{"id":398,"date":"2023-08-05T12:14:00","date_gmt":"2023-08-05T12:14:00","guid":{"rendered":"http:\/\/www.petermaneurope.com\/?p=398"},"modified":"2025-02-07T13:16:18","modified_gmt":"2025-02-07T13:16:18","slug":"10-ways-to-make-one-million-dollars-seriously","status":"publish","type":"post","link":"http:\/\/www.petermaneurope.com\/index.php\/2023\/08\/05\/10-ways-to-make-one-million-dollars-seriously\/","title":{"rendered":"10 Ways to Make One Million Dollars (Seriously!)"},"content":{"rendered":"<p>Having a million dollars may seem like an impossible dream, particularly if you\u2019re starting from zero. But the fact that there are more than <a href=\"https:\/\/www.zippia.com\/advice\/millionaire-statistics\/\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>33<\/strong><strong> million millionaires in the US<\/strong><\/a> already means it\u2019s doable.<\/p>\n<p>After all, <em>if at least <\/em><em>33<\/em><em> million people can do it, so can you.<\/em><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>All you need are the right strategies and a generous helping of patience, and you can do it too.<\/strong><\/p>\n<\/blockquote>\n<p>To help you in that pursuit, I\u2019ve laid out ten ways to make one million dollars.<\/p>\n<p>Depending on your current financial situation and the intensity of your effort, you can reach millionaire status anywhere from a few years to two or three decades.<\/p>\n<h2 class=\"wp-block-heading\">How to Make $1 Million Dollars<\/h2>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" width=\"500\" height=\"360\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"ways to make 1 million dollars\" class=\"wp-image-36569 img-fluid lazyload\" data-src=\"http:\/\/www.petermaneurope.com\/wp-content\/uploads\/2023\/08\/million.jpg\"><\/figure>\n<\/div>\n<div class=\"gfc-table-of-contents gfc-table-of-contents-blockwrap gfc-blockwrap\">\n<div class=\"gfc-table-of-contents-title-container\">\n<h3>Table of Contents<\/h3>\n<\/div>\n<div class=\"gfc-table-of-contents-content\t-container\">\n<ul>\n<li><a href=\"#how-to-make-1-million-dollars\">How to Make $1 Million Dollars<\/a><\/li>\n<li><a href=\"#choose\">1. Choose the Right Career<\/a><\/li>\n<li><a href=\"#invest\">2. Invest Early and Often<\/a><\/li>\n<li><a href=\"#grow\">3. Emphasize Growth Investments<\/a><\/li>\n<li><a href=\"#max\">4. Use Your Employer-Sponsored Retirement Plan for All It\u2019s Worth<\/a><\/li>\n<li><a href=\"#buy\">5. Buy a House\u2026or Two or Three<\/a><\/li>\n<li><a href=\"#side\">6. Start Your Own Side Hustle<\/a><\/li>\n<li><a href=\"#self\">7. Parlay Your Side Hustle into a Full-time Business<\/a><\/li>\n<li><a href=\"#make\">8. Become Friends with Other Millionaires<\/a><\/li>\n<li><a href=\"#avoid\">9. Avoid \u201cLifestyle Inflation\u201d<\/a><\/li>\n<li><a href=\"#debt\">10. Stay Out of Debt<\/a><\/li>\n<li><a href=\"#the-bottom-line-make-one-million-dollars-in-just-a-few-years\">The Bottom Line: Make One Million Dollars in Just a Few Years<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"ca-widget\" data-token=\"uda7f1bbd379\"><\/div>\n<h2 class=\"wp-block-heading blueback\" id=\"choose\">1. Choose the Right Career<\/h2>\n<p>The more money you earn, the more you\u2019ll be able to save and invest. That will make the path toward one million dollars shorter and easier. For example, it will be much easier to save 20% or 30% of a $150,000 salary than it will be with a $75,000 salary.<\/p>\n<p><a href=\"https:\/\/money.usnews.com\/careers\/best-jobs\/rankings\/best-paying-jobs\" target=\"_blank\" rel=\"noreferrer noopener nofollow external\" data-wpel-link=\"external\">U.S. News<\/a> published a list of the top paying jobs in America earlier this year. It should come as no surprise that a disproportionate number of those are in the healthcare field, typically doctors of one type or another.<\/p>\n<p>But I whittled that list down to the top-paying positions that don\u2019t require you to have a medical degree. After all, not everyone is cut out to be a doctor.