Looking for answers on how to become a millionaire from nothing? Do well to follow the practical guides outlined in this article.
From Oprah Winfrey, Roman Abrahamovic, J.K Rowling, Ralph Lauren, Sheldon Adelson to the renowned late inventor Steve Jobs, all these individuals are not just known for their immense wealth.
But they are known for how they rose from the blind depth of penury to the liberating light of affluence.
Today, they are widely renowned business-driven individuals with a reputation for being the best in their various industries.
Some of the most ardent followers of these exceptional talents get lost in the affluent, glamorous lifestyle. They don’t take to heart the valuable lessons that made these poor kids become world-renowned icons.
Like these individuals, you too can become a millionaire.
No matter how much you have in the bank right now, how much mortgage you owe, you too can become financially well off.
In fact, this article is tailored to fit rising to financial success to become a millionaire from nothing.
The very fact that you are reading this article is evidence that you are willing to make changes in your life that will probably see you grease financially.
But be warned. To become a millionaire from nothing is a long-term activity. It can only be achieved by working diligently towards your goal every day.
Hence, be warned. To succeed and effectively apply these tips, an ironclad will is required.
Before proceeding, it is imperative that the major term “millionaire,” which you definitely are familiar with, is explained in financial terms.
Who is a Millionaire?
A millionaire is essentially anyone whose net worth is valued at $1 million.
On the other hand, net worth refers to the total value of non-financial and financial assets a person owns, minus outstanding liabilities.
In practical terms, an individual who owns houses and an investment portfolio with a million dollars but has outstanding liabilities (debts) valued at $1 million has a net worth of $0.
Your assets must be valued at above $1 million for you to become a millionaire from the above explanation.
But mind you, when your liabilities are substrated from your assets, the value of your assets has to be $1 million or more.
Few people have achieved millionaire status through situations of exceptional good fortune, such as the 2016 Powerball jackpot, the largest lottery prize in US history.
But you will agree that achieving millionaire status via lottery win is a long shot.
The most practical way to become a millionaire, in the words of American author Neale Donald Walsch, is to “make our own luck.”
How to Become a Self-Made Millionaire With no Money
For easy comprehension, this section would majorly center on raising money. It forms the basis of your ascent in the socio-economic ladder.
1. Learn a Digital Skill
The first step in becoming a millionaire with no money lies in getting money.
This may seem to be tricky, considering that money is needed to earn more money.
However, in the digital age we live in, learning a digital skill requires a smartphone, which you most likely have, and access to internet facilities.
That coupled with an ironclad will, we see you become proficient in a digital skill of your choice.
While learning a digital skill is a good idea, choosing what digital skill to learn can be challenging.
As a result, you need to carry out intensive research to know the digital skills that suit you better.
In choosing a digital skill to learn, you should learn skills that you are interested in. You will be motivated to work in a field that fascinates you.
Be it digital marketing, affiliate marketing, content writing, or video editing, whatever digital skill you choose to learn, ensure you are dedicated to gaining knowledge.
Becoming proficient in the digital skill you chose to learn requires patience and an intense level of commitment.
2. Begin Earning
Once you achieve a level of proficiency in the digital skill you choose to learn, the next step is to begin earning.
Being a newbie in the field, attracting paying clients may seem to be a challenge, but as you expand your network and sign up on freelance platforms, you’ll definitely see an increase in clients.
Now, as you earn, it is imperative that you do not hastily lavish your earnings.
Ensure you keep a portion of your earnings, which will be dedicated for investment.
While you build your investment savings, it is vital that you also learn basic investment skills and industries that can be invested in with great returns.
Signing up for a webinar that explains investing in the stock market is a good way of building your investment skills.
With these two steps, you will be well on your way to becoming a million with time.
Recall at the onset of this section; you had no money. But after acquiring a digital skill that you have great interest in, you became proficient at it and began charging for your service.
From your earnings, you saved portions while learning investment skills.
Now it’s time to put those earnings you have saved into use.
How to Create Wealth From Nothing
From the stories of wealthy individuals who have achieved wealth from nothing, we can deduce that creating wealth has to do with having a steady stream of income, reducing cost, and, lastly, investing.
