My Plan to Become a Millionaire

By: GenXinvestor

my plan to become a MillionaireHere’s my plan to become a millionaire.  Many of us dream about one day becoming a millionaire but unless we take concrete steps to achieve that goal, a dream is all it will ever be.  I am currently in the process of joining other bloggers in the Million Dollar Club.  Basically it’s a group of personal finance bloggers who are striving to reach the $1 million dollar mark.

Why Become A Millionaire?

Many personal finance bloggers have the million dollar mark as their goal and if you go around and visit these websites you’ll discover that it’s never about the money in and of itself.  In fact for me, as was the case with the millionaires interviewed in Thomas Stanley’s The Millionaire Next Door, I can say that my lifestyle would remain relatively unchanged.  I would continue to work, spend time with friends and family and pursue my hobbies.  After all, I can’t ever envision myself buying luxury cars and becoming a big spender!    

So what is it all about?  Well I think others would agree that becoming a millionaire is really about the freedom that goes along with the money.  It’s about not having to work at a job you despise.  It’s all about the life choices that that kind of money can offer.  Without ever having to worry about money, you’re free to pursue other interests.  No more stressing about the monthly bills, if you’ll ever have enough money to retire or for your children’s education.

million dollar club

My Plan to Become a Millionaire has 7 Steps

Entry into the Million Dollar Club is dependent on writing a pledge form which basically lays out your plan on how you’ll become a millionaire.  So here’s mine:

1. Live within my means and Pay Myself First.  I’ve never really been a big spender so this should be relatively easy to achieve.

2. Pay off All Debt.  I have a pretty large balance on my home equity line of credit (HELOC) that I used for making energy efficient upgrades to my home.  Even though the interest rate on it is quite low, it’s still a big priority to pay off.

3. Pay down my mortgage.  Since moving into our final home last December, we have taken on a huge a mortgage.  The plan is to have the mortgage paid off in less than 10 years.  In fact, we will increase our weekly payments starting in September.

4. Max out Retirement Accounts.  I do this every year for the tax benefit and also so my money can grow on a tax sheltered basis throughout my working life.

5. Max out the Tax-Free Accounts.  We’re well on our way to doing this.  Once we tackle some of the HELOC debt, we’ll be able to put more into these accounts.

6. Continue to Save and Invest 50% of our income.  Last year I was managing to save about 70%.  But since the move and renovations this amount has decreased significantly.  This is all short-term thing as the renos are now complete and my wife has started back to work after a mat leave.

7. Buy income producing Assets.  I plan to continue to buy income producing assets so I can build up my passive income.  Things like my new rental property, dividend stocks, exchange-traded funds (ETFs) and low-cost index funds – all help grow my monthly dividend income.

Becoming a Millionaire Is Easier Than You Think!

That’s it.  That’s the list of steps I can take to achieve my goal of hitting the $1 million mark in net worth.  As I’ve explained before, the recipe for becoming a millionaire and achieving financial freedom is simple and straightforward:

Spend Less Than You Earn, Save and Invest the Rest

This is the essence of personal finance and if you can do this, it’s a mathematical certainty that at some point, you’ll become a millionaire.  Just make sure your investments keep pace with inflation, otherwise your cool $1 million in todays dollars will end up being $912,573.24! 🙁

Thanks for reading my plan to become a millionaire.  I’d like to hear from you?  What’s your plan?

For more information about how to become a millionaire check out these classics on Amazon.  They are well worth the read and I highly recommend them:

George Clason, The Richest Man in Babylon

Napoleon Hill, Think and Grow Rich

Thomas J. Stanley, The Millionaire Next Door

T. Harv Eker, Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth

Or check out my other wealth building articles:

How to Become a Millionaire

How to Grow Your Net Worth Automatically

5 Steps to Building Wealth

Photo Credit: Image courtesy of iosphere /FreeDigitalPhotos.net

7 thoughts on “My Plan to Become a Millionaire

  1. Abigail @ipickuppennies

    My plans are to just get our heads above water. Then focus on building long-term wealth.

    We’re currently saving for my husband’s $25k dental implant bill next year. Then it’ll be time to really ramp up the woefully underfunded IRA accounts. I want to open and fully fund a SEP. Once we can do that comfortably, we’ll put more on the mortgage. Once that’s taken care of, THEN we can save for a rental property. (I’m the only income earner, so I’m not comfortable having 2 mortgages.)

    Due to our various health conditions (and subsequent health expenses) I can’t imagine us ever getting to be millionaires. I mean, the $25k we’ll shell out would be almost enough for a 20% down payment on a home down here. Instead, we’ll be starting from scratch once the implants are done. And the SSA is trying to deny my husband’s disability benefits after a review, so we have to fight for that. Otherwise, we’ll be losing out on $800 a month AND have to pay for his insurance, which’ll be a doozy.

    So yeah, probably never millionaires. I’d be thrilled if we can hit $100,000 in the next 5 years. Once we get that far, I’ll shoot for double that and so on. If we ever get to $500k, I’d be jazzed. In the end, I guess it’s just important to have achievable goals — 7 figures or otherwise.

    Reply
    1. GenXinvestor Post author

      Hello and thanks for the comment. It sounds like you have a lot going on right now. It seems like you have a pretty good plan to start building long term wealth. From my own personal experience, I found that just getting a handle on my finances was half the battle. After that it was just a matter of making a plan to save and invest a portion of each paycheck. Good luck and I wish you all the best with your long term financial plan.

      Reply
  2. BeSmartRich

    I really can’t wait until I become a millionaire. I guess I am on the right track but I just need a little more push to get there. Keep up the great work!

    Reply
    1. GenXinvestor Post author

      Thanks for the encouragement BSR. It’s important to set some goals and then come up with a realistic plan to achieve them. It’s a great feeling to know that you’re on the right track and you can see the progress from month to month and year to year. Keep saving and investing your money and the rest will take care of itself.

      Reply
  3. Pingback: The Million Dollar Club & Millionaire To-Do List! | Budgets Are Sexy

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