Is It Simple to Amass a Net Worth of $1,000,000? Sure and no

 Is It Simple to Amass a Net Worth of $1,000,000? Sure and no

Is there a simple three-step process to amassing wealth? I think so, but I'm not sure. Achieving a goal like amassing one million dollars (or even $100,000) is, like many things in life, contingent upon your ambition, personal decisions, and everyday activities.

For starters, here's a scenario in which you can fail to achieve this objective. The desire (or a strong reason) to achieve a goal is an essential initial step. Getting in shape, finishing a marathon, or amassing a fortune are all goals that you've likely entertained. The problem is that it's not always enough to just "want," "wish," "dream," or "think" about what you want; you also need to take persistent action. Your capacity to maintain sufficient motivation to achieve your objective may quickly wane after a few months—or even days—even if you initiate the initial step. It will be very difficult to achieve any objective unless you first establish and then fully embrace a "compelling reason" (your genuine desire) to do so. To turn your want into a "must-have" rather than a "want," you must find an enticing reason to achieve your objective. You must cultivate an authentic yearning.

A lot of people have already accomplished their money acquisition goals because it is straightforward. On two separate instances, I have achieved my net worth goals, and in three years, I anticipate reaching my next net worth goal. When I first started, my net worth was $10,000, all of which came from my own personal credit card debt. It wasn't easy, but I made a convincing case, made some tough financial decisions, and took tiny, consistent steps every day to reach my net worth objective. Meeting one's net worth goals is also a reality for a large number of people from diverse socioeconomic origins and educational levels. Achieving one's own personal wealth building aim is not out of the question because it has been done before.



So, you've decided that one of your life objectives is to amass a net worth of $100,000. You can go on to amass $100,000 and perhaps even more if you've established a strong motivation, a genuine desire. You shouldn't begin saving for a nest egg until you've really committed to the idea and are no longer daydreaming about it. Step two requires more preparation than you currently have. First and foremost, you need a "compelling reason" to achieve your objective.

The key to success, according to Anthony Robbins, is having a strong desire for it. Visit www.your-key-to-success.com to read an evaluation of his newest program, Get the Edge.

To be clear, let's assume that you have now developed your very own strong motivation to achieve your objective. Now is the time to move on to the second phase. In order to achieve your objective of amassing wealth, what are the critical components?

1. You need to make more money than you spend.

Step two: put that extra cash to work for you.

3. Have patience and allow compound interest to do its job.

First and foremost, there is a simple mathematical requirement that your revenue must surpass your expenses. Having said that, this is often the hardest hurdle to consistently overcome. The decisions you make are crucial. A decision must be made if the revenue is not more than the expenditure. Depending on your level of ambition and the "compelling reason" you have for wanting to amass wealth, you may decide to reduce spending or boost your income. For my part, I devoted around 70% of my efforts to reducing spending and 30% to raising revenue. I cut out coupons to help with grocery expenditures and determined to spend less on clothes, entertainment, and eating out. I resolved to make do with what I had financially. My goal is to spend less money than I get in. Keep in mind, the decision is yours.

If you want to amass wealth, do you have a strong motivation and the self-control to do it?

OR

B. Is your need for instant gratification so great that you can't control yourself and have to buy the latest trends, attend every home football game, eat out every night of the week, etc.? Decisions are key.

2. Investing surplus funds is the second stage in wealth accumulation. In order to achieve your own financial objectives, you must invest your surplus funds. Something as diverse as real estate, stocks and bonds, certificates of deposit, or even a small business could be an investment. No matter what you do, make sure you have a plan for your investments and stick to it. You should diversify your investments so that you can weather the inevitable ups and downs of the stock and real estate markets. My own financial journey began with a 401(k), moved on to equities and bonds, and then culminated in real estate. Unlike my peers, I choose to start saving for my future by contributing a little amount to a 401(k) and other investment vehicles every week, rather than spending my entire paycheck right away. First, I "paid myself," and only then did I treat myself to the other forms of amusement. Check out the recommended reading list for investors at the bottom of the page.

3. Finally, compounding comes into play. A common expression is, "The rich get richer." This expression has a lot of weight when applied to compounding, yet its precise meaning could vary depending on the context. With an average investment return of 10% (the stock market average), I can show you several ways to amass $1,000,000.

So, you're 40 years old and sitting on a nest egg of $20,000. You would have to put away $567 every month to amass $1,000,000 by the time you are 65 years old.

You will need to invest $218 per month from the age of 30 with $5,000 in order to reach $1,000,000 by the age of 65.

Assume you have no savings and are just 20 years old. To accomplish the same $1,000,000 target by age 65, you need only add $94 each month to an initial investment of zero dollars.

Those who are well-off are aware of compounding's advantages. Some ways the wealthy accumulate even more wealth are illustrated below.

B. You will have made $2,000 that year if you have $10,000 saved and your investments return an excellent 20%.

B. Even if your investments underperform and you only make 10% of your $100,000, you will still earn $10,000 more than the person with $10,000 in the end of the year.

C. Alright, so you managed to save $1,000,000 and your investments only managed a 3% return for the year. You might expect to earn more than $30,000 in a year. You could have made an incredible $100,000 in that year if your investments did well (say, 10%).

Look at that. Here is a three-pronged strategy for achieving your individual wealth creation goals. Whether your personal wealth accumulation objective is $100,000 or $1,000,000, it is within your reach as long as you have a strong desire, make the proper choices, and take action every day.

Would you say it's easy? —Perhaps not always

Could it work? - Definitely!



Do Something Now!

Before you even think about setting a personal net worth goal, you should set aside 30 minutes—or three days—to come up with a strong enough justification.

Then, for the next three, six, and ten months, decide on a precise net worth target. Have no idea what you should be aiming for. At this moment, it is irrelevant. Just make a goal and adjust it as you go—you'll likely end up raising it.

The next step is to open a new "Wealth Accumulation" account and immediately transfer $10 from your existing account into it. You're well on your way to achieving your objective; you've only just begun. What you're capable of accomplishing will astound you!



As a low-cost and resourceful initial step in your education on wealth accumulation, you can search your local library for one of many excellent books on the subject. Furthermore, you might want to peruse the titles provided below. Any number of online bookstores, like Barnes & Noble, Books-a-Million, or Amazon.com, carry these and many more titles.

Works by David Bach include: The Automatic Millionaire, The Finish Rich Workbook, Smart Couples Finish Rich, and Smart Women Finish Rich.

Robert Allen's books include Earning Money in Various Ways, Building Wealth, and One Minute Millionaire.

Books written by Robert Kiyosaki include Rich Dad Poor Dad, Own Your Own Corporation, Rich Dads Retire Young Retire Rich, Real Estate Riches, and Rich Dads Guide to Investing.

Financial Freedom: The Laws of Money, The Courage to Be Rich, The Road to Wealth, and The Nine Steps to Financial Independence—written by Suze Orman

Ordinary People, Extraordinary Wealth: The Truth About Money by Ric Edelman

How to Attract and Keep Six-Figure Clients—By Barbara Stanny

A Shocking Look at Money—Written by Terry Savage

Andrew Tobias's The Definitive Investment Resource

Thomas Stanley's The Millionaire Next Door and The Millionaire Mind

Benjamin Graham's-The Intelligent Investor

No way!

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