<\/p>\n<p>Here\u2019s the list, including the average salary for each occupation:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Petroleum Engineer<\/strong>: $154,780<\/li>\n<li><strong>IT Manager<\/strong>: $149,730<\/li>\n<li><strong>Marketing Manager<\/strong>: $145,620<\/li>\n<li><strong><a href=\"https:\/\/www.goodfinancialcents.com\/best-paying-jobs-in-finance\/\" data-wpel-link=\"internal\" rel=\"noopener\">Financial Manager<\/a><\/strong>: $143,530<\/li>\n<li><strong>Lawyer<\/strong>: $141,890<\/li>\n<li><strong>Sales Manager<\/strong>: $137,650<\/li>\n<li><a href=\"https:\/\/www.goodfinancialcents.com\/how-to-become-a-certified-financial-planner\/\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\"><strong>Financial Advisor<\/strong><\/a>: $124,140<\/li>\n<li><strong>Business Operations Manager<\/strong>: $123,460<\/li>\n<li><strong>Pharmacist<\/strong>: $121,710<\/li>\n<li><strong>Actuary<\/strong>: $114,850<\/li>\n<li><strong>Political Scientists<\/strong>: $112,030<\/li>\n<li><strong>Medical and Health Services Manager<\/strong>: $111,680<\/li>\n<\/ul>\n<p>These are just examples of careers known to pay high salaries. If you\u2019re not in one now, it\u2019s something to aspire to. And there are plenty of other <a href=\"https:\/\/www.goodfinancialcents.com\/best-trade-jobs\/\" data-wpel-link=\"internal\" rel=\"noopener\">trade jobs<\/a> or career fields where you can <a href=\"https:\/\/www.goodfinancialcents.com\/how-much-is-six-figures\/\" data-wpel-link=\"internal\" rel=\"noopener\">make six figures<\/a>, particularly today on the Internet.<\/p>\n<p>Make it a goal, and pursue it like your financial future depends on it \u2013 <em>because it really does.<\/em><\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"invest\">2. Invest Early and Often<\/h2>\n<p>A lot of young people don\u2019t invest early, and that\u2019s a big mistake. It\u2019s understandable since so many people in their 20s graduate from college with <a href=\"https:\/\/www.goodfinancialcents.com\/pay-off-student-loans-faster\/\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">big student loan debts<\/a>. Then there\u2019s always the pull to acquire the trappings of your desired lifestyle. <\/p>\n<p>First and foremost, that includes a car. And then there\u2019s an apartment and everything you need to fill it. Then there are those life-enriching experiences, like vacations and travel.<\/p>\n<p>It\u2019s fine to put some of your money into each of those. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>But at the same time, the earlier you begin investing, the more quickly you\u2019ll accumulate wealth. <\/strong><\/p>\n<\/blockquote>\n<p>Even if you start with a little bit, you\u2019ll get yourself on track. And just as important, you\u2019ll be getting yourself into the habit of investing regularly.<\/p>\n<p>But let\u2019s spend a moment on the importance of beginning to invest early.<\/p>\n<p>Let\u2019s say you earn $50,000 per year and invest 10% of it \u2013 $5,000 per year. In a blended portfolio of stocks and bonds earning an average annual rate of return of 7%, you\u2019ll have just about $1 million by the time you\u2019re 65.<\/p>\n<p>The calculation is incredibly conservative because it assumes your income will remain at $50,000 per year for the next 40 years. It will almost certainly increase, probably dramatically.<\/p>\n<p>That means your portfolio at 65 will be much higher. In fact, you might even reach the $1 million mark before you turn 50, especially if your income rises quickly. Here&#8217;s a sample table that shows the potential growth: <\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th><strong>YEAR<\/strong><\/th>\n<th><strong>BEGINNING BALANCE<\/strong><\/th>\n<th><strong>ANNUAL INVESTMENT<\/strong><\/th>\n<th><strong>INTEREST EARNED<\/strong><\/th>\n<th><strong>ENDING BALANCE<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>$0<\/td>\n<td>$5,000<\/td>\n<td>$350<\/td>\n<td>$5,350<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>$5,350<\/td>\n<td>$5,000<\/td>\n<td>$723<\/td>\n<td>$11,073<\/td>\n<\/tr>\n<tr>\n<td>&#8230;<\/td>\n<td>&#8230;<\/td>\n<td>&#8230;<\/td>\n<td>&#8230;<\/td>\n<td>&#8230;<\/td>\n<\/tr>\n<tr>\n<td>10<\/td>\n<td>$61,359<\/td>\n<td>$5,000<\/td>\n<td>$4,595<\/td>\n<td>$70,954<\/td>\n<\/tr>\n<tr>\n<td>20<\/td>\n<td>$198,378<\/td>\n<td>$5,000<\/td>\n<td>$14,189<\/td>\n<td>$217,567<\/td>\n<\/tr>\n<tr>\n<td>30<\/td>\n<td>$489,632<\/td>\n<td>$5,000<\/td>\n<td>$34,574<\/td>\n<td>$529,206<\/td>\n<\/tr>\n<tr>\n<td>40<\/td>\n<td>$952,963<\/td>\n<td>$5,000<\/td>\n<td>$67,107<\/td>\n<td>$1,025,070<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>The key to investing your way to $1 million is to start early, let <a href=\"https:\/\/www.goodfinancialcents.com\/best-compound-interest-investments\/\" data-wpel-link=\"internal\" rel=\"noopener\"><strong>compound interest do its thing<\/strong><\/a>, and do it each and every year.