As full disclosure, I need to admit that I am not either.
Then how am I qualified to write about it? I do not have all the answers. But when I analyze the past and check what mistakes were made, the answers may be intriguing.
Reportedly, there are 10.4 million households- 8.3% of American households- worth more $1 million or more. Comparatively, the average American may not have more than $5000 in bank account.
It must be acknowledged that the wage gap, stagnant paychecks, and lingering effects from the Great Recession may have had dramatic impact can be debilitating. However, unable to reach $1 million milestone may be attributed to the individuals directly.
At the onset there has to be basic realization that it is possible to have $1 million and that accumulation of wealth is a number game. Once that realization gains a strong hold within you, then you need to become practical. What does that mean? The possible options are- Increase your earnings, minimize your debts, and create income-generating investments.
Toughest thing to do is to minimizing your debts. Simply stated, you have to realize the difference between wants and needs. You have to distinguish between which item are necessities and which ones are optional. Even with your needs, you may have to curb your spending. For example, you need a car; it doesn’t have to be the most luxurious car. Neither do you have to spend a lot of money on food. It’s very easy to overspend without even realizing it.
It is said that you are often judged by the people you associate with. That is to say, you are likely to spend more if you hang around people who spend unwisely. Your money habits often reflect the people you hang around with.
The essence of having a million is acquiring financial freedom. The root of financial freedom is to have more cash coming in than going out. The two powerful methods are: to have a plan B to increase your earnings and to start paying off your debts.
It is not possible to become a millionaire with a regular job. For example, if you were making $50/hr., your annual salary is ($50/hr. X 40 hrs./week X 52 weeks/yr.) about $100,000. If you saved all of the salary, it will take 10 years to have $1 million. Surely, it is not possible to save 100% of your salary. If you save 10% of the salary, it will take 100 years to have a million.
It ought to be clear that cutting back and tightening is not that helpful to attain your goal of having your first million. What you will need to do is have a method or means to have additional paycheck(s). You may want to consider a Plan B. What is Plan B, you ask.
Your Plan B will be a system that will generate additional cash flow (paychecks) to your regular income flow. How does one do that?
It will mean starting your own business —it’s a side project to your day job that could soon bring in major profits as you work for yourself. Be warned that everyone wants in on a get-rich-quick scheme, but few of them pan out. Be realistic and do not fall for these schemes.
In the 1996 book “The Millionaire Next Door: The Surprising Secrets of America's Wealthy,” the authors state that two-thirds of the millionaires are self-employed, with 75% of them entrepreneurs, and the remainder professionals, such as doctors and accountants.
Do not count on inheriting a pot of money or winning a lottery, entrepreneurs create most of the wealth in the country. Most millionaires in the making, 8 out of 10, earned or increased their assets on their own, a 2015 survey by Fidelity Investments found.
There are plenty ways you can start your business online without costing you large cash outlay. The most important thing you need to note is that you will need to devise a system that will generate a cash flow for you on a regular basis. Then your developed system can add or delete product(s) or service(s) to enhance income.
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