Today I'm going to share with you my plan of getting to a million dollars. While reading this, obviously remember, that this is my individual plan. This is not for everyone.
1. Earn more
Earning more money is easier than increasing your savings. So, I will focus on increasing my earnings.
First is my day job. I am a big believer in personal development and actually inculcating high-income skills, and that makes me quite a unique person within my sector. I will continue to work on my skills and that will bring more money through the door.
2. Start and grow my side hustles
So, I want to continue working on those, and that will bring in hopefully more cash through the door.
I am a big believer in investing in the market, so I will continue to invest the majority of my savings with tax advantage accounts like the ISA in the UK and our pension accounts, you could do this with Roth IRA and 401k matches in the US. Every country has an equivalent, so if that's something that you want to consider, that might be the best place to start. That's one of the things that I want to continue doing.
However, I want to diversify my risk using a tiny amount of real estate and crypto assets. I will not be considering my home as a part of my network because firstly, I'm not going to sell my home. I have to live somewhere. And secondly, because the home is shared so obviously I don't want to consider that as a part of my net worth.
4. I will set myself some tangible goals
To get to a million dollars in five years, and I'm not starting from zero. I have some cash invested in the market already, so that's growing at its own pace. I plan to not take the money out in the next five years. I also want to add more money into the market. I want to have a tangible target that I can check against every quarter, and if I don't meet my target, I will have the plan to get back on track.
5. Continue investing in my personal finance education.
Research has shown that people who are more knowledgeable about personal finance and how to invest have a more secure financial life. So, I believe that continuing to invest in your education and awareness is going to set you up for future success.
76 percent of the average household income in the US is spent. I have to say that that came to me as a bit of a surprise. I'm generally quite frugal and modest in my ways of life, and we typically don't buy things without having an intention of keeping them for over five, or ten years.
We don't buy things on sale, just because they're on sale. We don't acquire a lot of material possessions
that cost thousands and thousands of dollars.
Instead, we actually, invest in ourselves. And, investing in ourselves has made it possible for us to have really high-income skills and therefore, we have an equation of high income and frugal living, which means that the balance of it is what we get to save and then reinvest, whether that be in the market or in our businesses.
If you are curious about my frugal habits, you can read more here.