Becoming a Millionaire in the UK: 12 Key Steps

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Becoming a millionaire is the dream of the large majority of people around the world and in the UK. Even though it may seem impossible at times, in this guide on how to become a millionaire, UK residents can read about the strategies that will bring them one step closer to that first million.

So, if becoming a millionaire is your dream, too, keep reading to find out how to make that dream come true.

UK Banknotes

What Does It Mean to Be a Millionaire?

The definition of the word ‘millionaire’ is someone who has amassed a wealth of at least one million pounds — cash, property, or investments. Amassing such a sum of money means that a person has achieved complete financial independence and can do as they please. No wonder so many people want to be millionaires.

Everyone wants to know how to make a million pounds, but you need to keep in mind that this requires a lot of dedication and hard work, and in some cases, luck. However, most millionaires, even those that have inherited significant sums, are known for making wise choices when it comes to their finances.

So, to answer the question ‘what does it mean to be a millionaire’ — being a millionaire means managing your finances wisely and making smart choices when it comes to budgeting and investing.

DID YOU KNOW? In 2020, there were 2.49 million ‘dollar millionaires’ in the UK, i.e. people with a fortune of at least one million US dollars.

How to Become a Millionaire UK: The Essential Guide

When considering strategies for becoming a millionaire, remember there is no easy and right way to get that first million. Luckily, there are certain steps you can take to improve your financial situation and slowly start moving towards your goal.
Read the strategies below, start implementing them, and get on the road to becoming a millionaire.

#1 Create a Budget & Stick To It

Budgeting is an essential habit that needs to be adopted by everyone, but especially by those looking to become wealthy. So, if you’re looking into how to become rich by UK standards, the first thing you need to do is create a budget and adhere to it.

Having a budget gives you control over your spending and insight into where you can cut back on expenses. But most importantly, you need to stick to the budget you create; otherwise, you won’t manage to save the amount you need to become a millionaire.

#2 Adopt a Frugal Lifestyle

Even though it may sound counterintuitive, in order to become a millionaire, you need to learn to live below your means. That means you need to spend less than you earn and, more importantly, spend only on necessities. You’ll need to cut back on all non-essential expenses, so you can live a comfortable life once you reach your financial goal.

#3 Automate Your Finances

Possibly the easiest way to become a millionaire is by automating your finances. Finance automation is a great idea because it automates the saving process. So each month, a portion of your income will be automatically sent to a savings or investment account. By opting for finance automation, you are preventing yourself from spending too much and having nothing left to save/invest.

#4 Pay off Debts

Unfortunately, debt is a common problem among the population in this day and age. Debts are detrimental to a person’s overall financial health and are the sole reason some people can’t seem to save any money. So, if you want to know how to get rich in the UK, one of the answers is very simple — pay off your debts.

In order to become debt-free, you need to pay more than your monthly rate, and once you’ve cleared your debts, redirect this amount toward your savings.

#5 Invest

We get to one of the most crucial steps on the road to becoming a millionaire — investing. But, of course, to amass wealth, you need to have a good investment strategy, so it’s always a good idea to turn to a brokerfind out more about how brokers can help you here!

At times, the stock market can seem a complicated place, but if you’re curious about how to become a multi-millionaire, this is your best bet. On the stock market, you can buy shares, stocks, bonds, and more; or, if you’re interested in alternative investments, you can look into cryptocurrency investing or consider buying gold as an investment.

#6 Establish Multiple Income Streams

It isn’t easy to achieve millionaire status on a single income. Although it’s important to have a job you like in a well-paying industry, it’s even more important to have an additional stream of income — more than one, if possible.

Multiple income streams will not only help you achieve financial independence, but they will also allow you to save more and amass more capital. Therefore, you should look into establishing passive income streams or looking for ways to make money online.

#7 Invest in Yourself

When you want to find out how to become a millionaire with no money, the best advice we can give you is to invest in yourself. Take courses, attend workshops, and work on gaining better skills and improving yourself.

New skills and knowledge are bound to pay off, so you’ll definitely see a return on the money you put into bettering yourself.

#8 Start a Business

The entrepreneurial spirit precisely is what made millionaires out of millions of people. Starting a business is risky, but it can be very profitable and help you achieve your goal much faster.

However, before you start a business, make sure that you have a good idea and a well-developed business plan.

#9 Invest in Property

Another course of action you need to keep in mind when looking for answers on how to become rich in the UK is buying property; when you buy property, you invest in your future. With property prices constantly on the rise, you can sell this property for a profit further down the road, or you can always opt for a buy-to-let property and have a steady income from the rent you’ll be collecting. And even if you buy a home for yourself, you will benefit from not having to pay rent every month.

