Investing Money

How to Become a Millionaire from Nothing

When people think of what a millionaire is, they imagine people like Leonardo DiCaprio (movie star), Elon Musk (inventor and investor) or Donald Trump (real estate tycoon). However, most millionaires live a simple, quiet life. The road to riches is not necessarily glamorous or exciting; In fact, becoming a millionaire requires sacrifice and discipline.

Guidelines for How to Become a Millionaire from Nothing

Did you know that there are over 18 million people in the United States who are millionaires? In fact, some of those millionaires probably live in your neighborhood. But, you would never know there’s a millionaire living next door.

There’s a popular belief that millionaires attain their money the easy way: inheritance, winning the lottery or through criminal activity. The truth is that the majority of millionaires discovered how to save a million dollars. In the book, “The Millionaire Next Door”, by Dr. Thomas Stanley and Dr. William Danko, it is revealed that most millionaires surveyed were self-made. These men and women started from scratch, with little to no money, and worked hard at saving and investing.


  • Learn How to Become a Millionaire from Nothing
  • Definition of a Millionaire
  • Learn How to Get Rid of Debt and Live Frugally
  • Learn How to Save and Invest Like Millionaires
  • Develop a Financial Plan and Start Early
  • Develop a Team Who Can Help You Grow Your Wealth

A millionaire is defined as a person who has a net worth of at least one million dollars. Net worth is calculated by subtracting your debt from your assets. For example, if you own a $400,000 home, a stock portfolio of $800,000 and owe $100,000 in debt, then your net worth is $1.1 Million ([$400,000 + $800,000] – $100,000 = $1,100,000).

When people think of what a millionaire is, they imagine people like Leonardo DiCaprio (movie star), Elon Musk (inventor and investor) or Donald Trump (real estate tycoon). However, most millionaires live a simple, quiet life. The road to riches is not necessarily glamorous or exciting; In fact, becoming a millionaire requires sacrifice and discipline.

As a result, we’ve developed some guidelines that will show you how to become a millionaire from nothing. If you are able to follow these guidelines, financial success can be in your future.

Pay Off All Debt

Most millionaires did not get rich by borrowing money. In fact, most people with a significant net worth avoid debt. They know that when you have debt, money is working against you. So it’s important to pay down all your debt prior to taking the next steps. Later, you can make your money work for you, not against.

Create a Consistent Source of Income

Put Aside 10-15% of Your Regular Income for Investment

You don’t have to own your own business or be an entrepreneur to be a millionaire. There are many millionaires who are average people who work 9-5 jobs every day, just like you.

One of the keys to their success is having a consistent source of income. Every month, or each paycheck, they divert 10-15% of their earnings to investment(s). An example would be investing in a 401(k), Investment Retirement Account (IRA) or Real Estate. Year after year, your money will grow and work for you to create wealth.

Begin Saving Money

Saving Money teaches you the habit of not spending and allows you to take advantage of opportunities

Saving money is a lost art. Historically, people’s lives depended on saving money. If a natural disaster struck or just bad luck, people could fall back on the money they saved to stay alive. Today, life is easier. Credit is widely available to most people and we frequently borrow money for cars, houses and purchases on credit cards.

But, saving money is critical to becoming a millionaire for several reasons. First, learning to save money requires that you not spend all your money. Legendary investor, Warren Buffet, famously said that the most important rule of investing is “to not lose money.” So, don’t spend all your money. Instead, save some money. Saving money is an excellent habit to learn.

Second, saving money will give you the confidence to seize opportunities when they arise. When people live paycheck-to-paycheck, they waste their time struggling with bills, instead of focusing on future wealth creation.

Create a Budget

It’s important to keep track of your money. And a budget helps you achieve that objective. Having a balanced budget means spending less of your paycheck. Preferably, you will have a significant amount of money left over to pay off debt and for investing. In short, Everyone should budget, whether you are a large corporation or just one person.

There are many budget options online, including spreadsheets, mobile apps and even printable budgets. Check out our “Best Budget Apps” article for more information and recommendations.

