Monday, September 8, 2008

How to Become a Millionaire on Little Income

How to Become a Millionaire on Little Income
By Ryan J. Taylor

People keep searching and searching to learn how to become a millionaire even though the secret has been told to them a hundred times before.

When you break it down, it really isn't that hard to become a millionaire and these days it's not that impressive. In fact it can be achieved without a big income or a lot of luck. There are guaranteed ways to make your dreams come true.

Accumulating a million dollars is a great goal to have. It can help you keep stay focused and motivated, and when you break it down into smaller goals it will become effortless.

It shouldn't stop there though. A million dollars today is really not a whole lot of money, and a million dollars 10 years from now is even a lot less.

But, as they say, your first million dollars is the hardest to earn. After that, earning your next million is exponentially easy. Think about it. When you have a million dollars stuffed away in the stock market, you'll earn roughly $100,000 a year just off your investment. Now you have $1.1. million working for you.

But don't you think if you had a million dollars to play with that you could earn better money than the average stock market returns? Sure you can because you now have the ability to play with the big boys in the creative investing arena.

You also have banks and lenders willing to throw money at you, so you have an additional $5 million or more to invest at you fingertips to purchase a piece of commercial real estate. At this point you start creating millions of dollars a year while barely even working.

The first million is the hardest though, right? The good news it is no where near impossible, and it does not take a big paycheck or a fancy job.

In fact, how much wealth you build has very little with income. Most high-earning people are just as much, if not more, in debt as low-income people, and really have no money at all.

According to the wealth formula, earning a million dollars has more to do with discipline, time and understanding the fundamentals of how money works. In it's simplest form it means keeping more of your money and putting it to work for you.

In order to keep more of your money, it's just a matter of knowing how to make sure more people aren't getting a piece of your income. Sounds obvious, right?

But there are many things you can do to pay less taxes, reduce your ordinary expenses, eliminate your debt, and avoid investment fees, and work around having to pay capital gains on your investment earnings.

When you can keep more of your money, that means you can put more of it to work and make it double faster - and then double again. The great thing is you really don't need to know anything about investing or the stock market at all in order to double your money.

All you have to do is open an online brokerage account (5 minutes), set up your bank account to regularly transfer a certain amount of money to that account (5 minutes), and instruct your brokerage account to routinely purchase $X of shares of an S&P 500 index fund (5 minutes).

In its basic form, this is how to become a millionaire - guaranteed. By just following these simple steps, you can take advantage of all the rules of money and investing, instantly be diversified, and regularly investing while dollar-cost-averaging compound interest.

By simply learning the tricks to keep more of your money and then putting it to work for you, you can become a millionaire effortlessly. Anyone at any income level can do this

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