The Millionaire Plan – Brian Mudd’s Eight Keys for Success - 2020
Bottom Line: As part of my series, Eight Rules for Life, 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...
Average full-time salary: $50,000. Average net effective tax rate for that salary is 5%. Net take home pay is $47,500 or $3950 per month. Average monthly mortgage payment is $1200 leaving $2750 for everything else. 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, S&P 500 specially, 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. For those who throw up barriers or make excuses – it’s true you won’t achieve elevated financial status and reach loftier goals. For the average person in the workforce with dedication and a little good fortune along the way… 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.
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