- Personal Finance»
- Understanding Finance
What is a Millionaire?
Definition of Millionaire
Many people want to become millionaires. Millionaire Tips is all about giving advice that will help you achieve that goal. Let's first find out the definition of millionaire.
Merriam-Webster dictionary defines a millionaire as follows:
millionaire: a person whose wealth is estimated at a million or more (as of dollars or pounds)
When you look at the definition, it is easy to see that the term is not very precise. The person's estimated wealth will change day to day as the stock market prices change and the demand for their other investments go up and down. In addition, a person who has an estimated worth of a million dollars has a different amount of money than the person who has an estimated worth of a million pounds. This will vary day to day as the currency fluctuates.
It's really okay though, because an approximate number is all we need. Becoming a millionaire is about having a nest egg that makes you secure in your life decisions, and offers you the freedom to do things and take chances that poor people cannot. You can afford to take care of your needs and your reasonable wants, and have enough money to sock away for the future
We should distinguish the millionaires from the billionaires. The billionaires can buy a fleet of private planes and jets and yachts, and have money to spare. Many people admire their lifestyle and dream about having the kind of money. This hub is not about that. Sure it is possible that you could become a billionaire, though not probable. If that is your goal, follow me, and my hubs will provide advice on getting your first million. A millionaire cannot live a billionaire’s lifestyle without going broke. A million dollars is a lot of money, but it can slip through your fingers quickly.
Kinds of Millionaires
There are two different kinds of millionaires. The first kind, the one we mostly hear about, received their money quickly, whether they inherited their wealth, or won the lottery, robbed a bank. These people are not interested in my slow and steady way to become richer day by day. In fact, most of these people are likely to lose their money quickly. They will quit their jobs, have lots of parties, give a great deal of money away, and buy lots of stuff, and eventually they will run out of money. The other kind is the people who earn their million. They took the steps to become millionaires day by day, and they work to preserve their wealth.
How to Become a Millionaire
The people who are reading this hub are the ones who know that becoming rich is a three step process:
- Earn more money,
- Spend less money, and
- Invest the difference wisely.
You are willing to sacrifice a little bit today, in order to accomplish their goal of becoming a millionaire. You have made the decision to become a millionaire, and are willing to take a step in that direction each and every single day. Whether you are currently poor, or well on your way to your first million, you are willing to find ways that will help you achieve your goal faster.
By now, most of us have heard about the book, The Millionaire Next Door. Most millionaires do not look like millionaires. They don't live in fancy houses or drive fancy cars. They have money, and will spend it on the things that matter to them, but they are not interested in showing off their wealth to their neighbors. They want to preserve their wealth. They worked hard for their money, and are careful about spending it on important things instead of letting it fritter away.
Millionaire Tips will provide the guidance to increase revenue, reduce expenses, and invest your savings to help you become a millionaire. It does not mean you will be focusing solely on money. You will be able to continue pursue your hobbies such as quilting or genealogy, and activities such as movie watching. You will enjoy your life as it is currently, secure in the knowledge that you are also safeguarding your future.