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10 Steps To Help You Make Your First Million Dollars

10 Steps To Help You Make Your First Million Dollars

Money may not be everything, but the things it could afford makes certain things so much easier. While it can’t afford true love, kindness, passion and wisdom, certain processes becomes much more efficient. A million dollar today compared to a million dollar ages ago is indeed a lot different in terms of value. At the present, it is more possible to make your first million if you really want it. Especially, there are many ways the world can offer to help you make your first million dollars.

Believe you are capable, and you’ll get there. Here are 10 ways to ensure you will reach that goal:

1. Stop planning, start doing

“If you wait, all that happens is that you get older!” – Mario Andretti

The first step is sometimes the most challenging step. If you want to get ahead, you should know not only where to go but also when you are going to perform your first move. Planning alone won’t make you succeed. Too much preparation won’t get your things done. So start doing and remain focused on the goal you’ve set. For example, if you want to earn more money through your current job, seek to have a promotion within the organization or find a company that will help you increase your salary. It’s always about starting to take upon yourself the beliefs and habits of highly successful people.

2. Define your priorities

It’s not enough to simply become busy, give most of your attention to what matters the most and what is important to you. Make sure these priorities you create will continue to support your goal. For example, you want to own a brand new car. What exact amount do you need to feel accomplished? What are your ways and means to make it? These are the questions you probably need to ask so you can begin constructing your priorities list. Let’s say, less spending on home furniture can give you more saving that can accumulate until you achieve your dream car.

3. Track your gains and losses

Sometimes you need to take a look back and see the big picture to realize what you have and where you are today. Tracking your gains and losses means monitoring your past activities to come up with a conclusion regarding your progress. Based on your conclusion, you can decide what you should do next.

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4. Make an investment

Invest in something that will accumulate wealth. Invest in assets and avoid too much liabilities. Investment is like watching your plants grow. How much you keep matters more than how much you spend. Make saving a habit. Save while you can.

5. Be patient

No successful person will think he can make tons of money overnight. Many have found themselves in debt because of too much living in the now. While there are many people as well who really get their patience paid off. Patience works to most people. Being patient doesn’t mean waiting while doing nothing. Remember: no aspiring millionaire is a couch potato.

6. Work with what you have and make the most out of it

Instead of thinking about what you lack, focus on what you have and what amazing things you can do with it. Spend your time and energy wisely.

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7. Expand your knowledge

“True knowledge exists in knowing that you know nothing.” – Socrates

There are several exciting ways to improve your knowledge and perspective about what’s new in your field, it’s endless. It is important so you don’t get stuck to one thing. Have courage to push that goal, you have to keep moving, you have to get deep.

8. Establish routine

Be careful with your actions, you become what you do. Begin each morning with a clear mind and definite plans. Stick faithfully to your routine and finish what you’ve started.

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9. Adapt and develop

You can only do better once you begin to recognize what you need to improve. Change is the only constant thing. Adapt new ways and new strategies to develop more effective results. The value of money is never stable, it changes over time. You have to keep an eye to those changes.

10. Focus on your goal

Keep a clear and determined mind constantly to avoid distractions that drain your energy and mislead you. Know your target and your purpose of getting there. Remind yourself everyday to attract favorable things.

Featured photo credit: Giuliano Maiolini via flic.kr

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Published on June 12, 2018

How Much Money Do I Need to Retire? Find Your Answer Here

How Much Money Do I Need to Retire? Find Your Answer Here

It is never too early nor is it ever too late to start planning for retirement. It ultimately depends on your way of life, where are you living, and whether you need to let go of anything. A successful retirement strategy is to have enough pay to cover your expenses with a little cash going into a savings account for sudden financial needs.

With regards to retirement, we all have an alternate vision in mind. In fact, some think about traveling throughout the world, while some think of a peaceful life with their grandchildren. Whether we get ready for it or not, we will one day turn to retirement age and so, we should be prepared for it. I’m going to tell you how in this article.

Benefits of early ventures for retirement

The way this works is you figure out where you need to live, the amount it will cost you to live there (rent/food/transportation), and the various expenses you will need to account for, like travel/insurance/medical bills and taxes. Many people are struggling to put aside money for their future savings and some haven’t started yet. Think you can put off thinking about retirement? The reality is that you need to start thinking about it right now, and putting aside some money from today.

