Who Wants To Be a Millionaire?
Who Wants To Be a Millionaire?
Samuel W. Westing did, and maybe you do too. It's not
as hard as you might think. Here are five simple steps YOU can take to
make your first million dollars.
1- Get a summer job - mowing lawns, babysitting, detailing cars, etc. You have over 90 days of summer vacation every school year. If you work just 50 of those summer days making $15 per day - doing one of your chosen jobs - you will accumulate $750.00.
2- Don't spend any of your $750.00. If you want extra money to spend just work harder and use the extra money to have fun with.
3- Follow the same work plan every summer for the next eight years. This means that at the end of the eight year period you will be 21 years old and will have saved $6,000.00.
4- At this point you have an investment decision to make. You can take your $6,000.00 and put it in a certificate of deposit at a bank and earn perhaps 6-7%, or you can put your money into the stock market through a mutual fund. Over the last 75 years stocks have returned an average of 13%. Keep in mind that you are assuming a lot more risk investing in stocks than at a bank, and stocks may not perform as well in the future as they have in the past.
5- The last step is by far the hardest, but there is no reason you can't do it. Don't spend any of the money until you reach your goal. Just let it sit there and grow. Ignore it. Pretend like it isn't even there. Don't buy a car with it when you get your drivers license. Don't use it as a down payment when you want to buy a house. Don't spend it on a trip to Hawaii when you need a vacation. Just leave it untouched.
. . .and if you take these five steps this is how old you will be when your $6,000.00 becomes $1,000,000.00.
If your investment returns 15% a year you will be a millionaire at the age of 57.
If your investment returns 13% a year you will be a millionaire at the age of 62.
If your investment returns 11% a year you will be a millionaire at the age of 69.
If your investment returns 9% a year you will be a millionaire at the age of 80.
If your investment returns 7% a year you will be a millionaire at the age of 96.
. . .but you're thinking, "I don't want to wait until I am
that old to make my first million." If this sounds like you then read on for your solution.
If you don't want to wait until you're in your fifties (or older) to earn your first million, then simply work a little bit harder and save a little bit more money. For example, you could make $1,000 a summer instead of just $750, and you could keep saving $1000 a year past the age of 21. You could even get creative and ask relatives for money to invest instead of Christmas or birthday gifts for yourself.
The "$1,000 a summer until I'm 29" plan.
Look at what would happen if you worked more days during your summer vacation and made $1000 instead of $750 every summer, and you kept doing this every year until you reached the ripe old age of 29 instead of stopping when you are 21. If you follow this plan this is how old you will be when your $1000 a summer becomes $1,000,000.00.
If your investment returns 15% a year you will be a millionaire at the age of 48.
If your investment returns 13% a year you will be a millionaire at the age of 53.
If your investment returns 11% a year you will be a millionaire at the age of 60.
If your investment returns 9% a year you will be a millionaire at the age of 71.
If your investment returns 7% a year you will be a millionaire at the age of 87.
You control how fast you become a millionaire. Why? Because there is one important thing you have more of than any other adult: time - and lots of it. Because you are only 12 or 13 years old you have plenty of time to let compound interest work its magic. Remember, becoming a millionaire has a lot less to do with how much money you make than what you do with the money you have.
So there it is - no smoke and mirrors - just a simple step by step program for you to make your first million, and you can do it on only $1,000 a summer! Imagine what would happen if you also worked for a few hours every week during the school year - making $15 a week would result in another $600 yearly - or if you work harder during the summer and make $1,500 instead of $1,000. Doing either of these things will knock almost a decade off the time it takes you to make your first million. Just think, before long you could finally buy me that Porsche I've always wanted (don't forget the tan leather interior - and would it kill you to throw in a tank of gas?).
So, do you really want to be a millionaire? Well, there's nothing stopping you now. You have all the information you need - so get out there and make it happen. If Samuel W. Westing did it, then you can too. Remember it all comes down to three things:
Hard Work, Time, and Investment Return