December 2, 2022

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World Finance Reviews

4 Tips From Financial Planners on Becoming a Millionaire

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Recently, I’ve become obsessed with making sure I am doing what I can to grow my my net worth. After many years of making a ton of mistakes with my finances — from not having a retirement fund to saving very little of my paycheck — I’ve vowed to spend my 30s doing things differently. 

Now that I have a solid foundation for how to manage my money on a monthly basis, I want to know about any other steps I can take to make sure that my cash continues to grow in years to come. That’s why I asked three financial planners to share the best tips they have for those trying to reach millionaire status in 10 years or less. 

1. Spend less than you earn 

While it might be easier said than done, sticking to a savings and spending plan can change everything about your finances.

Financial planner Scott Turner recommends starting off by making sure you’re spending less than you’re earning.

“You can’t out-earn poor spending habits. You can earn $1 million a year, but if you spend $1.1 million every year, it doesn’t matter — you’re still broke,” says Turner. “Pick a percent of money to save each paycheck, and try your hardest to be consistent.”

2. Prioritize paying off debt 

If your goal is to grow your net worth and hit the seven-figure mark, financial planner Jay Zigmont said it’s necessary to prioritize paying off your debts.

“Debt is stealing from your future,” said Zigmont. “Pay off all of your consumer debt and eliminate debt as an option in your life.”

3. Maximize tax savings 

As you build your financial portfolio, financial planner Katherine Fox recommends choosing the right accounts to maximize tax savings.

Where you save is just as important as how much you save,” said Fox. “Focus on maxing out all tax-deferred accounts first.”

Tax-deferred accounts include things like an IRA or Roth IRA, 401(k) and 403(b) plans, and health savings accounts (HSA).

“Once you have maxed out contributions to all of these accounts based on your age and income level, then open and start funding a taxable brokerage account with any additional savings,” added Fox. 

4. Believe you can do it 

While it might sound cliche, Turner says it’s essential to make sure you have a strong mindset about growing your money and becoming a millionaire.

“This is the most underrated advice,” said Turner. “People who don’t believe in themselves can end up self-sabotaging their finances.”

He added that people who believe in themselves tend to seek out better advice and mentors, and associate with people who have similar goals, which can help you stick to your financial plans.

“When you believe you can, you are much more likely to make the right decisions to achieve your goal of joining the double comma club,” said Turner.