The Ultimate Guide, 9 Steps On How to Become A Millionaire

Lets face it, we would all love nothing more than to be rolling in dough and living the good life. Exotic holidays, beautiful cars, luxury houses, private jets,all at our fingertips. But why can't we achieve this ? The truth is most of us don't have the slightest idea on how to become a millionaire.

You might be surprised to learn that simple changes in your lifestyle can yield massive results on your goal to become a millionaire from nothing.

So where do I get started ? 

Well firsts things first, don't be too concerned about things you think are holding you back. I'm too old, I have no income, I have no education. These are statements made by people with excuses. Just read Paul's story.

If he can do it, you can too.

Sure, it's better if you start at a younger age but it's not a necessity. The very fact you are reading this article is already a step in the right direction.

The best time to start is right NOW

So what can I do ? 

Okay, Lets start off with something that many people do not understand.

I'm talking about Math


1.Compound Interest

How to become a millionaire through math


Don't worry, I'm not going to bore you with some difficult formula that will guarantee you become a millionaire. Not at all.

Instead, lets take a look at some very simple maths in relation to compound interest.

how to get rich through compound interest


So if Einstein says that about compounding, you surely need to use it to work in your favor. It can help grow your wealth quite substantially.

Basically, compounding interest allows you to grow your money through interest rates. When you put cash into a savings account, most banks will pay you an interest rate on that saving. It is usually very small and generally won't make much of a difference.

But, if you can find other places to put your cash and earn higher interest rates. Your money can grow over time.  See this example below


Compound interest to get rich

photo source

In this basic template above, you can see the power of it. Thats an example of a 5% interest rate on a 10k account. There are many different investment vehicles out there that pay much higher than 5% so you can see the potential here.

This is the very basic formula millionaires use. It is what banks do when they loan money. The interest you pay them is their income and it compounds over time.

It's also how Buffett became a billionaire. He understood this very simple formula. I hope this is as eye opening to some of you as it was for me when I first actually started understanding it.

It's so very simple but amazingly few people truly understand it. Now, thats all great but where can I find ways to earn 5% interest rates or much more ?

Luckily for us, there are many options out there. One thing that must be noted though is that any investments carry risk of loss so contact an investment advisor for any information you might want.

Places to compound money :

  • Etoro

    An online investing platform that enables you to trade or invest in the markets. They have many features and their platform allows you to trade most markets out there today. Another feature I've noticed is the Copytrades section. This allows you to find  successful traders or investors and copy their trades. Please be very careful and do your own due diligence on this.

  • Prosper

    A peer to peer lending platform. Here you can search through people looking for loans and invest small amounts in them, paying you an interest rate. Essentially, you are like the bank. You find a person looking for a loan and once you find whatever meets your individual criteria, you invest in.  You can see this in action through this video.


2.Create A Financial Plan 

how to become a millionaire through financial planning

Ask yourself a simple question. Do you have a financial plan to achieve your goals or are you just 'going with the flow' ?

If you answered no you don't have a plan,  don't worry. There's always time to change.

A written financial plan can be the most important thing you do in your quest to becoming a millionaire. It allows you to take accountability and really sort your finances out.

So what do I include in this ? 

  • Income & Expenditure

    - You will need to understand what your current finances are and where the money is going. Surprisingly, there might be a few expenses you never even realized you had.

  • Goals

    What you want to achieve and how you plan on getting there

  • Income Growth Plans

    Can be included in goals but it's better to get more detailed with this. How you plan on increasing your income. e.g. the above examples of etoro or Prosper.

  • Eliminate Expenses

    Your plan is always a work in progress. Eliminate expenses you don't need to aid growth. e.g. a subscription service you rarely use


How do I create a financial plan ? 

It can be very easy nowadays to do this.  A simple excel spreadsheet is more than enough if you want to customize the plan to your unique preferences.

There are also lots of free & paid apps that will do this for you.

Some popular ones include :

  • Mint

    App that brings everything to one place i.e. bills, income, credit score. Link your accounts and cards to it and it can offer advice on where to improve.

  • Spendee

    A great app with beautiful design to help easily create and track budgets etc.

  • Expensify

    Great simple app for tracking how much you can spend in a day after you tell how much your income and expenditure is and what you want to save



create multiple income streams to become a millionaire


Okay, I get it. Frugal living sucks ! And not all multi millionaires started out frugal. But if you want to achieve your goals faster, you're going to have to save more.

