5 Steps to Becoming a Millionaire
5 Steps to Becoming a Millionaire
In 2011, the number of households in the United States worth over $1 million was 8.6 million. Although the thought of acquiring a million dollars may be a whimsical fantasy for some, it is not out of reach. With careful saving and investing, becoming a millionaire is possible if you apply a 5 step plan involving the following areas:
Health
Take care of yourself. If your health is poor, you won’t enjoy the rewards of a solid financial plan. Eat right, exercise daily, and discipline yourself. The most successful investors are those who have the discipline to stay with the program.
Spending
It’s true; a person always lives up to the amount of income they earn. If you make the money, you are apt to find a place to spend it. The key to successfully saving is to spend less than you make and to also spend more money in areas that will actually preserve wealth.
Savings
A disciplined approach to saving reaps rewards in the future. While saving early in your career, allocate a larger percentage of your savings to investments. A 30 year old with $15,000 invested and saving $600 a month will become a millionaire by age 56 if the money invested returns 10% per annum. If the investment rate of return falls to 8% per annum, the millionaire age is moved to 60 years old.
Investing
Focus on an investment portfolio that minimizes your fees and maximizes your returns. If you are unsure about the types of investments, consider low cost index funds such as the S&P 500 or Russell 5000.
Career
No matter how much you position yourself, your career will dictate how quickly you reach the millionaire plateau. You have to move above and beyond your job description, excel in your performance and make yourself invaluable to the organization. Align your goals and focus on efforts that make you a valuable employee. You want that merit raises; they will add up.
Check out the Groco Millionaire Calculator to determine how much you need to put away to enter the millionaire class.
We hope you found this article about “5 Steps to Becoming a Millionaire” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or website www.GROCO.com.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
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