3 Ways People Become Millionaires

Today let's review 3 ways people become millionaires.

Building a $1M net worth offers many benefits like:

• More time for hobbies.

• More time with family.

• Less time working.

Unfortunately, most people think becoming a millionaire is unrealistic.

You Have To Get Lucky

Many think building a 7-figure net worth requires:

• A fancy degree.

• A rich family.

• A lot of luck.

Yet, many people don't have any of these things.

Building a 7-figure net worth requires planning & patience.

Fortunately, there are many ways to do it.

Here are the 3 most common:

1. Stocks

Over the past 30 years, the stock market has returned 10% per year on average.

Stocks let you take part in the profits of successful businesses.

Many people have an investment account with their employer.

It's usually called a 401k.

Employers often put money in a 401k on your behalf.

According to Fidelity Investments, the average employer contributes 4.8% to employee accounts.

That means if you're making $70,000 per year—

Your employer will likely put $3,360 into your 401k each year.

That's 4.8% of your annual salary.

But you must sign up!

Log in to your employee account at work and read about your retirement benefits.

Make sure you're receiving all of the benefits you're entitled to.

2. Real Estate

Over the past 30 years, property values have increased 5.4% per year on average.

A $400,000 home today could be worth $800,000 14 years from now if this trend continues.

Some loan programs in America allow a 3% down payment.

3% of $400,000 is $12,000.

It's incredible to think a $12,000 investment into a $400,000 home—could become an $800,000 home 14 years later.

Of course there's other charges to consider like:

• Closing fees.

• Insurance and repairs.

• Other costs to maintain a home.

Real estate can be a great way to build generational wealth.

3. A Business

Starting a business is another wealth building tool.

There are many options.

For example:

• Window cleaning. 

• Tree trimming.

• Pest control.

These are common services people need.

Starting an online business is also an option.

Costs are low and you have access to billions of people on the internet.

For example, here's an online health and wellness business.

The owner started it in 2017 and is now selling it for $2M.

As a business grows, its value increases.

Selling a business for a large profit is often the end goal.

Conclusion

One thing to keep in mind—

$1M today will buy you more than $1M 20 years from now.

The cost of everything increases each year due to inflation.

Fortunately, there are many ways to build wealth.

These are the 3 most common.

Start planning your way today.

See you next week.