Who doesn’t want to be a millionaire?! Everyone in this world has this desire to live in a palatial house with sprawling gardens, own a fleet of expensive cars and a private jet to take them on exotic holidays. Imagine the thrill!

But why just imagine when you can actually live it? Many of the richest people in the world are self-made millionaires who have earned their way to the top through sheer hard work and clever financial planning.

So what does it take to become a millionaire? Here are the top 5 millionaire secrets from the masters themselves:

1. Spend modestly: Only earning and saving loads of money won’t make you a millionaire. It is more important to actually watch how you spend what you earn. If you observe carefully, some of the richest people are surprisingly plain in their lifestyles. They wear common clothes, drive modest cars, enjoy popular fast food and spend little on themselves. The millions they earn help them earn even more money which they then use for the betterment of others’ lives. Remember - ‘Simple living, high thinking’.

2. Invest where you spend: A well-known secret that hardly anyone follows. Just like “charity begins at home”, so does consumer survey! A simple trick to know what product or service has potential, just see what you use in your day-to-day life. If it’s something you absolutely swear by and can’t do without, it may be worth investing in. After all, anything with such loyal customers and quality consciousness should be a sound investment choice.

3. Save & Invest early & regularly: Remember using piggy banks as a kid or saving a part of your gift money for later? Those saving habits were meant to be continued through life.
   But just keeping money aside won’t make it multiply. For that you need to invest. The earlier you start, the more time your money has to grow, and the faster you will realise your dream of becoming a millionaire. Being regular and consistent in investing – be it in equities, mutual funds, or even traditional investment instruments – makes a big difference in the long term. An easy way to inculcate or re-learn this habit is by investing in a SIP. This way, your money keeps working for you round the clock without the stress of having to shell out too much money at once.

4. Rebalance & Reinvest: A practice many investors miss out on is reassessing your financial goals and realigning your portfolio accordingly. It is vital to periodically check your investment status and make sure they are in tandem with your short and long term goals, which keep changing over time. Be honest and realistic about your needs and desires. Take the time to check and rework your asset allocation. At times, it may be necessary to alter your investing style and adopt a new investing strategy to fulfil your evolving financial needs.
   As any millionaire will tell you, rebalancing your portfolio for better returns is a good thing, but it is just the first of two important steps. The second is reinvesting those returns to help them grow further. Keeping your money constantly engaged and moving through diversified investments makes for a stronger portfolio and better financial stability for the future.

5. Passive Funds are good: This one may come as a surprise to those who believe passive funds symbolize lazy money. Well, no; the ‘millionaire club’ is proof. Passive investing is all about patience and discipline. Many millionaires have voiced their support for index funds which rebalance themselves as per the benchmark index. They are affordable, less risky and have been observed to eventually bear fruit if you stay invested for the long term.

Apart from all these investing tips, one thing many self-made millionaires also talk about frequently is the mistakes they have made during their journey to financial superstardom. Every investor makes wrong choices or suffers losses sometimes, and millionaires are no different. What sets them apart from the rest is that despite their failures, they did not give up. Taking lessons from your investing blunders and pushing forward again is the real secret.

Becoming a millionaire is no longer considered an impossibility. If you haven’t started already, now is the time. Take advantage of the advice from those who have achieved it and embark on your million-dollar adventure!

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.