Do you want to want to know how to become wealthy in 5 years? Of course, you do!
Most of us wish to be rich & wealthy, but few ever do. That’s because people don’t think it’s possible.
Believe it or not, you can become a rich millionaire within the next year.
However, becoming wealthy is something you’ll need to work on over a lifetime.
Below, I have collated 11 tips from some of the world’s wealthiest individuals.
Use these 11 millionaire principles to adopt a wealthy mindset & lifestyle within the next five years.
Rich Vs. Wealthy
What’s the difference between being rich and being wealthy? Is there a difference?
A lot of successful millionaires and entrepreneurs believe there is a difference between the two.
Property tycoon and best selling author, Robert Kiyosaki, says “The rich have lots of money, but the wealthy don’t worry about money.”
I agree, having a lot of money in your bank account will label you as rich, but becoming wealthy is so much more.
I hear stories about people winning millions on the lottery. A few years later they are broke.
That’s because they had a lot of money, but they had no clue how to keep it.
Or, what about the self-made millionaire who has no friends and no family? What’s the point of having millions, when you have no one to enjoy it with?
See, being rich can be a fantastic achievement. However, discovering how to become wealthy should be your aim.
What Does Being Wealthy Mean To You?
Everyone will have their own views on what wealth means to them.
As well as having a lot of money, think about what else you’d like to be rich in. Here are a few examples:
- Rich in love – a lot of friends and family members who care about you.
- Good health – be in the best shape possible with high energy levels
- Strong education – be rich in knowledge and a master of an industry
When you combine these things with being rich, you’ll start to determine what real wealth looks like to you.
Also, consider what you want to do with your money.
This could be to share your riches with your friends, family or community.
Or, it could be to travel the world. Perhaps you wish to build your dream house.
Whatever your goal is, understanding why you need money will help you to find wealth that relates to you.
Here is How to Become Wealthy in 5 Years
1. Become Financially Educated
Schools teach you many things. But, they don’t teach you how to become financially free.
If you want to become a wealthy millionaire and stay that way, understanding money is essential.
That’s why so many rappers, singers and sports stars can make millions and still end up broke.
They dedicated their lives to mastering their craft. But, they never learned money.
What you’ll need to learn
If you want to know how to become wealthy in 5 years, you’ll need to learn the following:
- How to read profit and loss statements and other financial forms
- The rules of Tax
- The difference between assets and liabilities
- How to improve your credit
- the difference between good debt and bad debt
How to learn about money?
Fortunately, their many ways you can learn about money. Here are a few of my favorite ways.
There are hundreds of excellent books written by millionaires, billionaires, and successful leaders; which will teach you so much about money.
I recommend starting by reading the following:
- Expert Secrets by Russell Brunson
- Rich Dad, Poor Dad by Robert
- Master The Game by Tony Robbins
- Dave Ramsey’s Complete Guide to Money
If you want to step up your financial education, take online courses.
Over the years, I have invested in quite a few online courses from some of the worlds top businessman and millionaires. Here are my favorites:
- Knowledge Society – join here
- The 67 Steps by Tai Lopez – click here to a watch a free webinar
- Cardone University by Grant Cardone – click here for free access now
2. Find a Wealthy Mentor
Who better to learn from than someone who has what you want?
Your friends can provide you with great support; however, unless they happen to be wealthy millionaires, they won’t always have the right answers or attitude.
A mentor is someone who understands what you’re going through. They will understand your ambition, and they can inspire you.
They can also help you to build a wealth plan and help you stick to it.
How to Find a Mentor
Finding a wealthy mentor can be tricky. But, it’s worth the effort.
First, write a list of people you know that qualify for the position. This should be someone you respect, look up to, and of course, someone you call as wealthy.
Build a strong relationship before asking them to be your mentor.
Remember, a mentor doesn’t have to be such a formal position. Instead of meeting in person, you could arrange a phone call, skype call or even send an email.
Maybe you only need to ask one question. Get straight to the point. Your mentor will respect you for not wasting their time.
3. Take Control of Your Finances
Wealthy people not only understand money, but they also take control of their money too.
Staying on top of your finances is crucial if you want to stand any chance of becoming a wealthy millionaire.
Here are a few things you need to be on top of:
- Earn More Than You Spend: It may sound obvious, but keeping a close eye on the bottom line is something that many buddy entrepreneurs & businesses fail to do. The more profit & cashflow you can create, the easier you’re millionaire mission will be.
- Expenses: To make money, you need to be able to keep the money. And, that means controlling your costs.
- Keeping Your Credit in Check: The wealthier you become, the more you’ll realize how important your credit score is. Keep a close eye on any debts & loans you have to ensure you’re credit stays healthy and available.
- Financial Planning: There’s a good reason why a bank will always ask for financial plans & books, before accepting you for a loan. It paints a picture of how clear your vision is, and how organized you are with money. Whether you need to borrow money from the bank or not, keeping financial reports is just good practice. Give yourself a plan with clear objectives and goals, and then stick to it.
Having organized financial books and accounts will come in handy, should the tax man ever come knocking.
If you need help controlling your finances, seek advice from a qualified financial advisor.
4. Save With the Intent to Invest
Store, store, store and then Invest! That’s the motto.
If you want to become wealthy, you’ll need to make smart investments. To do so, you’ll first need to stack some money first.
To stick to this 5-year timeline, you’ll need to save intensely. However, in this case, we’re not saving for a rainy day, we’re saving to invest.
The key is to then invest your stored money on something that will earn you more money. This could be:
- Invest in Yourself: Courses are a way to improve you’re abilities & skills and can help to increase your income. Investing in your health can also make you more productive, which could lead to increased profits.
- Invest in Your Business: Buying more stock, hiring employees, and investing in marketing can all lead to an increase in money.
