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Become A Millionaire
Have you ever wondered how people retire with a million dollars (or more)?
How did they become millionaires?
With this millionaire calculator, you can discover how long it will take you at your current income and savings rate to acquire your first million dollars. It's not that hard.
Lessons From Millionaires
The truth is it's not brains that build a million dollar retirement. The world is filled with smart, educated people who never build any wealth.
Related: 5 Rookie Financial Planning Mistakes That Cost You Big-Time (and what to do instead!) Explained in 5 Free Video Lessons
It's also not just luck. Sure, sometimes people get lucky and win the lottery or just happen to work for a company before it distributes employee stock options and goes public.
But those are the exceptions – not the rule. Instead, millionaires follow specific patterns of behavior that result in regular growth of equity and savings:
- Millionaires dream big – They develop goals that keep them motivated and convert those goals into action plans because a goal without a plan is just a dream. According to research, goals that are committed to writing have a greater chance of being achieved then goals that aren't. The key is to take action to achieve your goal by reverse engineering it into a plan.
- Millionaires own their own business – Leverage and tax advantages are two essential principles of achieving a million dollar net worth, and owning your own business has both. Working a 9-5 job has neither. Most millionaires became that way through business entrepreneurship. The second most common path is real estate – again, because it includes leverage and tax advantages.
- They learn from their mistakes – Every millionaire made a ton of mistakes before striking it rich. Overnight wealth is a fantasy because every fortune is built on years of foundation building before hitting it big. Climbing the wall of success is never easy. Everyone has their share of ups and downs. The difference is millionaires take risks and aren't afraid to fail. Instead, they learn from their mistakes and never give up in pursuing their dreams.
- Persistence – The most common characteristic for saving a million dollar net worth is persistence. Whether you achieve the goal through business or save your way to a million dollars by being frugal with your spending and working a regular job, the key characteristic that will make or break your success is persistence.
Steps To Becoming A Millionaire
Retiring a millionaire is not an accident. It is the result of careful planning and persistent execution. Below are some basic actions steps to consider as you embark on the journey:
- Make a plan – Set realistic goals for yourself that will result in becoming a millionaire. Wealth is not a random act. It is something that requires careful planning and action. Check your current financial situation and plan how you can generate savings from your income. Use this millionaire calculator to determine how long it will take you to save your first million based on your plan.
- Take action – Nothing happens without first taking action. Start a small business from your home. Do something that you love to do that will generate income. Acquire your first positive cash flow rental property. When your assets provide enough income to replace your full time job then you will have more time for other interests or to focus on growing your wealth further.
- Spend less than you earn – Nobody ever spent their way to a million dollar net worth. You must accumulate the wealth by spending less than you make so something is left over to invest.
- Invest wisely – Develop your financial intelligence so you can learn how to grow your money. You must know how to separate valid investment strategies from rip-off schemes.
- Correct and adjust – The path to success is never a straight line. Assess your dreams at the end of each year and add new goals every year. Learn from experience and continue to grow both personally and financially.
- Get a mentor – Why re-create the wheel? There are proven principles and action steps that lead to wealth. Learn from someone who has walked the talk and coached others to success with our step-by-step wealth planning course. It is a far more efficient and enjoyable path than learning from the school of hard knocks.
Related: 5 Mistakes People Make With Their First Million Dollars Explained in 5 Free Video Lessons
Staying A Millionaire
Millionaires continually educate themselves because wisdom is what sets you free.
Most of the self-made rich people I know always carry a book even if they are on vacation. They listen to educational podcasts while driving and they also travel a lot to seek new opportunities. They learn how to make their money work for them.
Millionaires are generally students of life because that is how they find opportunities others miss.
If you want to know one of the greatest paths to personal growth then just try financial growth. The result of the millionaire calculator is the carrot, but the real value is who you become as a result of all you learn along the journey to create wealth.
Millionaire Calculator Terms & Definitions
- Current Savings – The amount of money you've already saved – both tax deferred in retirement plans and taxable in regular savings or brokerage accounts.
- Monthly Deposit – The amount of money you will contribute to savings each month.
- Annual Interest Rate – The rate of return on your investment savings.
- Average Annual Inflation Rate – The annual rate of change of prices (as indicated by a price index).
- Net Present Value – The value of your money after adjusting for inflation's erosive effect to purchasing power.
Related Retirement Calculators:
- Ultimate Retirement Calculator: It's called the ultimate retirement calculator because it does everything the others do and a whole lot more.
- Retirement Withdrawal Calculator: How much can I afford to withdraw each month given the retirement savings I have accumulated – both before and after inflation?
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- How To Save Money For Retirement – The Easy Way!: If you have problems saving for retirement then this calculator will show you an easy way.
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- 401(k) Early Withdrawal Calculator: What is the financial cost of taking a distribution from my 401(k) or IRA versus rolling it over into another tax deferred account?
- Taxable vs. Tax Deferred Investment Growth Calculator: How will my future value and investment return differ between taxable and tax deferred investing?
- Interest Calculator – Simple & Compound Interest: Compares simple monthly interest income to long term compound growth for surprising results.
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