Is there a formula for wealth creation? Do all self-made millionaires take the same steps? If we were to do an in-depth study of how self-made millionaires think and act, we can find some common clues that we can learn from.
So, here you go find a formula to financial abundance.
These are essential steps, each one representing a wealth-creating skill that all self-made millionaires possess and practice.
Step 1: Adopt the Million-Dollar Mindset
First, learn and adopt the mindset of a millionaire. Millionaires think very differently and that is why they take different actions and produce vastly different results.
These people have an empowering set of beliefs and habits that allow them to see opportunities where others see problems. They see learning experiences where an ordinary person sees failure. The moment you adopt empowering beliefs and habits of highly successful individuals, you will realize that there are money-making opportunities everywhere and everyday around you.
Step 2: Set Clear Financial Goals
Wealth never happens by chance. It always begins with a clear goal in mind. If you are earning 30,000 a month and set a target to earn 60,000, it is not just about working harder. It is a completely different strategy. Similarly, if you choose to earn 100,000 a month, it is again a totally different strategy!
Only when you are specific about how much wealth you want to create, then you will come up with a practical plan to execute it. No matter where you are now financially, any target is possible as long as you use the right strategy.
Step 3: Create Your Own Financial Plan
Once you have set specific financial targets of how much you want to earn and how much money you want to accumulate, you can then develop an effective plan to achieve it.
Most people never achieve their financial dreams simply because they have no financial plans and haven’t got a clue as to how to create one. Therefore, you must take responsibility to learn and develop your own financial plan such as strategies to create additional streams of income, reduce expenses, set up a piggy bank savings account, maximizing your investment return and learn how to protect your wealth.
Step 4: Massively Increase Your Income
After developing your own financial plan, most people feel demotivated initially. They look at their plan and realize that with the amount they are earning and saving right now, it will be decades before they see any big money.
Therefore, it is important that you must learn how to accelerate and turbo-charge your financial plan by taking steps to massively increase your income, not by 5%, 10% or 20% but 200% to 1000%! Is this possible? Yes! This is definitely achievable without you having to quit your job or risking a lot of capital from your own savings.
Below are 4 strategies you can employ to massively increase your income:
a) Magnify your value by reaching more people at a time through seminars and internet
b) Earn recurring commissions from sales and referrals
c) Earn profits, dividends and royalties from businesses
Step 5: Manage Your Money and Reduce Expenses
Many people think that by increasing their income, their wealth will automatically increase. Unfortunately, increasing income is only one side of the wealth equation.
If you do not manage the money you earn, your expenses will always rise to your level of income, wiping out any surplus we have! Or worse, we start spending on credit lured but easy repayment schemes. Millionaires become rich not because of how much they earn, but rather how much they are able to save and invest.
Below are 4 effective ways to manage your money and reduce expenses:
a) Always ask for a discount when you purchase something.
b) Always ask for a receipt so that you can track every single expense at the end of the day.
c) Study your monthly income statement and cut down all the unnecessary expenses.
d) Destroy all your credit cards but one to limit credit for all your expenses.
Step 6: Grow Your Money at Millionaires Returns
By increasing your income and reducing your expenses, you will find that you will be able to accumulate a surplus of funds that you can use to help you build your fortune.
You need to do this because, no matter how hard you work and save, you will never be able to create phenomenal wealth unless you learn how to put your money to work for you.
All self-made millionaires attribute a huge part of their wealth to their investments because they know that just working for money will never make them rich. Through the power of compounding, you will be able to take small sums of money and build it into huge returns over time.