In becoming a millionaire, you must understand that Money is an officially issued legal tender that typically consists of notes and coins. Money is the circulating medium of exchange as defined by a government. Money is often synonymous with cash and includes various instruments such as checks.
Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another.
Becoming a millionaire: How to make money
Is money important in life?
Money is important because it means less financial worries…. Money is important because it enables you to give back to your community, to pick the charities and causes you believe in and support them. Money is important because having money means that life is not a constant effort at keeping your head above the water.
Money can’t buy happiness, but neither can Poverty
Money can be used as a tool to improve life, or as a tool to make more money
How to make money as a teenager
Tayo Oyedeji, a tweet expert, unveiled the disctinction between making money and growing money (to becoming a millionaire). These are four simple models for making money and growing money.
There are two key models for making money:
1. Competence and Skills
Competence is the ability to do something successfully or efficiently.
People part away with much money to engage skilled and skilful people. The primary way to make money for most people is by developing complex, marketable skills. You develop some skill(s), find a buyer (employee) and sell your skill(s) + time. Complex skills are more marketable and expensive than mundane skills.
You develop some skill(s), find a buyer (employee) and sell your skill(s) + time.
For instance, I once charged a fee of $10,000 for less than a full day of work for business operations consulting for a big firm – Operations Management is a relatively rare skill. Do a quick audit of your skillsets. Can they earn you a good income? If not, what additional skillset do you need to build to earn a premium? Most people are lazy: they will not invest the time to build new skills.
In today’s world, technical skills are more expensive than non-technical ones.
My Artificial Intelligence mentor was a music composer who went from $25,000 a year to $150,000 in 12 months.
2. Hustle & Flow
Many people are not wired for technical competence. They, however, have natural business skills that can help maximize their income. Others have both. They can hold down a regular job while hustling on the side. I have always done both. I sell competence during the day and hustle at night.
Most employers will not pay you more than you need to live a decent life. To make more money, you will need to build a side gig that will multiply your income.
There are also two key models for growing money as a teenager
1. Frugality & Saving
If you make $1m and spend $1m, the money just passed through you. You are not wealthy. You’re just a money conduit. On the flip side, if you make $2,000 a month and keep $500, you just grew your net worth by $6000 a year.
The first way to grow money is by living below your means so that you can save some.
1. Don’t buy crap you don’t need.
2. Sell anything you haven’t used in a year.
3. Don’t impress people with things, impress them with your investments.
2. Investment & Equity
This is actually why I decided to write this. Many people hold a misguided view that investments and other money-growing models are the paths to making money.
Let me debunk that notion:
Investments are for growing money you have already made.
This erroneous notion is why people fixate on dubious/questionable ways to make money – FX trading, gambling, Ponzi schemes etc. The promise is that you can make a lot of money with a little amount of investment.
The models for making money are skills and competence (employment)/hustle and flow (business). Frugality grows your savings and investments accelerate the growth to becoming a millionaire.
Learn to create value and make money first. You can only grow what you have made. If you try to make money with a money-growing model, you will chase risky propositions and lose money. You can invest in mutual funds, treasury bills, company shares and other investment opportunities.
The way to make money is by creating value with your skills or business. Then you savesome and grow it with investments.
Make it with models for making money and grow it with models for growing money.
Don’t try to switch the two models.
How can I become a millionaire?
1. Develop a written financial plan.
2. Focus on increasing your income.
3. Take advantage of Uncle Sam’s generosity.
4. Increase your streams of income.
5. Automate your savings.
6. Upgrade your skills and knowledge.
7. Live below your means and lay off the credit. …
8. Associate with millionaires.
What is the difference between Saving and Investing?
Saving is setting aside money you don’t spend now for emergencies or for a future purchase. It’s money you want to be able to access quickly, with little or no risk, and with the least amount of taxes. Financial institutions offer a number of different savings options.
Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you. Investments usually are selected to achieve long-term goals. Generally speaking, investments can be categorized as income investments or growth investments.
At what age do most millionaires become rich?
According to Spectrem Group, the average United States millionaire is 62 years old. Just 1% of millionaires are under the age of 35, and 38% of millionaires are 65 and older.
What does it mean to live below your means?
To “live within your means” means that what you spend each month is less than or at least equal to the amount of money you bring in each month. For many people, it’s a lot easier said than done. Credit cards, loans, savings, and even emergency funds allow you to buy more things than your income would ordinarily allow.