Simple steps to become a millionaire

We've read articles about how to become a millionaire. We have real life examples of millionaire friends and relatives advices of not only work hard and work smart; effectively manage our finance is also crucial to maintain a millionaire lifestyle. Below are a few tips for sharing:

1. Set a weekly or monthly spending budget

Is that necessary to set a spending budget? You will be surprised to find out a healthy spending budget will save you on unnecessary spending. In long run, the saving could turn into a budget for your car or even a house. 

2. Track and record daily expenses

Sounds like a complicated job? It is always hard to begin with. But once you've started recording daily expenses neatly and continue with discipline, you can easily summarise them into a monthly expenses and from here you know where your money is spent.

3. Pay yourself first

Whenever the wage is out and paid into your bank account, always remember to set a portion of savings aside before you start using the rest of the money.

4. Saving for a purpose

If saving without a purpose, it is easy to use up the money once you see the numbers in the bank account. Saving for a purpose, such as for a new house, for higher education or to invest etc. Saving for a purpose will remind us not to use up the fund easily, unless for emergency.

5. Insurance for protection

If you think paying for an insurance is unnecessary, please think again. Although paying for insurance is like an expenses, the money is flowing out from your bank account. But then, when you need to make a claim from the insurance company, you would be grateful for having them.

6. Set up an emergency fund

Sometimes bad things happen in life. Losing a job, need a big expenses for medical treatment etc. It is wise to have at least 6 months spending expenses as an emergency fund for backup, just in case you are unable to work for a few weeks or months.

7. Funds allocation

Once saving and emergency fund is build up, allocate the extra fund you have for investment purpose. Buying a property, invest in share market or other potential business etc.

8. Start invest and grow the assets

It is never too early to start invest and grow your assets. It takes patience, time and effort to invest and let the assets appreciate in value. Your first investment might not make money; or you might fall into investment trap. Therefore it is advised to invest as early as possible. Learn from mistakes and accumulate the experience.

9. Wealth management

When your net worth reaches a certain amount; or your cash and assets had reached a certain level, it is time to manage your wealth. Learn how to protect your assets, manage your finance and cash flow as well as continue to grow the assets. 

10. Increase cash and asset, reduce debt

When your earning power is great, it is also translate into a higher spending power. Effectively using the high earning power to increase your cash flow and assets; try your best to reduce bad debt is the way to make your money grow more.

11. Spend within your means

It is not easy to spend frugally especially you know how rich you are. It requires discipline to spend within your means and live a down to earth lifestyle.

12. Retirement planning

Just like saving and investing, retirement planning is never too early to think ahead. While planning for your expected retirement lifestyles, it is always a good idea to plan it financially too.

13. Financial education

There is no way to execute Step 1-Step 12 without proper financial education. Read up on financial magazines and personal finance books; attending seminars and talking to people you know etc. These are the ways to increase your financial knowledge. Never give up if you fail and keep learning from the lessons and investment mistakes.

14. Charity

It is a blessings if you able to help the needy financially. If not financially, donation in terms of material or spend time and effort for charity work.

15. Don't forget to have fun

There is no point to have loads of money in your account but feeling empty or unhappy in your life. What is the point of working so hard to make so much money? Don't forget to have fun, enjoy life and spend the money when necessary. At the end of the day, there is no point having loads of money leaving for your loves one, but you are the one who don't use them.

Conclusion: Sounds boring? If these are the steps and actions can guarantee a financial free and stress free lifestyle, no harm in trying. No matter what is your occupation and how big is your earning power, we believe live frugally, spend wisely, invest smartly and manage our finance efficiently are keys to maintain a healthy and wealthy millionaire lifestyle. And also, enjoy your life and have fun.