In 2021, 5.2 million individuals became millionaires, with 82% of them being self-made. To become a millionaire, one should adopt good saving habits early, set a budget with financial goals, avoid high-cost debt, and increase income through side hustles and investments. With the right mindset and strategies, anyone can achieve millionaire status and financial freedom.

1. how to become a millionaire
How to Become a Millionaire: 5 Wealth-Building Tips
TABLE OF CONTENTS
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In 2021, 5.2 million individuals became millionaires according to the
Credit Suisse Global Wealth Report. Out of all these people, though, how
many do you think are self-made?
According to a study from Fidelity, 82% of millionaires are self-made,
which would mean 936,000 people became millionaires last year without the
help of generational wealth.
This is a video explaining how this guy became a millionaire in less than
6 months as a 16 year old:
https://uii.io/gCi8eq
This goes to show that becoming a millionaire is more possible than most
people imagine. Yet, the majority of people are held back by limiting
beliefs, a lack of vision, a short-term perspective, and a simple lack of
financial education. If you want to become a millionaire, it’s critical
to learn how to think long-term, build your financial knowledge, and make
choices that support your vision for your life.
In this article, learn how to develop the mindset of an everyday
millionaire. With the right attitude and action plan, you can achieve
millionaire status and live with financial freedom.
KEY TAKEAWAYS
Anyone can learn how to become a millionaire through careful financial
planning, regardless of your starting point.
The power of compounding interest allows individuals who begin saving
young to become millionaires more easily.
Avoiding debt, keeping a budget, and living below your means will allow
you to save more money throughout your career.
Boost your income through side hustles, strategic career choices, and
investments to accrue wealth more quickly.
5 Steps to Becoming a Millionaire
1. Build Good Saving Habits While You’re Young
The earlier you start saving, the easier it will be for you to accrue
wealth because of the power of compound interest. Compound interest means
you are getting paid interest on your interest, which can make your money
grow faster than if you just earned simple interest.
Investor and personal finance educator Graham Stephen recommends saving
for retirement as early as possible. He says, “At 20 years old, there’s
no excuse for you not to open up a Roth IRA. Just open an account with
Vanguard, Fidelity, Charles Schwab, or a multitude of the other free
brokerages out there.”

2. Increasing your savings account contributions while you’re young allows
you to accumulate larger amounts of wealth over time. Even small
increases in your contribution rate can make a big difference.
According to a Spectrem report, the average age of a U.S. millionaire is
62 years old, and about 38% of millionaires are over 65 years old. This
goes to show that most millionaires don’t build their wealth overnight—
they build it over time through careful habits.
EXAMPLE
An individual contributing 5% of a $50,000 salary to savings each year
will have $210,000 in 30 years, while someone saving 6% of that same
salary will have $251,000 in 30 years. The more you increase your
contribution rate, the closer you will get to that million-dollar mark.
2. Set a Budget With Financial Goals
Budgets are critical for bringing awareness to your spending and giving
you control over your finances. When you set a budget, you can track
whether or not you are doing all you can to meet your savings goals. To
become financially independent, you’ll need to first start by setting and
sticking with a budget.
Dave Ramsey is one of the most well-known advocates of budgeting. Ramsey
says, “A written budget—when you will lay it out and stick to it—will
give you the sense that you have gotten a raise.”
Ramsey is an advocate of zero-based budgeting. Zero-based budgeting means
you assign each dollar of your income to a specific purpose. After
creating a budget, you should know how much you’ll spend on necessities,
wants, savings, or investments. You don’t need a financial advisor to do
this.
IMPORTANT
Include a section for emergency savings in your budget. Unexpected
expenses arise, and you don’t want to be thrown off track to reaching
your financial goals. If you plan for these events, they won’t deter you
from building wealth.
3. Avoid High-Cost, Low Benefit Debt
Millionaires understand that debt can hold them back from reaching their
financial goals. A 2019 Fidelity study found that 57% of millionaires
have no debt at all and 52% of millionaires wait to buy big ticket items
until they have enough cash to pay in full.
While certain debts like home mortgages and business loans can help you
build your net worth, most debt, such as student loans, is capable of
derailing you on your path toward financial success. Avoid high-interest
rate debt and debt that does not help you increase your net worth.