If I had known what I know now about investing, maybe I would’ve reached millionaire status in my 20s, rather than in my 30s.
Achieving the goal of having $1 million in your investment portfolio might seem hard, but with the right strategy and mindset, it is absolutely attainable.
Let’s break this process down in 3 steps:
Step 1: Automate Your Investments
The first trick to making your million-dollar goal a reality is automation. Automating your investments ensures that you are consistently contributing to your portfolio without having to think about it.
This is like wealth happening on auto-pilot!
Here’s how to do it:
→ Set up automatic transfers from your bank account to your investment account.
→ Schedule these transfers to happen on the same day every month, aligning with your pay schedule to make it seamless.
→ You can also choose to do this via your 401k account. Choose a nice high percentage so that you save before you spend.
This consistent, automated approach removes the temptation to skip a month or spend the money elsewhere, which is what most people tend to do.
You don’t need to get creative or take unnecessary risks to grow your wealth. The wealthy often rely on the steady, consistent growth of index funds.
When you rely on meme stocks, you can get burned… bad. Remember the Gamestop meme stock craze? Those investors lost 13 billion in less than a week! Don’t let that silliness happen to you.
Here’s why you might consider them:
Diversification:1 Index funds spread your investment across a wide range of stocks, reducing risk.
Low Fees: They typically have lower fees compared to actively managed funds.
Historical Performance:2 Index funds, like those tracking the S&P 500, have shown strong long-term growth.
Step 3: Break Down Your Numbers
One thing people get wrong about making $1,000,000 is thinking they have to earn it all at once.
You don’t become a millionaire overnight (at least most don’t) – it happens over time with the right habits, actions, and mindset. One of those actions is knowing your numbers and working backwards.
Grab a piece of paper, pencil, and a calculator.
Ready? Okay, let’s dive in. What is a million dollars? Think about breaking it down into smaller amounts. For example, earning $1,000,000 could be.
- 100,000 people spending $10 each.
- 50,000 people spending $20 each.
- 10,000 people spending $100 each.
- 1,000 people spending $1,000 each.
Seems more manageable, right? But you might be wondering, “How can I find that many people willing to spend that much money?”
Well, think about this: MILLIONS are spent every minute on all sorts of “questionable” things. There’s no reason why you can’t tap into that.
Dumb story to prove my point: Did you know that a woman in Florida decided to make herself a grilled cheese and when she went to take a bite out of it, “saw” the Virgin Mary on it. She claimed that this grilled cheese with the semblance of Virgin Mary brought her good luck. She was able to sell that smelly, old grilled cheese sandwich for $28,000.
Now, let’s talk about a strategy to reach your goal with even less customers. Think about a business model that allows you to get paid over and over, like a subscription-based model.
Example: Charging $99 per month for a product or service? Finding people who will pay $99 per month might be easier than finding people who will pay $1,200 at once. Over a year, that’s $1,188 per customer.
Now imagine you have 850 customers. That’s $84,150 every month, which totals to OVER a million dollars per year! This is where the power of recurring revenue comes in.
This is similar to real estate. People pay their rent every month and that’s how wealth is built passively. The subscription model is not a new idea! Just get creative with it.
Lastly, knowing your numbers like what you Make, Save, Spend, Want, and Give are extremely important in creating the financial plan you’ll need to build wealth long term. If you need help, reach out to my team HERE
If you’re looking to strategize your wealth, check out my contact page to schedule a 20 minute call with my team to see how we could help!
Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity.
- There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. (26-LPL) ↩︎
- The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Indexes are unmanaged and cannot be invested in directly. (102-LPL) ↩︎