Live below your means

Millionaires do not spend money on unnecessary expenses, such as eating out, new cars and designer clothing

In many cases, frugal living is the cornerstone of success for millionaires. This simply means spending less than you make. A simple monthly budget can assist you in determining whether you are meeting your goal.

Unfortunately, living frugally is not popular in the 21st century. Popular culture dictates what “normal” consumer behavior looks like. And it’s considered normal to go out and spend money at restaurants, on vacations and the like. In addition, it’s “normal” to buy a big house and drive a new car.

The reality for millionaires is that they don’t ascribe to normal behaviors. People with the millionaire mindset only purchase what is needed. They don’t buy new cars or fancy things. As a result, the extra money saved from this frugal behavior is put to work in investments.

Develop a Financial Plan

Once you’ve developed the millionaire mindset, it’s time to create a financial plan. Write down the details of what you want to achieve. If your goal is to own one million dollars in real estate, then plan accordingly. Include details of how you will acquire money to invest and how it will be allocated. In addition, set a timeframe for when you expect to achieve your goal. Your budget will be an addendum to the plan. Finally, review the financial plan frequently and assess your progress.

Develop Good Habits

Good Habits Include Budget Control, Staying the Course, Investment Knowledge and Discipline

Developing millionaire habits is critical on the path to acquiring wealth. Once you’ve established your goals and your financial plan, you must implement good habits. Good habits include:

  • Budget Control
  • Staying the Course
  • Investment Knowledge
  • Millionaire Habits and Discipline

Budget control means that you operate under a balanced budget. Spending is controlled so that remaining cash flow is routed toward smart investments. Good investments are critical for converting thousands of dollars into millions of dollars.

Staying the course requires that you consistently repeat what you are doing, so long as you are successful. If something doesn’t work, it can be changed. But the power of earning from compounding interest is continuously investing money.

Being a good investor requires that you continuously educate yourself. You want to learn as much as possible about your investments. You will accrue knowledge and wisdom on different investment strategies over time.

Learning what has worked for other millionaires is the easiest and most secure strategy for success with money. Millionaires get up early each morning and focus on their goals. Investing money is a priority to them and their focus is on earning and business. Many successful millionaires make time for self-development activities, such as exercise and meditation. And they make these habits part of their daily ritual.

Invest Early

The sooner you can get started on your millionaire journey, the better. Many millionaires credit their success not to windfall earnings, but to incremental investing over long periods. Compounding interest is a powerful tool that can work for you in growing your wealth.

Grow Your Income

Maximize Your Income by Starting a Business or a Side Hustle

Once you’ve mastered budgeting and your debt is settled, you want to maximize the money that you earn. You will find that expenses remain almost the same from year to year, but increasing your income can have significant results. Earning more money means that your contribution to your investments will grow your wealth more rapidly.

There are many ways that you can improve your income. For example, start a small business out of your home. Explore what you like to do in your spare time and determine if you can make money doing it. For example, photography can be a hobby or a business.

Other sources of income can be part time jobs, weekend work, side hustles or even buying and selling things.

Final Thoughts on Becoming a Millionaire

Many Millionaires Operate a Business, Network and Work with a Financial Team

First, many millionaires reach their goal quicker by operating a small business. Owning a small business allows you to control how the company operates and take more profit for the extra labor you put in.

Second, maximize the networking that you do with others. Participate in conferences or just promote contact with like-minded people in your area. The network effect can have positive financial benefits for you. Don’t isolate yourself.

Finally, surround yourself with a financial team. Seek out a respected tax professional, attorney, business coach, etc. Sometimes an ounce of prevention is worth a pound of cure. Staying in good legal standing with state and federal regulations can help you grow. In addition, these professionals can save you money in the long term.

These guidelines are the simplest path on how to become a millionaire from nothing. Want to learn more about saving and investing?

Read More:

Ways to Save Money on a Tight Budget

10 Things to Know Before Starting a Budget

The Best Budget App

How to Make $200 Fast

Best Budget Planner

Home Buying Power

Financial Planning Services

Value Investing Books

Wealth Building Cornerstones

Best Investing Books of All Time

How to Become a Millionaire from Nothing

How Much Savings You Should Have at 40

Why Saving Money is Important

Debt Elimination

Disclaimer: It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.

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