I have been doing a lot of reading lately, about how to make a million dollars, how to make millions per year etc...
One thing that stood out and now I can’t remember where I read is basically all you have to do is double your money 14 times, starting with $100.
So starting with $100, once would be $200
3 times $800
4 times $1,600
5 times $3,200
6 times $6,400
7 times $12,800
8 times $25,600
9 times $51,200
10 times $102,400
11 times $204,800
12 times $409,600
13 times $819,200
14 times $1,638,400
Isn’t that amazing? It ends up being well over 1 million! It sure looks easy, right? I mean doubling your money can’t be that hard. Can it? So how do you do it?
Well, some people do it with real estate, others with a business, some do it successfully online, and some trade in shares. There are lots of ways you can do it.
I think it’s all a matter of how willing you are to work for it? Some ways require a lot more work than others and it’s not all easy. I have been thinking about this at great length due to the properties I have seen lately.
If I bought one, did it up, doubled my money then used that money to buy 2 more fixers, which I could do up and double my money again, I’d have gone from $60,000 to $240,000 relatively quickly. (that is provided I can do the reno’s fast.)
I could then take that money, buy more and do it over a few times to get my desired $1,000,000 but it would be a lot of hard work.
You don’t have to start with $100. Any amount will do but the principle is the same. Look around you. How can you double your money?
Another way is if I sell a certain amount of my books by promoting the heck out of it (which I plan to do soon) I will have $1,000,000. Since I plan on paying 25% of my profit to charity and I need to pay tax on it, it’s a higher amount of books I need to sell than you’d think, but still completely doable.
If you could make $1 on something and sell 1,000,000 that is $1million before tax. Alternatively selling 100,000 for $10 will yield you the same result.
A lot of it comes from having the will power to not spend the returns on your investment, but to reinvest them instead. By spending what you make you won’t move forward but if you reinvest and reinvest the money will grow and as you can see from above, once you get to larger amounts of money it snowballs quite quickly.
A good way I think (says she who is yet to get there!) is to diversify. That is, do not rely on one thing to make your million; instead work out a few income streams. You could use property, online and shares. You could do some selling, start your own business and invest in property. Whatever you feel comfortable doing, whatever combo feels right for you, go for it.
And just to give you a little heads up, I have shortened my deadline for $1,000,000 by a lot and my aim is now to be financially secure, completely free by the time I am 30. I do not think this is crazy. I think it is totally doable.