We partner with bada$$ companies that offer products that help our readers achieve their goals! If you purchase through our partner links, we get paid for the referral at no additional cost to you! Please read our disclosure for more info.
Making it in life has been intertwined with having a lot of money.
So if you are wondering how to become a self made millionaire with no money then this article is for you.
Being a self-made millionaire is a goal everyone wants to reach at some point in their life.
We tend to fetishize results but recoil at the process because it needs a lot of sacrifices.
When you look around on the internet, a lot of people have made it in life doing a lot of different things.
You will find entrepreneurs, creators, art designers and most notably investors that have made money from a poor background.
If you try to read about their backgrounds, you will find that not all was nice and mellow from the beginning.
There are not so many people that make it out a poverty mindset.
A recent study shows that the richest people in the world own almost 70% of the world’s wealth.
The United States of America has the largest population of millionaires anywhere in the world.
This means that there is a large enough possibility for you to make use of the opportunities available in the country.
When you check the Forbes’ rich list, you will come across names from all industries in the economy ranging from financial services to metals all over the world.
However, these people made their fortunes by following certain rules so that they can grow and maintain their wealth.
In this article, I will try to give you an insight into what tricks the millionaires follow to make their money.
The funny thing about it is that millionaires will share everything you need to know about how they made their fortunes.
They do not worry about it because they know that most of us will not follow this advice just because it is hard to follow.
Can you become a self-made millionaire?
Yes, you can become a self-made millionaire. In most cases, millionaires often have a helping hand in terms of family or the government for that matter.
This often discourages normal people from trying to be extra ordinarily rich.
Keep in mind that you are the maker of your own fortunes.
Everyone starts at zero and it is only those disciplined in the art of making and retaining money that stay the course.
Habits that will allow one become a self-made millionaire with no money.
Belief and luck aside, you have to practice some habits that will get you on track to become a millionaire. You do not have to follow them like a bible.
However, if you keep these habits in your day to day life, it is just a matter of time for you to become a millionaire.
The most important thing is to improve your financial habits.
In addition to that, most millionaires’ advice to you to is to maintain the following habits;
1. Creating a money mindset.
The first thing for you to do is to change your money mindset.
You must stop thinking of ways to spend money as compared to earning your money.
This mindset is one that assumes an employee – employer status between you and your money.
- How to Become A Millionaire Without a College Degree
- How Gemma Of Seaside Sundays Turned Her Blog into a Real Business
- 17 Most Trusted Online Money Making Sites – Earn Over $1000 Per Month
- 32 Frugal Living tips from the Great Depression
- How to Make Money Selling Feet Pictures on Instagram
You have to make sure that your money is out there working for you even as you sleep.
Furthermore, you should keep looking for ways to make investments with your money.
The most essential trick for rich individuals is to hold on and keep going when things become tough.
Every millionaire that made their money from entrepreneurship will tell you the same thing.
At times along your entrepreneurial journey, you encounter a situation that makes it hard for you to decide whether you keep going or you just give up.
This is when you have to gather the strength to soldier through the challenges so that you can enjoy the rewards of the risks faced.
For example, Elon Musk had to make a tough decision regarding the future of his companies at some point.
He was going bankrupt and his companies did not have enough money to run for an entire week.
Elon Musk talked about being scared because he did not want any of his companies to fail.
So when he got some money, he split it amongst the two companies so they could run just for a few more days as he waited for NASA to approve his SpaceX plans.
Fortunately, the contract was approved and he had enough money to keep his companies running.
This story shows you that everyone suffers misfortune but it is up to you to stay strong or crumble under the pressure.
3. Work smarter than your competition.
This is very applicable in work and business situations.
If you have a business, you have to make sure that you earn money from all possible avenues available to you.
This means that you have to gain some competitive advantage over your competitors in the same industry.
If you look around, you will come across very large companies that have outshined their competition.
The best way to do this is to conduct as much research possible regarding the sector you are operating in.