<\/p>\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__align-left uagb-block-d13936cb\">\n<h4 class=\"uagb-notice-title\">Million Dollar Secret:<\/h4>\n<div class=\"uagb-notice-text\">The More You Devote to Savings and Investing, the Faster You\u2019ll Become a Millionaire<\/div>\n<\/div>\n<p>The higher the percentage of your income you can devote to savings and investing, the sooner you\u2019ll be a millionaire.<\/p>\n<p>In the example above, I showed how you could become a millionaire by investing 10% of your income for 40 years. But if you gradually increase that percentage to 15%, 20%, or even 30%, the sooner you\u2019ll reach millionaire status.<\/p>\n<h3 class=\"wp-block-heading\"><strong>One proven way to do that is to increase your savings percentage each time you get a pay increase.<\/strong> <\/h3>\n<p>For example, if you get a 2% pay hike, increase your savings percentage by 1%. That\u2019s how you can turn 10% into 15% in just five years, or 20% in ten years. <\/p>\n<p>Below is a table that provides a clear example of how this might work over time. Assuming an initial savings rate of 10%, the table illustrates how the savings rate can increase to 15% in five years or 20% in ten years, by increasing the savings percentage by 1% for every 2% pay hike.<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th class=\"has-text-align-center\" data-align=\"center\"><strong>YEAR<\/strong><\/th>\n<th class=\"has-text-align-center\" data-align=\"center\"><strong>PAY INCREASE (%)<\/strong><\/th>\n<th class=\"has-text-align-center\" data-align=\"center\"><strong>INCREASE IN SAVINGS RATE (%)<\/strong><\/th>\n<th class=\"has-text-align-center\" data-align=\"center\"><strong>TOTAL SAVINGS RATE (%)<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">11<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">12<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">3<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">13<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">4<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">14<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">5<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">15<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">6<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">16<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">7<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">17<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">8<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">18<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">9<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">19<\/td>\n<\/tr>\n<tr>\n<td class=\"has-text-align-center\" data-align=\"center\">10<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">2<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">1<\/td>\n<td class=\"has-text-align-center\" data-align=\"center\">20<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Aspiring millionaires don\u2019t save and invest like everyone else. No, they go MUCH higher. It\u2019s how so many become millionaires well before reaching retirement age.<\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"grow\">3. Emphasize Growth Investments<\/h2>\n<p>I just mentioned a portfolio with an average annual rate of return of 7%. That\u2019s based on a portfolio mix of approximately 60% stocks and 40% bonds. But it\u2019s possible to do even better.<\/p>\n<p>The average annual rate of return on stocks has been right around <a href=\"https:\/\/www.investopedia.com\/ask\/answers\/042415\/what-average-annual-return-sp-500.asp\" target=\"_blank\" rel=\"noopener noreferrer external\" data-wpel-link=\"external\">10% for the past 90 years.<\/a> While you should include fixed-income investments, like bonds, the largest allocation needs to be in stocks or other <a href=\"https:\/\/www.goodfinancialcents.com\/best-high-yield-investments\/\" data-wpel-link=\"internal\" rel=\"noopener\">high-yield investments<\/a> if you want to become a millionaire.<\/p>\n<p>A portfolio consisting of 90% stocks and 10% bonds will produce an average annual yield of better than 9%. And it\u2019s strongly recommended when you\u2019re in your 20s, or even your 30s.<\/p>\n<p><strong>The idea is to emphasize growth in your portfolio.