Let me ask you a question. Do you think it’s possible to become a millionaire in 10 years? I find that I amaze people when I tell them that I can show them how to become a millionaire in about 10 years.
Most people just don’t believe me. Why? Quite simply, they’ve already lived at least 10 years and they aren’t millionaires, but I do stand by my statement. Plus, you don’t need to inherit money or win the lottery or some other crazy thing to accomplish this goal.
It just comes down to a bit of financial know-how and perseverance. Actually, I believe a person can do it in as little as five years if you’re really fast and bright, but it shouldn’t take more than 15. But let’s stick to the initial 10 years.
The first lesson to make this happen, when it hasn’t happened before, is to plant your money tree today. If you don’t get started and invest, you won’t make any rewards. Imagine a farmer that goes and purchases seed to plant his garden, but doesn’t plant the seeds.
A year later, he becomes frustrated at the seeds and wonders why he has failed. I know it sounds dumb, but don’t we do that with our financial futures? I’m guilty of that. I learned a lot about investing in the stock market and had funds to invest in the stock market, but I had a few little things holding me back and all of a sudden, 20 years goes by and guess what? I’m the one upset with my seed.
Next, you have to realize that this is a pretty good way to becoming a millionaire, but you have to have patience and perseverance, as I mentioned earlier. It’s easy to get excited for a week or a month, but when you’re grinding away at this for a year or two, it’s not so easy. This is the second place where a lot of potential millionaires cut down their money trees.
They become disillusioned and take out their money and spend it on something. Doesn’t matter what that something was, the result is the same. All the work you put into planting, cultivating, and growing your money tree is gone, and you have to start again if you’re going to do this.
So don’t cut down your money tree. Remember that you will see your biggest results later in this game. Not sooner, but later.
This is why a lot of people say that saving the first hundred thousand is the hardest. I’ve heard people say it’s next to impossible, but it’s not. Your efforts just don’t feel well rewarded before then.
Next, you have to continue to grow your knowledge on financial matters. This can be around increasing your income, reducing your expenses, or just improving your return rates on your investments. I’m doing all three, and I believe that I will be a millionaire in eight to fourteen years.
After I finally planted my money tree, of course. I also believe that this can happen in as little as five or six years for me. But in ten years, I’m hoping I’ll be there for sure.
As you’re learning, your end result is to increase how much you can contribute to your efforts financially. Your time will be much shorter. Thus, you’ll have to contribute much more to the overall portfolio to get to that millionaire status.
Your goal should be to learn how to contribute more than 10% of your gross earnings to your money tree fund. Also, you’ll need to learn how to increase your returns to over 10%. Again, we need to leverage both of these situations to meet our goal.
Right now, I’m contributing close to 30% of my gross earnings per year on a consistent and monthly basis. Didn’t start out at 30. I’ll promise you that, but I’ve gotten to there.
I’ve been able to do this by increasing my wages by 80% over the past five years, and then dramatically reducing my expenses. I went from not being able to invest anything monthly to investing over $3,000 per month. Also, another way to boost your efforts is to save any financial windfalls that life bestows upon you.
We all have them. You might not think it, but we all do. An example of this for me was I went looking into some old crypto wallets, and I set up one way back in the past and discovered that I had crypto-mined about $300 of Ethereum a few years ago.
Now, this was interesting. What I discovered with those funds is they had dramatically increased when the price of Ethereum jumped at that time. I was able to cash out with over $10,000.
Now, I could have spent all that money, but I decided it was better to invest. Another windfall is our yearly tax return. Because of various reasons, we normally have a pretty good tax return every year, and I was able to put over $21,000 into long-term savings from this action alone.
What I’m trying to tell you is, is to take advantage of each and every financial windfall that comes your way. Even if you get a bonus at work, ask your employer to invest that amount into your RRSP, 401k, or other tax-deferred vehicle, so you can save it. When you start to broach about the $200,000 mark, you’ll also learn how to get better returns than 10%, and you’ll discover that the fund will grow by at least $20,000 or more each year all by itself.
Now, let me tell you, it feels like having a minion working for you, and you haven’t had to add any more time or any energy into that effort. And that is a great feeling. If you’ve been able to save your initial $100,000 in under five years, saving the other $900,000 shouldn’t take more than another five to ten years.
If you continue to increase your cash injections over time and improve your rate of return, it is realistic to start thinking about being that millionaire. Even without large windfalls over the next few years, I believe that I’ll be able to save at least $450,000 in year-to-year six, maybe seven, into my journey. Even if I stop contributing to the fund at that point, it should turn into a million dollars in just over seven years after that.
And that puts me taking the lazy trail to being a millionaire in 14 years. If I continue to contribute, it will be less. But again, I believe my journey will be faster.
Why? Because I’m continuing to invest into other money-generating ventures, and I’m continuing to learn how to improve my returns in the markets. If you’re enjoying this video, but you want more information and details, be sure to sign up to my newsletter. You’ll find a link in the description below.
It’s easy and free. Plus, you get a small bonus for signing up that contains strategies you can use to get started to saving today. Definitely something you want to read.
I want to see you become a millionaire in the next five to ten years.
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