How to become a millionaire in 7 easy steps

How to become a millionaire in 7 easy steps


The No. 1 reason people don't achieve financial independence, is they don't have a written financial plan. So, that is our No. 1 rule for becoming wealthy.
and below are 7 easy steps to become millionaire,

1. Develop a written financial plan
Saying you want to be wealthy isn't good enough. You need to come up with a workable plan and put it on paper.
"The written plan forces you to do something," Welch says. "Calculate what you need to earn and how to invest. The plan isn't just the goal, it's the whole thing -- the dream, the goals, the options. The options are scenario planning -- all the ways you can accomplish that goal -- open a Roth IRA, contribute to a 401(k).

2. Save, save, save

The end result of your financial plan should be systematic investment. Get in the habit of saving money. Build an emergency fund in a money market account so you don't have to raid the rest of your savings and investments when there's an unexpected major expense. Make it a point to save at least half of every pay raise.

3. Live below your means
Don't be a walking billboard for overpriced designer clothes, shoes, sunglasses or jewelry. Don't allow your house or car payments to be budget-busters.

4. Lay off the credit
Some people say that if you can eat it or wear it, don't put it on your credit card. That's good advice, but take it further. Try not putting anything on your cards that you can't pay off in two or three months. You need only one or two credit cards. If you have a fistful, pay them off. Remember, debt holds you back.
"It reduces cash flow for other things, including investing," says Welch. "If no one gave you money to borrow, you'd be better off and the economy would be smaller. If they only let you borrow 75 percent of the value of your home, you'd be a heck of a lot better off."

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 the 1996 book The Millionaire Next Door: The Surprising Secrets of America's Wealthy, the authors state that two-thirds of the millionaires are self-employed, with 75 percent of them entrepreneurs, and the remainder professionals such as doctors and accountants.
"The idea that most people inherit wealth is outdated. A lot is built through businesses. Business creation is the No. 1 driver of wealth in this country," says Zultowski.

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 working relationship with someone who has expertise in this complicated area.
"About 76 percent of those surveyed are actively involved in the day-to-day management of their financial affairs," notes Zultowski. "They get involved; they learn about finances, they're not day traders. They work with advisers but ultimately make their own decisions."
If you can't afford to have a financial planner manage your money, many of them will review your portfolio and make recommendations for a one-time fee.

volcano eruption

REYKJAVIK (Reuters) – A small amount of lava is now flowing from the Icelandic volcano that disrupted air traffic across Europe last week, and the ash production that caused the problems has diminished.

"There is a very little lava and ash production," Johannes Tomasson at Iceland's Department of Civil Protection and Emergency Management said on Sunday.

Huge ash clouds spewing from the volcano last week led to European air traffic being grounded for days, causing havoc for airlines and hardships for many businesses.

Flowing lava probably means less ash from now on because the ash was produced by lava melting through the Eyjafjallajokull glacier on top of the volcano, Tomasson said.

"They (scientists) are expecting ash to reduce, or at least not increase," he said, adding there was still seismic activity under the glacier.

He said it was very hard to predict what would happen next at the volcano, located about 120 km (75 miles) southeast of the capital Reykjavik, however.

A scientist who flew over the volcano on Saturday estimated about 10-20 cubic meters of lava per second was coming out of the volcano's crater, state radio reported.

Magnus Tumi Gudmundsson of the University of Iceland said although the lava was not yet visible, signs of the flow were apparent.

"The northern crater is active with sporadic explosions when the lava comes in contact with ice," he said.

Air traffic got back to normal across almost all of Europe on Friday, but domestic flights in Iceland were grounded on Saturday due to ash over the capital. The international airport in Keflavik has been closed since Friday morning.

While the eruption appears to be becoming less of a threat to air traffic, scientists have expressed concern it could set off the nearby Katla volcano, which is much larger.

Experts say history shows that an eruption at Katla often follows one under the Eyjafjallajokull glacier.

Katla last blew in 1918, flooding huge areas with the melting water from glaciers.

(Reporting by Omar Valdimarsson, Editing by Sonya Hepinstall)