<\/strong> Right now, <a href=\"https:\/\/www.goodfinancialcents.com\/best-online-high-yield-savings-accounts-interest-rates\/\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">fixed-income<\/a> investments are only paying around 2% per year. <\/p>\n<p>You\u2019ll never get rich on that kind of investment. Fixed-income investments do add an important safety element to your portfolio. That\u2019s why you need to have them, though you don\u2019t want to have too many.<\/p>\n<p>If you\u2019re not comfortable being too heavily invested in stocks, you can also expand into <a href=\"https:\/\/www.goodfinancialcents.com\/how-to-invest-reit\/\" data-wpel-link=\"internal\" rel=\"noopener\">real estate investment trusts<\/a>, or REITs. They have an average long-term return of <a href=\"https:\/\/www.reit.com\/news\/blog\/market-commentary\/comparing-average-reit-returns-and-stocks-over-long-periods\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>close to 13% going back to 1978<\/strong><\/a>. That\u2019s even better than the return on stocks.<\/p>\n<p>Whether you invest primarily in stocks or REITs \u2013 or both \u2013 you\u2019ll be adding the growth you need to build your portfolio faster over the long term.<\/p>\n<p>Below is a table that represents various types of growth investments, along with their potential return and level of risk.<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th><strong>INVESTMENT TYPE<\/strong><\/th>\n<th><strong>POTENTIAL RETURN (%)<\/strong><\/th>\n<th><strong>LEVEL OF RISK<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Stocks<\/strong><\/td>\n<td>7 &#8211; 12<\/td>\n<td>High<\/td>\n<\/tr>\n<tr>\n<td><strong>Bonds<\/strong><\/td>\n<td>3 &#8211; 5<\/td>\n<td>Low to Moderate<\/td>\n<\/tr>\n<tr>\n<td><strong>Real Estate<\/strong><\/td>\n<td>6 &#8211; 9<\/td>\n<td>Moderate to High<\/td>\n<\/tr>\n<tr>\n<td><strong>Mutual Funds<\/strong><\/td>\n<td>5 &#8211; 10<\/td>\n<td>Moderate<\/td>\n<\/tr>\n<tr>\n<td><strong>Exchange-Traded Funds (ETFs)<\/strong><\/td>\n<td>4 &#8211; 10<\/td>\n<td>Moderate<\/td>\n<\/tr>\n<tr>\n<td><strong>Commodities<\/strong><\/td>\n<td>5 &#8211; 12<\/td>\n<td>High<\/td>\n<\/tr>\n<tr>\n<td><strong>Private Equity<\/strong><\/td>\n<td>10 &#8211; 25<\/td>\n<td>Very High<\/td>\n<\/tr>\n<tr>\n<td><strong>High-Yield Bonds<\/strong><\/td>\n<td>6 &#8211; 8<\/td>\n<td>Moderate to High<\/td>\n<\/tr>\n<tr>\n<td><strong>Money Market Funds<\/strong><\/td>\n<td>1 &#8211; 2<\/td>\n<td>Low<\/td>\n<\/tr>\n<tr>\n<td><strong>Venture Capital<\/strong><\/td>\n<td>15 &#8211; 30<\/td>\n<td>Very High<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2 class=\"wp-block-heading blueback\" id=\"max\">4. Use Your Employer-Sponsored Retirement Plan for All It\u2019s Worth<\/h2>\n<p>If you\u2019re not taking full advantage of your employer\u2019s sponsored retirement plan, you\u2019re missing a major opportunity to reach the million-dollar mark. Employer-sponsored plans like <a href=\"https:\/\/www.goodfinancialcents.com\/403b-vs-401k-whats-the-difference\/\" data-wpel-link=\"internal\" rel=\"noopener\">401(k) and 403(b) plans<\/a> are one of the very best ways to reach millionaire status.<\/p>\n<p>First, you can contribute up to <a href=\"https:\/\/www.goodfinancialcents.com\/401k-contribution-limits\/\" data-wpel-link=\"internal\" rel=\"noopener\"><strong>$23,000 per year, or $30,500 if you\u2019re 50 or older<\/strong><\/a>. And under plan rules, there\u2019s no percentage of income limit. You can contribute the first $23,000 you earn to your plan. What\u2019s more, the contributions will be tax-deductible, which means the government will be helping you fund your plan.<\/p>\n<p>Meanwhile, the investment income built into the plan will accumulate on a tax-deferred basis. A 10% return on your portfolio will be 10%, rather than 7%, after being reduced for income taxes in a taxable investment account. Over the long term, that\u2019ll make a huge difference.<\/p>\n<p>But there\u2019s another benefit that makes employer-sponsored retirement plans a must-have, and that\u2019s employer matching contributions.<\/p>\n<p>If your employer will provide a 50% matching contribution on up to a 10% contribution by you, that will add an extra 5% to your plan each year. It\u2019ll increase your total contributions from 10% to 15% each year. Needless to say, your plan will grow 50% faster.<\/p>\n<p>An employer matching contribution is like getting free money because that\u2019s what it is. At a minimum, you should make a personal contribution rate sufficient to produce the maximum employer matching contribution.