Ways to become a millionaire +

If you want to become rich, it’s important to minimize your costs and be more intentional with your spending. Spending intentionally and minimizing your costs will require you to keep a budget.

In doing so, you can keep track of exactly how much you spend and where you spend it.

“Develop a prioritized checklist for how you’re going to spend your paychecks when you receive them.”

Your goal should be to minimize costs as much as possible so you can put that money toward building wealth.

 The sooner you begin to invest, the more wealth you can build over time.

“For example,” “Sam begins investing at age 35 and stops at age 65. Over those 30 years, he invested $250 monthly and received an average 7% return. His account balance is less than $300,000 at retirement. A second investor, Taylor, begins investing at age 25 and stops at age 65. He also invests $250 monthly, receiving a 7% return but builds approximately $622,000 after 40 years.”

“By investing 10 years earlier than Sam, Taylor retires with over $300,000 more to spend, even though he only invested $30,000 more ($250 x 12 months x 10 years) than Sam. Taylor has more because his money has more time to compound and grow.”

While there are limits to how much you can put into a 401(k) and an individual Roth retirement account, those limits are high enough — $23,000 and $7,000, respectively, for 2024 — that many people are not able to reach them. And if you do, you can always invest more in a taxable brokerage account. Thus, if you want to become rich, you should invest as much as you can — there is no upper limit to that amount.

There are many different investment strategies, but most experts recommend putting most of your money in the stock market to get rich. Some recommend a smaller portion of real estate or even speculative investments. I recommends a portfolio of 65% stocks, 25% real estate, and 10% speculative asset of choice.

You will want to invest that money in a tax-advantaged account such as a 401(k) or Roth first. That will help you minimize your tax bill and thus increase your returns over time. If you manage to max out all tax-advantaged accounts, you can move to a brokerage account.

  There is only so much you can cut in terms of expenses, but there is no limit to how much your income can increase, at least in theory.

“Ensure that as you advance in your career/business/main occupation, you always save more than you spend as you earn raises and increase your gross income”. “Lifestyle cost creep will absolutely wreck a plan to get rich as quickly as possible.”

Of course, increasing your income will be contingent upon the job you have. Those working hourly jobs, for example, may have minimal leverage to increase their income. But if it is possible for you to move up the career ladder, that can be a powerful way to become rich, as you will be able to save and invest more. And  create a side hustle.

To ensure that you keep up with your savings goal, automate the process.

“Setting up automatic direct deposits from your paycheck into a company-sponsored savings 401(k) and a brokerage account Roth. Increasing your withholding into a company-sponsored 401(k) helps put those goals on autopilot.” “Automatically allocating these resources via direct deposit or withholding simplifies the process and ensures you don’t overspend.”

The idea of a side gig is nothing new, but if you have some extra time and you can pick up some extra work for a few hours a week, that can be a powerful way to increase your income. Gig economy platforms such as Uber and Lift make it easy to find flexible work. And there is no shortage of lists of types of side hustles to be found online.

Finding a side hustle is sometimes easier said than done, but it’s worth the effort because the extra money lets you invest more to create more wealth.

“Immediately go try and find two to three side hustles that can boost your take-home income. Save as much of that as you can,”.

 “Taxes are a significant expense that the general consumer just accepts when they don’t have to.” 

In addition to utilizing tax-advantaged retirement plans, he recommends taking advantage of cash-value life insurance to set up a tax-exempt bucket and working with a good CPA to maximize other available deductions.

It’s likely that your income will increase over the next decade, and you should use these extra funds to help you achieve millionaire status.

“When you get a raise, it is very easy to match your spending to your new income,” “Instead, consider continuing to live as you were and save the entire raise amount.”

 It’s wise to start investing as soon as you can, if you lack a healthy cash reserve, you should make building an emergency fund your top financial priority.

“Emergency funds help you manage unexpected expenses and hardships, such as a job loss, home repair or medical bill. “A good savings target is three to six months’ worth of your living expenses — such as housing, food, utilities and debt payments. For example, if your monthly living expenses total $4,000, consider accumulating at least $12,000 in savings.”

“Being financially literate means you have money skills, such as budgeting, saving and investing, and you continue learning about personal finances.” “It allows you to make wise decisions that improve your net worth over time and avoid money mistakes that could hurt your future financial security.”

There are various ways to increase your financial education, including subscribing to financial newsletters from trusted sources, listening to financial podcasts and reading personal finance books.   

A financial professional can help you develop a strategy that works for you and pivot this strategy as needed to make sure you stay on track to meet that million-dollar goal.

You have to manage your:

Credit Cards

Taxes

Loans

Retirement

Saving & STOP Spending Trending

Calculators

Read About Money / Wealth News Education

“Being financially literate means you have money skills, such as budgeting, saving and investing, and you continue learning about personal finances.” “It allows you to make wise decisions that improve your net worth over time and avoid money mistakes that could hurt your future financial security.”

There are various ways to increase your financial education, including subscribing to financial newsletters from trusted sources, listening to financial podcasts and reading personal finance books.

Write your plan and work your plan to be a  Millionaire in 10 Years (or Less) and NO get-rich-quick scheme.

Ensure You’re Getting Paid What You Are Worth

Have Multiple Income Streams

Save as Much as You Possibly Can

Make your money work for you

Make Savings Automatic

Keep Debt to a Minimum

Don’t Fall Victim to ‘Shiny Ball Syndrome’

Keep Cash in Interest-Bearing Accounts

Optimize Your Tax Situation & Invest Your Raises

Work With a Financial Professional