I do, don’t you? Its not that hard either, in fact I consider myself to be a multimillionaire! The reason being that I know exactly how I’m going to do it, I know that my chosen method (or combination of methods) is fail proof, and I even know approximately when I will reach my goal. The good news is that I’m dying to tell you the secret.
You might have noticed that I said the secret, instead of my secret, there’s a good reason for that. The secret that I’m going to tell you should be common knowledge and I hope that most of you will laugh when you realize how simple it is. But the sad truth is that most people don’t know about it, and whats sadder still is that most people are doing the exact opposite.
The moment you decide that you want to become a millionaire you also have to decide how you want to get there. There are two basic methods to chose from, I like to call them the fast method, and the slow method. So the question you need to ask yourself is do I want to become a millionaire right away, or am I willing to wait for 20 to 30 years? I’m going to recommend a combination of the two, and in the following paragraphs I will try to simplify them for you.
The first method, and the one that most people are interested in, is the fast method. The fast method can basically be broken down into 4 categories:
- Investments. This category consists of shares, bonds, CD’s, Unit Trusts, and any other form of paper investments.
- Real Estate. Any investment in property falls into this category, whether you buy and sell property, or you own several properties that you collect rent from. Owning a home that you live in and pay a mortgage on does not count, as this is considered to be a liability and not an asset.
- Business. This is obviously when you market a product, service, or idea.
- Internet. This one is my favorite. Any Internet business or venture that is making you money falls into this category.
As you can see, all of these methods have an element of risk to them and none of them are guaranteed to bring you millions. That’s why you need to not focus on just one method, but on as many as you can. I talk a little more about this in another post. If you’ve diversified your methods enough, you will find that the odds are firmly stacked in your favor, as long as you don’t give up. But there is another method to reach your millions, and the second method is 99% guaranteed to bring you to your riches.
The second method is very simple and it can be summarised in one sentence. Save, and invest. if you save one dollar every day and invest it in a low risk investment, this is how long it will take you to become a millionaire.
- 3% interest - 147 years - any bank will give this
- 5% interest - 100 years - any bank will give this
- 10% interest - 56 years - a government bond should give you this easily
- 15% interest - 40 years - low risk Unit Trusts
- 20% interest - 32 years - medium to low risk Unit Trusts
Before you leave and vow to never come back, let me remind you that this scenario is for a monthly investment of just 30 dollars. 30 dollars! Come on, you could have been doing this since you were 8. If you were to invest 100 dollars a month at 20% interest per anum you would be a millionaire in 25 years, and in 40 years your investment will have grown to nearly 17,000,000 dollars. Imagine what would happen with 500 dollars a month.
The best thing for you to do is a combination of the two methods, that way if you don’t get rich soon you’re sure to get rich eventually. And the sooner you start the better, compound interest will do more for you with more time. Remember how I said you could have started saving a dollar a day when you were 8, imagine if you had, by the time you’re ready to retire at 70 years or so, you will have accumulated 1,000,000,000 dollars. I could do with that.
And lastly I cannot stress enough the importance of continued education, read as many books as you can. One of the books that I’m reading at the moment that I highly recommend is called ‘The One Minute Millionaire‘ by Mark Victor Hansen and Robert G. Allen.
Enjoy
Simon
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Filed under: Make Money Online, Money and Finances by Simon Rodrigues
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