Working hard to build wealth is no easy feat. It demands discipline, focus and a growth mindset. If you’ve been putting in the work and it’s beginning to pay off, reaching that lofty millionaire status isn’t unreachable, according to experts — as long as you’re taking the right steps to get you there.
Below are some simple, expert-backed tips to help you reach millionaire status in 2024.
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Start By Paying Yourself First
“Allocate a portion of your income directly to savings and investments before covering other expenses,” said Dana Ronald, president of Tax Crisis Institute. “Understand your spending by tracking every penny and cutting unnecessary costs.”
“Most importantly,” he added, “be patient and think long-term. Wealth creation is a marathon, not a sprint.”
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Automate Your Savings and Investments
Michael Ashley, founder of Richiest, advises you to set up automatic transfers to a high-yield savings account and investment accounts every month. “By automating your savings and investments, you’re consistently putting money away without having to think about it.”
“This helps you build wealth over time by taking advantage of compound interest and the growth potential of the stock market,” he explained.
Live Below Your Means
“Cut unnecessary expenses and focus on living frugally,” said Ashley. “This means creating and sticking to a budget, avoiding high-interest debt and making mindful choices about your spending.”
He pointed out that living below your means leaves you with more money to save and invest, which will help you build wealth faster.
Increase Your Income Streams
“Look for opportunities to increase your income, such as picking up a side gig, freelancing or investing in skills that can lead to a higher-paying job,” Ashley suggested. “Increasing your income provides more capital to invest and save, thus boosting your potential to reach millionaire status faster.”
Maximize Your Retirement Savings
Ben Klesinger, founder and CEO at Helping Hand Financial, believes you should contribute to an individual retirement account (IRA) and an employer-sponsored 401(k), if available.
“IRAs, whether traditional or Roth, offer significant tax benefits that can greatly increase your savings over time,” he explained. “Based on your income level, choose the one that best fits your situation to reap the maximum tax advantages and grow your retirement substantially.”
Have Proper Insurance in Place
“Life insurance, especially key person insurance if you’re a business owner, ensures that your financial plans aren’t derailed by unforeseen events,” said Klesinger. “Life insurance policies offer a safety net that can cover substantial expenses after your passing, relieving your family from financial burdens and securing their future.”
Create a Comprehensive Risk Management Plan for Your Business
For business owners, Klesinger said this is especially key.
“Identify potential risk factors, such as location hazards and technology failures, and put strategies in place to mitigate them,” he said. “Regularly review and update this plan to adapt to new risks.”
He said a well-managed risk strategy keeps your business resilient, ensuring consistent growth and revenue, which is essential for achieving millionaire status.
Consider Alternative Investments, Such as Real Estate
“I’ve seen that real estate investments can provide a steady income stream and significant asset appreciation over time,” said Klesinger. “Ensure you have the right insurance for your properties, like high net worth insurance, to protect these investments effectively.”
He added, “Diversifying your portfolio through real estate can help you build wealth consistently.”
Maximize Your Tax Savings
“By selecting a skilled tax advisor and conducting thorough reviews of your current tax situation, you can develop tax optimization strategies to reduce liabilities by 15% or more,” said Russell Rosario, co-founder of Profit Leap. “Schedule semi-annual tax reviews to ensure you remain on top of potential savings, and adjust strategies as needed.”
Invest In a Wealth Management Service
According to Rosario, choosing the right firm to help you manage your assets can “significantly enhance your financial growth.”
It’s important to select one that aligns with your goals.
“Define your specific wealth management needs, and conduct thorough research to evaluate firms based on their credentials, reputation, fee structures and personalized service offerings,” he said.
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10 Simple Tips To Achieve Millionaire Status in 2024
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