<\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"buy\">5. Buy a House\u2026or Two or Three<\/h2>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"wp-image-43830 img-fluid lazyload\" data-src=\"http:\/\/www.petermaneurope.com\/wp-content\/uploads\/2023\/08\/shutterstock_795098068-1024x683-1.jpg\"><\/figure>\n<p>A house is a silent wealth-building machine. Even if you simply live in the house and make the monthly mortgage payments as scheduled, you\u2019ll be building up a tremendous amount of equity.<\/p>\n<p>For example, let\u2019s say you purchase a house for $300,000. The house doesn\u2019t rise in value, but after 30 years, your mortgage is paid in full, and you own the property free and clear. That will add $300,000 to your net worth.<\/p>\n<p>But at least since World War II, a house has been a way to build wealth in two directions: paying down and ultimately paying off the mortgage and increasing property values.<\/p>\n<p>According to huduser.gov, the median price of a new house was <a href=\"https:\/\/www.huduser.gov\/periodicals\/ushmc\/winter2001\/histdat08.htm\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>$130,000 in the middle of 1994<\/strong><\/a>. By July 2023, the median price had reached <a href=\"https:\/\/www.census.gov\/construction\/nrs\/pdf\/newressales.pdf\" data-wpel-link=\"external\" rel=\"external noopener noreferrer\"><strong>$415,400<\/strong><\/a>. That\u2019s an increase of just over 270% in 25 years.<\/p>\n<p>Based on those numbers, a house you purchase today for $300,000 could be worth $750,000 in 25 years. That single house purchase would get you three-quarters of the way to $1 million all by itself.<\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"side\">6. Start Your Own Side Hustle<\/h2>\n<p>If you don\u2019t have the type of job that pays a six-figure income, one important way to work around that limitation is by starting a <a href=\"https:\/\/www.goodfinancialcents.com\/home-based-business-ideas-easy-to-start\/\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">side business<\/a>.<\/p>\n<p>There are too many advantages to a side hustle to pass up the opportunity:<\/p>\n<ul class=\"wp-block-list\">\n<li>You\u2019ll have a chance to earn additional income.<\/li>\n<li>The additional earnings can be dedicated specifically to savings and investments, enabling you to build your portfolio faster.<\/li>\n<li>You can grow a side hustle to the point where it earns more money than your regular job.<\/li>\n<li>There are tax benefits to having a side hustle. You can write off business expenses and even take advantage of very generous <a href=\"https:\/\/www.goodfinancialcents.com\/best-retirement-plan-for-small-businesses\/\" data-wpel-link=\"internal\" rel=\"noopener\"><strong>self-employed retirement plans.<\/strong><\/a><\/li>\n<\/ul>\n<p>Choose a business where you\u2019re knowledgeable, and preferably one you\u2019re passionate about. Remember, the side hustle isn\u2019t providing you with your regular paycheck for living expenses. For that reason, you can choose to do something you actually want to do.<\/p>\n<p>And one thing that almost always happens when you do something you like is that you end up <a href=\"https:\/\/www.goodfinancialcents.com\/how-to-make-money\/\" data-wpel-link=\"internal\" rel=\"noopener\">earning more money<\/a>!<\/p>\n<p>Which is a nice segue into Strategy #7.<\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"self\">7. Parlay Your Side Hustle into a Full-time Business<\/h2>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"wp-image-46650 img-fluid lazyload\" data-src=\"http:\/\/www.petermaneurope.com\/wp-content\/uploads\/2023\/08\/Start-a-Side-Hustle-1024x683-1.jpg\"><\/figure>\n<p>One of the best ways to become a millionaire is by <a href=\"https:\/\/www.goodfinancialcents.com\/best-self-employed-jobs-ideas\/\" data-wpel-link=\"internal\" rel=\"noopener\">becoming self-employed on a full-time basis<\/a>. There are no limits on how much you can earn, and a successful business can often be sold for a large windfall \u2013 even millions of dollars.<\/p>\n<p>A lot of people are understandably afraid to start their own business. That makes sense because there are risks involved. The first is that there will be no cash flow when you start. If that continues for too long, your business will fail.