#10 Have a Workplace Pension

When looking to the future, don’t forget about your retirement. Be sure to make regular contributions to your workplace pension; even though employers make contributions towards the pension, it’s important that you make contributions as well. Although this may not be listed as one of the strategies for ‘how to become a millionaire overnight’, it’s a long-term plan and you have something to fall back on when you’re older and possibly not able to earn as much. Plus, the money you add to your pension is tax-free, so that’s one more way to save.

#11 Put Money in an ISA

ISA, or an Individual Savings Account, allows UK citizens to put their money in either a savings or an investment account and be relieved from tax on this amount. Currently, UK residents are allowed to put as much as £20,000 in their ISA per tax year. Although this may not seem as much, if you make regular yearly contributions, you’ll end up with a substantial sum.

#12 Start Now

If you want to uncover the secret to how to become rich in the UK, the most important thing you need to do is immediately start implementing one or more of the strategies listed above. You may think that it’s not the right time yet, or that you can always start later when circumstances are more favourable, but there’s no time like the present. So start right away and reap the benefits later!

DID YOU KNOW? Wealth distribution in the UK is extremely uneven; the wealthiest 10% of individuals hold approximately half of all the wealth in the UK. This wealth is usually held in the form of property and private pensions.

Jobs That Can Make You a Millionaire

One of the universal truths is that you need a well-paying job and a steady source of income in order to amass a certain amount of wealth. Luckily, some jobs on the market allow you to earn substantial sums and can help you become a millionaire. Check out the list of jobs that will speed up the process of becoming a millionaire.

  • Chief executive officer — the salary range for CEOs in the UK is between £50,000 and £250,000.
  • Medical professionals — doctors, physicians, and general practitioners earn well — from £39,500 to £114,000 per year.
  • Judge — being a judge is a responsible calling, and naturally, judges earn a lot — between £91,217 and £267,509.
  • Enterprise Architect — in addition to base pay, EAs get additional compensation, so their total pay is between £53,000 and £113,000.
  • Entrepreneur — want to know how to become a millionaire by 30? Become an entrepreneur. Although it’s risky, it can be the most profitable endeavour.

These are just some professions that pay well in the UK, although many other things can prove profitable over time. So if you’re considering entering a new field, make sure it has earning potential in the long run.

DID YOU KNOW? Naturally, some professions in the UK are paid much less than others. Some of the lowest-paying professions in the UK include playworkers (£14,345), beauticians (£15,405), and bar staff (£15,896).

How to Become a Millionaire Fast?

Most of the strategies listed in this article require time and effort, but some people are on the lookout for quick ways to become millionaires. And although this is more unlikely, it’s not impossible. So below, read how you can get to a million pounds — and get there quickly.

  • Win the lottery — the chances of winning the lottery are slim, but if you get lucky, you can become a millionaire overnight.
  • Get an inheritance — although you don’t have any control over what you inherit, getting money or property as an inheritance can significantly improve your financial situation.
  • Invest in cryptocurrencies — learning how to become rich overnight in the UK is often closely tied to crypto. Look into Bitcoin investing or other lesser-known cryptocurrencies — inflation might just work in your favour.
  • Sell a business — start a business, get it up and running, and then sell it for profit. It takes some time, but it’s quicker than some of the alternatives.
  • Develop properties — buying unkempt properties and transforming them is very popular in the UK — quite profitable, too.

These are the fastest ways to become rich in the UK and succeed in getting that first million to your name. Little work and luck can really turn your life around, so why not give it a go?

DID YOU KNOW? In the UK, 6,500 people have become millionaires thanks to the National Lottery. The luckiest UK postcode is Birmingham, being home to 119 lottery millionaires.

How to Become a Millionaire: Bottom Line

Becoming a millionaire may seem like a distant dream and something unachievable — we assure you, it’s not. In this article, we’ve given you a list of strategies you need to employ if you want to make that millionaire dream come true.

Hopefully, you’ll start this journey immediately and reap the benefits later. And even if you don’t get that million pounds, we guarantee your financial status will improve significantly!

FAQ

How much do you need to become a millionaire in the UK?

In order to be classified as a millionaire in the UK, you need to have cash, property, or investments worth at least one million pounds or one million US dollars — those with one million dollars to their name are known as ‘dollar millionaires’.

What makes you a millionaire in the UK?

Although a million pounds will make you a millionaire, according to some data, you need to have at least £33 million to be considered super-rich.

What are 3 things you can do to become a millionaire?

The three most important things you need to do when searching for ways to become a millionaire are getting rid of debt, saving, and investing.

Which jobs make you a millionaire?

How to become a millionaire, UK residents often ask. One of the first steps is choosing a well-paying job, such as a CEO, doctor, judge, or becoming a self-employed entrepreneur.

ABOUT AUTHOR

Researching various topics started out as a hobby, turned into a passion, and became a profession. Finance, investments, and gambling seemed particularly interesting topics of research, so they became my main focus. Now, I can deliver fresh, relevant content on these topics in my favourite language — English.

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