5 Steps to Making Your First Million
A million dollars today isn’t the same million dollars say, back in 1950, but it’s still an amount that affords you some freedom and luxuries, so it’s a worthwhile goal to shoot for if you’re not quite there yet.
A million bucks spinning off a 12% annual return nets you $120,000 per year. That’s good for starters, right?
Here’s what else is great: Once you hit that first million, you’ll have developed the skills, habits, knowledge, and network … that can really accelerate your money-making prowess.
This is why the rich get richer.
So if you have your sights set on making that first million, here are 5 steps to help you get there:
1. Stop Planning and Start Taking ACTION
I see so many budding entrepreneurs getting caught up in “paralysis of analysis”.
Making sure the business plan is perfect … the calendar is clear … the finances a little more stable … or when the family drama dies down a bit.
Basically, waiting until the “stars are perfectly aligned”.
Uhhh … newsflash: Have you ever noticed that it NEVER feels like the perfect time to start a new business or venture?
The most successful people in the world are massive action takers. They move fast, and always act with a sense or urgency.
Which is vital.
Because doing great things, or starting new ventures, or taking on big new projects, requires tons of energy and momentum.
The world’s “doers” seem to operate by the philosophy of “Ready, Fire, Aim” … not the more commonly accepted approach of “Ready, Aim, Fire”.
Get the difference?
When most people are busy pondering and wondering (getting ready and aiming), the money masters of the world are already in action and capitalizing.
Doesn’t mean they don’t plan. Because they certainly do. They just don’t wait for the so-called perfect time … and wait for every single fact or risk factor to be known.
They understand that time is money. And that money loves speed.
2. Invest in Assets
If you want to become truly wealthy, you must become an owner. And you must own assets.
Like stocks, bonds, mutual funds (not one of my favorites though), gold, real estate, notes, silver, your own business, etc.
What’s the right choice?
I say whatever you understand most (or are willing to learn about) and are most passionate about.
Legendary investor Warren Buffett, who’s tallied 20%+ annualized returns over his long and storied career, says one of his tenets to successful investing is that he never puts his money on things he doesn’t understand.
Not a bad rule to live by.
As you know, my favorite asset classes are real estate and your own business.
But that’s because I fell in love with real estate and business a long time ago … and developed some expertise over the past two plus decades.
Go with whatever floats your boat!
3. Expand Your Knowledge
Money masters are voracious learners.
Always reading. Always inquiring. Scouring the right blogs. Listening to audio books. Seeking out specific experts.
Doing whatever it takes to “get the edge”.
Thomas Corley did a 5-year study contrasting the main differences between the rich and poor.
One of the most significant differences he found? Their reading and self-improvement habits.
Here are some statistics from his study:
- 86% of the wealthy love to read. 74% of the poor do not love to read.
- 85% of the wealthy read two or more educational books every month. Only 15% of the poor have this habit.
- 88% of the wealthy read thirty minutes or more each day vs. 2% of the poor.
- 63% of the wealthy listen to audio books during their commute to work. Only 5% of the poor share this habit.
Here are the main reasons he found the wealthy read so much:
- To increase their knowledge-base for their job in order to uncover opportunities to make more money or to make themselves more valuable to their employer, customers or clients.
- To learn more about success.
- To stay current with events.
- To exercise their mind.
- To learn new things.
And here’s what he found the wealthy are reading:
=> 51% read about history.
=> 55% read about self-help.
=> 58% read biographies of successful people.
=> 79% read educational material.
=> 94% read about current events.
=> 45% read financial material such as the Wall Street Journal, Money Magazine, Kiplingers, etc.
“An investment in knowledge always pays the best interest.”
- Ben Franklin
4. Establish Routines
Ever notice how successful and wealthy people all seem to have specific routines?
Vijay Singh used to hit 1000 golf balls a day … even when he was the #1 golfer in the world.
Michael Jordan worked out 2 hours a day with a personal trainer – even on game days.
Donald Trump (love him or hate him) reads 4 newspapers in the morning to kick off his day.
I believe one of the most important things you can do is to have some kind of a morning routine to “prime your day”.
That can be exercise, yoga, reading the bible, meditation, taking a jog or walk around the block, spending time with your kids, or whatever you feel will prep you the best for the upcoming day.
What works for me is what I call my “hour of power”, which incorporates a little bit of everything: I start drinking a ton of water … pray, visualize, and be thankful (list things I’m grateful for) on the way to the gym … workout anywhere from 20-40 minutes … and usually listen to something educational or motivational while I’m working up a sweat.
I say do whatever feels invigorating and inspiring to you … and something that feels like you get to start your day off with a WIN.
5. Work With What You Have and Make the Most Out of It
Here are some common excuses that keep people from reaching their million-dollar goal:
I don’t have the money.
I’m too busy.
I’m too tired.
I don’t know how to start.
I’m not sure if it’s a good idea.
It’s not the right time.
This is how the masses think, especially when it comes to pursuing worthwhile goals that make you stretch … like making a million dollars.
But it’s certainly not how the affluent think. The rich are resourceful.
They focus more on what they DO have, not on what they DON’T have.
Don’t have the money to start that new business?
Maybe you have money-raising “skills” that can get you the money.
Too busy to start building your real estate portfolio?
Maybe you can team up with someone and be a passive investor.
Don’t know how to get started on something? Why not seek out a specific expert to help you ‘connect the dots’?
Get the point?
In my opinion, the ultimate determinant of success is not your resources … but your RESOURCEFULNESS.
(c) IR Press, Inc.