There are a lot of benefits of taking early steps towards retirement. Utilize the power of compounding, low investment for targeted corpus and you can create more corpus investing the same money:

  • If someone saves $100 every month and starts investing for 30 years at 10% return, initially you will see that within 5-10 years, your investments will not multiply. However, after that period, the corpus will increase immensely with the impact of compounding. The investment period expands the extent of profits increments in the corpus.
  • Suppose there are two people, one aged 30, and the other 40. Both need to resign at 60 with the same retirement objectives of $300,000 USD each. Both will put resources into an investment with 10% of the return. Thus, to accomplish their retirement objective, the younger one needs to save $100 USD / month and the older one needs to collect $300 USD / month. Since the older one has started investing ten years later than the younger one, he will pay more than double what the younger one will pay.
  • If someone saves $100 USD every month and starts investing at 30 years old till 60 and gets 10% annual return, his corpus becomes around $170,000. Otherwise, if he starts the same amount spending at 40 years of age with the same 10% return, he will have around $57,000 USD. He can profit by just investing ten years early.

You can’t invest too much money in retirement during the early stage of your career since you may have different objectives. However, you can increase the investment gradually if you start investing just a small amount.

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Average retirement age

For many people who are nearing retirement age or recently resigned, one of their most significant financial regrets is that they did not focus on saving for their golden years. As per the Consumer Reports study, it demonstrates that only 28% of investors with the age of 55 years or older are pleased with the way they have saved for retirement.

As per the report, The Economic Policy Institute breaks down how much Americans have put away.[1] Since you know that when the majority of people retire, you can subtract your age from that more significant number and check down what number of more years you need to work.

But many retirees go back to work. Some of them do part time job while others do seek for a second career. Some even come back to full-time work and then retire again in a couple of years. So deciding their retirement age could be tricky.

Average retirement savings

To get retirement started, saving is pretty easy, though it can seem complicated. These simple five steps will make you go on retirement now. So, you don’t need to stress over having the same regrets as today’s retirees.

1. Invest 15% for your retirement

Your initial step is to save 15% of your income. This will depend on your gross income and does not include any coordinating assets you get through your employer’s retirement plan.

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It’s sufficient to enable you to achieve your retirement investment funds objectives, but not too much to keep you from enjoying your income today.

2. Utilize tax-advantaged retirement plan

Yes, we utilized the T-word; however, don’t daydream! Split your 15% retirement contributing budget between charge conceded retirement plans like your 401(k) or after-tax plans like a Roth IRA.

3. Invest your money around

To put it all in one place is the most significant risk that you can take with your retirement money. With mutual funds, however, you can invest in the biggest and most recognizable brands as well as that new organizations you’ve never known about but has a lot of growth potential.

Opt a growth-stock mutual fund with background marked by solid returns for both your 401(k) and Roth IRA speculations.

4. Stay with it

Since mutual fund investing is less risky than investing in single stocks, it is not risk-free. You can see your savings grow in the long term as long as you can leave your money where it is and keep adding to it.

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5. Work with an investing professional

It is essential to look for an investment professional, as you must have a lot of queries concerning your retirement plan during 30 or more years of investing,

Never make due with an investment professional who recommends or patronizes you to turn over all your investment choices to them. Since this is your retirement, nobody will think or care about it more than you do!

You might analyze or compare your savings against the average retirement savings for your age group to check whether you’re falling behind or getting towards of the curve. On the other hand, it might be conceivable to hang up the work boots and hit the shoreline with fewer savings if you live easily or below your means.

How to achieve your financial goals?

An ideal approach to achieve your financial goals is to stay focused on what you need for your future, ignore everything (and everyone) else that may divert you. There’s a significant business culture out there that requires you to stay in debt, live for the occasion and stress over your future later on.

You need to start planning for your future from now, not when you have more time or money to invest. You can even talk to a financial advisor for any help. Cooperate to set your money goals and make an action plan to reach them. You can retire younger than you thought you could if you create a project and follow up on it.

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Start planning for your retirement

A lot has changed in the last 30 years; our previous generation had an career goal and they would join either a large private company or a government organization immediately after school or college. Then they would spend the next 38 years in the same organization and the form of provident fund and gratuity. They would retire with a decent corpus and they would later spend the remaining time with their pension benefits. It’s a bit different now, but with the above information, you’ll be well prepared.

Whether you can afford to retire now or not, you need not bother with a retirement calculator to get a rough estimate. You should have the capacity to closely approximate your daily spending habits to figure out how much money goes out the door every year.

Featured photo credit: Pexels via pexels.com

Reference

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