How to Become a Millionaire! Steps in Achieving Financial Wealth.

So you want to become a millionaire? You’ve always had the desire to be financially secure but the task seems simply overwhelming. There are a few ways in becoming extremely rich. One of them includes being born into wealth and chances are, this may not be you. Plus, you don’t have much of a say in who your parents are! Another way is to invest and save your way into financial success. Many people never even start on the road to financial security because they view the entire process as time consuming and way too complicated when in fact, it is rather straightforward and requires discipline. The way to become wealthy is to save enough and invest wisely so your investment will compound overtime. Compounding is touted as a thing of wonder even for people such as Albert Einstein.

First, you need to decide to become wealthy. This is a psychological roadblock that you first have to overcome before you even think about being financially secure. Next, you need to setup investments that will be automatic and monthly. There are a couple ways of doing this. First, you can setup the investment in a 401(k) or 403(b). These are simply tax-deferred retirement accounts with your employer. This is the best place to first invest your money because your savings are taxed deferred and therefore you start with a bigger sum of money initially. You’ll be surprised how many median income earners in the United States have retired with one or two million. Sometimes even more. So don’t let the thought of not having a large enough income stop you. Here are a few scenarios to demonstrate what we are talking about:

Monthly Savings

Years Saved

Investment Return Rate

Total

$200

10

10 %

$39,973

$200

20

10 %

$143,652

$200

30

10 %

$412,569

Monthly Savings

Years Saved

Investment Return Rate

Total

$300

10

10 %

$59,959

$300

20

10 %

$215,478

$300

30

10 %

$618,853

Monthly Savings

Years Saved

Investment Return Rate

Total

$400

10

10 %

$79,946

$400

20

10 %

$287,304

$400

30

10 %

$825,137

Monthly Savings

Years Saved

Investment Return Rate

Total

$500

10

10 %

$99,932

$500

20

10 %

$359,130

$500

30

10 %

$1,031,422

As you see, any amount saved will produce a sizeable sum after time. Keep in these are people starting with zero dollars. Even at $500 a month over 30 years, at the current median income of the U.S. of $43,000 or so, all you need to do is put away 10 percent of your income to retire a millionaire. The more you put in, the more you get back and because of the magic of compounding, your tiny sum can grow to be very large. If you are young, in your 20s or early 30s it is very likely you will not have Social Security when you retire so it is important to plan for yourself. If you are starting later, you can save more but even with 10 years, you see that you can have a nice chunk of money.

Don’t let the magnitude set you back and get started!

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6 Comments on this post

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  1. Ron@TheWisdomJournal said:

    Hey – Great site. I see you’re a new blogger!

    I just started my blog the last week of December and would love to have another blog to bounce ideas off of. My focus is similar to yours but with more of a business twist.

    I love how you mentioned that someone has to first DECIDE to be wealthy. You are right on target. Our attitude will make us or break us.

    I’ll go ahead and subscribe via RSS and add you to my blogroll.

    Congratulations and good luck.

    Ron Haynes

    January 5th, 2008 at 3:43 pm
  2. mybudget360 said:

    Thanks Ron. I’ve decided to give this financial blogging thing a shot. I’ve added you to the blogroll and appreciated your post on five signs of a troubled company. You mention a focus on today without a vision of tomorrow. I can’t tell you how many times I’ve seen this happen. Companies will get so caught up in the moment that they fail to see the future coming toward them. Not sure if you read the book Good to Great by Jim Collins but he discusses many of these obstacles. In it, there are many examples of companies that failed to see changing trends and hunkered down on old methods and eventually got wiped away by the marketplace. Great book.

    In regards to deciding to be wealthy I think this is probably the hardest step for most people to make. In fact, many people in debt see this as a fruitless battle since becoming financially stable may seem like such a distant goal. Yet these people need to take a few steps and not lose sight of the future. Little things do make big impacts over a period of time. Like working out. If you need to lose 10 pounds, you can achieve it in a shorter time than someone who needs to lose 50. Just because you have more to lose doesn’t mean you shouldn’t do it. If anything it should stimulate and motivate you to push harder.

