Finances

8 Things That Will Increase Your Chances of Becoming a Millionaire

By THE LADY LOVES LIVING
Updated:
woman relaxing in an infinity pool

Becoming a millionaire isn’t just about luck or inheritance, though that certainly helps. Reaching millionaire status is the result of strategic choices, disciplined habits, and a relentless pursuit of personal growth. Whether you’re starting your career, managing a business, or navigating investments, the path to achieving significant financial milestones is paved with actionable steps and a commitment to continuous learning.

The road to becoming a millionaire usually isn’t an overtly exciting one. You’ll take small, seemingly insignificant actions that will add up to massive financial stability and security. Often the road is harder at the beginning and can feel like Sisyphus rolling a boulder uphill. But unlike Sisyphus, you eventually won’t feel like you’re pushing that rock.

From continually increasing your financial literacy to seemingly mundane life choices, these are practical strategies and things to consider that can increase your chances of reaching millionaire status. Each point is meant to empower you to make the best, most informed decisions on your journey toward financial independence.

woman with curly hair in a cap and gown

1. Education

As much as going to college can initially hurt your ability to save money, people with bachelor’s degrees earn significantly more money in their lifetimes compared to those with only a high school diploma. Getting more advanced degrees like a master’s degree or PhD can lead to even higher earning potential than just a bachelor’s degree.

Though the price of a degree in America is skyrocketing, your earning potential is much higher with a degree than without one. Especially if you are planning to enter the corporate workforce. Earning more means you will be able to save and invest more which is key to becoming a millionaire.

wedding photo with sunset in the background

2. Marital Status

Married people tend to accumulate more wealth and have a higher net worth than unmarried people. Wealth accumulation is a lot easier when you aren’t trying to do it alone for a few reasons:

Shared Financial Resources

Married couples often pool their financial resources, which can lead to more efficient management and greater savings. Combining incomes allows for larger investments, such as buying a home or starting a business, which can contribute significantly to long-term wealth accumulation.

Dual Income Advantage

Having two earners in a household generally means more money coming in, which can provide greater financial stability and security. This dual income advantage not only increases disposable income but also provides a buffer against economic downturns or unexpected expenses.

Economies of Scale

Living together can reduce living costs per person. Shared expenses like housing, utilities, groceries, and transportation can be split between partners, allowing each person to save more compared to if they were living alone.

Tax Benefits

Married couples often benefit from tax advantages, such as filing jointly and potentially accessing lower tax brackets or deductions that are not available to unmarried people. These savings can further contribute to overall financial well-being.

Emotional and Social Support

Marriage can provide emotional support and stability, which can positively impact career success and financial decision-making. Emotional well-being often correlates with better job performance and more opportunities for advancement.

Long-term Planning and Commitment

Married couples tend to engage in more long-term financial planning together, such as retirement savings, investment strategies, and estate planning. This forward-thinking approach can lead to better financial outcomes over time.

Just like being married can positively affect wealth accumulation, divorce can have significant negative implications for wealth accumulation and financial stability.

One of the most immediate financial impacts of divorce is the division of assets accumulated during the marriage. In many jurisdictions, assets acquired during the marriage are considered marital property and subject to equitable distribution. This means that savings, investments, real estate, retirement accounts, and other assets may be split between the spouses, potentially reducing each person’s wealth.

While these factors contribute to the observed wealth gap between married and unmarried people, it’s important to recognize that personal circumstances can vary widely. Marriage itself is not a guarantee of financial success, and people can achieve financial security and wealth in many ways, regardless of marital status.

small family

3. Having Fewer Children

If you have talked to anyone with children recently you’ve probably heard them lament about how expensive they are. That doesn’t mean that the children aren’t wanted or loved, but raising children can be a significant financial burden especially if you have multiple.

One of the most immediate impacts of having fewer children is reduced expenses related to child-rearing. This includes costs such as education, healthcare, clothing, food, extracurricular activities, and needing a larger house. With fewer children, parents can allocate more of their income towards savings, investments, and personal enrichment.

With fewer financial obligations towards children, parents may have more disposable income available for savings and investments. This increased savings capacity allows for building wealth through contributions to retirement accounts, investment portfolios, and other long-term financial instruments.

