Becoming a millionaire is the American dream for many people, but getting there is no cake walk.
As the saying goes, if everyone could do it, everyone would. It takes discipline and persistence, but it is an attainable goal for most people.
Here are the 5 rules you need to follow if you want to become a millionaire!
Be Greedy When Others Are Fearful
Warren Buffett gave some sound advice that has become famous. He said, “Be fearful when others are greedy and greedy when others are fearful.”
There’s money to be made when times are tough. When others leave the market and sell assets, do the opposite. Capitalize on human nature by often doing the opposite of what the masses are doing.
Of course, it’ll be easier to do that by heeding the following rules…
Spend Less Than You Earn
It might seem pretty straightforward, but never eclipse your earnings with your spending. Money in should always be greater than money out.
It seems like being a consumer is a past-time for a lot of people. So, focus on being a saver instead of a spender and keep your purchases in line with your income.
Stay Far Far Away From Debt
Closely linked to the last rule, do everything you can to avoid taking on debt.
Even though debt levels are higher than they were before the Great Recession, that doesn’t mean you should join in.
Debt comes with interest, and interest payments mean you’re making someone else richer while making yourself poorer.
Live For Today, But Invest For Eternity
No one can see the future or accurately estimate their lifespan. That means in life, seize the moment and take things one day at a time.
That kind of mentality doesn’t work when it comes to investments, though. Invest for the future, and do it as early in life as you can to take advantage of compounding.
Choose To Look Rich Or Actually Be Rich
The people that look rich are often in debt up to their eyeballs. It’s not always true, but it often is.
The truly rich might have some nice things, but frequently, they don’t look it. That’s because they’re focused on what it takes to actually accumulate wealth, not about appearances.