Hey there, I’m Tanner Chidester, the CEO of Elite CEOs, and today I’m excited to share six essential Tips to Become a Millionaire that can help you on your path to becoming a millionaire. These tips have been instrumental in my own journey to financial success, and I believe they can make a significant difference in your life too.
Tip #1: Save Like Your Future Depends on It
The first money tip I want to emphasize is the importance of saving a substantial portion of your income. While many experts recommend saving at least 20-30% of your income, I’d suggest going even further – aim to save 50% or more. I personally strive to save around 90% of my income. Why? Because the faster you can accumulate capital, the sooner you’ll reach the point where your investments generate passive income to sustain your desired lifestyle to become a millionaire.
Let’s break it down. If you spend 70-80% of your income, you’ll find it challenging to become a millionaire anytime soon. Instead, commit to saving at least 50% of what you earn and adjust upwards if possible. The goal is to invest that saved money wisely to generate passive income down the road.
Tip #2: Live Frugally for Real Wealth
Living frugally doesn’t mean sacrificing your daily Starbucks coffee or wearing stained t-shirts. It’s about being rich, not looking rich. My personal experience has taught me that material possessions lose their luster over time. That half-million-dollar Lamborghini and the extravagant penthouse eventually became more of a burden than a pleasure.
The key here is to align your spending with your financial goals. Whether you earn a hundred thousand or a hundred million dollars, living frugally should be about spending wisely and not trying to impress others with extravagant purchases.
Tip #3: Master the Infinite Banking Concept to Become a Millionaire
One financial strategy that has been a game-changer for me is the Infinite Banking Concept. This concept teaches you how to make your money work twice for you. Instead of spending all your cash on a major purchase or getting a traditional bank loan, you can put your money into a whole life insurance policy with a minimal death benefit. You can then borrow from this policy for investments, such as buying a house.
Here’s the magic: Your borrowed money still earns interest within your policy. So, while you use it elsewhere, it’s simultaneously growing inside your insurance policy. It’s a clever way to leverage your capital effectively.
To dive deeper into this concept, I recommend reading “Creating Your Own Bank” by R. Nelson Nash.
Tip #4: Invest in Commercial Real Estate
I’ve learned the hard way that single-family homes can be more hassle than they’re worth. Instead, consider putting your excess cash into commercial real estate. Commercial properties often provide more consistent returns and stability, especially during economic downturns. You can diversify your investments further and enjoy greater passive income.
For instance, I recently invested $2 million in a commercial real estate deal that’s projected to yield a 27% Internal Rate of Return (IRR). The beauty of commercial real estate is its ability to weather economic storms better than single-family homes.
Money Tip #5: Become an Entrepreneur
Starting a business can be one of the most rewarding ways to achieve financial success. While working for a steady salary is safe, it often caps your income potential. When you own a business, you call the shots, and your earnings can skyrocket.
I had to make a choice early in my career – become a petroleum engineer earning a comfortable six-figure salary or take the entrepreneurial plunge. I chose the latter, and today, I’ve built a $60 million company. The skills and experience I gained from entrepreneurship have been invaluable.
If you’re unsure about starting your own business, consider working for a business to gain knowledge and get paid while you learn the ropes.
Become a Millionaire Money Tip #6: Live Off Your Investment Income
Ultimately, the goal is to live off your investment income. Imagine having enough capital invested to generate the income you need to support your desired lifestyle. It’s liberating. Set a target to live off your investment returns while letting your active income work for you, reinvest, or pursue other ventures.
Tips to Become a Millionaire Conclusion:
These six money tips have been integral to my journey towards becoming a millionaire, and I’m confident they can accelerate your financial success as well. Remember, the key is to save diligently, live frugally, leverage financial strategies like the Infinite Banking Concept, invest wisely, consider entrepreneurship, and ultimately aim to live off your investment income. With determination and smart financial choices, you can build a prosperous future and create a financial legacy that lasts. Good luck on your journey to financial freedom!