What is the definition of being classed as a millionaire?
A millionaire is someone whose net worth is equal to or more than one million pounds. Depending on the currency, a certain level of prestige is associated with being a millionaire.
Anyone with any income can become a millionaire. Bigger paychecks will increase the odds that you reach the status of having a million-pound net worth.
Here are some ways to become a millionaire:
- Develop Your Career and Expertise.
- Save Diligently, and Invest for Growth.
- Make Smart Investments.
- Create a Financial Plan.
- Work smarter and harder than your competition.
- Learn from your mistakes and move on.
- Learn to budget
- Win ‘Who Wants to Be a Millionaire?’
Being a millionaire does not really matter, does it, but it brings up an interesting discussion about wealth.
We think it is a good idea for our clients to regularly draw up a personal balance sheet, setting out all of their assets and liabilities and the associated servicing costs and interest.
You can then see what percentage of your wealth is held in various categories, property, business, cash, and investments. You can then compare the interest rates on what you are earning with interest on any liabilities.
When clients do this, it achieves a couple of things.
- They see the amount that debt is costing them, and this encourages them to use assets to clear their debt.
- They can see if they have concentrated all efforts and resources in one area. Many of our clients are business owners, they normally see that the biggest share of their wealth is in their business. The last 18 months have shown that this can be extremely risky if you happen to suffer an issue because of things outside of your control.
So we are back to the question of what qualifies as a millionaire. If your entire wealth was £1m and it is all held in cash, then you are a Millionaire, but if you don’t spread it around to different investments, you might find over time you end up not being one anymore.
At Seagrave French, we offer many services to help you get to where you want to be financially and for your business. We will also help you achieve your business and personal goals.