How to Become a Millionaire in 3 Years – Have you ever wondered is it possible to become a millionaire in 3 years or how can i become a millionaire in 3 years? There are so many millionaires out there and so many ways to become a millionaire, but I’m going to give you a few simple ideas anyone could use so they could become a millionaire in three years.
There are a lot of things that can potentially derail your path to becoming a millionaire. The important thing is that you take the first few steps in the right direction rather than trying to do everything at once. Here are some tips on how to become a millionaire in three years!
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Market opportunity
A million dollars is not a lot in the grand scheme of things, but it certainly is a lot if the market opportunity is not large enough. Even if you put Bill Gates and Steve Jobs as founders in a new venture with a total market size of 10 million, there is no way they could become too wealthy without completely changing the business (ie- failing).
Save until it hurts
I was once a poor college student, so just landing a job with any consistent salary made me feel rich. But I continued living like a student for years even after my first full-time job. It took a lot of willpower and discipline to save as much as I did.
I didn’t make excuses as to why I needed nice clothes or a new car. I shared a tiny studio with a friend for two years to keep my living costs low. That allowed me to max out my 401(k) on a modest salary and also save another 20% of my 401(k) cash flow.
Try to save at least 20% of your after tax income every year, no matter what. Remember, if you’re not in pain from the amount of money you’re saving each month, you’re not saving enough.
Develop a written financial plan.
One of the main reasons why someone can never become a millionaire is that they haven’t written a financial plan. Developing a financial plan forces you to take action, instead of just talk. It also guides you in making the right decisions in order to achieve all of your dreams and goals.
Financial planner Scott D. Hedgcock said that, “When planning for a more secure future there are two inputs that are indispensable: how much money you have and how much money you spend.
“The basic point I want to stress about these two inputs is that they are absolutely fundamental to all financial planning regardless of how large either of them is,” Hedgcock said.
“In my experience, the biggest difference between those on the right path vs. those on the wrong path was the amount of time and effort they put into devising a plan for their finances.” But taking the time to create a plan and see it through “is the one thing all financially successful people have in common.”
Hedgcock added that, “The success experienced by those who do this occurs regardless of their relative wealth. Likewise, the failure of those who do not follow a plan is unrelated to their wealth.”
When creating a financial plan:
- Focus on what matters most and don’t obsess over the past.
- Focus on what you control by listing your known expenses first in your budget, and with the income left over, list the discretionary categories.
- Focus on your future by anticipating how much your future self will need to survive.
Inequality of information
Find a place where you know something that many undervalue. Having this inequality of information can give you your first piece of leverage.
Work hard and know your place
Working hard takes absolutely no skill. I promise that if you’re the first person in the office and the last to leave, you’ll get ahead. Pay your dues early and you can relax when you’re older. Will your social life suffer? A little bit, yes. But you’re young, remember? Your energy is limitless!
Early in my career, I got to work at 5:30 a.m. and left after 7:30 p.m. I learned a lot, got more done and gained the respect of my peers. And because my boss recognized my hard work ethics, I was able to save my job during the 2000 dot-com bubble burst.
Focus on increasing your income.
“In today’s economic environment you cannot save your way to millionaire status,” wrote Grant Cardone, who went from being broke and in debt at the age of 21 to becoming a self-made millionaire by 30. “The first step is to focus on increasing your income in increments and repeating that,” Cardone said.
“My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money, and it will force you to control revenue and see opportunities.”
Thankfully, you have several options to boost your revenue, like investing in high ROI businesses and side hustling.
Look in obscure places
We’re often fascinated with the shiny things in the internet industry. Many overlook the obscure and unsexy. Don’t make that mistake. If your goal has primarily monetary motivations, look at the unsexy. One example would be email newsletters, which I’ve profiled before.
Consider both aggressive and conservative strategies
Investing in an S&P 500 index fund is fine, but if you want to get rich fast, I recommend making more high-risk bets. You can land bigger wins for a small portion of your portfolio.
Don’t go crazy and blow all your money away, but be willing to experiment with aggressive investment strategies. Like I said, when you’re young, you have very little to lose.
When I was 22, I only had about $4,000 to my name. Regardless, I invested 80% of my money in one stock and got a 5,000% return. Part of it was luck. But I did my research, took a big risk and it paid off.
Take advantage of Uncle Sam’s generosity.
“The best way I know to become a millionaire is to put the power of compound interest on your side. By giving your money more time to compound and keeping your rate of return as high as possible, you greatly increase your chances of reaching a seven-figure net worth,” Brian Feroldi wrote on The Motley Fool.
“Of course, earning a high return on your nest egg is easier said than done, as many factors to create that return are outside of your control,” Feroldi continued. “However, all investors do have control over two huge factors that can put a serious drag on long-term returns: investment costs and taxes. If you want to become a millionaire, focus on keeping both as low as possible.”
Feroldi went on to write that if you have “a 401(k) or 403(b) through work, then any money you contribute to the account can grow tax-deferred, allowing your money to compound more quickly.” He also suggested opening up a traditional or Roth IRA, because those plans “keep Uncle Sam away from your money, either now or later.”
You should use a broker or brokerage firm “that charges very little per trade — and not to trade too frequently, Feroldi advised. “If you want to become a millionaire, you need all the help you can get. Making sure your investment fees and tax bill are as low as possible will go a long way toward helping you achieve your goal.”
Conclusion
It’s not impossible. You can become a millionaire in 3 years or you can say you can become a millionaire in only one year. But the point is if you are doing everything right, you can make it happen. If I tell you that it’s not possible, then my apology. That would be blocking your road to becoming a millionaire in 3 years.