How to become a millionaire with a 9-to-5 job (SIMPLEST WAY!)
4.6 هزار بار بازدید -
3 سال پیش
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Becoming a millionaire is a
Becoming a millionaire is a lot simpler than you think. Here's how.
1 in 13 American adults is a millionaire, so the chances of you knowing someone who is a millionaire is actually becoming a lot more common. In this video, I’m going to share with you how you can become a millionaire with just a 9-to-5 job.
Follow me on Instagram: Instagram: miaphammoney
DISCLAIMER: I am not a financial advisor and this should not be considered financial advice. Investing involves risk and you may lose money. Please seek out a professional financial advisor for more information. I am just someone who is really passionate about money and created this video to help my friends and family.
There are many ways to become a millionaire. Some examples include starting a successful business, winning the lottery, inheriting the money, or just from saving and investing. Starting a successful business can take a lot of time and hustling to build it up into a profitable business that will make you a million dollars. The lottery involves pure luck. You can't choose to be born into a wealthy family. In fact, only 20% of millionaires inherited their wealth. The other 80% were self-made. Out of the many avenues to get to a million, the one that is the simplest--and which can be replicated by almost anyone in my opinion--is long-term investment in the stock market.
Here are the 5 things that you need to do to become a millionaire:
#1: You need to start early. How much you have to save to become a millionaire depends A LOT on what age you get started. The reason why starting early is so important is because of compound interest. Albert Einstein called compound interest the “8th wonder of the world." Basically, it's money growing on top of money. And for money to do that, you need time. If we look at data from the S&P 500, we can see that $100 invested in the S&P 500 in 1957 is worth over $57,000 today. This growth is due to compound interest. If the stock market returned 10% one year, that means $100 invested is worth $110 the next year. If it produces another 10% the following year, that $110 becomes $121 and so on and so forth. The earlier you start, the more likely you will become a millionaire.
If you’re an overachiever and want to become a millionaire way before the age of 65, like for the people following the FIRE movement, which stands for financially independent and retire early, then you will need to crank up your monthly savings. For example, instead of saving $253 a month, you can save and invest about $2,000 a month. This breaks down to basically maxing out your 401(k) and your Roth IRA every year.
#2: You need to diversify your investments. Numerous studies have shown that investing in a broadly diversified, index fund or mutual fund will outperform an actively managed fund. So instead of trying to pick individual stocks that you think will be winners, buying a low-expense index fund or ETF that tracks an index like the Russell 3000 (which includes nearly the entire total stock market) or the S&P 500, which tracks the five hundred largest publicly traded U.S. companies). This will give you instant diversification, lower your risk, and give you the best return for your money.
#3: You need income. You don't need to have a high paying job to build a million dollar portfolio, but you need a decent income which will allow you to build a savings. The reality is, if you're making barely enough income to support yourself and for some people, a family, you won't have any room to save. For people in this situation, saving is nearly impossible until their financial situation improves. When you have a decent income, you'll have room to save, then you'll use the savings from that job to invest and grow your money.
#4: To become a millionaire, you need to avoid consumer debt. This includes credit card debt, auto loans, and other high interest debt. If you have debt, especially high-interest debt that is more than seven percent, you need to work on paying it off quickly. The interest rates on those loans will compound quickly and tie you down and eat away at any potential money you will make from investing, so get rid of consumer debt as fast as you can.
#5: You need to understand your net worth. Net worth is your assets, or the total value of everything you own, minus your liabilities (that is. your debt or everything that you owe).
BONUS TIP: You need to change your mindset. A survey of more than 10,000 millionaires found that 97% of millionaires had one mindset in common--and it was that they believed they were in control of their own destiny. If you compare that to the general population, only 55% held the same opinion.
Images credit: unsplash.com.
1 in 13 American adults is a millionaire, so the chances of you knowing someone who is a millionaire is actually becoming a lot more common. In this video, I’m going to share with you how you can become a millionaire with just a 9-to-5 job.
Follow me on Instagram: Instagram: miaphammoney
DISCLAIMER: I am not a financial advisor and this should not be considered financial advice. Investing involves risk and you may lose money. Please seek out a professional financial advisor for more information. I am just someone who is really passionate about money and created this video to help my friends and family.
There are many ways to become a millionaire. Some examples include starting a successful business, winning the lottery, inheriting the money, or just from saving and investing. Starting a successful business can take a lot of time and hustling to build it up into a profitable business that will make you a million dollars. The lottery involves pure luck. You can't choose to be born into a wealthy family. In fact, only 20% of millionaires inherited their wealth. The other 80% were self-made. Out of the many avenues to get to a million, the one that is the simplest--and which can be replicated by almost anyone in my opinion--is long-term investment in the stock market.
Here are the 5 things that you need to do to become a millionaire:
#1: You need to start early. How much you have to save to become a millionaire depends A LOT on what age you get started. The reason why starting early is so important is because of compound interest. Albert Einstein called compound interest the “8th wonder of the world." Basically, it's money growing on top of money. And for money to do that, you need time. If we look at data from the S&P 500, we can see that $100 invested in the S&P 500 in 1957 is worth over $57,000 today. This growth is due to compound interest. If the stock market returned 10% one year, that means $100 invested is worth $110 the next year. If it produces another 10% the following year, that $110 becomes $121 and so on and so forth. The earlier you start, the more likely you will become a millionaire.
If you’re an overachiever and want to become a millionaire way before the age of 65, like for the people following the FIRE movement, which stands for financially independent and retire early, then you will need to crank up your monthly savings. For example, instead of saving $253 a month, you can save and invest about $2,000 a month. This breaks down to basically maxing out your 401(k) and your Roth IRA every year.
#2: You need to diversify your investments. Numerous studies have shown that investing in a broadly diversified, index fund or mutual fund will outperform an actively managed fund. So instead of trying to pick individual stocks that you think will be winners, buying a low-expense index fund or ETF that tracks an index like the Russell 3000 (which includes nearly the entire total stock market) or the S&P 500, which tracks the five hundred largest publicly traded U.S. companies). This will give you instant diversification, lower your risk, and give you the best return for your money.
#3: You need income. You don't need to have a high paying job to build a million dollar portfolio, but you need a decent income which will allow you to build a savings. The reality is, if you're making barely enough income to support yourself and for some people, a family, you won't have any room to save. For people in this situation, saving is nearly impossible until their financial situation improves. When you have a decent income, you'll have room to save, then you'll use the savings from that job to invest and grow your money.
#4: To become a millionaire, you need to avoid consumer debt. This includes credit card debt, auto loans, and other high interest debt. If you have debt, especially high-interest debt that is more than seven percent, you need to work on paying it off quickly. The interest rates on those loans will compound quickly and tie you down and eat away at any potential money you will make from investing, so get rid of consumer debt as fast as you can.
#5: You need to understand your net worth. Net worth is your assets, or the total value of everything you own, minus your liabilities (that is. your debt or everything that you owe).
BONUS TIP: You need to change your mindset. A survey of more than 10,000 millionaires found that 97% of millionaires had one mindset in common--and it was that they believed they were in control of their own destiny. If you compare that to the general population, only 55% held the same opinion.
Images credit: unsplash.com.
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