Welcome to How To Become A Millionaire, Part 2!
5. Make your money work for you
It takes money to make money, but that doesn’t mean you need a lot to invest.
Open an account with a mutual fund company that has no-load funds and low expense ratios. Build a diverse portfolio, and you can reasonably expect to earn 8 percent to 10 percent annually on your investments over the long haul.
6. Start your own business
In their book “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy,” authors Thomas Stanley and William Danko say that two-thirds of millionaires are self-employed, and that entrepreneurs represent the majority of that group. The rest are professionals, such as doctors and accountants.
Entrepreneurs create most of the country’s wealth. Most millionaires in the making — 8 out of 10 — earned or increased their assets on their own, a survey by Fidelity Investments found. That holds true for actual millionaires as well.
7. Get professional advice
A good financial planner can help you fill your portfolio with the right investments and dump the wrong ones. You don’t need to relinquish control, but you do need to form a good relationship with an expert in this complicated area.
According to another Fidelity survey, more than 6 out of 10 millionaire investors use financial advisers to help manage and protect their wealth.
Maybe finding the right adviser could tip the scales toward the seven-figure milestone. If you can’t afford to have a financial planner manage your money, many will review your portfolio and make recommendations for a one-time fee.