How to become a millionaire using three simple strategies

Strategy No. 1: Creating a budget  
The first step toward becoming a millionaire begins with the ability to save money. As the old saying goes, you need money to make money -- but it's incredibly difficult to save money if you don't understand your cash flow.
For those of you who are classic over-spenders, or who have difficulty sticking to a budget, one possible trick is to think of each budget category (such as entertainment) as having its own bank account, or even setting up separate jars with cash inside for each budgeted category. Even though you may have plenty of money in your checking account, if the money for your entertainment account runs out two days before the end of the month, then you're out of money. Period! This little trick can help you learn to live within your means so you can start saving for retirement early and often.
Strategy No. 2: Learn to reinvest your dividends

 

The second strategy involves utilizing the stock market to seek out solid businesses that pay healthy dividends. For those of you who are uncomfortable with the idea of picking out individual stocks, or who don't have the time to devote to researching individual companies, there are always electronic-traded funds, or ETFs, you can buy. As of December, there were more than 1,400 to choose from.
Instead of simply pocketing a dividend payment from a company or an ETF, consider taking your dividend and buying additional shares of that company or ETF. If there is a solid business model and investment thesis behind a company, there's a good chance its dividend will remain steady or grow over time. What this means for you is the ability to buy more shares over time, which can lead to an even bigger dividend, which leads to even more shares of stock.

Strategy No. 3: Minimize or eliminate what you pay in capital gains taxes
Once you've set parameters that allow you to save, and you've set your sights on dividend stocks for the long term, the final step in the process of how to become a millionaire involves using tax-advantaged tools to your benefit.
You may not be the next me, but if you utilize these three smart strategies, there's no reason you can't one day become a millionaire and claim your own slice of the American dream.