After putting to practice the steps in the previous section, you most likely have a steady stream of income and have begun minimizing cost.
Now it comes to investing.
Invest your Savings
The one rule about investment is understanding how money works; many financial experts believe it is the holy grail of investment.
The basis of how money works is so simple that even a third-grader can understand it.
Adhering to the principle can help bolster your finances, regardless of the amount of money you own.
Whatever you do with money, ensure your expenses are way less than your earnings. Yes, in simpler terms, spend less than you earn.
For newbies in the world of investment, it can be hard to balance this.
But once you begin implementing the spend less than you earn technique, more and more money would be available, which you can allot to investment purposes.
In the world of great technological advancements we live in, there has never been a time where immense investment opportunities are available as today.
From the stock market to cryptocurrency, there is an endless array of options of investment opportunities.
They can make virtually anyone a millionaire from nothing.
As exciting and fulfilling as those investment opportunities may sound, it is imperative to understand that such investment may reap huge financial repercussions should the wrong financial decisions be made.
But this is not to deter you from investing.
Rather, if quick returns are what you expect from your investments, then you’ll have to reconsider.
Now, we have established the importance of investing your savings as an excellent way to bolster earnings to make you a millionaire from nothing.
However, the question as to what investment opportunities to consider may be throbbing in your mind.
Well, wonder no more. Below are just a few examples of investment opportunities you can take.
Invest in the Stock Market
An investment opportunity that is as old as time, the benefit of investing in the stock market is enormous.
Iinvestments in the stock market can make you a millionaire from nothing.
A classic example is the ascent of multinational conglomerate company, Berkshire Hathaway, spearheaded by billionaire Warren Buffet.
By investing in insurance companies, Buffet transformed Berkshire Hathaway from a waning textile company to become one of the most profitable and valuable holding companies globally.
Warren Buffett considers buying Berkshire Hathaway as a mistake. Investing directly in insurance companies with the money used in buying Berkshire Hathaway would have brought in about $200 billion in the span of 45 years.
To be practical, you can begin investing in stock by purchasing an ETF (Exchange-Traded Fund).
With each passing year, your ETF increases in worth by 10% on the average.
So, should you purchase a $2,000 ETF with a 10% yearly return, your stocks will be worth $2,200 the following year.
However, it doesn’t work out in this clean mathematical way in real life.
Sometimes, your ETF may be down by 10% in the passing year. However, it may rise by as much as 50% or more the following year.
That may come off as a risky investment. But as you continue on this path and live by the basic rule of never spending more than you earn, your dream of becoming a millionaire from nothing would be a reality in no time.
Stocks may be the prominent investment options for many, but it certainly isn’t the only.
Related: Top 100 Warren Buffett Quotes For Success
Other Viable Investment Options
- Invest in tech start-ups, which are fast making waves.
- Invest in hedge funds.
- Loan out money to companies, and the government, which will see you repaid with interest.
The Rich Habits: Habits of People Who Became Millionaires From Zero
Ever heard the saying “habit makes a man”? This is the absolute truth.
In becoming a millionaire, you have to become an entirely different personality.
What distinguishes the rich from the poor isn’t exactly financial status but rather simple daily habits.
One of Amazon best selling finance authors, Thomas C. Corley, coined a term for this habit.
He called it the “rich habits.” In his book “Change Your Habits, Change Your Life,” Corley noted the massive effect of daily habits in determining how successful or unsuccessful you would be in life.
Below are a few rich habits evident in many self-made millionaires that you should begin developing today.
They Have a Vision and Work Towards Achieving it
Millionaires who made their wealth from nothing can attest to the fact that having a vision and working diligently towards that vision is essential in achieving your financial goals.
Being rich starts within the mind, and with a vision, a focus on an idea will define your financial life.
Have a vision, do well to assess your life, and acknowledge what changes are needed to sync with your vision and make those changes.
They Read Consistently
Self-made millionaires will constantly pick education over entertainment.
That being said, it may intrigue you to know that at least 88% of the wealthy population devotes half an hour in the least or more daily to self-improvement reading or self-education.
They do not read for entertainment or leisure; instead, they read to gain new knowledge or grow in understanding.