If you want to have children this shouldn’t deter you from doing that, nor does it mean you won’t become a millionaire if you have them. It’s important to consider how they could impact you financially so you plan for it. Having a plan for how you will afford to have children and continue to make sure they aren’t your retirement care plan will ensure that you alleviate some of the stress related to parenthood. It’s important to make sure you’re financially prepared to have kids knowing it will slow your progress toward millionaire status.

woman in STEM

4. Career Choices

Certain professions tend to offer higher salaries and bonuses, such as those in technology, finance, law, and medicine. Choosing a high-income profession increases your chances of becoming a millionaire simply because you’re earning more. You’ll have to make sure you’re not spending just as much as you’re earning, but earning more generally means you’ll have more to save.

You don’t have to have a high-income career to become a millionaire. You should choose a career you’ll enjoy since you’ll be working in it for years. However, you should consider the earning potential on your chosen path.

cash on a laptop in front of stock market visual

5. Saving and Investing

Having a high savings rate will better your chances of becoming a millionaire. That’s why education, career choices, marital status, and the number of children you have are important since they directly impact your earning potential. Millionaires typically save a significant portion of their income which is easier to do when you have more money at your disposal.

In addition to saving, most millionaires reach that status by consistent and wise investing, especially in the stock market, real estate, or other appreciating assets. Over time, the compounding effect of investment returns accelerates wealth accumulation — like a snowball rolling downhill — making the road to becoming a millionaire easier once you’ve built enough momentum.

woman tracking her budget

6. Frugality and Budgeting

Many millionaires are frugal, regardless of their income level. This doesn’t mean that all millionaires are cheap, but rather that they are disciplined in managing their finances. Contrary to popular stereotypes of lavish spending, millionaires often prioritize budgeting as a cornerstone of their financial strategy. By meticulously tracking expenses and setting clear financial goals, they ensure that every dollar spent aligns with their long-term objectives.

Millionaires often avoid unnecessary debt (usually the kind that won’t help build wealth) which reduces financial stress and allows for greater allocation of resources towards savings and investments. This means that they make conscious spending decisions, where purchases are evaluated for their value and utility rather than succumbing to impulse or societal pressures to display wealth, promoting cost-effectiveness in both personal and professional financial decisions.

child picking up coins to put into a savings jar

7. Starting Early

There’s a popular saying among investment circles; time in the market is better than timing the market. Getting an early start toward your goal of becoming a millionaire leads to more years of saving and investing, which significantly impacts wealth accumulation due to the power of compound interest.

The longer your money has to accrue compound interest or return on investment, the more money you’re likely to have. The earlier you start, the better.

woman in athletic clothes making a healthy meal

8. Health

You’ve probably heard this many times but that doesn’t make it any less true: Heath is wealth. Good health contributes to building wealth by reducing medical expenses and increasing the ability to work longer and more effectively.

Serious health issues can lead to significant financial setbacks due to medical bills, reduced earning capacity, or disability so learning to live a healthy lifestyle is key.

Find the kind of physical activity that you’ll stick with. Try a bunch of different ones. Make sure you’re stretching and working on your mobility to increase your longevity. Take breaks from work and vacations. Your mental health will thank you for it. And most important, don’t let the grindset/you can sleep when you’re dead people make you think you have to lose sleep to get rich. Sleep is important to maintaining good health so try to get 7-9 hours every night.

The journey to becoming a millionaire is a testament to the power of persistence and strategic decision-making. It’s not just about luck or a windfall; rather, it’s about the daily choices and habits that accumulate over time. While the path may start with small, often unnoticed steps, these actions build momentum toward financial stability and success. Embracing financial literacy, making thoughtful investments, and cultivating disciplined habits are all key parts of this journey. Remember, each decision is an opportunity to empower yourself and steer your life toward lasting financial independence. So, whether you’re beginning your career, running a business, or investing wisely, stay committed to continuous learning and growth.

lovely newsletter

Add a Little LOVELY to Your Inbox

Subscribe to get exclusive updates, my beauty & style favorites, and curated round-ups of the things that help me make my life lovely.