Step 1 of your journey to millionaire status always should start with what you are good at or interested in. What makes you you? What talents do you have that will make you stand out from the average person or what passions do you have that will make you want to learn everything there is about a particular topic? Benjamin Franklin said “An investment in knowledge always pays the best interest” and I believe that to be true. See most people don’t put in the time and effort to truly learn about something, which is the building block to being successful at anything.
It’s time to start thinking of ways to leverage your skills into making money - so lets start a business. The point of starting a business in the context of this video will be to increase your income as much as possible. This is an important part of this plan because if you don’t focus on increasing your income to the highest it can be then you can’t move on confidently to the next steps and you’ll always feel like you’re stuck in one place never moving forward. Now I am not saying that if you have a job that that job cannot be high paying but I tend to believe that its not as hard as one may think to use your skills and replace your current income with an equal or higher amount by starting a business and doing what you love.
investing your profits. Now the smartest thing you can while still growing your business is invest back into the business - but now lets say you’ve grown the business, you are making profit, and you want to take the next step in growing your wealth. You might realize you are at a point where the money coming in from the business is more than you need to reinvest back into the business. You have a surplus of cash - well now its time to invest that into the markets. The best way in my opinion to do this is in 2 steps. First you want to automatically invest your cash into a portfolio or broad index fund. You are going to essentially tax yourself. I call this the future millionaire tax (Watch video for full breakdown)
So to become a millionaire will depend on of course how much money you make - the more money you make lets say from your business - the more money you can invest. The more money you can invest means the more return you will get on your investments. Now for this next step we want to use the same thinking that we did for increasing our income as much as possible, and apply that to investing - to increasing our returns as much as possible. You can do all the steps perfectly up until this point, but if we don’t start trying to increase our returns then again there is only so much growth we can have. If you’re just investing ONLY in index funds and bonds then it might take a very long time to get to where you want to be - so let’s diversify a little bit. You can use things like options, cryptocurrencies, investing in future ideas and new asset classes like Masterworks contemporary art!
creating passive income and living off the interest. This is how the rich do it. You build up your wealth by increasing your income and continuously making money through your business, increasing your returns by diversifying your investments and looking to the future, and now that you have all that you can start having your money make money for you. See this is going to be the difference between the rich and the truly wealthy. You’re rich if you have a lot of money - you’re wealthy if your money makes a lot of money and you can be rich off of just the money your money makes. The ultimate goal is to never spend the principal, but only spend the interest. This way your principal continues to grow, therefore increasing the interest you make more and more. How do we do that? (Full breakdown in the video)
I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money.