Books usually read by this group of wealthy individuals can be classified into three groups: books about biographies of other successful individuals, books on personal development, and books on history.
They Surround Themselves with Other Successful People
The success of people with whom you often associate is a mirror of your success.
Thomas Corley quotes, “You are only as successful as your close associates.”
Self-made millionaires are very selective in their choice of association. They tend to hang out with individuals who are optimistic, enthusiastic, and goal-oriented.
Take a hint and make changes to your close circle of friends.
They Practice “Dream-Setting”
“Dream-setting” means putting down in writing what you imagine your future life to be.
By doing this, you are taking charge of your life and taking control. It will help you set the course of where and what you wish to be.
In his book “Rich Habits: The Daily Success Habits of Wealthy Individuals,” Thomas Corley reported that 61% of self-made millionaires practice dream-setting.
They are Selective with their Time
How you spend every second of your life has a say in your financial growth. And it is for this sole reason that the rich are very selective with their time.
They value time over money, for it is the wise usage of time that leads to wealth.
Quit doing things that won’t make you rich.
This is a common, well-known theory; nonetheless, putting this theory into practice requires extreme discipline.
Enjoying hobbies or engaging in volunteering services in your free time is great; however, if most of your free time is devoted to these activities, it’s time you cut down a bit.
Spending your free time on leisure activities isn’t wrong; however, you should ensure the bulk of your time is spent on doing things that will reflect positively on your financial life.
They Find and Check in with Mentors
Having a mentor adds positive value to your life and places you on the fast track to financial freedom.
This is something the majority of millionaires who started from ground zero have in common.
They have a mentor and regularly seek financial advice and plans from them.
These mentors could be coaches, a business partner, or anyone who has been down the financial road you are taking on and made a success of it.
Their experience and knowledge will guide you in your financial growth.
Other Rich Habits
Below are some more habits of a self-made millionaires you should begin incorporating in your daily life as well.
- Good etiquettes
- Few minutes of daily deep thinking or brainstorming
- Positive and persistent attitude
- Daily aerobic exercise
Financial Tips that Could Help You Become a Millionaire
Adhering strictly to these quick tips listed below will be you on the millionaire lane.
These tips are advice and methods the rich repeatedly follow to build their wealth and maintain it.
Compound Returns Can Make You a Millionaire
This is a tremendous financial tip that will prove helpful in your arsenal of financial weapons to achieve millionaire status.
Mere savings would not grow your financial resources to the million-dollar mark.
For a fact, the majority of wealth comes from compounding.
Understanding the concept of compound returns is the first step in the path to becoming a self-made millionaire.
Compound returns are early returns that yield even greater later returns.
For example, if you gain 10% on $1,000, by the end of the first year, you would have profited $100.
Making that same 10% gain on your money the following year, you’d wind up with $1,210, profiting $110.
Compound returns are investment gains that keep on piling without you having to add more money. However, you can add more funds to maximize your returns further.
This is one of the surefire ways to climb up the ladders to millionaire status.
Be Disciplined with Your Spending
Individuals who rose from nothing to becoming self-made millionaires possess this one character trait—the habit of spending prudently.
Just because they can afford it doesn’t mean they would buy it.
They spend less than they make.
You need to cultivate the habit of decisive spending.
As much as possible, spend on needs, not wants, and allow your money to grow.
Use Wealth Management Tools
You should automate your finance by incorporating wealth management tools into your business routine.
It will help you stay focused on your financial goals and track your financial progress and business.
These tools help with analyzing, tracking your expenses, cash flow management, and calculating your tax returns.
A few examples are QuickBooks and eMoney Advisor.
Create Multiple Sources of Income
This financial tip is true for 90% of self-made millionaires. Having more than one source of income increases your chances of growing your financial earnings into seven figures.
Most millionaires established at least three sources of income stream before hitting the million-dollar benchmark.
Stock market investment and Real estate rentals are a few examples of additional businesses self-made millionaires boast in their income stream portfolio.
Avoid Debt
In your bid to become a millionaire, staying off debt is a must and if you do have debt, make an effort to pay them off.
Debt is a financial weight that militates against your financial health.
