This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
The first step to becoming a millionaire
Live below your means. Never spend more than you earn.
Cut the frivolous purchases. These types of purchases are unplanned and happen whenever you go to the store and see something that was not in your mind or on your list but is enticing.
Avoid large and unnecessary purchases. Before you make a large purchase, think about it for two to seven days to ensure you’re making a financially prudent decision.
Implement the buy five rule. If you can’t buy five, then don’t buy it!
Don’t try to keep up with your friends who are buying new cars, clothes, and houses. Focus on living within your means and only making purchases you can afford.
Continuously raise your income, but keep your expenses low. Ask for raises, add more income streams, learn new skills, and monetize everything.
Maintain multiple sources of income. Never rely on one source of income; one source of income is a trap. Always have multiple backups.
Keep your investment portfolio diversified. Don’t invest in one thing; always keep your options varied (e.g., stocks, private equity, REITs, real estate, crypto, etc.).
Live with other people to keep your housing costs low. Roommates offer you companionship and also a lower cost of living. If you enjoy living with people, take advantage of the cheap housing benefits that come along with it.
Educate yourself on personal finance to implement intelligent strategies that will work for you and your goals. Read books, listen to podcasts, attend conferences, seek mentors, and surround yourself with financially savvy people.
Stick to a budget. When you budget, you know what’s coming in and going out. Create 100% transparency in your finances at all times.
Keep the goal in front of you whenever distractions confront you because they most certainly will.
Focus on long-term instead of short-term satisfaction.
Stop spending the majority of your time around broke people. Elevate your relationships, your mind, and your money.
Stay far away from materialism and overconsumption. As you accumulate more money, you may find yourself distracted by buying more things than you want and need. The worst type of consumption is buying things you never wanted but bought because society expects you to buy them.
Learn from people who have already done it. How did they save 100k, how long did it take them, and what advice can they offer? This ties into #11 in regards to finding a mentor.
Learn to implement self-discipline. When it comes to saving a large sum of money, there will be many distractions that come along that entice you to spend. Don’t give in. Continue saving and focusing on your target.
Do the opposite of what most people do financially. 80% of people are in debt. 85% of people have a car payment. Most students graduate with student loans. You will do well if you live opposite of most people.
If you can’t control yourself, avoid credit cards. Credit cards will keep you in a lifetime of debt if you don’t set clear boundaries, pay off your monthly balances, and spend significantly less than your limit.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.