Automated Savings and Starting a Business
Set up automated savings
This is an easy way to trick yourself into saving money. Have as much
money as you can spare go directly into your savings account from your
paycheck before you get a chance to spend it. Or, have it go directly
to your 401(k) or other retirement account so you don't even have pay
taxes on it (at least, not until you withdraw it).
When you get a raise, rather using that money to upgrade your cable service, invest it. If you really need more money to live, try taking out just a portion of your raise to invest.
Revisit your goals regularly
Don't lose site of your goals. If you have to, tape an index card to your refrigerator
that spells your goals out in black and white. It's the same principle
as putting pictures of skinny people on your fridge to keep yourself
from snacking. When you're regularly reminded of something you want,
you're more likely to get it.
Start a business
Are you an entrepreneur? Are you willing to put in the time and effort
to build your own business? More importantly, do you have a great idea
for a business? The majority of self-made millionaires are
self-employed or business owners who had a great idea and the skill to
bring that idea to life.
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Take the Ferret Guys, for example. In 1994, Joe Palko and Scott Sanfilippo, both ferret owners, realized that few pet stores carried food and toys for ferrets. So they launched TheFerretStore.com, an online retailer that quickly took off. They started several more pet-related online stores as well as a Web design firm called Solid Cactus, and last year they hauled in $7 million in sales.
Often the secret is to find the unfilled niche just as the Ferret Guys did. Another very important factor when starting a business is to start a business doing something you love to do. After all, you will be spending a lot of time with it for at least several years. Obviously, the Ferret Guys were already ferret fans since they both had pet ferrets, so their venture was probably a fun and fulfilling one for them.
According to Dr. Srully Blotnick, a psychologist and consultant who spent over 20 years studying how people became rich, most millionaires didn't make their money in real estate or the stock market. They made their money working in a field they had great interest in, which meant they enjoyed their work and became passionate about it. Later, after they had made their money, they invested in it (along with real estate and the stock market).
If you're not sure what kind of business you might want to start, do some research, network, ask questions and take notes. Look for needs that aren't being fulfilled. You may even design a product to meet a need, patent it and then license it to someone else to manufacture and sell. Often the most important thing is the idea.
But, it doesn't always have to be a new product or even a new business. You might find a new way to use an old product, like using materials that are typically discarded in a new way. Or, maybe you've noticed a location that could really use a certain type of store, but for the closest one is mile away. Maybe there's an opportunity for a franchise. Better yet, you could come up with the new successful business and become the franchisor.
In the next section, we'll learn about some successful millionaires.
