13 Ways to Make a Million Dollars

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Most people who are just getting started in life think they are going to be millionaires.

According to recent study, 53% of millennial’s were of the utmost confidence they would become millionaires.

Some people may say this is “youthful exuberance”. Millennial’s may think it is easier to become a millionaire than what reality may suggest. They see the success coming from tech tycoons and think they may one day do the same.

For the average person, becoming a millionaire doesn’t just happen. You are not going to get promoted or start a successful business just because you are awesome.

You have to make it happen.

As you are going to see, it is very doable for almost anyone. It just takes discipline and a little planning on your part.

So, when we have a goal to become a millionaire, the best course of action is to work backwards.

Why do you want to be a millionaire?

First, you need to ask yourself why a million dollars? Most people arrive at this number just because it’s a flashy round number.

For some people’s lifestyles it is plenty of money.

For most people’s lifestyle it is not enough.

I say it is not enough because the average mortgage, auto loan, and credit card debt would not be supported by the amount you can safely draw down.

A million dollars can safely be drawn down in retirement at about 4% if it is invested. This is a personal finance staple. That means, a million dollars will produce about $40,000 per year for the average investor in something like and index fund.

Is that enough for you? Do you need $2,000,000? Maybe, you only need $500,000. Just make sure you know your why first.

Working Backwards

If you have come to the conclusion that you want to be a millionaire, or maybe a multimillionaire, it is time to plan. Now we can work backwards to figure out.

Here are 13 ways to make a million dollars:

1. Earn a salary of $50K for 20 years.

2. Earn a Salary of $100k for 10 years.

3. Earn a salary of $250K for 4 years.

4. Earn $114 per hour, every hour of the year.

5. 5,000 people buy a $200 product.

6. 2,000 people buy a $500 product.

7. 10,000 people buy a $100 product.

8. 1,000 people buy a $1,000 product.

9. 5,000 people pay $17 per month for 12 months.

10. 2,000 people pay $42 per month for 12 months.

11. 1,000 people pay $83 per month for 12 months.

12. 500 people pay $167 per month for 12 months.

13. 300 people pay $278 per month for 12 months.

Think through this list. Study it. What ideas come to mind?

When I look at this list, I see two options.

1. You can see tremendous opportunity.

2. You can see the goal as too hard and quit.

Nobody is going to do this for you. You can’t wait for an inheritance You have to do it on your own. You must believe in the possibility of a million dollars as a realistic goal.

The purpose of this list is to make it simple. Instead of a million dollars, think of collecting a million index cards. The first question is where can you get index cards? Secondly, What do I need to get these index cards.

If you do the math you create possibility, which leads to strategy.

Owning a Business vs. Having a Job

Owning A Business

For me, this changes my entire outlook on owning your own business. It can accelerate the path faster than almost any other route. If you have a product or service that is exceptional you may be able to become a millionaire in a few years.

Having a Corporate Job

Your job is the slow path to a million dollars. But, you can get you there with diligence (As you can see in #1, #2, and #3). Note: I did not include taxes, expenses etc. in this equation. Obviously Investing will accelerate this for anyone with a job in addition to using tax advantaged accounts like a Roth IRA.

Related: Stop Trading Time for Money

Conclusion:

Working your way to millionaire status seems much more attainable when you work the numbers backwards. How do you plan on becoming a millionaire? Will you save a large chunk of your salary from a job? Will you start a business? Or both? Let me know in the comments below.

Cheers,

Andrew

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andrew

Andrew is the author behind Dollar After Dollar, a blog that teaches you how to build wealth and gain financial freedom.

Andrew is the host of The Personal Finance Podcast, a show that is changing the way you think about your money. His primary goal with the podcast is to bring as much value as possible to his listeners.

Andrew's favorite free financial tool he's been using since 2014 to manage his net worth is Personal Capital. Each month he uses their free Investment Checkup tool and Retirement Planner to track his investments and ensure that he's on the fast track to financial freedom.

His favorite investment platform is M1 Finance, a site that allows him to build a custom portfolio of stocks for free. It has no trading fees and is his preferred way to invest without having to lift a finger.