Sure, you might not be able to go to that party with your friends or the movies sometimes. But over time, these small expenses will add up to huge savings.

And slowly, you will start to notice your wealth grow exponentially.

One of the richest men in the world is extremely frugal. I'm talking about Warren Buffett of course. He lives a rather simple life and still lives in his middle class home in the suburbs.

Buffett could afford to buy a palace, heck even an island but he lives frugally. He is on the extreme end of things though and it would be tough to live like that for most of us.

Start small with simple things. If you spent $20 on beers or entertainment, cut it back to $10. Over time this will add up.

An easy way to stay on track with this is find out what cost it is for you to live a comfortable life but not too comfortable. If you can control this, you are on to a win win situation and it is far more easy to live frugally.

What are you talking about, I cannot live comfortably and frugally ? 

Well actually, yes you can.  Here are some frugal living hacks.

Some might effect your life, but look at some simple things like shopping for items in the off season. You are still living the same comfortable life at a fraction of the cost.

That's just a very basic example. There are tons more you can do like:

  • Booking a holiday a year or more in advance can save you up to 40%
  • Slightly damaged products can be bought from Amazon Warehouse deals  for a fraction of price. Now obviously you don't want to buy a broken item so dig deep. You can literally find items that only have packaging damage and are a fraction of the price as a result.


4. Create Multiple Streams Of Incomehow to become a millionaire through being frugal


This one is common sense right ? In order to grow our wealth and become millionaires, we need to generate multiple sources of income.

Why is this so important ? 

Let's say one of your income sources stops. e.g. you lose your job. What are you going to do ? It could take ages to find a new job.

With multiple income streams, you literally have insurance for the worst case scenarios. You also have ways of generating wealth much faster.

Trust me, this is a very important part of the becoming a millionaire equation. Lets look at some studies on this. Author Tom Horley studied millionaires over a 5 year period.

What did he learn ? 

  • 65% of self made millionaires have 3 sources of income
  • 45% of self made millionaires have 4 sources of income
  • 29% of self made millionaires have 5 sources of income

So yes, you get the picture. It's very important.

How can I create multiple sources of income ? 

Well, the examples above of Etoro and Prosper are ways of diversifying income streams. You can also put cash into real estate and generate income through that also.

There are so many options out there today and you can get started with even $100.


5. Start A Business

start a business to become a millionaire


I could have included this in multiple sources of income but I believe it deserves a section all to itself. Starting a business today is easier than it ever was.

Literally, you can start a Shopify Store in under an hour and you are up and running. You can sell on Amazon by signing up to the Amazon FBA program.

The options today are endless. It's never been a better time to go into business.

If you get this right and find a niche product to sell, a service or whatever business you plan on having, you can accumulate wealth rapidly.

7 ways to start an online business if you have a job is a great post packed with actionable ideas you can use. It also highlights how simple it is to get started.

You don't even have to limit yourself to starting a new online business. There are websites out there that sell online business already generating revenue. Just look at Flippa, it does exactly that. So if you have some money already saved, this may be a great investment.


6. Time Management

time management in how to become rich from nothing


Now, something that is very little discussed is time management.

Why is this important ? 

Because without proper time management, we can become victims of procrastination. This is a very tough obstacle we all face as humans. We start out with ambitious plans to get something done only to spend hours going around in circles on the same points and achieving nothing.

I'm guilty of this too and I'm sure most of you can confess to procrastinating sometimes.

Let's take a look at some quite revealing facts.

  • A Piers Steel's study on procrastination, he discovered that 5% suffered from chronic procrastination in 1978.
  • In 2007, this had risen to over 26%
  • By 2016, this figure is approx. 28%

Now this might not seem like much but let's take a closer look.

“Procrastination comprises over a quarter of most people’s working days, costing employers about $10,000 per employee per year” (D’Abate & Eddy, 2007; Steel,2011)

So on our quest to become millionaires, we are our own employers. Can we afford to lose $10,000 or a quarter of our working days ?

Absolutely not.

We need to be lean, mean, efficient time management machines who get things done.

Becoming more time efficient will help increase your productivity massively. Structure your days following the template above and you'll notice a big difference.

I'm so busy, I really don't know where I can get the time..

If you are busy and you really cannot find the time, outsource menial tasks for someone else to do for you. This can have a great impact on structuring your time and it'll free yourself up to focus on more important things.

This outsourcing method works best for people who have businesses in a quest to become wealthy. A great way to get things done is hiring a freelancer. 

