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3 Steps To Becoming A Millionaire
they could ever become a millionaire, except for maybe winning the Lottery. But in reality there are 3 steps to becoming a millionaire that are not difficult to follow. 1. Invest regularly; direct deposit into your brokerage account monthly. 2. Invest over a period of time; the longer time frame you have to invest the better. 3. Seek the best return; look for better returns than a savings account will pay you. $175 invested monthly can make you a millionaire! Interest rate - 20 years - 30 years - 40 years 3% interest - $57,596 - $102,233 - 162,465 6% interest - $81,261 - $176,669 - $350,253 8% interest - $103,765 - $262,551 - $614,999 10% interest - $133,996 - $398,881 - $1,115,936 12% interest - $174,850 - $617,734 - $2,079,423 The table above shows the results of compounding of interest. If you receive a 10% return on $175 invested each month, over 40 years, you will be a millionaire! If you don’t have 40 years, you will want to increase the monthly amount and/or the rate of return to reach the millionaire status. A 12% rate of return will make you a millionaire twice. If you think this rate is too high consider this; the stock market has returned 10% over the last 75 years. By combining the stock market with real estate you can realize more than 12%. You will however, have to educate yourself in those fields, a small cost for financial independence. Notice that 12% interest yields more that twice the return of 6% especially for 30 and 40 years. This is the miracle of compounding! investing $175 each month amounts to $2100 per year. A millionaire mindset would ask “How can I get this amount or more to invest?” Those that don’t have that mindset will probably say I can’t invest that much money or I don’t have that kind of money to invest each year. For those, I would ask that before you dismiss this idea, you would look at your current finances and determine how much you can save and then invest in your future. We all have excesses in our budget that can be trimmed from our spending and then use to invest. Consider eliminating coffee lattes, eating out, premium cable TV, and other discretionary expenses that could be used for investing. Take a second job, as a temporary measure, to eliminate your consumer debt. Once you are out of debt, this money can be invested. 75% of the Forbes 400 (a list of the 400 richest people in the world) credits their wealth to staying out of debt! As you are educating yourself on investing in the stock market, invest in an market index fund from Fidelity or Vangard (both have low expense fees). Check out ProsperingYou for more personal finance information. Article Directory: http://www.articledashboard.com The author's website www.prosperingyou.com is dedicated to helping others with their personal lfinances. |
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