Why is it that most people overestimate what they can do in one year, but underestimate what they can do in ten years?
If I lost everything and had to start over with nothing, the first thing I would do is get busy on facebook and linkedin networking with high networth individuals. One of the first principles of wealth is you must surround yourself with millionaires in order for you to have the best chance at becoming one.
If you’re spending time with people that are living paycheck to paycheck doing non productive activities like drinking, going out, and binge watching sports team every night of the week instead of focusing on becoming a millionaire. You’ll have a very hard time ever accumulating wealth.
There is time to do these activities but many millionaires are focused on other millionaire habits like reading, networking and building assets.
The simplest formula for becoming a millionaire is focusing on 3 things.
- Focus on increasing your income. Both Income Streams and Value for your time (if you are currently making minimum wage, it will be very difficult for you to reach 1 Million dollars in 5 years even if you invested everything (10 Dollars an hour is only 20k per year, landing you at $100,000 in 5 years if you saved everything.
- Focus on investing more of your money. The biggest lie ever told is to save your money, What is the point of saving your money? The idea is to invest your money! Albert Einstein said it best Compound interest is the eighth wonder of the world. He who understands it, earns it he who doesn’t pays it” So Invest your money!
- Get a Higher Rate of return for the money you have invested. If you invest your money in bonds, you’ll get less than some index funds, or even leveraged index funds. Cash in the bank account VS cash invested in real estate, index funds, businesses or even better invested in yourself.
It’s hard to give a general answer to becoming a millionaire because for every person it’s different that is why there is no to do list to becoming a millionaire that everyone can follow.
My book The Millionaire Business Mindset shares the strategies many millionaires have used over the years to generate massive amounts of income!
Personally, I focus on a few things that have helped me and several others that I coach in business.
Create a business (because if you can leverage other people’s time then you can make more money) or sell a product because again it’s repeatable, you do not have to trade an hour for a dollar. If you don’t have a product then sell someone else’s product. (Affiliate Marketing) If you don’t have the sales skills hire a team of sales experts.
I personally like to invest my money in my own businesses, (Web Agency, Online Startup Box • One Stop Digital Agency for Your Online Business ) because I can do it from anywhere and I can scale it up and down depending on how many sales team members I have, and how many developers I have. I pay my sales team members on commission, so if they don’t perform then they don’t get paid, and if they over perform then the are rewarded for that effort! (It is important to recognize that you should be focusing on the value you bring and not the amount of hours you spend on a task)
The other thing I do is I create long term assets, such as informational products (You can write a book or books and publish them on amazon) Now my book ( Serve 2 Win – By Mitch Durfee )sales haven’t made me a millionaire but the book has generated a monthly income and has produced many clients to my coaching business. It took me around 7 Months of writing to complete, and I used an editor and format expert to put the final touches on the book. It will generate me income from now until as far in the future I can possibly predict. That is one of the reasons I wrote a my second book this year (The Millionaire Business Mindset ) It’s about producing cash flowing lifetime assets) and helping others reach even higher levels. The secret to becoming a millionaire is to realize its a team sport, so when I discover cash flow machines I share them with as many people as possible! When you help others, the law of reciprocity rewards you.
The last thing I did besides owning several of my own businesses was I invested in real estate. Five (5) years is a long time! I did all of the things I’m talking about above in 5 years! Personally I set a goal of buying One Million dollars worth of real estate in 12 months and I did it!
The size of your actions are based on the size of your goals!
After I hit a Million in real estate in 12 months, 4 Months later I passed 2 Million in real estate. This happened because the momentum I had from the 12 months and work I put in during the 12 months trying to capture more deals, some came through a few months after.
To summarize, surround yourself with people that are millionaires are on the road to it, this will dramatically shorten the learning curve. Mastermind Groups are an amazing solution for this. Another option is to hire a mentor or coach (invest in yourself and get a personal road map for you) Turn those singles into home runs! Focus on the future, build long term income generating cash making machines! Start a business or Invest in Real estate or do both. If you don’t have any capital to start investing in real estate, work on finding deals off market for other investors and gain as much knowledge as you possibly can.
The biggest thing to remember is, anything is possible as long as you believe it!