How to make a million?
Let’s talk about the base and the very first steps to take on the road to a million in income or a million in capital.
Step #1. Check your current condition.
Without a diagnosis and awareness of your current financial situation, you can’t begin your journey. First, realize how you treat your money – whether you save it or squander it every chance you get. Check the current state of your finances – this is where your past behavior and attitude toward money has led you.
Check how you feel about credit – if you’re spending more than 50% of your income on loan payments and you don’t have a safety net, you’re in debt, sorry. You need to get out of it now. Take charge of your personal finances and focus on your money.
Step #2. Test your knowledge of personal finance.
Suppose you somehow got a million (for example, followed the steps in one of our “How to Get a Million from the State” articles). Think about what steps you will take to keep that million near you. Will you succeed? In this step, you answer only to yourself, not to us, so be honest with yourself.
We have told you many times that when people win the lottery with money they are not used to, a year later they are lower in their financial level than they were before they won. And that’s 99% of the stories about ordinary people, we’re not talking about any exceptional cases right now.
Assess your level of knowledge about withholding amounts of six zeros. How do you think people behave for whom a million in their account or even a million a month is the norm. Where do they keep their money, what do they buy. How do they insure their finances?
Step #3. Evaluate your financial habits.
Continuing the topic of habits. We said in the last paragraph that people who make or keep a million have very different financial habits. They know what to do with such sums, how to save them, and how to insure them. Moreover, they know how to multiply that money. All of these actions are the result of good financial habits. The habit of saving. The habit of saving. The habit of multiplying.
These are habits these people have been working on long before they put the amount of six zeros in their account. Because they acted a certain way first, and then they got results. Not the other way around. This is the most common mistake people who don’t yet have a lot of money make-they wait for results first and only want to do the right thing later.
We’ve said it many times, and we’ll say it again. First the right financial habits are formed: saving, saving, multiplying, and others. And then the results come – savings, income, and capital. First you sow the seed, then you get the seedlings, and only then you get the fruit. So it is with personal finance.