Reader’s Digest features an inspiring article about the secrets of self-made millionaires. If you want to learn what it really takes to save a million dollars, this article offers a number of great tips.

If you imagine Wall Street power brokers and wealthy socialites living in penthouse apartments and exclusive mansions whenever you hear the word millionaire, then think again. As writer Kristyn Kusek Lewis points out, ” …many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring.”

The article describes five secrets of successful self-made millionaires:

1. Set your sights on where you’re going.

The first step is to set goals and then develop a plan of action. Becoming a millionaire is not an overnight process. While it may feel like you’re taking baby steps in the beginning, your efforts will begin to build and grow dramatically as you continue to work toward your goals. Think of this as the snowball approach to wealth. While you may be starting small, your wealth will grow ever faster once you get the ball rolling.

2. Educate Yourself

Understanding money and personal finance is essential. If you did not learn these skills in school (or you’ve just forgotten them), start reading books, magazines and blogs to build your knowledge. Learn everything you can about managing your money and building your personal wealth.

3. Passion Pays Off

In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.”

It’s all too easy to focus your energy on increasing your earnings rather than feeding your passions. However, the key to real success is to truly love what you do. Whether this means finding ways to be passionate about your current job or starting a home-business based on your interests, always focus on your passions rather than your paycheck. “According to research by Thomas J. Stanley, author of The Millionaire Mind, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about.”

4. Grow Your Money

Even when it feels like you’re just scraping by, it is essential to set aside money for savings. Saving extra money might mean finding ways to cut your spending each week, or it might involve looking for ways to earn more money. The money you set aside each month should go into a retirement fund or investments.

5. No Guts, No Glory

Sometimes reaching your goals means taking risks. Of course, taking risks means that you might fail at times, but the key is to simply start again. Use the lessons that you’ve learned from past mistakes to guide your future efforts.

While these five secrets can help you on your path to millions, Lewis notes that the biggest secret of all is to stop spending. “Every millionaire we spoke to has one thing in common: Not a single one spends needlessly,” she writes.

Simply put, just because you technically can afford to buy something does not mean that you should. Many of today’s millionaires drive reasonably priced cars, live in modest homes and shop around for discounts. Even Warren Buffett, the man named by Forbes magazine as the third richest person in the world, still lives in the house he purchased 40 years ago for just under $32,000. With a little financial savvy, savings and good old-fashioned frugality, you will be well on your way to becoming a millionaire.

_{Image courtesy Simon Davison}