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7 Ways To Become a Millionaire

By Maurie Backman - Mar 10, 2021 at 9:00AM
Road sign that says Millionaire Next Exit

7 Ways To Become a Millionaire

Who wants to be a millionaire?

Many people dream of becoming millionaires, but did you know that achieving that status may be easier than you ever imagined? If you follow these simple tips, you too can join the millionaires club in your lifetime.

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A household budget written out on notebook paper.

1. Get into the habit of following a budget

Understanding where your money goes is the first step toward building a lot of wealth. Always follow a detailed budget that maps out your different expenses and leaves ample room left over for savings.

ALSO READ: 3 Money Experts' Top Financial Goals for 2021

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A yellow road sign says Cost Cutting Ahead.

2. Live below your means

To grow wealth, you'll need to save and invest money -- and that means you can't go off spending every dollar you bring home. If you get into the habit of living below your means, you'll routinely free up cash that can get you closer to millionaire status.

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Rising stacks of coins with blocks atop spelling out Debt.

3. Stay out of debt

Some types of debt, like mortgage loans, are unavoidable and even healthy. But credit card debt is bad news, and steering clear of it could be your ticket to building wealth. If you don't waste money on costly interest, you'll have more money to sock away to meet your long-term goals.

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Glass jar labeled Retirement.

4. Start saving from a young age

When it comes to growing wealth, time is your greatest asset. That's why it's crucial to start saving from a young age. In fact, a good bet is to start funding a retirement plan like an IRA or 401(k) as soon as you collect your first paycheck.

ALSO READ: 5 Easy Ways to Save More for Retirement in 2021

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Person holding smartphone with stock market results.

5. Invest your money wisely

Investing in stocks carries risk, but it also comes with great rewards -- substantial returns. If you play it too safe with your investments, you'll stunt your portfolio's growth, so don't be afraid to load up on stocks if you have a lengthy investment window ahead of you. It could be your ticket to accumulating millions.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Person's hands flipping through wad of bills.

6. Create a diverse network of income streams

While investing in stocks is a smart bet for growing long-term wealth, that doesn't have to be your only strategy. You can also look at other investments. Buying real estate, for example, could help in two regards -- you can buy a property that appreciates in value over time, and you can rent out that property to generate continuous income while you own it.

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Person with open laptop is looking at paper and smiling.

7. Keep pushing yourself to do better

Maybe you're currently in the habit of saving and investing $1,000 a month. That's impressive in its own right, but if you have the potential to sock away $1,500 a month instead, go for it. This doesn't mean you shouldn't enjoy any of your money and sock away every penny. Rather, you should continuously shift your goals upward if there's potential to do so.

ALSO READ: How 2021 Can Make You a Millionaire

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Person raises hands in the air as money falls down all around.

Get on the right path to success

Becoming a millionaire will require a fair amount of effort on your part, but if you commit to that goal, you may find that getting there is easier than expected. Follow these tips to join the ranks of the many people who have worked hard to land among the ultrawealthy.

The Motley Fool has a disclosure policy.

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