Avoid Lifestyle Inflation
Lifestyle inflation is one harmful habit that tends to slow you down the path to becoming a millionaire.
Naturally, when you earn more, you are likely to spend more.
When your investment yields and your business is thriving, you may want to get your dream car, go on the ideal vacation.
It is effortless to get lost in the joy of your momentarily financial wins and fall into the trap of lifestyle inflation.
While you may spend more on things that matter, such as hiring a cleaner or a cook to save you time to pursue other goals or spend on buying clothing fitting for the professional look of the position of a CEO, you should endeavor to avoid lifestyle inflation.
It is harder to keep your spending in check when you’re rich than when you had nothing.
Related: 50 Financial Literacy Vocabulary Words You Should Know
How to Become a Millionaire from Nothing
In achieving the millionaire status from nothing, the first step would be to change your mindset.
A man’s thought is a man’s world, hence, the need to think like a rich person.
Building wealth is a long-term game—you can make so much money through hard work, dedication, and focus.
There is no one formula to follow in the path to financial success.
However, the following tips listed below can see you rise through the ranks to financial glory. That is notwithstanding who you are, where you are, or where you hail.
Develop Your Career and Expertise
As stated at the onset of this article, it is crucial to develop a skill. It is crucial in your quest to rise from the slums of pennies to millions of dollars. Follow this approach:
- Build a skill
- Add value to your skillset
- Make a career out of it
- Diversify your business
This approach is necessary for the ascension to the million-dollar status.
Many self-made millionaires started this way, working as low-paid interns to learn the basic skills to put them on track.
Roman Abramovich mentioned at the onset, started as a street-trader and then as a mechanic at a local factory. Ralph Lauren started out as a sales assistant.
Invest In Yourself
Investing in yourself doesn’t necessarily mean chasing college degrees; instead, it involves attaining the knowledge needed for your required field of business.
For example, your goal may be to start an online business, but you have no knowledge of the internet or running a business online.
In that case, you’d be investing in yourself by taking the time to learn the information that will educate you in this field.
Make Smart Investments
Sometimes making intelligent investment decisions is about taking your time and effort to learn about a particular business or market.
This includes finding out what investment best works for you, how it fits your budget and risk evaluation.
Making smart investments doesn’t always mean you have to get into real estate or play the stock market.
Rather, it is all about taking your time to conduct thorough research before embarking on the investment train.
In his best-selling finance book, “Rich Dad Poor Dad,” Robert Kiyosaki stated, “many people’s businesses fail because they do not put in the time to learn how the business works properly.”
Take Opportunities
Opportunities come, but only those courageous enough will make the most of them.
Self-made millionaires who became wealthy from nothing always rise to combat whatever obstacle lay in their path in the face of a potential opportunity.
You want to make the millionaire mark, don’t sit around analyzing a possibility; instead, take action and turn such opportunity into a win.
In summary, what makes a millionaire are opportunities turned into financial wins repeatedly.
You may be fortunate with a business opportunity, or it may be an idea that you have to turn into reality. Have the strong will and determination to see it through.
All of the world’s greatest innovations and businesses were once ideas.
Billionaire author J.K. Rowling had nothing but an idea for a story that she determinedly brought to life, despite over 30 publishing rejections.
The result was “Harry Potter,” one of the best-selling books globally.
Strive To Exceed Expectations
Make it a goal to do exceedingly than what is expected of you in every aspect of your business and finance life.
Provide high-standard service that will leave a lasting impression on your clients.
Doing this will earn you the trust and respect of your business partners and clients, which will undoubtedly translate into more earning opportunities and, ultimately, more money.
Also Related: How To Get Rich And Stay Rich In 10 Easy Ways
Conclusion: You Can Become a Millionaire with no Money
In summary, this article on how to become a millionaire from nothing has shown that having a lot of money is not a prerequisite to becoming a millionaire.
Achieving the millionaire status from nothing is attainable.
Sheer hard work, financial discipline, courage to take risks, and the ability to make wise financial investments and make the most of opportunities that come one’s way make everyday folks into wealthy folks.
Anyone can be a millionaire as long as they follow the right step.
This article has input all that is needed to do to become a self-made millionaire with no money.
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