<\/p>\n<p>But you can avoid that outcome if you <a href=\"https:\/\/www.goodfinancialcents.com\/side-hustle-ideas\/\" data-wpel-link=\"internal\" rel=\"noopener\">start with a side hustle<\/a>. While you\u2019re still on someone else\u2019s payroll, you can build up your business on the side. <\/p>\n<p>You\u2019ll be able to take as much time as you need, and do what\u2019s necessary to make it happen, all without the risks associated with making it a full-time plunge.<\/p>\n<p>Once you reach the point where your side hustle is providing steady cash flow, maybe even something close to income from your full-time job, it\u2019ll be time to take the leap of faith and make it your full-time venture.<\/p>\n<p>Armed with the knowledge that your business can succeed because of your side hustle experience, you\u2019ll have the confidence to take your business as far as your talents and efforts can.<\/p>\n<p>As a side benefit, special self-employed retirement plans, like the <a href=\"https:\/\/www.goodfinancialcents.com\/open-sep-ira-contribution-limits-and-rules\/\" data-wpel-link=\"internal\" rel=\"noopener\"><strong>SEP IRA<\/strong><\/a> and <a href=\"https:\/\/www.goodfinancialcents.com\/solo-401k-contribution-limits-rules-plans\/\" data-wpel-link=\"internal\" rel=\"noopener\"><strong>Solo 401(k)<\/strong><\/a>, can enable you to contribute up to $69,000 per year.<\/p>\n<p>With tax-sheltered contributions that high, you\u2019ll reach millionaire status in no time at all.<\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"make\">8. Become Friends with Other Millionaires<\/h2>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>&#8220;You are the average of the five people you spend the most time with.&#8221;<\/strong><\/p>\n<p><cite>Jim Rohn<\/cite><\/p><\/blockquote>\n<p>It\u2019s been said that we\u2019re all the <em>average of our five closest friends.<\/em> If at least one or two of your friends are already millionaires, you\u2019ll have a better chance of joining them.<\/p>\n<p>That\u2019s because you\u2019ll learn how they think and act, particularly toward money. And just knowing such people can be motivating. When you get to know and become friends with real people who are millionaires, you begin to realize the goal is doable.<\/p>\n<p>What\u2019s more, you can turn to your millionaire friend(s) for advice. And because they\u2019re already there, you can trust you\u2019ll be getting the right advice. <\/p>\n<p>There may even be times when you\u2019ll be able to participate in wealth-building opportunities simply because of the connections your millionaire friend(s) have.<\/p>\n<p>If you don\u2019t know any millionaires personally, make it a point to begin following some on the web. There are many, many highly successful people telling their stories on blogs and YouTube. <\/p>\n<p>Find a few you like and follow them regularly. And by swapping emails, you might just find a real millionaire friend. It\u2019ll be well worth the effort.<\/p>\n<h2 class=\"wp-block-heading blueback\" id=\"avoid\">9. Avoid \u201cLifestyle Inflation\u201d<\/h2>\n<p>Lifestyle inflation is what happens as your income and wealth rise. While that may seem like a natural progression, it actually hurts your chances of becoming a millionaire. While your income and investments are rising in value, your lifestyle is eating up an increasing percentage of both.<\/p>\n<p>Lifestyle inflation is especially common with rising incomes. As your income grows, you suddenly find yourself \u201coutgrowing\u201d your house, your car, the vacations you take, and the restaurants you frequent. You may also be tempted to join a country club or take on expensive hobbies.<\/p>\n<p>But if you want to become a millionaire in the shortest time frame possible, you\u2019ll need to avoid going in that direction. At best, it will slow you down, and at worst, it may lend you money in bankruptcy court.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong><em>Wants turn into needs<\/em>, and before you know it, you don\u2019t know where your money is going.<\/strong><\/p>\n<\/blockquote>\n<p>If you spend any time studying people in the <a href=\"https:\/\/www.goodfinancialcents.com\/fire-key-principles\/\" data-wpel-link=\"internal\" rel=\"noopener\"><strong>FIRE movement<\/strong><\/a> \u2013 which is a moniker for <em>Financial Independence, Retire Early<\/em> \u2013 they do the exact opposite. <\/p>\n<p>As their incomes grow, they keep their living expenses fixed and expand the portion of their earnings that goes into savings and investments.