Yahoo Autos Experts: 10 Steps To Becoming a Millionaire in 10 Years (or Less)
The thought of being a millionaire might seem completely unattainable, but it may actually be achievable with the right strategy and a lot of discipline. Although it’s likely you won’t be able to become a millionaire overnight — unless you win the lottery or get some other major windfall — it’s a goal you may be able to reach within a decade.
Read Next: 5 Ways To Become a Millionaire in Your 50s
Try This: 5 Unusual Ways To Make Extra Money (That Actually Work)
GOBankingRates spoke to financial pros to get their best tips for becoming a millionaire in 10 years or less.
Ensure You’re Getting Paid What You Are Worth
One of the main ways to build wealth is to increase your income.
Stephen Dunbar, an advisor with Equitable Advisors, suggested, “Know your worth by engaging with a headhunter, coach or compensation consultant to make sure you are getting what you are worth. either through internal promotion, career pathing or by changing firms.”
Learn More: Make Yourself Money Smart: 20 ChatGPT Prompts To Increase Your Wealth
Have Multiple Income Streams
You should certainly aim to make as much as possible at your job, but you may also need to incorporate additional income streams to achieve this goal.
“The majority of millionaires have numerous sources of income,” said Lyle Solomon, a consumer bankruptcy attorney and financial expert. “There are two compelling reasons for this. The first is that you will become wealthier as you make more money. But that is self-evident. The other reason is to keep your financial flow safe.”
If you are reliant on only one income stream, your plans could be derailed if you lose your job.
“You suddenly can’t afford to pay your expenses, you don’t have any funds to invest and no fresh money is coming in,” Solomon said. “That is why the rich concentrate on diversifying their sources of income. If one flow is interrupted, you still have other streams flowing in.”
Save as Much as You Possibly Can
Becoming a millionaire in the next decade may mean cutting back on expenses and discretionary spending now so that you can funnel as much money as possible into savings.
“The reality of it is, if you’re starting from scratch, to have $1 million in 10 years, you have to save a significant amount of money,” said Sean Moore, wealth manager at Merit Financial Advisors in Boynton Beach, Florida. “Say you’re going to average 10% a year on your investment return — you’re going to need to save about $5,000 each month to save $1 million.”
Moore recommends putting this money into an employer-sponsored retirement savings account, if possible.
“I’m a huge proponent of using retirement savings or company plan savings for two reasons,” he said. “If you’re saving money on a before-tax basis, you need to save less to end up with more, because you’re not paying taxes on the money before it goes to work for you. The other is that within a lot of company plans, they have a company match, so that’s free money you’re getting on top of your own savings. So that’s probably one of the best places to start.”
Make Savings Automatic
To ensure that you keep up with your savings goal, automate the process.
