How to make your first million via 10 ways

30 January 2023

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At first glance, the idea of making your first million may seem far-fetched, but the truth is, it's more realistic than you think. You do not need a winning lottery ticket or a trust fund to join the Millionaires Club, all you have to do is complete reading this article that will provide you with various ideas that will help you turn this dream into a reality.

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How you manage your money will play a bigger role than how much money you get from your salary. When planned properly, a strong work ethic, responsible spending habits, and smart investing can increase your wealth to a million dollars or more.

Achieving this goal will require some sacrifices, but the feeling of financial security is priceless. If you're serious about making your first million, it's time to take some major steps.

?How do you make your first million

1- Boost your profit margin

J.D. said Roth, Founder of Get Rich Slowly: “By widening the gap between what you earn and what you spend, you end up making a profit the same way the company makes a profit. This profit can then be used to achieve your long-term financial goals.”

In order to make your first million, you will need to increase your savings rate significantly more than the normal rate of 10% to 15%. Roth suggested saving half of your income and indicated that you would have to make tough choices to put off current spending in exchange for future financial success. For two-income families, he suggested choosing to live on one income, and save and invest the other salary.

2- Start with $10 million

“Start with $10 million” is actually a joke, and it reflects how our brains tend to trick us into doing the wrong thing when investing. The best way to trick our minds is to educate ourselves about investing, make a plan and stick to it.

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Psychology often works against us, said Kirk Chisholm, Principal of the Innovative Advisory Group. It is not difficult to make your first million through investing if you start early enough and avoid psychological pitfalls such as following trends.

Avoid trading in and out of your investments. Create a sound investment plan, and you will become a millionaire over time. Those who buy and sell frequently tend to underperform compared to those who buy and hold.

3- Turn your passion into a business

Passion alone won't get you to make your first million. “Find something you're passionate about and turn it into a business,” said Joseph Carbone, Wealth Adviser at Focus Planning Group. This will guarantee you both happiness and profit.”

Chipotle's story makes it clear. After finishing culinary school in 1993, Chipotle founder Steve Ells was excited to start an upscale restaurant. Not having enough money, he took out a small loan from his father and opened his first Chipotle restaurant to raise money for his fine dining restaurant. But soon his culinary passion veered from a high-end restaurant to the famous Chipotle Mexican Grill chain. After he sold his first 1,000 burritos in the first month, he made his fortune.

4- Invest early

Getting rich can be a matter of math. Investing in the stock market over many years, reinvesting your profits and allowing that money to grow can make you a millionaire. But it is also about knowing the right amount and types of investment and the time period.

You can find out how much you need to invest and for how long using a simple process. Todd Tresidder, former hedge fund manager and owner of the wealth-building website Financial Mentor, has developed a calculator to help you complete this task. Let's say you invest $500 a month in a diversified stock market index fund, for example, and earn an average return of 7 percent assuming an inflation rate of 2 percent. You'll be a millionaire in 36 years.

This means that if you start at 25, you'll be a millionaire by 61, and if you start later, you'll need to save and invest more.

5- Be patient

Whichever path you choose to get rich, it will take time. Investing in the stock market takes years for your money to grow and multiply, and you cannot achieve success from a business overnight.

It often takes longer to make your first million than to get your second. Whether it's starting a business, or years and years of saving, the first million is often the hardest stage. Stay committed, be patient and keep your eyes focused on the goal.”

Don't let the initial slow growth discourage your long-term wealth aspirations. Fear and impatience can be your worst enemy when trying to make your first million.

6- Adjust your lifestyle

Ignore the myth that millionaires spend a lot of money. In The Millionaire Next Door, award-winning authors Thomas J. Stanley and William D. Danko study how people get rich, and their findings are surprising.

“A lot of people who live in expensive homes and drive fancy cars don't actually have a lot of wealth. In fact, there are many people with great wealth who do not even live in high-end neighborhoods.” The authors found that high salaries do not necessarily translate into high net worth. They wrote that those who accumulated the most wealth frugged the most and married people with the same principles.

The income-spending gap is an asset for those learning how to get rich. Think about it realistically: you can't make your first million if you spend everything you earn, and even worse, if you spend more than you earn.

7- I get hustle

If you want to make your first million, get a side hustle. Making just enough to pay rent, food, and utilities isn't enough to make you rich. You don't need to be a genius to become a millionaire, but you do need to be disciplined, hardworking, and creative.

Wealthy businessman Mark Cuban started creating sources of income at the age of twelve. He sold garbage bags so he could buy the shoes he wanted, according to the autobiography, and then sold stamps and coins for extra money.[1]

He took college psychology classes his junior year of high school, then skipped his senior year to start college full time. This shows the perseverance of this person to build wealth, he gave up his spare time and free time to pursue his dreams.

8- Avoid the defeat mentality

Building wealth is a mindset just like anything else, so it's important to make sure you get rid of beliefs that might work against you if you're after making your first million.

Do not think that someone owes you a living

Don't expect something for nothing

Do not incur any consumer debt. If you don't have the money to buy something, you don't need it

Don't get distracted. If getting rich is your goal, keep overcoming obstacles

Do not neglect education.

Don't be afraid to face additional side pressures

Don't keep up with the neighbors

9- Invent something

If you have a lot of great ideas, pick the best one and monetize it. Sara Blakely, founder of Spanx, has become the youngest self-made billionaire in the US by inventing stylish underwear to wear under white pants. She currently has a net worth of $1.1 billion, according to Forbes.

Ty Warner, creator of the Beanie Babies, has amassed an estimated $4.2 billion fortune selling the dolls. He wisely created an extensive product line and sold it in limited quantities, which further increased the popularity of the items

Perhaps your invention solves a problem for many or entertains the masses, either way, people are always willing to spend money on something that adds value to their lives.

10- Grow your inheritance

You might think that a relatively small inheritance like $25,000 is not enough to achieve the goal of making your first million, but that is a misconception. Marc Johnston-Roche, co-founder of Annuities HQ, said: “Work with a financial planner to create an asset allocation strategy that is appropriate for your age group. This strategy will vary based on how much risk you are willing to take, and how much time you plan to invest that money for. It's definitely not a one-size-fits-all approach, so it's important to get some professional guidance.”

By investing your money now and allowing it to grow, you will be able to take advantage of compound interest which could be the main contributor to making your first million.

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