How To Become A Millionaire In The Next 5 Years

Becoming a millionaire isn’t rocket science. And it’s about more than figuring out an amount to save. We look at what it really takes.
Melissa Cohen
2017-03-24
Making money has never been easier. It’s making the changes required to make money that stumps most people. The first lesson in how to become a millionaire, involves realising millionaires are no different to you, they just did different things. Things that you can do, too.

How To Become A Millionaire In Less Than 5 Years

Steve Siebold, self-made millionaire and author of How Rich People Think, says anyone can be a millionaire. According to The World Cities Review 2016: The wealthiest cities in the world, South Africa’s major cities house 40 400 millionaires, and seven billionaires. I don’t think we need to tell you most of them live in Johannesburg. But what’s surprising is how many young millionaires there are in Mzansi – under 35!. One of them, 23-year-old Sandile Shezi, started out selling muffins at school. He didn’t start a muffin empire, no. But he started something when he started doing something different with his peers.

Positive Thinking

Siebold, who interviewed a number of millionaires for his book, says the reason so many people are broke is because they have such negative beliefs about money. He says a lot of people have a ‘lottery mindset’ with a view to get-rich-quick.
“The rich, however, have trained themselves to expect big things to happen and earn more money,” says Siebold.
He advises looking at your beliefs about money, success, and rich people, and asking yourself if those beliefs are adding to your net worth. Also, if you want to become a millionaire, he says you need to stop looking at money from a fear and scarcity point of view, instead, seeing it through the eyes of freedom, possibility, opportunity, and abundance. “We shouldn’t be our own worst enemies - look at the rich; they’ve brainwashed themselves with positive belief so they’re not as afraid to take the chances and risk,” he adds.

Fail, Quickly

On that note, Siebold – like many other successful people – advocates disregarding your fear of failure. As someone who has experienced failure in business, he says failure taught him more than success did.
“Failure makes you analyse what you did wrong. Worrying about failure, however, holds people back from taking a chance and being successful.”
He says one thing he observes in all of the wealthy people he speaks to, is an unwavering belief that no matter what they did or if they failed, they would find a way to recover. He adds that most admit this isn’t an inherent belief, it’s something they’ve had to learn to do.
“They talk themselves into it while the rest of us are talking ourselves out of it.”

Make A Decision!

Grant from Millennial Money, who himself went from broke to millionaire in five years, attributes his success to one thing. “I started making good, then better, and finally the best money decisions.”
He says there is always a better, or best decision concerning money, but that a good decisions is better than no decision.
“When it comes to saving, investing, launching a business, lending money, anything having to do with money the key to getting ahead is always making good decisions. You don’t have to make better or best. Good is often good enough,” says Grant.
He says these decisions can help you escape living paycheck to paycheck, save more, and even reach financial independence. At worst, you’ll be better off than a vast majority of people.

Good money decisions:

  1. Explore what money is and what it means to you.
  2. Read a few of the best personal finance books (this is what Grant did to learn how to become a millionaire).
  3. Calculate your financial independence number – 25 times annual expenses.
  4. Pay down any high-interest credit card debt.
  5. Start saving at least 5% of your post-tax income, then increase your savings rate 1% at least every year (and automate your savings).

Better money decisions:

  1. Develop a side hustle, start learning new skills, and diversify your income streams.
  2. Start saving at least 20% of your post-tax income.
  3. Increase your savings rate at least 5% every year and push your saving rate as high as you can.
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Best money decisions:

  1. Build a life strategy and execute it – map all of your decisions against your life strategy.
  2. Optimise your saving/investing rate – find the maximum you can save each month.
  3. Learn to say NO.
  4. Fight lifestyle inflation.
  5. Optimise your diet.
“Getting rich is not a complex process. You don’t even have to be a genius… It’s about creating a value proposition, and the bigger value you create for your customer, company or individual, the richer you get,” concludes Siebold.