For example, when you try to look for the best search engine online, you will be advised to use Google.
For Google to maintain its competitive edge over its competitors, it conducts a lot of research every year.
This kind of research helps them make the platform a little bit better for its users and therefore improving customer experience and consequently its usage.
Even when you look for ecommerce business platforms, there are very many alternatives to Amazon.
However, people still flock to Amazon even when it charges you more than other platforms.
Working smarter enables you to attract more customers to your business thus generating revenues for you.
In work situations, the employees that have a higher social IQ (intelligence quotient) have better chances to get promoted.
When at work, you have to learn how to delegate tasks to your colleagues.
Make sure that you have ample time to focus on your own personal duties.
At work, you should have knowledge of the promotion process.
This helps you understand what kind of things to focus on to improve your chances of promotion and thus salary increments and a fast track to reaching millionaire status.
4. Create multiple streams of income.
Every millionaire out there has a well-established earning system that generates income from several sources.
The eight streams of income include salary income, capital gains income from investments, dividend income, rental income, residual income, profit income, interest income and royalty income.
Most millionaires have all of these income streams.
Therefore, as you work your way up to millionaire status, you must make sure that you earn income from at least 5 income streams.
This helps to enlarge your earnings and make you get closer to millionaire status.
You should keep in mind that the more income streams you create, the wealthier you get.
This is because most of these income streams are generated from actual investments.
This means that you are getting richer because you are storing your money in assets and getting paid money for it.
For example, when you want to start getting rental income, you have to put some money into buying an asset that can be rented out for cash.
These assets include physical property like land and warehouses, apartments and others.
The assets can also be in digital form for example stocks, art amongst others.
Therefore, when you buy the assets, you are storing your money while creating an additional income stream.
5. Investing early
Most of these millionaires made their money by investing their cash early.
If you love investing or looking at the Forbes’ richest list, then the name Warren Buffett should ring a bell.
To date, he is the richest investor in the world. He has managed to grow his company’s A share stock from just under $20 to over $300,000 per share.
The oracle of Omaha started investing at the age of 14 and he now owns one of the biggest companies in the world known as Berkshire Hathaway.
Even before the age of 14, he started learning about the work necessary to make it in the financial market and the basics of how they operate.
Over the course of 70 years, he has been able to turn his initial investment into over $100.5 billion disregarding the amount of money he has donated throughout his life.
6. Investing in yourself.
Most millionaires got rich doing something. When you try to conduct your own research, you will see that a very significant portion of millionaires got rich after they perfected a certain trade.
For example, the richest man in the world at the moment taught himself how to create cheaper space shuttles with the same specifications as others.
Elon Musk did not brainstorm such an idea out of thin air.
He bought all the books he could find about building shuttles and he taught himself everything.
Another example is Warren Buffett. All investors need money to execute their strategies.
This means that they have to mingle with other people to get their money.
Since Warren Buffett was not good in social interactions, he decided to pay for a course that taught him how to properly interact with other people.
This made it easier to for him to address people and get funds from his investors.
7. Manage your time well
All millionaires have tight schedules that they work around to stay on top of their game.
If you have a role model, then you know that a routine is important in determining the importance of how your day turns out.
With a well-designed routine, you can allocate your time to only the activities that are either making you richer or better at what you do.
You should avoid wasting your time doing unproductive work as it will drain you of energy and leave you tired without any additional value to yourself.
8. Getting rid of debt especially high interest debt.
Debts are being sold to you like cold water on a sunny day.
A lot of people are not in position to pay for their needs so they have to get debts to cater for them. The most common examples of debts are student loans, business loans and credit cards.
With student loans, you are given the opportunity to learn without paying any tuition fees provided you carry the cost of the loan and start paying for it when you start working.
Student’s loans must be your last option for financing your education.
The most basic choices should be sponsorships and scholarships.
That way, you will not be blindsided by the fact that you have to pay a loan even before you can start implementing your financial plan.
