Want To Be A Millionaire? Here's Where To Start, Says Parents

Let's talk about money. They say that whatever you set you mind into, you will receive it in your hands. To achieve your first million, you must really, really want it. If you desire it badly enough and for good reasons, you can achieve it.

They say the first million is the hardest, but the next ones will be easier. How true is this? I first desired to be a millionaire when I saw in a particular group of savers and investors that some parents invest as much as one million pesos or more. If they can allocate such savings, they must have ample funds for their needs. As a mom, can I do it too?

Parents share how they got their first million pesos

We asked parents at the Smart Parenting Village Facebook group when and how they got their first million. Some shared that they achieved it after working abroad, others through retirement packages, and by investing in properties.

One mom shared how she earned her first million a couple of years ago. She also confessed that the next millions were much easier to achieve, "[My husband and I] just liked having savings. We promised ourselves that we would never have to rely on others when it comes to meeting our family's needs, especially in times of emergency."

Another mom shared, "We never had one million in cash because every time we reach six-digit savings, we invest. We follow this financial rule: income - tithes & offerings + savings = expenses."

She shared that they have a financial template that computes all their monthly expenses and their planned expenses, like vacations, birthdays, and tuition, "My husband and I discuss common goals, such as investments like our properties in Taguig and Bataan." Her husband worked abroad for 10 years, and their properties became another source of income for them, making saving even easier.

The fact that you are reading this means you want to be a millionaire too. So, here are some tips on how to make your first million:

Tips on how to make your first million pesos

1. Set a specific goal and target.

Increase your desire to achieve the goal of having a million pesos. Set a specific year and list your action plans on how you can achieve it. Track your income and expenses to know how much money you need to save. Create a timeline for when you plan to have it and divide it by the number of months.

For example, to save Php 1 million in five years, you must save at least Php 16,667 per month.

2. Create multiple income streams.

If you are working as an employee, one way to do this is to upskill for a chance at better pay. Always look for new learning activities or workshops that will help you improve your skills and value. You can then ask your employer for better pay by demonstrating your value at work. 

If you're open to taking graduate studies, check out how parents juggled parenthood and studies in this article.

You can also start a side hustle or a business. It doesn't always require significant capital. Capitalize on the resources you have and offer products on a pre-order basis. Read the inspiring stories of mompreneurs here.

If you have a hobby or skill you are passionate about, you can start by offering services to others who might need them. Confidence in your potential can also help you build networks in the future. Here's how a mom turned her passion in arts into a source of income.

3. Apply the 50/30/20 rule.

Allocate your income by applying the 50/30/20 rule: 50% of your income goes to needs, 30% to wants, and 20% to savings and investments. 

4. Invest wisely and stay consistent.

Diversify your investments. As other people say, don’t put all your eggs in one basket. For instance, if you have a small business, offer multiple products to see which one works best. If you have a savings account, don’t save for the sake of saving. Save to invest—put some in Pag-IBIG MP2 savings, some in the stock market, and in other areas where your money will grow.

5. Develop a wealth-building mindset.

Think about inflation and the increasing prices. Look for new opportunities to leverage your income. It starts with mindset: take courses, read books, and make consistent efforts to improve your personal finance knowledge.

6. Build relationships with like-minded people.

Surround yourself with people who have an abundance mindset. The people you associate with can significantly influence your financial success.

Why making your subsequent millions will be easier after your first million

In the book, The Psychology of Money, Morgan Housel explained why compounding works. Compounding is the process of earning interest on interest. "Compounding works best when you can give a plan years or decades to grow. This is true for not only savings but also careers and relationships. Endurance is key," Housel said. This is the reason why making your first million is the hardest, but subsequent millions are easier due to compounding interest. Not only does money compound, but so do our time, effort, talent, network, and other non-tangible assets that add to our net worth.

As a Smart Parenting Village millionaire mom puts it, "Begin with the end in mind. Have a clear vision and goal for where you put your money first. Be a good steward of God's financial gifts and live within your means while creating a template to track your financial plans and status."

She also emphasized the importance of having common goals with your spouse to make them more achievable.

If it is possible for some, it is also possible for you. Again, you have the power to achieve whatever you set your mind to.

Read this inspiring story of how a mom successfully paid for her Php 1.3M credit card debt here.