    Look forward to talking with you and good luck on your road to financial success!

    January 6th, 2008 at 1:28 am
  3. Ron@TheWisdomJournal said:

    Yes, that is a fantastic book. I also enjoyed Built to Last by Jim Collins. He said in an interview that Built to Last should have been written after Good to Great. Both were really good reads.

    I’d also recommend Results Based Leadership by Dave Ulrich. He had some great insights like:

    1. Focus on desired results. Results receive priority over everything except loyalty to organizational and personal ethics and values.

    2. Take complete responsibility for results. Failure to do so weakens morale and undercuts the opportunity for change and improvement.

    3. Clearly communicate expectations and targets to management and employees. Focusing on desired results makes goals and targets clear to all so that priorities become apparent and everyone can work toward those ends.

    4. Determine what you need to do personally to improve results. Your success will depend on how well you perform these tasks—even if difficult staffing decisions or work processes are involved.

    5. Engage in activities that will help you produce better results. Immediacy is a prime measure to be used for any personal development activity. Your approach should be “I will do _______ so that _______ will happen.” Undertake only those activities that can produce desirable, measurable results.

    6. Know and use your firm’s capabilities. Results-based leaders must know the strengths and weaknesses of everyone so they can take advantage of the former and shore up or eliminate the latter.

    7. Measure correctly and often. The central message of the book: Results matter and you must measure them. But before you can measure, you must understand what you are measuring and the best way to do it.

    8. Constantly take action. Results-based leaders must constantly organize, communicate, and focus on opportunities—on what the firm can do, rather than what it can’t. You will encourage results that way.

    9. Seek feedback. Ask management and employees how your efforts are doing. What do they want that is not being provided? What changes would they like to see? What are you doing that works well in their view? What tools do they need to help them achieve the desired results?

    10. Avoid the perception of personal gain. The question to ask: “What is my legacy to this organization?” What you do should be seen as benefiting the organization, not you personally.

    Good luck to you and your site and I will you well!

    Ron

    January 6th, 2008 at 6:04 pm
  4. Doug said:

    Like the blog – good, clear writing.

    One question about this post – do you consider it realistic to earn 10% annual returns when we are facing the spectre of monetary deflation?

    Seems to me that we could be in for some very long periods of low returns.

    February 29th, 2008 at 3:45 am
  5. millionaire said:

    READING THIS COULD CHANGE YOUR LIFE! PLEASE READ ALL! READING

    I found this on a bulletin board and decided to try it. A little while back, I was browsing through newsgroups, just like you are now, and came across an article similar to this that said you could make thousands of dollars within weeks with only an initial investment of $6.00! So I thought, Yeah right, this must be a scam, but like most of us, I was curious, so I kept reading. Anyway, it said that you send $1.00 to each of the 6 names and address stated in the article. You then place your own name and address in the bottom of the list at #6, and post the article in at least 200 newsgroups.

    (There are thousands) No catch, that was it. So after thinking it over, and talking to a few people first, I thought about trying it. I figured: what have I got to lose except 6 stamps and $6.00, right? Then I invested the measly $6.00. Well GUESS WHAT!!…

    within 7 days, I started getting money in the mail! I was shocked! I figured it would end soon, but the money just kept coming in. In my first week, I made about $25.00.
    By the end of the second week I had made a total of over $1, 000.00! In the third week I had over $10,000.00 and it’s still growing. This is now my fourth week and I have made a total of just over $42,000.00 and it’s still coming in rapidly. It’s certainly worth $6.00, and 6 stamps, I have spent more than that on the lottery!! Let me tell you how this works and most importantly, why it works…. Also, make sure you print a copy of this article NOW, so you can get the information off of it, as you need it. I promise you that if you follow the directions exactly, that you will start making more money than you thought possible by doing something so easy!