- Invest in Assets: Real estate is a popular investment that wealthy millionaires make to improve their cash flow.
- Invest in Stocks & Shares: Another popular option that the wealthy use to keep their money working long-term.
Remember, big savings will result in even bigger earnings.
So, the faster you can save, the quicker you can increase your financial wealth.
Here are a few articles to help you save your money:
- How to Live Frugally & Happy
- How to Drastically Cut Everyday Expenses
- Grocery Shopping on a Budget For One Person
- How to Start Saving Money When You Have None
5. Network With The Rich & Wealthy
Do you have any wealthy friends? Well, it’s time to find some.
Effective networking is something that the wealthy do exceptionally well.
Having a strong network is critical for gaining new customers, clients & business partners. You’ll also learn a lot from your network, which can help to increase your wealth faster.
How to Network?
Finding the right wealthy people to network with is the hard part. Here are a few strategies you can use:
- Join networking groups & clubs
- Reach out to people via LinkedIn
- Go to charity events (wealthy people are usually quite generous)
- Hang out at popular spots; such as hotel lobbies & golf courses.
It’s not what you know; it’s who you know.
If you want to become wealthy in 5 years, the truth is, you’ll need both.
6. Multiple Sources of Income
Most millionaires will have multiple streams of income. This is for two good reasons.
The first being the more money you earn, the richer you will become. But, that’s obvious.
The second reason is all about protecting your cash flow.
You may have heard the phrase “Cashflow is King”
Having steady cash flow will mean you can pay incoming bills, save money and invest money to make more money.
However, what happens when something happens to that steady cash flow?
Suddenly you can’t afford to pay bills, you have no money to invest, and therefore no new money will come in.
That’s why the wealthy focus of creating multiple streams of income. That way, if one flow is cut off, you have other streams still coming in.
In other ways, you’re never relying on one source of income.
How to Create Multiple Sources of Income?
Having multiple streams of income can sound impossible to manage. Fortunately, there is a simple solution – Passive Income.
Passive income is a secret that the rich & wealthy use to create multiple income sources.
Here are a few of the most popular passive income ideas:
- Rental income from real estate
- Dividends from stock & shares investments
- Businesses that are managed by someone else
- Affiliate marketing.
For more ideas for creating new income streams, check out this money making ideas:
- How Do You Make Money From YouTube?
- 11 Trustworthy Survey Sites to Make Extra Money
- 15 Easy Ways to Make an Extra $1000 a Month
- Make Money on Instagram With Clickbank
7. Learn Faster
I’m sure you’ve heard the phrase “Time is Money”
In this case, you’ll need to learn how to make money a lot faster than the average person.
According to CNBC, the average American earns $45,552 per year.
The faster you learn how to increase your income, the quicker you’re wealth will grow.
Here’s how to learn faster:
- Stop Procrastinating – One of the biggest mistakes people make is not taking action. If you want to become wealthy in 5 years, stop procrastinating & start putting these tactics into practice.
- Learn From Your Mistakes – In your attempt at becoming a millionaire, you will occur many mistakes. How quickly you can identify and learn from these mistakes will determine how quickly you’ll be able to find success.
- Learn From Other Peoples Mistakes – Use your mentors, wealthy friends & autobiography books as case studies. Learning from the mistakes of wealthy people can dramatically speed up your wealth.
8. Take Care of Your Health
What’s the point of having money, when you’re not healthy enough to spend it?
Taking care of you’re health & wellbeing will also help you to sustain the high-level of energy required to become a millionaire.
Here are a few things you can do take care of your physical & mental health:
- Join a gym
- Take part in exercise classes i.e., boxing, running, swimming, yoga
- Meditate daily
- Eat a balanced & healthy diet
- Get regular health checks
9. Spread the Wealth
Now, you don’t need a lot of money to make a difference.
However, many wealthy millionaires contribute considerably to charities and good causes.
In 2017, Bill Gates (one of the worlds wealthiest people), donated $4.6 billion worth of Microsoft shares to the Bill and Melinda Gates Foundation. And, he continues to contribute generously to worthy causes around the globe.
Here’s the thing, wealthy people are not greedy. Nor, are they selfish. Most show immense gratitude and appreciation for their fortune.
You have an opportunity to impact the world in a positive way. Use it.
How to Give Back?
There are many reasons for wanting to give back. Everyone reasons will differ.
Find a worthy cause or charity that means something to you.
You can also attend charity events, or even start your own foundation like Bill Gates.
“You can get everything in life you want if you will just help enough other people get what they want” – Zig Ziglar
It’s not just money you should be generous with. Be generous with your time. Be generous with your love and happiness.
Take good care of your customers & employees.
Becoming rich & wealthy is impossible to do alone. So, appreciate those who help you along the way.
Remember, the more you give, the more you will receive. Plus, it always feels good to give back!
10. Enjoy What You Do
What’s the point being rich if you don’t enjoy what you do every day?
Discover what you’re passionate about. Find what you love. And then, find ways to do it.
For example; if you like to travel, create a lifestyle that allows you to move around freely.
“it’s not the destination, it’s the journey”
Becoming a wealthy millionaire will require a lot of focus and sacrifice. However, it’s essential to enjoy the journey too.
Make sure you have fun along the way. Build relationships, make memories and live with little regret.
11. Believe In Yourself
This is most likely the most crucial tip on the list.
Most people will never become rich or wealthy because they don’t believe it’s possible.
If you want to become wealthy in 5 years, you NEED to believe that you can.
People will laugh at you and call you crazy. That’s why self-belief is vital.
“Those who are crazy enough to think they can change the world usually do.”- Steve Jobs
Thank you for reading my post about How to Become Wealthy in 5 Years.