How to become a millionaire

Who doesn’t want to be a millionaire? Turns out it may not be completely unattainable — but it takes loads of discipline.

“Unemployment, inequality and the weight of supporting extended family” make it hard for many, though poor spending habits can also get in the way, says Danilo Acquisto, Good Hope FM host and programme director for the Social Justice Lecture.

“From my experience, behaviour plays a big role once income starts coming in. We upgrade our lifestyles too quickly. We compare ourselves. We confuse looking successful with being financially stable.”

Acquisto advises:

• Make financial stability your goal rather than making R1m;
• Begin where you are and invest consistently, even R500 a month;
• Build an emergency fund (to cover three to six months’ expenses) before you invest aggressively;
• Don’t upgrade your lifestyle with every salary increase; divert it to your investments;
• Separate your money using the three-bucket system:
• short-term security (emergency fund);
• medium-term growth (unit trusts, ETFs and balanced funds); and
• long-term retirement (do not touch);
• Invest bonuses instead of using them to upgrade your lifestyle; and
• Read, read and read to increase your financial literacy.