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You have heard the old saying that nobody ever got rich working for someone else… well, that makes an interesting point about the potential of entrepreneurship, but but it is not strictly true.
For many people, becoming an entrepreneur is not an option they are willing to consider. It takes a certain personality type. Also, not everyone wants the risk involved in striking out on your own. A high proportion of startups fail. And you might already have responsibilities of the kind that make such risks unappealing. For the majority of people, job security is very important and there are responsibilities that make the whole idea of leaping into the unknown a non-starter.
The minority of people, in fact, are entrepreneurs – and it will likely always be thus. So is it possible for employees to become wealthy? As it turns out, the answer is yes! There are many people who achieved prosperity with a steady paycheck. It can be done – but you will need determination, long term self-control, and strategy.
Here is your blueprint. Here are 5 ways to become a millionaire while working for someone else. For best results, combine these strategies.
1. “Pay Yourself First” And Invest Your Earnings
Now this one can be demonstrated mathematically: If you can simply not spend just $5 per day from what you earn, this adds up to $150 per month, or $1825 per year. If you invest this in a broad-based index fund such as the S&P 500, which has a historic track record of an average return of 8%, or in an account such as Nexo (crypto assets), which currently also pays 8% base rate on stablecoins; you would reach $1,000,000 in the 49th year. This is known as the “Latte theory of becoming a millionaire” because you can either waste that $5 per day on a latte at that fancy cafe, or you can keep the money and give yourself an actual shot at becoming a millionaire.
What else do you spend a few bucks per day on? It’s almost amusing to think that you could become a millionaire just by making your own sandwich every day instead of buying one at the deli counter… almost.
Get into the habit of paying yourself first – which means taking an allocated amount from your earnings and transferring it to your savings before spending money on unnecessary “stuff” like lattes.
Most people don’t do this not because they can’t, but because $5 seems totally insignificant to them and so they simply don’t bother. But you have to remember that large rivers are made entirely of small raindrops. Look how it adds up!
If you can pay yourself an extra $10 per day and invest it, you can reach the million dollar mark in the 41st year.
If you can pay yourself an extra $20 per day and invest it, you can reach the million dollar mark in the 32nd year.
The secret? START NOW. Not tomorrow. Not next week (which then turns into next year). NOW. Right now. And stick to it!
What’s great about this is that when you reach that magic million, if you can continue to receive that 8% interest, then you have $80,000 per year coming your way. A nice ongoing auto-pilot revenue stream for all your hard work!
The other four strategies are “built on top of” this first one.
How many ways can you make at least $5 extra per day (or more) and save it? Here are 4 ways:
2. Start A Side Hustle
Working 40 hours per week still leaves you with a lot of those 168 hours of the week that you can spend developing an idea or simply just taking on a second job. Plus, all the time you spend getting that extra money in, is time you are not spending it! Here is my detailed list of 36 Legitimate Ways To Make Money At Home.
3. Earn More From Your Existing Job
Most jobs provide the opportunity to work longer hours – and overtime pay is often increased. You also have the possibility to get promotion or a raise for doing excellent work. Explore the options available to you and you can also consider finding work that is better paid. There is always something out there.
4. Frugality: Save Money On Unnecessary Expenses
Now in addition to earning more, you can cut back on expenses. There are TONS of ways to do this. Take that saved money and add it to your savings, pushing you further ahead. Downsizing is regarded as a vital component of building wealth. Living within your means is a good exercise and pays off over time. When I was building my first business I lived in a small 14 foot caravan parked on my friend’s property and cut my expenses down to the bone so that I could focus on my business. It paid off!
Here is a fantastic list of 50 Amazing Ways To Save Money. The ideas here are certainly capable of saving you $10 per day or even much more!
5. Sell Stuff You Don’t Need And Invest The Money
Admit it. You have a house full of stuff. You have a room – or even a 20-foot storage container – dedicated entirely to stuff you are just not using. Get rid of it, get some cash back and add that to your investments!
Stuff can be seen as a zero-performing asset. It is literally capital that is tied up, not doing any work for you. It’s taking up space, deteriorating slowly (or quickly!) and quite possibly costing you more money in storage fees.
Here is my full, FREE tutorial on How To Be Successful Selling On eBay.