How to Become a Millionaire from Nothing
Learn how to build enormous wealth—by exploiting one powerful wealth-building tool! Today, I’m going to show you how to become a millionaire from nothing!
Becoming wealthy doesn’t have to be difficult. And in this post, I’ll teach you how to become a millionaire from nothing–by investing as little as $370 a month.
How to Become a Millionaire from Nothing by Investing $370 a Month
Attaining a net worth of over $1 million can be achieved easily and passively, by investing the stock market.
An investment of $370 monthly into the stock market from age 18, will have grown to $1,024,007 by your 60th birthday. It will have grown to $1,461,756 if you’re happy to let it grow for another five years!
This is based on the average US stock market returns over the past 70 years (adjusted for inflation).
And at a savings rate of $370 a month, you will have invested $186,480 over 40 years—which as mentioned, will be worth over $1.02 million by age 60.
You may be skeptical about investing your money in the stock market; however, it has proven to be one of the most consistent and lucrative investment vehicles over a prolonged period.
By investing in stock market index funds, you can make decent returns without the hassle of managing your own funds. Not to mention that index funds outperform managed funds 80% of the time.
Your investment of $370 a month with grow exponentially thanks to compound interest. To simplify this concept, a compound interest definition is provided below.
Compound Interest is interest paid on the initial principal as well as additional interest that is accumulated on money borrowed or invested.
In investing terms, you are gaining interest on the money you originally invested as well as any interest gained through capital gains on your investment.
How to Make Money With Stocks
Now I’m going to show you how to make money with stocks. And I’ll even show you what happens when you keep your money in a savings account.
US historical market returns are about 10% per annum (7% adjusted for inflation). At this rate, your investment will double in value in just over ten years.
Your money will grow much faster this way—compared to leaving it in an average high-interest savings account!
Your money will take over 28 years to double in value at an interest rate of 2.55% annually (the current high-interest savings account rate).
You are barely keeping up with inflation at this rate, and have little hope of building wealth this way.
How to Become Wealthier
By increasing your investment contributions, your portfolio will grow exponentially. For example, $500 invested monthly (compared to $370 invested monthly), starting at age 18 will have grown to $1,383,793 by age 60.
You will have only contributed an additional $65,520 over the forty-year period—but will have an additional $359,785 by the time you’re 60!
Through this investment plan and a lifestyle of hard work, perseverance, planning, and self-discipline–you too can achieve millionaire status.
Stock Market Millionaires
Here are some stock market millionaires/stock market billionaires who built their wealth through stock market investing.
Warren Buffett is an American business magnate, philanthropist and one of the most successful investors of all time. He is known for his impressive stock market returns throughout his investment career and is known as the “Oracle of Omaha“.
From 1964-2017, his holding company Berkshire Hathaway, achieved average annual returns of 20.9%, versus 9.9% (including dividends) for the S&P 500.
Warren Buffett is worth over $US83 billion today.
To learn about Buffett’s investment strategy check out The Warren Buffett Way
Carl Icahn was born on February 16, 1936, and is an American businessman, investor, and philanthropist. He is the founder and majority shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City.
He is also Chairman of Federal-Mogul, an American developer, manufacturer, and supplier of power train components and vehicle safety products.
Icahn began his career on Wall Street as a stockbroker in 1961. In 1968, he formed Icahn & Co., a securities firm that focused on options trading and risk arbitrage. In 1978, he began taking controlling positions in individual companies. Icahn developed a reputation as a “corporate raider” after his takeover of Trans World Airlines in 1985.
Carl Icahn is worth over $US17 billion today.
George Soros, born August 12, 1930, is a Hungarian-American investor and philanthropist. As of February 2018, he had a net worth of $8 billion, having donated more than $32 billion to his philanthropic agency, Open Society Foundations.
Soros is known as “The Man Who Broke the Bank of England” because of his short sale of US$10 billion worth of pounds sterling, which made him a profit of $1 billion during the 1992 Black Wednesday UK currency crisis.
George Soros is worth over $US8.3 billion today.
This is how to become a millionaire from nothing, through stock market investing.
Visit our post on ways to invest 1000 dollars and start investing today!
What steps are you going to take to become a millionaire?