Most of us can save a few hundred dollars or even make a few hundred extra each month, but not every path to actually making millions is easy or simple. In fact, they are rarely easy. However, some paths are better than others, and that’s what I’d like to focus on. Just remember, one million may be hard to reach, but after that it’s easy to see exponential results if you know how to invest your money.
Start A Business Or Side Hustle
There are tons of lucrative side hustles and businesses out there, you just need to pick one that matches your skillset. You probably have multiple options that could make you a millionaire, or maybe even a billionaire, but you have to at least take the first step and start working towards it. If you have the resources to set up and start a business, go for it. If you need a stable job, work on building something on the side and it may eventually turn into something even bigger than you imagined. Of course, even just a minor side hustle that brings you supplemental income can add up if you use the money from it wisely.
If you go this route, find something you’re great at. It’s nice to be passionate about it, but it’s more important to be exceptional at it and at least enjoy it enough to work hard on it. With that being said, you don’t have to know everything when you first start, much less be a complete expert. Focus on starting, and you can pick up the additional entrepreneurial skills as you go.
Invest Early And As Often As Possible
I don’t think I need to go into detail on the importance of investing and the power of compound interest, but don’t forget that it’s just as important to be consistent with it. You should be making routine investments every month, if not every paycheck. Set up automatic payments to your 401k, IRA, or any other accounts you may have. Sometimes it may seem like you’re sacrificing in order to maintain that consistency, but when you see the growth in a few short years, you’ll start understanding how much it sets you up for success.
If you’re new to investing, read my guide. On top of being consistent, it’s important for you to understand that starting as early as possible will set you up for major success over the long run. If you feel like you’ve waited too long, it’s never too late – start now. If you feel like you’re young and have more than enough time, you’re never too young – start now.
Start investing, set up automatic investments, and enjoy the growth over the years. This alone can make you a millionaire if you stick to it. If you’re worried about the complexity, M1 Finance makes constructing a portfolio and setting up automatic deposits easier than ever.
Keep Your Spending In Check
You’d think this would go without saying, but a lot of people struggle with maintaining their budget. It’s easy to reach a modest income and start buying houses, cars, and luxuries that you can’t genuinely afford. Don’t stretch yourself too thin. Once you set up a budget, don’t let yourself start spending more. As salaries increase, people like to let their lifestyle creep up, but avoid that. Your expenses should generally only increase after major life events (like a marriage or birth). Remember, the less you spend, the more you can invest. The more you invest, the faster you’ll become a millionaire.
If you’re trying to step up your game, check out my savings challenge. If you’re having a really hard time saving, use Acorns to help you get started.
Invest In Real Estate
So, there is a lot of debate about whether you should buy or rent for your primary residence. There are merits to both, but it depends on a lot of factors in your personal life and financial situation. Regardless of your primary residence situation, investing in real estate is known to have made millionaires out of people for ages. If you take the time to learn what you’re doing, and save up the capital to get started, you can make some great long-term investments that also provide you with strong cash flow.
Inherit It
Hey, this is the article on the best paths to becoming a millionaire, and this takes the cake on being the easiest (which can be a double-edged sword in certain ways). While this probably isn’t a possibility for you unless you come from a well-off family, you can still make use of any inheritance you end up receiving – however modest it may be. My general recommendation is to not rely on an inheritance when it comes to investing and early retirement, but if you receive one, use it to catapult you further ahead. Whether you receive $1 million, $10,000, or even $100, putting it towards your investments will yield the best results.
Keep Improving Yourself
To some, this will seem like a given. To others, this will be a complete surprise. The average person can drastically improve their income if they invest some time and money into learning some valuable skills. I know it doesn’t give the same rush as entrepreneurship and investing, but it can pay off in amazing ways – especially if you’re in the infancy of your career.
The main point I’m trying to make is simple, do what you need to in order to keep learning and making yourself better. I don’t care if it is more in your personal life or in your career, I’m certain both hard and soft skills will dramatically improve the income you can make.
Build Your Brand
These days it is easier than ever to become a successful entrepreneur. You can even make millions as an influence or content creator. Whatever you’re interested in, there is an audience for articles or videos on it, if you take the time to make them – and the potential payout is hard to pass up. If you decide to pursue this route, the main thing to keep in mind throughout is that you need to be genuine, trustworthy, and honest. If your audience trusts you, they’ll know you aren’t just pushing sponsors or affiliates – you’re recommending them the best of the best.
Be Wise About Debt
In other words, avoid debt if you can. If you’ve already amounted a fair bit of it, there are some great strategies to get rid of it.
As a general rule of thumb, high-interest consumer debt (like credit cards) should be avoided as much as possible and taken care of immediately. Debt from things like student loans is secondary, and debt from something like a mortgage may not even need to be paid off. In other words, avoid debt when you can, and if you must have it only accept low-interest debt.
Conclusion
If those ways didn’t seem easy enough, I’m sorry, but that’s about as good as it gets. If they don’t seem realistic, that’s fine (not all of them are), but make use of the ones that are. As always, if you have any thoughts you’d like to contribute, add them in the comments!
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