Millionaire—a title you may have imagined while picturing a seven figure bank balance. One can dream, right? Actually, getting there is easier than it sounds. In fact, reaching the seven-figure mark is becoming the rule rather than the exception. There are more millionaires nowadays and it’s not because they increased the prize pool of Deal or no Deal. Money is everywhere. You just need to know where to look and, more importantly, know what to do when you find it.
Before anything, ask yourself “How rich am I?” If you’re reading this from your laptop or smartphone, then you might be richer than you think. Try this: Visit Globalrichlist.com and enter your annual net income to compare yourself with the rest of the world. If you make PhP15,000 a month, you’re already in the top 16% of world population by income! That number could be a lot smaller if you follow these tips:
Stop checking lottery numbers and start looking at numbers that matter. Super-charge your financial knowledge by reading the Finance section of the newspaper (or by reading blog posts that tell you to do so). Being informed is the first step to making sound financial decisions.
Try to Monetize Everything
In the age of the Internet, money can come from unexpected sources. If you’re good at something —whether it’s a hobby, a passion of yours, or basically anything you like to do all day— never do it for free because there might be a way make money from it. From writing essays and blogs, painting, playing video games, or even having other people watch you play video games, the opportunities are there. Remember that as long as there’s demand, there’s money to be made.
Learn to Say No
If you have a fantastic product or idea, saying no (to selling out) can increase the value of your intellectual property. Know what you’re worth and say no – chances are, your potential purchasers will be back with a bigger check. The same logic goes for those applying for a job. Do not settle for an initial offer. Leverage your skills and experience for a number you deserve.
Don’t Sit on Money
Investing is the holy grail of making millions (if not billions) so make good investments while you’re young. There are many ways you can invest your money but remember this time tested adage: It’s time in the market, not timing the market. Considering the current inflation situation, holding large amounts of idle cash is almost just as bad as losing some of it.
You can even start investing with just PhP10,000 with investment options like UITFs (Unit Investment Trust Funds). With this kind of pooled fund, you let experts manage your investments so you don’t need to worry about monitoring and research.
Treat Every Purchase Like an Investment
Addition and subtraction imply living like a monk is the fastest path to millionaire status but some purchases can actually increase your productivity and potential income. After all, time is money. Go for purchases that will pay off in the long run but keep in mind that everything you buy sets you back on your road to a million.
Be Faithful to Your Savings Plan
The most straightforward way to getting to your first million is, surprise surprise, saving. Think of it this way: If you start working when you’re 20 and save PhP10,400 per month, you’ll be on your way to seven figures before waving goodbye to your twenties. Start a savings plan by setting aside a fixed portion of your monthly income and follow it faithfully.
Go For a Billion!
No, really, set your sight on a much higher target. Reaching your first million will only mean something if you use it to catapult your finances even further. In the end, the secret to accumulating wealth is minimizing risk and maximizing reward.
Source: Security Bank