They say the first million is the hardest. There might be a million ways (pun intended) to get to this path and here are 5 ways to get to a million net worth. These are tried and true but not easy. Nothing worth having will be easy.
1.Investing in the stock market
The stock market is one of the best places to invest. It is also one of the riskiest, if you stock pick. So, what is the safest way? Index funds. Most savvy investors including Warren Buffet swear by purchasing index funds. How long does it take to get to a million? This will depend on how long you stay in the market and how much you invest. For instance, if you invest $1000 a month for 23 years in a total stock market index you will have $1.09 million. The more you invest the less time it takes to get to a million. The less you invest the more time you need. Basically, either invest early or aggressively.
Here are some examples of how long it takes to get to a million,
2. Owning a Business
This is one of the oldest ways to increase your net worth. You can buy a pre-existing business or start from scratch. Owning and running a business will not be an easy task. You will have to be disciplined and driven. Depending on the business you might also have to dedicate a lot more time than a regular 9 to 5 work, manage employees and juggle a lot of roles. In the end though it will all be worth it. Depending on the industry you could sell for 5x the annual revenue. Additionally, if your business makes $200,000 a year you can sell it for $1,000,000.
The starting capital for owning your business can come from savings or financing. There are some businesses that don’t require large investments. You can checkout this man’s vending machine business he started with just $10,000. He is now on track to make $300,000. You can start with just $3000.
3. Investing in a business
If you don’t want to be hands on in a business but want the benefits of ownership, you can invest partially in someone else’s business. The challenging part of this endeavor is finding a partner you trust and a business that interests you. You can also distribute your capital and make your own shark tank (less the camera’s). Chiefly diversifying your risk and giving you a better chance of success.
Book recommendations:
4.Investing in real estate crowdfunding
Do you want to invest in real estate but don’t want to be bothered with tenants? Crowdfunding is the answer. A crowdfund gathers a large group of investors to purchase large multifamily apartment complexes. The best part is you can start with as little as $1000 with Fundrise
5. Owning residential real estate
Let’s say you don’t mind dealing with the tenant drama or clogged toilets, then you can have the whole pie. Own your own residential real estate. You can house hack, live in one bedroom/unit and rent the rest. As a matter of fact, you can repeat these techniques from house one to house million.
Whether you chose one or a combination, you will get to a million. Maybe even $10 million.
