How to retire a millionaire

Believe it or not you can retire a millionaire without marrying rich, inheriting a fortune or winning the lottery.

Sure it will take focus, energy, knowledge and discipline but it is definitely not out of reach.

Here's a few ideas on how you could do it :

1. Save Regularly - Sounds simple and it is. All it takes is for you to save a regular amount each month and you will get to a million dollars. If you pay yourself first (ie save and not deviate from this you will do and remember the earlier in life you start the the quicker it will happen. For example a 20 year starting with nothing who saves $100 a month in a managed fund paying 10% interest will have $1,048,250 by the time they reach 65. Likewise if a 35 year old (also starting out with nothing saved up) saves $450 a month (earning 10% pa) they will have $1,017,219 by the time they are 65.

2. Listen 85% of the time and speak 15% - Learn as much as you can about money - read books, magazines, newspapers, attend seminars and talk to experts. The more you know about money the more confident you will become which means you will be more involved in your financial affairs and hence you'll be able to manage your money much more wisely.

3. Watch every dollar - as every millionaire will tell you that you need to keep a sharp eye on your money and always be on the look out for ways to get better value. Be smart with your money. What ever you do don't go splashing your money around once you start to accumulate it (keep on re investing it). A millionaire will buy quality but won't lash out on flashy brands just to look the part or to impress their friends.

4. Have the right attitude - think positively and yourself set goals. Write down where you want to be in 5, 10 or 20 years time. Millionaires are positive thinkers and are not afraid of hard work nor set backs but most of all they have clearly defined personal goals. If you don't have any goals now may be the time to set some up. It's much easier to have a point to reach than just stumble along each day hoping to get rich.

5. Use some else's money - don't be afraid of borrowing money. Use debt to leverage your returns. If you've got a home loan aim to pay off it off as fast as you can and then use the equity you have built up to use to fund the purchase of an income producing asset (eg an investment property or a share portfolio). By doing so you will be able to create what is called a passive income stream whereby your investments (which are funded by loans) generate enough cash to pay the loan back and provide you with extra cash.