Becoming a millionaire seems like a dream that will never be achieved. Well, if you keep dreaming about it you should make it a reality. Chances that you will be the next Mark Zuckerberg is definitely low, but remember that is not the only way to become a millionaire or billionaire. But how do you step by step become a millionaire, no matter what is my background, my strength or weaknesses. Where do i start and should i quit my job to start up something? Isn't that too risky? Oh... Imma buy a book how to become rich and sleep on bank notes... Well, chill mate
Misconception
The first misunderstanding about becoming a millionaire is that we are looking at the wrong examples. We look at Mark Zuckerberg, Steve Jobs, Larry Page and so on. They are great hard working people but the problem is that they have built their fortune with coming out with some ideas that really worked out and this method of becoming wealthy doesn't really work with everyone. Then how could you become a millionaire without doing that?
There are two rules in your life that will give you the highest possible chance of becoming a millionaire or maybe a billionaire.
Double your income every three years
If you are making $5,000 now, you must make sure that you will be making $10,000 in three years from now. How are you going to do that?Save 20% of your income
If your making $5,000, you should save at least a $1,000
Let's apply this in a very practical example. Let's say that you have just graduated from University and you are 22 years old. Let's assume that you spend another year looking for a job and stabilizing your life. At the age of 23, you start applying these two rules in your life.
Assuming that you're making around $50,000, which is the average wage in the United States. After taxes, let's say you are getting around a thirty six thousand dollars in cash. If you double your income in every three years, by the age of 32, you should be making at least $288,000 annually. And by the age of 38, you should be making roughly around $1,152,000 a year. Now they are two confusion or delusions that people have.
Do you really have to wait until i'm 38 years old to become a millionaire? Duh... NO!
There is not a single fucking company on earth which will double your salary every goddamn 3 years. That's bullshit.
That is why you gonna need to create another source of income beside your job which will double your income. If you are making $36,000, that asset that you have to create must bring another thirty six thousand dollars in three years. It's gonna be different for everyone. Here comes the importance of reading books, articles, going to networking events, exploring new ideas and so on which well help you to create your asset. As you may start up something that you show great interest and are knowledgeable in.
At the same time you are saving 20% of your income, which means you will save around $21,600 in three years, this is the money you will be using to create an income. I know that this money is not a lot but it is still something to start with. Of course you won't have that money right away, that's why you can take a loan to start up, knowing that you will be able to pay in 3 years. In the next 3 years, you will be able to save more and therefore, invest more and create more asset that actually pay more than the previous ones. You can create absolutely new ones or maybe expand one that you already have. Once you are already earning $288,000 annually, you can save more than 20% and even double your income in a shorter period than 3 years. Maybe even in 2 years that assets that you have built brings you around $288,000 itself as it may be an infrastructure or plantation, stock exchange investment or FOREX.
So, in the 9 to 12 years you are actually building this foundation to become multi-millionaire or billionaire, because for the rest of your life, you will be able to expand those businesses or buy new businesses (investments). That's exactly what Warren Buffet did; he made his first million at the age of 30 and today his net worth is around 65 billion dollars, because he just kept investing, building or buying new businesses to keep doubling his income which eventually increased his net worth. The mistake that a lot people do a lot is once they earn enough to sustain their families and have pretty decent life, they lose the motivation to keep earning more. They get busy more with family and comfortable life and most people don't want to leave their comfort zone they are already in. They might stuck there for the rest of their lives. Well, yeah...of course you can increase your standard of life, spend more time with your family but you should always give sufficient amount of your time and energy towards increasing your income. Keep following these rules of doubling your income every 3 years and saving 20% of it. This plan might not be the best for you but you could change few details of it to your rythm. You gotta just keep pushing it in quest of profits.
If you find more please comment down, i will edit and mention you as credit to you.