Strategies You Can Use To Become A Millionaire
The quickest way to become a millionaire would be winning the lottery but that works about as well as Wile E. Coyote strategies to catch the Roadrunner. The trite and true quickest is way is to maximize your savings through 401Ks and other company matches. You could save tens of thousands a year maxing out your 401K. The bonus is you don’t get taxed on it. The money in your savings can be used to fuel further investments. You could start your own company, real estate business, buy rental properties, and several other ways to increase your income.
With a net worth of $450,000, the 30-year-old’s strategy is paying off. He makes a point of maxing out his 401k and IRA, favoring low-fee exchange-traded funds. Though initially attracted to S&P 500 index funds, he’s since diversified his portfolio by including international exchange-traded funds, REITs, and commodities, and has taken a larger cash position, all to help hedge some risk.
$450,000 can go a long way in the world of investing especially by the time you are 30. The way that 30 year old got there was by investing during the downtown in the market from the financial crises in 2007. By buying cheaper an d cheaper assets every week from 2007-2008 waiting for the market to recover allowed savvy investors to amass a fortune. Finding real estate opportunities is also a great way to earn some extra money. If you can find a market that is about to increase in value that could lead to owning five rental properties and earning enough income from them that you don’t have to work another day in your life.
About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.