Nobody can predict what will happen in the future, but it is possible to become a multi-millionaire. A lot of people dream about becoming millionaires, and they work quite hard for it. The only problem is, so many invest all their time and effort in the wrong places.
I am going to discuss four possible ways that are most likely to help you earn that first million. There are several ways you can reach the million-dollar mark in your bank account. Let us take a look at the best methods you can apply.
As the proverb goes, “the early bird catches the worm.” Starting early with your savings is a no-brainer, but you need to understand this: to become wealthy, you need to create a substantial savings rate for yourself.
Start saving at a young age, and make sure you have an aggressive approach to it. Cut down your expenses as much as you can while maintaining a decent enough lifestyle. Focus on the three staple expenses: housing, transportation, and food. Try to minimize how much you spend on them and start putting money aside every month, which you will never spend.
Start a business
Accompanying your savings with an increase in your top line bolsters your ability to save more. You can consider starting a company with the savings you accumulate as one of the ways to hit your first million. This requires a lot of patience, hard work, and dedication.
Starting your business entails taking plenty of risks, but there are plenty of examples showing it can be done. Imagine the likes of Bill Gates. The humble beginnings in a garage for his own business eventually led to him becoming one of the wealthiest people alive.
Take calculated risks
Speaking of business and uncertainties, you could consider taking other computed risks to increase your potential income. If starting a business is not a viable option for you to consider, you could look at opportunities in real estate. Owning a rental property in a good locality can allow you to earn a substantial amount of monthly income that you can use to boost your savings.
Invest in stocks
Letting your savings sit as idle cash is the one thing you should not do if you want to become wealthy and achieve the million-dollar goal fast. Using your savings to invest in creating a business or investing in real estate are both tried-and-tested methods to amass substantial wealth. The problem is, neither of those ventures will leave you with time to do anything for yourself.
Consider investing in the stocks of a publicly traded company like goeasy. The company’s share price has grown by almost 200% in the past five years. At $68 per share at writing, GSY stocks keep climbing at a steady pace every year.
Investing your money in the stock will allow you to earn a massive amount to add to your wealth through its stable capital gains. Additionally, goeasy pays its shareholders dividend payouts of $0.31 per share every quarter. Not only will you earn from the capital gains, but you will also get additional cash in your account through dividends from the company.
From all the ways described, getting to the million-dollar mark quickly is a combination of savings and investing in reliable stocks like goeasy. Investing in shares can allow you to accumulate an increasing amount of wealth as passive income, and you can add to the account further through active income.
I think it is possible to hit your first million well before you near your retirement. It is just a matter of discipline and patience combined with managing your finances smartly.
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Fool contributor Adam Othman has no position in any of the stocks mentioned.