Why Do You Need a Million
Wealth should not be measured by the size of the bank account. In the book “Rich Dad. Poor dad” by R. Kiyosaki, a rich person is someone who can quit his job right now but can still support himself for the rest of his life. In other words, if your assets provide you with passive income that can meet your needs, then you are rich.
That's what you need a million for. If you invest this money wisely and make it work, then you can retire early and have a well-deserved rest.
How Quickly Can You Make a Million
It all depends on the amount you are willing to invest every month. For example, if you save $10,000 every month, then in 8 years and 4 months you will become a millionaire. However, for most of us this amount is not available. Therefore, the main way to make a million is wise investments.
Let's look at an example that seems more realistic. Let's say you're willing to save $200 every month. If you keep this money under your mattress, then in a year you will have $2,400. If you put it in a bank, then you can get $24- $48 on top of it after 12 months. If you invest it in a mutual fund, for instance, with 6% per annum, you will earn $144. Not too much, but that's $144 you earned doing absolutely nothing.
Now let's take a look at a more attractive option - investing in Forex to get the most out of your every dollar. In this case, there are also two options:
1. If you don’t know how to trade and don’t plan to learn, you can find a money manager with a stable income and invest in his MAM account. Even with a 10% return from trading and the commission of 50% of profit commission to the manager (you get 5% return), your earnings will increase by almost a thousand dollars in a year:
- $200 + 5% = $210
- $210 + $200 + 5% = $430
- $430 + $200 + 5% = $662
- $662 + $200 + 5% = $905
- $905 + $200 + 5% = $1,160
- $1,160 + $200 + 5% = $1,428
- $1,428 + $200 + 5% = $1,709
- $1,709 + $200 + 5% = $2,004
- $2,004 + $200 + 5% = $2,314
- $2,314 + $200 + 5% = $2,639
- $2,314 + $200 + 5% = $2,981
- $2,981 + $200 + 5% = $3,340
2. If you are ready to trade yourself, then with a monthly 10% return your funds will double:
- $200 + 10% = $220
- $220 + $200 + 10% = $462
- $462 + $200 + 10% = $728
- $728 + $200 + 10% = $1,021
- $1,021 + $200 + 10% = $,1343
- $1,343 + $200 + 10% = $1,697
- $1,697 + $200 + 10% = $2,087
- $2,087 + $200 + 10% = $2,516
- $2,516 + $200 + 10% = $2,987
- $2,987 + $200 + 10% = $3,506
- $3,506 + $200 + 10% = $4,076
- $2,987 + $200 + 10% = $4,703
This way, you’ll make a million in just a few years without having to save $10,000 every month. This is the power of investment.
Where to Invest
We live in an era of opportunities. There are various types of investment methods with different profit sizes to choose from. Of course, the higher the return the higher the risk. It all depends on your goals which we’ll talk about in the next article.
In the meantime, you can start your research with these investment types:
- Stocks, indices, mutual funds, etc. for annual interest, potential value growth and/or for dividends.
- Real estate (here you will probably need a fairly significant down payment, but the return may be higher than other types of investments).
- Forex that can provide a monthly stable growth. And you don’t need to master trading skills. You can invest your money in a MAM account and let an experienced trader grow your capital.
So, to make a million, you need to save and invest money on a regular basis. Easy to say. However, in order to make your first million, you need to learn how to set goals, make plans, and find the very funds to invest. I will tell more on how to do this in the next article.