With business loans, you can get either capital or cash. Cash can be used to meet the daily expenditure of the business including meeting creditors’ deadlines.
Capital debt can be used to finance the growth expenditure of the business.
Business debt can be useful to you if you have no other financing options.
You should keep in mind that interest payments make these kinds of loans ineffective to you.
This is because you may end up failing to pay for one loan and you may end up taking another loan to cover the current loan.
The most avoidable type of loan is in the form of credit cards. Since banks want to make interest money, they will make you think you earn by maxing out the credit cards.
The best financial training for a novice is to try and stay within the limits of the credit card.
If you do not have the patience to control your spending, I suggest that you forget about using credit cards for anything.
The paradox may end with you paying exorbitant interest fees for money that you could possibly do without.
9. Avoid lifestyle inflation
This mainly affects you as soon as you get some money in your account.
It is almost unbelievable how quickly we change lifestyles with small increments in your earnings. Lifestyle inflation has affected most of us with or without your knowledge.
If you are wondering how, then ask yourself these questions?
- Have you ever felt like you can afford better than you already are?
- Have you ever changed meal plans, or timely subscriptions due to an increase in salary?
- Has your spending increased with an increment in your salary?
If your answer is “yes” to all of these questions, then you have an issue with inflating your lifestyle. Even with bonuses and salary increments, you do not have to spend this money just because you can.
Make sure that you save as much as you can so you can avoid lifestyle inflation.
The trick is to save as much money as possible as needed. You have to ensure that any spike in your spending is commensurate to your life.
10. Make a budget
As a low income earner, you must create a budget that fits your earnings.
The budget should be designed in a way that you prioritize the essentials for example food and utilities.
Then you can add other necessary items that you need for your life to move on smoothly.
Budgeting helps you to keep a record of how much money you spend in a specific period of time.
It also helps keep your overall spending in check so that you can build up an emergency fund. Budgeting can also help you prevent the negative effects of unnecessary borrowing.
Making a comprehensive budget can be hard since you have to incorporate taxes, interest payments and many other small and often confusing expenses.
The good thing is that you will find a lot of tools that help you come up with a budget to fit your goals.
With such tools, you can design a saving plan to suit your monthly expenditure. Keep in mind that budgets are hard to make let alone follow.
We always struggle to stay in line because we want to spend like royalty.
11. Create an emergency fund.
This is another important aspect for millionaires. It comes in handy for those looking to become entrepreneurs.
Whenever you start a business, you might find it a bit challenging to make profits in the first few months.
This is attributable to the amount of money you spend on capital expenditures on your business.
As you start your entrepreneurship journey, you have to make sure that you have an emergency fund to support you in times of hardships.
This makes it just a little bit easier for you to practice perseverance.
12. Do not look for quick fixes
Get rich schemes are ruining entrepreneurship for a lot of young people.
This is because unless you win the lottery, there is no way for you to get a lot of money in a short period without facing a substantial risk.
This makes it hard for people to make money using such schemes.
A lot of fraudsters have robbed people online.
You have to remember that even when you make money in this fashion, it is a bit hard to keep it since you think luck can be on your side once again.
Besides, I do not know of anyone rich that made their money in a short time and has managed to maintain a presence in the big leagues.
Examples of famous millionaires that came from nothing
Since you have to be inspired, I am only going to include names of people that feature in the Forbes’ richest list.
- Elon Musk
- Larry Page
- Mark Zuckerberg
- Bill Gates
- Charlie Munger
- Mark Cuban
- Richard Branson
- Howard Shultz
- Oprah Winfrey
- Sergey Brin
- Paul Allen
Conclusion: How to Become A Self Made Millionaire With No Money
The conditions are set for everyone seeking to make money and join the big leagues.
This advice was collected from a ton of interviews by rich famous people like Warren Buffett, Elon Musk and Mark Zuckerberg.
Basically, everyone that I mentioned above has some kind of input in this article.
Make sure you stick to these habits and you have a proper chance of becoming a millionaire someday.