Easiest way? Start with a million dollars. There, all done.
Reader question from Robert – “What do you think is the best way to make a million dollars?” Well, Robert, the easiest way is above, but for those of us without the starting million dollars, there are a few steps you can take to work towards your goal.
Live Below Your Means – When you live below your means, it enables you to save money. This is the biggest key, as how will you get to a million if you don’t save anything?
Save, Save, Save – Yes, I know this has to do with a tip above, but the more you can save every month, the shorter the time will be until you can say you are a millionaire. Put as much away every month as you can bear to..and it will pay off, I promise. Besides, would you rather have every digital channel on your television, or an additional several hundred thousand dollars in 20 or 30 years? I can do without 19 HBO channels, thank you.
Be As Frugal As You Can Be – If you buy the most expensive car, the most expensive cellphone, the most expensive clothes, how do you think you will ever have a million in the bank? Living simply and living frugally are two huge rules when it comes to keeping your money in your pocket.
Monitor Your Finances – You cannot know what it is going on if you do not know what is going on! Watching for late fees, due dates, and account balances allows you to have a greater grasp on your overall situation.
Own Your Own Business – This is a hard one, but still completely possible. Studies and books have shown that those people who own their own business are much more likely to have more money. Why? They aren’t working for the man and making him more money, the money they earn goes in their pocket.
Have An Emergency Fund – For those rainy days, you want to be able to depend on yourself and not a credit card. You should have a sizeable amount of cash available to you immediately for anything that might come up, so you do not have to go into debt to finance a problem.
Stay Out Of Debt – There is nothing more harmful to becoming a millionaire than carrying around loads of consumer debt. Loans to start that business or even real estate loans are one thing; but carrying big balances on your credit cards mean you are giving the bank their money back PLUS 9-22% interest…money you could be earning for yourself if you did not have to pay them.
I know these are all very basic, but I got an email asking for tips. I am not sure if these were the type of answers you were looking for Robert, but this is what I could think of off the top of my head. Really, it boils down to saving, investing, and being smart. Given time, following a few steps will put that million bucks in your pocket. Hope it helps.
Need more? Check out Ryan’s How to become a millionaire tips.