How to Make Your First Million Dollars
It seems unrealistic to make $1 million. It’s easier than you think.
You do not need to buy a lottery ticket or invest all your savings in some super profitable projects. We give you 10 tips to help you make your $1 million. Yeah, we’ll have to make some sacrifices, but it’s worth it.
Contents
1. Increase the size of your savings
Every company has a goal of making more money. That’s the same principle you should follow. Some people put off 5-15% of their income. It’s not enough to be a millionaire. You need to cut your expenses drastically and set aside at least 50% of your monthly income. If you have two sources of income in your family, try to live on one salary and put off the other.
2. Make a plan and stick to it
You need to learn how to invest properly, plan investments, and stick to your plans. It’s important not to be influenced by the crowd. Those who buy and sell more often earn less than those who buy and hold.
3. Earn on your passion
Find what you are passionate about, become a professional, and make money from it. There’s nothing like a hobby that brings you a lot of fun and money. For example, Steve Ells was into cooking. He borrowed money from his father and opened a little restaurant. In a month he sold 1000 burritos (scones with stuffing), and a few years later opened a chain of restaurants Chipotle Mexican Grill. Don’t worry if things don’t work out for you. Do what you love to do.
4. Start investing as early as you can
The sooner you start investing, the more you’ll earn. If you buy shares in companies and reinvest dividends (buy more shares in them), it can make you a millionaire. It is important to invest in different promising companies. For this, consult with professionals.
You can calculate how long it will take you to get $1 million. For example, if you place $2000 per month on a deposit or in bonds with a yield of 2%, you will need 32 years. You start at 25, you’ll have your first million by the time you’re 57. Want to hurry up? Invest more or in more profitable instruments.
5. Be patient
Regardless of the strategy you choose, it will take you a long time to accumulate large amounts of money. Investment is not a short 100-meter race, but a long 42 km marathon. Even the most successful business “shoots” in more than one day. Earning the first million is always very difficult, but the second will be much easier.
6. Invest in real estate
All rich people invest in real estate. It is important not to make a mistake about the place, the developer, and the project. Start by buying a small apartment. Rent it out or resell it at an increased cost. Increase your speed.
7. Don’t spend money to show your status
Only foolish millionaires will ruin money, buy whatever they want until they’re bankrupt. Smart millionaires live modestly: their houses are not located in luxury areas, they do not buy expensive cars and do not stay in five-star hotels. If you have free money, invest it for additional income.
8. Build your wealth
You don’t have to be a super successful businessman to make big money. It is enough to be a disciplined, hardworking, and creative person. Start with a little: first try to sell your unnecessary things, then invest in stocks, then something else.
9. Avoid the thought of failure
Set yourself up for success, but be sober. Thoughts of the bad will only get in the way.
– Don’t think about the fact that you’re doing this for nothing.
– Don’t think everyone owes you one.
– Don’t take a loan if you don’t have anything to pay it back.
– Don’t be afraid of obstacles.
– Don’t leave those who owe you money.
– Learn all the time.
10. Invent something
Can you come up with a new product or service? Did you get a lot of ideas? Pick one and try to do it. For example, Sara Blakely became the youngest billionaire woman at 29 simply by creating comfortable underwear that can be worn under white pants. Her underwear under the Spanx brand is sold in 40 countries worldwide.
Remember that people need comfortable things and cool services that will solve their problems.