    Suggestion: Read this entire message carefully! (Print it out or download it.) Follow the simple directions and watch the money come in!

    It’s easy. It’s legal. And, your investment is only $6.00 (Plus postage)

    IMPORTANT: This is not a rip-off; it is not indecent; it is not illegal; and it is virtually no risk – it really works!!!!

    If all of the following instructions are adhered to, you will receive extraordinary dividends.

    PLEASE NOTE:
    Please follow these directions EXACTLY, and $50,000 or more can be yours in 20 to 60 days. This program remains successful because of the honesty and integrity of the participants. Please continue its success by carefully adhering to the instructions. You will now become part of the Mail Order business. In this business your product is not solid and tangible, it’s a service. You are in the business of developing Mailing Lists. Many large corporations are happy to pay big bucks for quality lists. However, the money made from the mailing lists is secondary to the income, which is made from people like you and me asking to be included in that list.

    Here are the 4 easy steps to success:

    STEP 1: Get 6 separate pieces of paper and write the following on each piece of paper; PLEASE PUT ME ON YOUR MAILING LIST. Now get 6 US $1.00 bills and place ONE inside EACH of the 6 pieces of paper so the bill will not be seen through the envelope (to prevent thievery).
    Next, place one paper in each of the 6 envelopes and seal them. You should now have 6 sealed envelopes, each with a piece of paper stating the above phrase, your name and address, and a $1.00 bill. What you are doing is creating a service. THIS IS ABSOLUTELY LEGAL! You are requesting a legitimate service and you are paying for it! Like most of us I was a little skeptical and a little worried about the legal aspects of it all.
    So I checked it out with the U.S. Post Office (1-800-725-2161) and they confirmed that it is indeed legal! Mail the 6 envelopes to the following addresses:

    #1) Bryan Payne
    157 Oates Ave, Holland Park
    Brisbane, Queensland,
    Australia 4121

    #2) Jon Hayes
    20 teeple st.
    Woodstock On.
    N4S-3Y7
    USA

    #3) Anthony M. Ceballos
    927A E. Lexington Dr.
    Glendale, CA 91206 USA

    #4) K. Baker
    P.P. Box 23051
    Waco, Texas 76702
    USA

    #5) Carlos Aspillaga Valdés
    Espoz – 6332
    7640376 Vitacura
    Santiago
    CHILE

    #6) Moris Balli
    Kashani 3/b 40
    Tel Aviv 69499
    ISRAEL

    STEP 2: Now take the #1 name off the list that you see above, move the other names up (6 becomes 5, 5 becomes 4, etc…) and add YOUR Name as number 6 on the list.

    STEP 3: Change anything you need to, but try to keep this article as close to original as possible.
    Now, post your amended article to at least 200 newsgroups. (I think there are close to 24,000 groups) All you need is 200, but remember, the more you post, the more money you make!

    This is perfectly legal! If you have any doubts, refer to Title 18 Sec. 1302 & 1341 of the Postal lottery laws.

    Keep a copy of these steps for yourself and, whenever you need money, you can use it again, and again.

    PLEASE REMEMBER that this program remains successful because of the honesty and integrity of the participants and by their carefully adhering to the directions. Look at it this way. If you are of integrity, the program will continue and the money that so many others have received will come your way.

    NOTE: You may want to retain every name and address sent to you, either on a computer or hard copy and keep the notes people send you.

    This VERIFIES that you are truly providing a service. (Also, it might be a good idea to wrap the $1 bill in dark paper to reduce the risk of mail theft.)

    So, as each post is downloaded and the directions carefully followed, six members will be reimbursed for their participation as a List Developer with one dollar each. Your name will move up the list geometrically so that when your name reaches the #1 position you will be receiving thousands of dollars in CASH!!! What an opportunity for only $6.00 ($1.00 for each of the first six people listed above) Send it now, add your own name to the list and you’re in business!

