Becoming a millionaire is everybody’s dream. Admit or not, this dream has also crossed to your mind.
The good news is – it is very achievable even if you’re broke today.
Searching for ways to become a millionaire is actually the new online trend today. Since the internet has become a very generous source of information, it has never been easier to find answers on almost everything you need to know.
So, are you ready to get started on your journey to becoming a millionaire?
Let’s do it.
How To Become Millionaire? (Even If You’re Broke)
The Right Mindset
The first thing you want to do is to have the courage and the right mindset in achieving your goals!
The reason I say this is because there are a lot of people who simply have the dream of becoming millionaire, yet they don’t do anything on how to achieve it.
Have you noticed that poor people become poorer and rich people become richer?
Poor people get stuck with the single idea they know on how to generate income and not finding more ways or more sources of income.
The main source of income for poor people is a job – trading time for money. There’s nothing wrong with this unless you want to get rich.
On the other hand, rich people become richer because they know how to make their money work for them and they don’t get stuck with just one source of income. They get many and they continue to create more and more sources of passive income. That’s why they get richer.
So, if you are tired of being short of budget and being stressed with the day job you hate, then, believe me, you don’t want to stay there forever.
If you want to get rich or at least earn your first million, you need to do actions.
Believe that you can do it and you don’t make excuses… you just do it.
All self-made millionaires have done this and you too can do it. Do what? Massive actions and actions and never give up along the way.
From Broke To Millionaire
If you are broke today, it’s not a problem. Having no money is actually not the real problem in life. I know you’re either laughing or making a weird face right now… I did the same thing when I first heard that too.
If you’re poor or always lacking money, the big problem is actually the lack of the idea of how to earn money or how to increase your wealth so you never run out of it.
Since we only have 24 hours a day and need 8 hours to sleep and hours with family and loved ones, our working hours will limit how much we can make.
So, the only solution is to find ways to earn money while you sleep or make your money work for you.
And that’s what rich people do… let’s do it too.
Becoming a millionaire is actually easy. Don’t laugh! It’s true if you know how to do it and actually do it as soon as possible. As in now. No delays.
To make this more fun and more encouraging for you, I divided the whole journey into 3 levels – $10,000, 100,000, and 1,000,000 goals.
How To Save $10,000 In One Year
In this level, you need to save $10,000 in one year.
If you are earning $50,000 a year, that’s around 20% of your total income. You can still do this even if you earn much lower than $50K.
Here are some of the things you can do to save $10,000.
- Choose the highest amount that you can save per month out of your salary
- Automate your savings and don’t touch it
- Cut Your Expenses such as dining out, expensive subscriptions, etc.
- Increase your income – do babysitting, dogsitting, tutorial job, cleaning job, rent out an extra space – see my list of 30 Effective Ways To Earn Mor Money
How To Earn $100,000 Per Year
This level is not as easy as level 1. At this point, you want to earn $100,000 per year. So, if you are earning $50,000 per year, then you’re halfway there.
However, even if you’re earning below $50k a year, as long as you have saved $10,000 from the first level, it will become easier for you to achieve $100,000.
This level can take 3-4 years, could be more or less according to your own effort.
There are two steps to this level:
1. Learn How To Invest Your $10,000 And Make Them Work For You
At the time of this post, the stock market is very volatile and the risk is much higher than normal due to the Covid-19 pandemic crisis.
My best advice is to talk to your banker so they can help you to place your money with a higher return. Banks have investment plans for all types of clients and they will also help you to automate your monthly investment.
This is also the best way to learn how the stock market investment works and it will prepare you to manage your own investment once the market volatility becomes more stable.
There are surely other ways to invest than the stock market. It could be real estate or peer-to-peer investments. Whatever passive income stream you choose, you need to learn it first right from the base ground before you dive into it.
If you are new to term passive income – it is basically a way of generating income automatically without trading your time for money. You make your money work for you and you earn money even while you sleep.
This is the kind of income you’d want to build up from now on.
2. Start A Small Business
Starting your own business is never been easier today. You just need to find out which kind of business you want to work alongside with your day job and learn how to do it.
The best option for this is an online business.
Online Entrepreneurship has come to stay and the digital world is just at the beginning. Ride it on now and take your part in this billion dollars industry. The future is here.
The amazing part of being an online entrepreneur is, you can do the business anytime and anywhere. So, it’s perfect to run together with your day job. Plus, the operating cost is very minimal compared to a traditional business.
How To Turn $100,000 Into Over $1 Million
Once you reach this level, meaning you already have $100,000 in your account and your business is started to generate income, it’s time to quit your day job and focus to your business.
Quitting your day job will give you more time in boosting your business and to manage your own investment account to save the managing fees and earn more.
What’s great with these types of income streams is that they are passive income streams. They generate profit even while you sleep.
Let’s compute how long it will take to reach a $1 Million portfolio using the compounding interest.
From $10,000 Into Over $1Million
Initial Investment $10,000
Monthly Contribution: $500
Average Interest Rate: 12%
Compounding Years: 26 Years
Total Contributions After 26 Years: $166,000.00
Total Money After 26 years: $1,092,404.33
So, even after just reaching level 1 of $10,000, you can still become a millionaire after 26 years by just compounding your all your money. Which means if you continued to just work, save, and invest.
I know you would say, huh? 12% where can you get that? Is that even possible? Yes, it is possible if you know how to do it right. In fact, if you read the value investing technique of Benjamin Graham, you can actually even 15% or more a year using the Security Analysis.
So, the more you invest, the faster you can reach the goal of becoming a millionaire.
The key here is to start as early as possible. So, if you start at 20 years old, you’ll be millionaire at the age of 46-47 years old.
What if you’re in the 40s and you want to achieve a $1 Million portfolio as soon as possible? Then you need to get through all the levels as soon as possible.
Let’s see how long it could take if you already have $100,000
From $100,000 Into Over $1Million
Initial Investment: $100,000
Monthly Contribution: $1000
Average Interest Rate: 12%
Compounding Years: 16 Years
Total Contributions After 16 Years: $292,000.00
Total Money After 16 years: $1,126,078.73
If you are at your 40’s, saving $1000 a month in 16 years, at the initial investment of $100,000, will give you a $1 Million portfolio at the age of 56-57 years old. Again, the more your invest every month, the sooner you reach your target.
Having the right determination and commitment to goals combined with massive actions will put you to a higher level of your finances.
If you want to become a millionaire, the right mindset of having no excuses and doing whatever it takes is the primary key.
If you need to learn new skills, you will learn it.
If you need to read books, you will read it.
If you need to totally change your way of living, you will do it… Just to achieve your goals.
Anybody can do that! Really. Even you.
You just have to believe in yourself and take massive actions.
And your life will never be the same for the better.
Let me tell you a mind blowing truth, some online entrepreneurs who started an online business some years back are already earning $60K – $800K a month passively just by blogging. How cool is that? They just made up their mind to make their dreams happen and do massive actions.
This is the end of today’s topic: How To Become Millionaire (Even If You’re Broke). I hope this post has inspired you. If you have an amazing story on how you achieve your goals in life, please write them below and I’m sure you will touch the lives of people.
Images Credit: Pexels, Maarten van den Heuvel, Unsplashed, Austin Dristel
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