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Making the first million may be a hard thing, but once you have your one million, making more millions will be no longer a challenge. This is why you hear people say that it takes money to make money. Are you ready to make your first million so that you can watch your money do the hard work? If yes, let see how you can get that one million dollars in realistic ways. No magic and no miracles, just through realistic ways.
Start Investing Early
Don’t be fooled that you need a lot of cash and knowledge to start investing. No! Your little savings and knowledge are enough to get you started. Once you get started and you are committed to what you are doing, everything else happens in the right way.
The early you get started, the better. Keep in mind there is no substitute for time. So, don’t be mistaken to think you have more time when it comes to investing. In fact, the right time is now. Are you ready to get started?
Pick The Right Major
A college degree is a good investment and an excellent path to wealth if you’re into that sort of thing. In fact, data shows that those with a four-year degree earn at least 66% more than those with only a high school diploma. A good college degree will make your way smoother. You will even find it more seamless if you pick the right major. Choosing the right major can make a difference in how you will accumulate your first one million dollars.
I personally dropped out of high school because I knew to learn about everything instead of learning what I needed was too much of a hassle. I’ve experienced in real life what I wanted to do, but that took years. What major can help you generate a higher salary, but also find ways to monetize it and generate second, third passive income?
Invest In Real Estate
Real estate offers different ways to make extra income. For example, you can buy a house and rent it out to make money on real estate. In case you don’t have enough money to buy a house, Fundrise lets you invest in real estate for as little as $500.
Alternatively, you can buy a turnkey property with agencies like Roofstock. The beauty of buying a turnkey property is that they do the heavy lifting, and you just watch the passive income roll in.
Get That Free Money
Sounds too good to be true, right? Let’s see how free money can help you to become a millionaire.
Are you aware of employer-sponsored saving plans that provide employees with an automatic way to save for their retirement while benefiting from tax breaks? These plans, such as 401K, are advantageous as they allow you to receive free money when your employer offer matching contributions.
Using Blooom is an excellent idea before and after opting to join any saving plan. Blooom allows you to analyze your account freely. Besides, it also helps you to learn more about the health status of the company where your account is.
Mind Your Credit Score
Having a good credit score makes your life cheaper. But how? Banks and other lending institutions use your credit score to determine how much debt you can take and the interest rate that debt will attract.
If you have a good score, you are always guaranteed to borrow more at low-interest rates. On the other hand, a low or poor credit score limit your borrowing ability. Not to mention that you must be ready to be slapped with a higher interest rate.
Now, if your credit score is not the best, this means even if you qualify for a loan, you will pay more. Paying more for a loan fades your efforts to becoming your millionaire. So, always work on improving your score.
Be Smart About Debt
Sometimes it is hard to avoid loans. But as much you have to have to borrow, it is prudent to borrow for a good reason. In other words, be a person who takes good debts and not bad debts. Often good debts are essential when investing. For example, you can take a student loan to further your education. On the other hand, bad debt is taking a loan to buy things that you don’t need or finance your luxurious lifestyle.
Refinancing your loans for lower interest rates is an excellent idea as it can save you thousands of dollars over the term of the loan. This is a better option than waiting to invest after you have cleared pending loans.
In the event you have a credit card debt, it is a good idea to use the snowball or stacking method to clear it within the shortest time possible. Often credit card debts attract high interest, and that why you must work to pay them off quickly.
Spend Well And Make A Budget
Spending your hard-earned money well is the key to becoming a millionaire. You spend your money haphazardly, and becoming a millionaire remains a dream. Budgeting makes your life cheaper, and you are always certain of what to do with the allocated money. In case you have a challenge allocating your money, 50/30/20 rule comes in handy.
There is this thinking among many people that each time you get that extra cash you did not budget for, you automatically use it to upgrade. For example, you will be told if you get a bonus or a tax refund, you use the cash to buy more household belongings. If every time you get extra unbudgeted money you always rush to upgrade, you will never be a millionaire. Simply avoid lifestyle creep.
You need more money to become a millionaire. But this does not mean using dirty ways to make extra cash. For example, if employed, ask for a pay raise. All you need to do is to prove to your boss that you qualify for a pay raise.
Alternatively, turn your free time into something that can get you extra cash. For example, if you spend three hours every day watching your favorite series, use those three hours making money elsewhere. You can drive for Uber or do a few tasks online to bring some extra cash. Upwork is one of the platforms that allow you to make extra cash effortlessly.
Basically, put your free time into good use if you are serious about making one million dollars.
Although sometimes it may seem impossible to dodge some fees, this does not mean you continue paying hefty fees. For example, the average US household pays almost $300 a year in bank fees. That amount may seem small, but if investing, that amount can move a mountain. The best alternative, in this case, is opening an account with Chime and enjoy almost zero fees.
You may also want to use FeeX when investing to see how much you are paying. The best thing with FeeX is that besides helping you uncover the fees you are paying, it also helps you find cheaper alternatives with the same asset allocation.
Don’t Buy Things
Here is the thing, while spending money well means using the money to get what is absolutely necessary, there is more to that. That is, spending your money on experiences rather than things. For example, buying a ticket to a conference instead of a tee? Why? This is because it has been proven that we are made happy by our spending when we buy experiences rather than things.
Keep in mind that we are made of everything we have seen, the places we have been, and what we have done. In other words, our experiences are a bigger part of ourselves than our material goods. For example, jogging or riding a bike is more likely to change you than buying an expensive phone.
Pick The Right Place
After college, you have to decide where to live. In most cases, your job helps you choose where to live. Picking a place that will help you live within your means is very crucial. There is no need to move to an expensive city where renting a house is a major challenge. Just find a place you can comfortably live. Doing this allows you to focus on becoming a millionaire without much pressure about your day to day life. Later you can move to other places depending on your income.
Some things in life are worth trimming. Consider a gym subscription that automatically renews itself, yet you no longer go to the gym; such small things may not seem to have an impact but are hurting your efforts to becoming a millionaire. You can even hire some to trim any subscription or expenses that are not of any value anymore.
Shopping does not always mean spending more. You can spend less and still get the same item. How? By making sure you get exclusive discounts, coupons, and promo codes. You can also leverage cash back opportunities by joining programs like Swagbucks. Simply, try the best way possible to make your shopping less expensive. The little you save goes a long way toward making you a millionaire.
Eat with Incentives
Without a doubt, we all love eating. Do you? Of course, yes. The urge to eat even drives some people to spend more. You don’t have to spend more to enjoy every meal you desire to taste. You can make eating out cheaper by using seated. You can use Seated, an app to make reservations at participating restaurants and get a $10 – 450 gift card for Lyft, Amazon, or Starbucks.
There is no one way of becoming a millionaire. It takes a series of everyday actions and decisions to become a millionaire. So, don’t be fooled by trying one thing everything will work for you. No, your daily actions and decisions count a lot. So, be careful about what you do every day if you are serious about making one million dollars.