Everyone becomes a millionaire through the tricks that I will write about in this article. Even if someone of you is doing a job or small business then Investing can make you a millionaire like a large business owner. The one condition is that you have a passion to become a millionaire and the next condition regular investment.
You should always research can I become a millionaire by regular investing? Instead of how I become a millionaire. Because becoming rich is not easy but not hard as many images in their mind and left to struggle. When you have passion, you will struggle, you will work hard, and you will increase your income but increasing your income can’t make you wealthy to know the best investment that makes you a millionaire and also know how much money you need to invest to be a millionaire.
Let’s learn all steps to become a millionaire by regular investing:
1. CREATE A FINANCIAL PLAN
Sit in a silent place and create a financial plan where are you now. Create a list of your income and expenses and know how much amount is available for saving. How much income you can increase every year and your expenses and investments also should increase accordingly?
If we do not create any financial plan and start investing without it. After a specific time, our income and expenses increase but our investment remains the same. It happens to all laymen and due to these one reason, they are not becoming wealthy.
Write down all expenses and investments in the percentage of your income. Create heads of all your income, investments, and expenses. Don’t use one head’s amount in another head.
For example, you have one head of real estate investment, and you earned a lot of profit from investing in real estate investment. Many people buy cars from this profit but you should invest these amounts in another real estate project and create another income source to buy a car.
2. LIVING WITHIN YOUR MEANS
Reduce your expenses as you can. Before every expense or buying, anything analyzes your available stuff and the usage of this thing. How you can take the same benefits from your existing material.
Many times we purchase many extra items without any analysis. Many times sales representatives sell in the name of discount. These all are extra items. If you don’t plan your financial plan and don’t create separate heads for every expense, income, and investment then you will waste your amount.
Purchase only those items, without those you can’t survive. Delete all extra expenses from your expenses list and these saved amounts invest into the different regularized schemes.
3. INCREASE INCOME
Increase your income according to your life and inflation. It is only possible when you learn new technologies regularly and if you create a habit of reading and learning. Otherwise, many new or juniors will leave you behind and will become your boss in the same company.
Learn the economic and inflation terms to increase your income accordingly. When you increase your income you can invest more and purchase many materials that will help you to increase your income and investments.
4. UNDERSTAND THE MAGIC OF COMPOUNDING
Once Albert Einstein said that compounding is the eighth wonder of the world. It is possible when your research the best place of investing. Nowadays, many investment companies and mutual funds are marketing themselves as the best in the world.
When you find the best investment platforms which may be 2 or 3 then start regular investment to become a millionaire. Start a specific amount investing which is called A Systematic Investment Plan (SIP).
A percentage of the SIP invests in real estate and some percentage in stock and mutual funds. Don’t put all eggs into one basket. Diversification is also a part of the plan.
This strategy of SIP regularly will make you wealthy but after some time it’s not a lottery that you earn billions of dollars overnight. It’s a time and energy taking process.
Increase in SIP according to your income which you already wrote into the financial plan. For example, if your salary is increasing at the rate of 20% per annum then your SIP amount also should increase at the rate of 25% per annum.
Analyze the above-mentioned picture of the SIP calculator, where only an investment regularly 10,000 for 25 years will have 15 million but when you increase investment every year then it may be 40 million after the same period.
There are so many best calculators available you can check before making a financial plan and SIP.
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