I want to be able to swim through cash like Scrooge McDuck! Have a super fat wallet filled with $100 bills. Jet around the world on my own private jet and lounge outside next to my paradise swimming pool! My dreams and aspirations come nowhere near all this stuff, but I do want to be considered a millionaire someday!
There are a few ways I can think of that can get me to that status. Win the lottery? Considering that I don’t play the lotto and the chances of winning are very slim, maybe not this route. Inherit a large sum of money? I don’t have rich relatives, and I want them to live long to an old ripe age, so unless I have some extremely well off old relative somewhere it’s not happening this way. I guess it will have to be the slow and steady boring way of saving and investing my money. Not very exciting in itself, but the end goal is!
It’s entirely possible now to become a millionaire just be saving and investing. Takes a long time and steady work through the years, but I think I’ll make it there someday. Hopefully before I retire…but I’ll still take it then! It doesn’t have to be a million in cash, any assets I own can add up to that number.
So here’s what I plan to do to get there.
Continue contributing to my retirement accounts
Ideally I want to contribute 15% into retirement. I have a SEP-IRA and a Roth IRA right now. I’d like to be able to max out my Roth IRA each year! So far I’ve only succeeded once, but hopefully it’ll be twice soon.
Buy a house
Houses in Los Angeles are so expensive that buying one will already put us at more than halfway to millionaire status once we pay it off. We’ve been saving up for the down payment for the last few years and are getting pretty close! The next few months will be exciting! Hopefully we find something decent. We’re going to aim to pay off the mortgage before 30 years too.
With the highest savings rate at barely 1% it’s not worth letting all your money sit in savings accounts. Investing is a good option that will hopefully grow my money into something I can eventually live off. Passive income that makes my money work for me! I’ve been looking at Betterment and as soon as we reach our house down payment goal we will probably open an account. 10% of our income seems to be a doable number.
Save like crazy
I don’t want to put all my money into accounts that I can’t touch or are hard to convert when I need them. For emergencies and more immediate needs we’ll need a fat savings account to plunder. Only when needed!
That’s it! The slow and steady plan to getting rich! A lot of the numbers I got from reading the book The Wealthy Barber. A total must read for personal finance beginners. Very easy to read and puts everything in plain terms. A lot of it is common sense spelled out.
Who else wants to be a millionaire?