How to Become a Millionaire

Cute title eh? Everyone’s focused on becoming a millionaire – it seems like most book titles, articles, and inspirational speakers always want include millionaire in their title? Why?
Well it’s exciting for one. A million dollars has two commas instead of one boring comma. Also, if you have a million dollars there’s really no limit on the lifestyle you can buy – the nicest cars, private jet fare, and entire estates. Not to mention that with a million dollars you can pretty comfortably have a steady income of $35,000 per year for the rest of your life.
The problem is that most people think that they will go from their current state of zero dollars, to an immediate state of millionaire status, much like you go from standing beside a pool to jumping in head first. This scenario is so far from reality that it’s barely worth mentioning.
It takes most people 5-10 years of working full time to accumulate their first $100,000. If you think about the timeline for the average person, it looks something like this.
Year 0 – $525
Year 1 – $10,000
Year 2 – $21,500
Year 3 – $33,750
Year 4 -$47,250
This is in stark contrast to the popular idea that people will go from zero to millionaire in split second. Shameless sales pitches show:
Year 0 – ($15,000) Credit Card Debt
Year 1 – $1,000,000, hot babes & ferrari’s
It’s not easy to sell discipline and frugality as a way to wealth, and because of that there are more snake oil salesman then people genuinely interested in telling you how it really is. So let this be a lesson: Before you can be a millionaire, you need to have a hundred thousand dollars.
Before you can be a hundred thousandaire, you need to have ten thousand dollars.
Before you can be ten-thousandaire, you need to have a thousand dollars.
Finally, before you can be a thousandaire, you need to have a hundred dollars.
Instead of focusing your time and energy on an arbitrary goal of having the sacred one million dollars – focus instead on a smaller goal, even if it’s as unsexy as accumulating your first hundred dollars.

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