Once you find a useful person, show them what you want done and then you are good to go. You might think this isn't being frugal like I mentioned above but the time saved for other tasks is far greater and more beneficial than any money spent.


7. Millionaire Mindset

mindset required to become a millionaire

What on earth am I talking about here ? 

Well, remember at the beginning I said some people have mental blocks holding them back like  "I don't have the education, I'm too old to get started now"

These excuses are obstacles in your way to becoming rich. Have you ever made up excuses for not achieving something ? If you are honest with yourself, you probably have. I know I have.

So how do we fix this ?

We need to adopt a millionaire mindset. Why ? Because with it we can conquer anything we set out to do.  Limiting beliefs can hold us back but when we free our minds up, we can really achieve so much.

Right so what can we do to get started developing this mindset ?

  • Find a mentor - The truth is, achieving what we want becomes much easier if we can find someone who has already succeeded and learn from them. In our modern society, finding a mentor is easier than ever. A simple email to someone can yield great results as people love to share their success. You can also read books from some of these people and learn that way.


  • Remain humble - The most devastating thing to any human is letting their ego get out of control. This usually occurs when we have some success and get effect pretty much all aspects of our goals. So keep that ego in check and work as hard as you did when you had nothing or very little.


  • Get comfortable being uncomfortable - There will come a time during your growth where you will have to make uncomfortable decisions. As you get better, you will find it much easier. Just be prepared.


  • Accept Failure - This is almost a given. You need to accept failure as it will happen on your journey. Don't be discouraged, we need to fail to get better so learn from it and move on.


  • Take Action - How many people read hundreds of books on motivation, self help etc and just never take action ? Or worse yet, take minimal action and expect immediate results. The greatest step you will take is the first one so get started now on your dreams.


  • Focus on the process - What I mean here is you want to remain focused on following your plans to become a millionaire. Don't spend all your time dwelling on the past mistakes you made. You've already made them, there is no point in compounding the problem. If you develop a process, you'll get there.


  • Education - Millionaires are always learning. I'm not talking specifically about being in a lecture or class learning from college professors. I mean they are out there making mistakes and learning from them. The best lesson is the one you learn from your own mistakes.


8. Exercise 

how to get rich through exercising

You might be wondering what does exercising have to do with becoming a millionaire. Well, it has a lot to do with it. Don't get me wrong, lots of millionaires don't exercise.

But we want to put the odds in your favor. Your body is like an engine. Exercising is like getting a service to make sure you are running smoothly.

Exercising will sharpen your mind to make better decisions and also keep you far more alert, in turn making you more productive.

Being more healthy will make it much easier for you in the long run. I've had to force myself to go for a jog sometimes and it turned out to be the best thing I did. I came back fresh and ready to tackle the latest problem.

So put the odds in your favor. I don't need to list the benefits of exercising, we all know how great it can be for us.  Even 30 minutes a day can have a big impact on your life.


9.Learn From Others - Case Study Example


learn from others to become a millionaire

Yes, I know I've mentioned finding a mentor and learning from others above. But what good is it if I don't show some real life success story ?

This person has stood the test of time and became a millionaires through hard work and sacrifices.


Grant of Millennial Money

Want to be inspired ?

Well, Grants story is definitely one to read. After graduating from college, he found himself broke and living at home with his parents with only $2 in his bank account.

Being sick of not having the chance to do the things he wanted in life, he created a side hustle, in this case his website Millennial Money

Through hard work, a solid business (building websites for law firms and other companies) diligent money growth practices, he grew his account to over a million dollars.

The awesome thing about this ?  It was all accomplished in 5 years. Not too shabby eh ?

What I absolutely love about Grants story is he literally applied all the steps outlined here to perfection. He openly admits when he started he had no idea about investing and saving.

So if he can do it, what is stopping you ? We can learn lots from him and his blog is a great read. My personal favourite post is when he goes into details on his journey to the million dollars.

His story is a real life example of what can be achieved and we can all learn something from him. He has some very good learning resources on starting a blog if that appeals to some of you too.



The sad truth about all of this is a lot of people will read articles just like this one and not take action. Unfortunately, this is a reality. But if you truly want to grow and become a millionaire, you can do it. Just look at Grant's awesome story.

While following the steps above will not guarantee success, it will most definitely put you on the right path. 

Anything is possible if you are willing to go out there and work for it. The question is are you ready ?


Two Step

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