or your branded watch, then you’ll definitely not be very happy when you become a millionaire.
You don’t need to become a millionaire in order to be happy. In fact, you can be happy even if you just make $2,000 a month. When we satisfy our basic necessities to live our daily life, the money we make is already sufficient and give us a basic sense of happiness.
If you make more money to satisfy your desire to buy the latest gadgets or purchase a Ferarri to boost your ego, you’ll never be happy.
Becoming a millionaire is not about enjoying the money and spend on useless stuffs, but rather it is about enjoying the freedom of doing what you love.
3. It does not happen overnight – If you are hoping to make a million dollars the next day, you can forget about it. In fact, it probably takes a year, 3 years, or even 10 years, depending on how you do it. When you have realistic expectations, you can then take the appropriate steps towards a millionaire.
In the following links, I’m going to share with you exactly how you going to be a millionaire strategically…