Eight Keys for Success: The Millionaire Plan
Bottom Line: As part of my annual series, Eight Keys for Success, here’s my Millionaire Plan.
It’s true that the average American, making the average full-time income can become a millionaire within 25 years & even own a home in the process. It’s just math and a little dedication. Here’s how to make it happen...
If you want to be a millionaire, take $1000 per month and invest wisely in stock-based investments and voila…on average you’ll be a millionaire within 25 years. How? The average rate of return in the stock market, the S&P 500, is 10%. After 25 years at an average rate of return you’ll have: $1,298,181. Consider this as well...the $1000 per month is an "all-in" number. For example, if you have an employer that provides a company match on a 401k plan – that counts as well towards this goal. For this reason, when setting up your household budget and expenses, keep this in mind. Ideally, you’d like to be able to craft your monthly budget with an extra $1,000 per month to spare for the purpose of saving and investing.
No, a million dollars, or even 1.3 million aren’t worth what they once were. And no, with the impact of 40+ year high inflation it's not getting easier to attempt to budget this way. However, for those who throw up barriers or make excuses – it’s true, you won’t achieve goals. For the average person in the workforce with dedication and a little good fortune along the way… It’s possible. The median household income in 2022 is over $70,000. Carving $12,000 out to save and invest isn’t easy, but for those who’re intentional, it’s possible. Millionaires are minted every day in this country. The United States stock market is the greatest wealth creation machine in world history. Be intentional and take advantage of the opportunity we’re blessed to have in this country. If you’d like to achieve your financial goals. You will.