By Lorie A. L. Nichols
Have you ever wondered what you would do if you had a million dollars? For some, having a million dollars may seem like a far-fetched idea, not even worth thinking about. But the reality is that many of us have the opportunity to become “Self-Made Millionaires”. Becoming a “Self-Made Millionaire” will not happen overnight. It will take time, commitment and persistence (TCP). If you are still reading this article, this is the first step to show that you are at least interested in hearing how making a million can be in your future and that of your family. Let’s explore a few strategies that can lead to you making your first million.
Most millionaires have the mindset that they will be successful. As a Millionaire In The Making, you have to believe in yourself. You also have to be good at managing your money. In other words, knowing the basics of budgeting and saving. In addition, successful millionaires learn how to invest their money in a way that will offer a decent interest rate and will help their money grow at a faster pace. Now it is time to get your money working for you.
In an article entitled: “How Much Money Do I Need To Save To Become A Millionaire ?” by Marc Pearlman he breaks down the amount by age, years and utilizes an 8% interest rate. Review the stats below:
- 40 years to become a Millionaire: $286.45/month for forty years at an 8% interest rate = $1,000,000
- 30 years to become a Millionaire: $670.97/month for thirty years at an 8% interest rate =$1,000,000
- 20 years to become a Millionaire: $1,697.73/month for twenty years at an 8% interest rate = $1,000,000
The next question you are most likely asking is where will you get an 8% interest rate? I know the million dollar question? This is where your work begins. Remember, becoming a Self-Made Millionaire requires time, commitment and persistence (TCP). Start off by conducting a price comparison on the rates of Certificates of Deposits (CD’s). Go to bankrate.com to determine whether banks or credit unions offer the highest interest rates with the lowest fees. At what percent are they offering the CD, and what is the time frame of the CD maturing ? In order to reach that Million, keep in mind this is the money that you are saving with no intention of using in the immediate future. Therefore, make sure these funds are separate from your emergency accounts.
Another way of growing your money is to join an investment club that will teach you how to get started in the stock market without jeopardizing large sums of money. In other words, there are programs like Share Builder or MyStockFund where you can invest as little as $4 to buy a stock. Imagine owning a share of your favorite company (i.e. Nike, Coach, and McDonald’s) for only $4. Then just sit back and let that money earn money. Now of course this will require further work on your part in terms of educating yourself on how the market works. There are a variety of strategies to obtain interest on your funds. One company designed to help the beginner investor is Better Investing. Take a look at the Better Investing site to learn more about researching companies and how to decide on the companies in which you will make your investment. As you are researching the strategy you will pursue, start saving and putting the financial amount you will allocate toward building your Millions aside into an account separate from your personal account. In this way, once you have decided on the strategy you will utilize to earn interest on your money, with the goal of an 8% interest rate, just transfer the saved funds right into the account.
After reading this article, sit down with a piece of paper. Entitle it: “Game Plan Toward Making My Millions.” Assess the amount of money that you will save each month. Lay out the timeframe of years you will have. Next, calculate the percent your money will need to earn to reach the endpoint figure of $1,000,000. Do your own thorough due diligence about the information on the programs provided in this article. Keep in mind, there are other programs as well aside from Share Builder and MyStockFund that require small sums of money to get started. Investigate them as well and compare fees for managing your account. Bottom line, your goal is to invest regular monthly sums of money that will in turn gain interest and grow your money. Remember, growing your money will take TCP. The primary factor is like the Nike tagline: “JUST DO IT.” Do not wait, do not delay, start saving now. Some action toward investing in you is always better than no action at all. Wake up each day and commit to this positive affirmation.
Tell yourself: “I Am A Millionaire In The Making And I Will Be Successful.”