    –DIRECTIONS —– FOR HOW TO POST TO NEWSGROUPS——— (If you don’t have an add posting programme)

    Step 1) You do not need to re-type this entire letter to do your own posting. Simply put your cursor at the beginning of this letter and drag your cursor to the bottom of this document, and select ‘copy’ from the edit menu. This will copy the entire letter into the computer’s memory.

    Step 2) Open a blank ‘notepad’ file and place your cursor at the top of the blank page. From the ‘edit’ menu select ‘paste’. This will paste a copy of the letter into notepad so that you can add your name to the list.

    Step 3) Save your new notepad file as a .txt file. If you want to do your postings in different settings, you’ll always have this file to go back to.

    Step 4) Use Netscape or Internet explorer and try searching for various newsgroups (on-line forums, message boards, chat sites, discussions.)

    Step 5) Visit these message boards and post this article as a new message by highlighting the text of this letter and selecting paste from the edit menu. Fill in the Subject, this will be the header that everyone sees as they scroll through the list of postings in a particular group, click the post message button. You’re done with your first one! Congratulations…THAT’S IT! All you have to do is jump to different newsgroups and post away, after you get the hang of it, it will take about 30 seconds for each newsgroup!

    **REMEMBER, THE MORE NEWSGROUPS YOU POST IN, THE MORE MONEY YOU WILL MAKE!! BUT YOU HAVE TO POST A MINIMUM OF 200**

    That’s it! You will begin receiving money from around the world within days! You may eventually want to rent a P.O.Box due to the large amount of mail you will receive. If you wish to stay anonymous, you can invent a name to use, as long as the postman will deliver it.

    **JUST MAKE SURE ALL THE ADDRESSES ARE CORRECT.**

    Now the WHY part:

    Out of 200 postings, say I receive only 5 replies (a very low example). So then I made $5.00 with my name at #6 on the letter. Now, each of the 5 persons who just sent me $1.00 make the MINIMUM 200 postings, each with my name at #5 and only 5 persons respond to each of the original 5, that is another $25.00 for me. Now those 25 each make 200 MINIMUM posts with my name at #4 and only 5 replies each, I will bring in an additional $125.00! Now, those 125 persons turn around and post the MINIMUM 200 with my name at #3 and only receive 5 replies each, I will make an additional $626.00! OK, now here is the fun part, each of those 625 persons post a MINIMUM 200 letters with my name at #2 and they each only receive 5 replies, that just made me $3, 125.00!!! Those 3,125 persons will all deliver this message to 200 newsgroups with my name at #1 and if still 5 persons per 200 newsgroups react I will receive $15,625,00! With an original investment of only $6.00! AMAZING! When your name is no longer on the list, you just take the latest posting in the newsgroups, and send out another $6.00 to names on the list, putting your name at number 6 again. And start posting again. The thing to remember is: do you realize that thousands of people all over the world are joining the Internet and reading these articles everyday? JUST LIKE YOU are now!! So, can you afford $6.00 and see if it really works?? I think so… People have said, & quote; what if the plan is played out and no one sends you the money? So what! What are the chances of that happening when there are tons of new honest users and new honest people who are joining the Internet and newsgroups everyday and are willing to give it a try? Estimates are at 20,000 to 50,000 new users, every day, with thousands of those joining the actual Internet.

    Remember: play FAIRLY and HONESTLY and this will really work.

    March 23rd, 2008 at 2:54 pm
  6. Angelo said:

    Decide to be a millionaire can be one of the most exciting journey you’ll ever made

    It should not scare us: some years ago, Buckminster Fuller arrived to calculate that if the wealth on the planet had to be equally distributed among people, each one of us would be a millionaire :-)

    So, we all are millionaires but few of us reclaim our birthright!

    “If you want to help the poors one, don’t be one of them”

    October 22nd, 2008 at 6:12 pm

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