<\/p>\n<p>If you hope to join the million-dollar club, you\u2019ll need to do the same. And that\u2019ll require, first and foremost, avoiding lifestyle inflation.<\/p>\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__align-left uagb-block-90be490f\">\n<h4 class=\"uagb-notice-title\">Translation:<\/h4>\n<div class=\"uagb-notice-text\"><em>Live as far below your means as possible.<\/em> There will be plenty of time to enjoy the good things in life once you\u2019re a millionaire. But you\u2019ll have to work on getting there first.<\/div>\n<\/div>\n<h2 class=\"wp-block-heading blueback\" id=\"debt\">10. Stay Out of Debt<\/h2>\n<p>If you buy or own a house, you\u2019ll almost certainly have a mortgage. It\u2019s also very typical to have a loan on a new or late model car. And millions of students graduate college with student loan debts.<\/p>\n<p>If you have any of those debts, you should make it a personal mission to pay them off as soon as possible. You\u2019ll not only <a href=\"https:\/\/www.goodfinancialcents.com\/how-to-get-out-of-debt\/\" data-wpel-link=\"internal\" rel=\"noopener\">get out of debt<\/a>, but you\u2019ll also free up your cash flow to <a href=\"https:\/\/www.goodfinancialcents.com\/ways-to-save-money\/\" data-wpel-link=\"internal\" rel=\"noopener\">save and invest more money<\/a>.<\/p>\n<p>While you\u2019re paying off those necessary debts, it is also vitally important that you avoid other types of consumer debt. <\/p>\n<p>These can include installment debt for the purchase of furniture and similar items, timeshares, and especially credit cards. Each not only adds to your debt burden, but they usually carry very high-interest rates.<\/p>\n<p>For example, if you\u2019re paying 20% on a credit card balance, you\u2019re not likely to get anything close to that in investment returns, at least not on a long-term basis.<\/p>\n<p>Paying off that kind of debt and avoiding it in the first place is the best way to take control of your income. The less debt obligation you have, the quicker the path to $1 million will be.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"793\" height=\"1024\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"wp-image-48807 img-fluid lazyload\" data-src=\"http:\/\/www.petermaneurope.com\/wp-content\/uploads\/2023\/08\/Strategies-for-Building-One-Million-Dollars-793x1024-1.png\"><\/figure>\n<h2 class=\"wp-block-heading\"><strong>The Bottom Line: Make One Million Dollars in Just a Few Years<\/strong><\/h2>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"video-container\"><iframe loading=\"lazy\" title=\"10 Ways to Make $1 Million if You&#039;re BROKE\" width=\"740\" height=\"416\" src=\"https:\/\/www.youtube.com\/embed\/7sLXhCDRaV8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div>\n<\/figure>\n<p>If you\u2019re able to use all 10 of the above strategies, you\u2019ll likely become a millionaire in just a few years. But even if you choose to focus on only three or four, you\u2019re highly likely to reach millionaire status at some point in your life.<\/p>\n<p>You can choose the fast track or the slower one \u2013 it\u2019s up to you.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.goodfinancialcents.com\/how-to-make-one-million-dollars\/\" data-wpel-link=\"internal\">10 Ways to Make One Million Dollars (Seriously!)<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.goodfinancialcents.com\" data-wpel-link=\"internal\">Good Financial Cents\u00ae<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having a million dollars may seem like an impossible dream, particularly if you\u2019re starting from zero. But the fact that there are more than 33 million&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/posts\/398"}],"collection":[{"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/comments?post=398"}],"version-history":[{"count":3,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/posts\/398\/revisions"}],"predecessor-version":[{"id":405,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/posts\/398\/revisions\/405"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/media\/400"}],"wp:attachment":[{"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/media?parent=398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/categories?post=398"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.petermaneurope.com\/index.php\/wp-json\/wp\/v2\/tags?post=398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}