6 Golden Rules of Becoming a Millionaire

6 Golden Rules of Becoming a Millionaire

Do you want to become a millionaire ?

6 Golden Rules of Becoming a Millionaire Photo by Ishan @seefromthesky on Unsplash
We all want to be wealthy, to build long-term prosperity, and to live a happy, tranquil life. However, we don’t always have the discipline, information, or strategy we need to achieve our financial objectives. Regardless of your financial objectives, there are a few golden guidelines that will always apply to your wealth management.

6 Golden Rules of Becoming a Millionaire :

1. Look rich or be rich

Diverting your investable funds into items you can’t afford, such as automobiles, clothing, trips, and mansions, will make you appear wealthy today but hinder you from getting wealthy eventually.

2. Never spend more than you make

Of course, given the nature of life, things haven’t always gone as planned. However, being wealthy every month is as easy as spending less than you earn, and getting poorer is as easy as spending more than you earn.

3. Sell when everyone thinks they can’t lose

You grow wealthy by investing when no one else will: when unemployment is high, the stock market is plunging, everyone is panicking, and the horizon is filled with nothing but fear and suffering.

4. The riskiest thing

The difference between being rich and getting by is taking a calculated level of risk.

Making dangerous bets, on the other hand, is plain gambling. Take calculated risks. Reduce risk by studying as much as you can before investing, avoiding placing all your eggs in one basket, and learning from your failures. Or, even better, learn from someone else’s mistakes.

5. Money is time

So, rather than working for other people and doing things you don’t want to do, the idea is to spend as much of your limited time as possible doing things you like to do. Money is the means by which you can do so.

If you spend $100 on clothing at the mall, that’s $100 you could have invested. If you had earned 12% compounded yearly on the $100, you would have amassed roughly $3,000 in 30 years. Taking inflation into account and assuming a monthly income of $1,500 skipping those clothing now means retiring two months sooner.

6. Less can be more

If you want to be wealthy, invest in high-quality equities and keep them for a long time. If you really want to punish yourself, invest in high-quality equities and then sell them at any time based on something you saw or read.

CONTRIBUTED BY Diana Meresc

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