Managing Your Cash Flow

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How to become a millionaire

5 Mins

1. Consider the psychology of money in relation to your life

Step back in time and take a look at your current financial success to date. Were you constantly told as a child that “money is the root of all evil” or “money doesn’t grow on trees?”. You may be surprised at how much your past has influenced your ability to make and keep money. Your starting point is examining your financial blueprint, which can be re-set, like a thermostat.

2. If you want to become rich, you need to start thinking like a rich person

Successful entrepreneurs think differently to their less financially savvy counterparts. They experience fear and worry like anyone else – but they act despite the fear. You only need to look at the likes of Donald Trump or Sir Richard Branson to see how someone with a financial blueprint set to “high” or “very high” is able to make, lose and make even more money back. And the more you have, the more you’re set to lose. 

3. How to change your financial blueprint

Firstly, write down experiences in your past that may have influenced your attitude towards money. If your mother or father was a spender, saver or hoarder, how did this affect you? If your parents argued or separated over money, or if you felt “poor” within your peer group, did you vow to make something of yourself to prove a point? 

“My financial blueprint was set in the shadow of those around me who said that I would never become a successful football player,” says 38-year old UK retired pro footballer, entrepreneur and Brazilian Jiu Jitsu champion, Corey Donoghue. “So when I hit the big time as a pro footballer and budding entrepreneur, I spent.”  

4. Seeing the world with fresh eyes – sound money management

With your financial blueprint aligned, look at your personal and professional outgoings and make a commitment to better manage money – through different bank accounts that are fit for purpose. 

Open one account for necessities (55 per cent), one for “play” (ten per cent), one for charity (five per cent), one for your financial freedom (ten per cent), one for long-term savings for spending (ten per cent) and one for education (ten per cent). You can also have a financial freedom jar (or all six) in your office or home so that you develop strong monetary habits, splitting money on a daily basis, regardless of whether you divide a pound, a tenner or even more.

5. The ultimate goal – financial freedom

No business will grow long term if you don’t have systems that work independently of you being there. The rich make their money work for them rather than the other way around. Monetise what you are good or best at and create a system that adds value and solves other people’s problems. You will never find a successful entrepreneur who hasn’t created value and sought solutions. Continue to educate yourself – learn from those who have been successful: read, attend seminars and trainings that relate to and complement your own business interests. 

If you had told John Lee that he was going to drive a Lamborghini as he washed plates at his parents’ Chinese takeaway, he would have probably laughed (or cried). Ten years later, the 29-year-old social entrepreneur is co-founder of Wealth Dragons, a self-made multi-millionaire and a qualified animator, actor and author. Despite his success and financially free status, he continues to educate himself and strives to improve on what his customers need and want.

T Harv Eker, author of bestseller Secrets of the Millionaire Mind, will be speaking at the National Achievers Congress 2011 this weekend, alongside Sir Richard Branson, Lord Alan Sugar and Anthony Robbins.

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