To begin with, I want to make it clear what exactly we mean by “millionaire.”
Basically it is nothing more than having a net fortune, that is, assets less liabilities, everything you have subtracting all your debts, your total equity, of at least a million dollars or the equivalent in your local currency.
This is what the term “millionaire” means.
I know that for many people, at least in the United States, a million dollars really is not that much money because inflation has devalued the dollar a lot.
But regardless of this, let’s take it into account for a conversion at least in Latin America, where it means a little more money and it is a goal that very few people in their lives actually manage to achieve.
Likewise, in this article we are going to take into account some long-term calculations and we are always going to talk about the same million dollars, but it is assumed that we are taking into account the issue of inflation, so we seek to simplify talking about what are the ways to reach a net fortune equivalent to that value.
Something curious about this issue is that many people believe that millionaires simply inherited their fortune .
But in fact, according to certain studies, it is known that no more than 20% of people whose net worth exceeds one million dollars, inherited it.
It means that the rest, 80% somehow or other built it .
And while not everyone started with nothing, it is estimated that approximately 56% of all millionaires started from scratch and created it in their own way, with their own businesses, starting even without investment, without capital, some with debt.
So in reality the probability of becoming a millionaire, although it is a little low, does exist .
And to be able to reach it, you have to know what are the possible ways to reach it.
Way # 1: The Slow And Safe
We are talking about the traditional way.
Studying at a university, probably going into debt to acquire a university degree, which then even requires to be supplemented with specializations or masters that really increase my resume a bit to acquire a certain job.
In principle, work on something to start and gain experience, and then look for a job that really gives me a good income.
After a while, practically when you are 65 or 70 years old, having saved, having invested a certain amount, having been wise with money, not having spent on unnecessary things, perhaps having bought a house and paid for it as much before…
Probably, and for many people who are really wise with money and who are in a career that has potential, that can generate good income (since not all careers have the same potential), this can work .
What happens is that once you reach the million dollar goal, your body and mind are practically too old to enjoy that wealth.
This is thought that during your “golden years” you can enjoy that fortune that you accumulated, and although at first glance it seems that it does not make sense, many people choose this path .
That is, if you mention this scenario to anyone, they may tell you « this is not a path that I would like to take because it will take so long that ultimately why, being so old to have so much money « …
What’s more, that money will probably go to you mainly to preserve your health as a priority.
It doesn’t mean that studying or getting a college degree is wrong, but to think that a job you get with your college degree is going to lead you to wealth is dead wrong .
Because yes, there are many millionaires that this is how they got their wealth, but sometimes it is not even achieved .
A common case is some doctors, who one sees them buying luxury cars, or spending on super expensive vacations, and one says «it is very good because they really deserve it, because they work hard and because their salary is high « …
But how long can this last without really being lifestyle inflation spending more money than they could?
And if they started saving or investing, they would have a much higher wealth ratio and much faster.
This means that even many people who work their entire lives, earn their entire lives and are practically never unemployed, come to the end of their days even with a negative net worth .
Ie : Owing more money than they have in assets, which is incredible.
So this path doesn’t sound like very attractive, let’s see which one is the second one.
Way # 2: The Fast And Unsafe
We refer to the path taken by musicians, artists, athletes who in one way or another, whether due to training from a very young age, or due to privileged genetics, or for any other reason, really have an ability that they can exploit and that allows to obtain certain profits.
Whether it’s singing, running, biking, playing soccer, or any of these remarkable skills that really earn them high income.
It is known that on average 5 years after an artist or an athlete retires from their career and stops receiving the amount of income they received before, which was not a few, they are bankrupt , even declaring bankruptcy.
And this curiously is something very similar to what happens to people who win the lottery.
Basically 5 years after you stop receiving such income as high performance artists or athletes, somehow or another your finances collapse.
And it’s no surprise because to really perform well in all of these careers, you have to focus and dedicate yourself to the skill itself that involves doing well.
And this probably means putting financial literacy aside a bit.
Just like the people who buy the lottery in principle, they are not thinking about managing their money well and growing their wealth and fortune but about gambling, and spending money almost every day on lottery tickets to hope that they will be lucky. reward yourself with a huge prize.
And this finally without financial education, it is useless and it is known that statistically the vast majority of people suffer a rapid decline.
Of course, this is not always the case, however it must be borne in mind that even of the athletes with great abilities, only 1% reach a wealth or a fortune of a million dollars or more, just 1%.
With which it is not only difficult to reach that goal, but it is likely that after reaching it, it will be lost.
And it is perhaps because these people do not balance the fact of having this income, even with other things.
There are many successful artists and athletes who have run advertising campaigns with certain brands, launched their own products or companies, and become entrepreneurs, which is excellent.
Some simply know the value of getting advice and consulting to learn how to manage or at least delegate the good management of their money.
What happens is that waiting for one to be lucky enough to have that ability, or develop the persistence, or the genetics that is required, or whatever it is that the creation of fortune and wealth depends on, is also very complicated .
So then let’s see what is the third way to reach the million dollars.
Way # 3: The Moderate And Probable
Moderate because it is not the fastest, but it is not the slowest either.
And likely because it is not the safest but it is not insecure either.
And we are talking about being an entrepreneur, preferably creating a business or multiple businesses, and more easily that provide value to people or companies.
In other words, it is simply being guided by the maximum rule of the market: What is it for which people or companies are willing to pay and what a value means.
Remember that value is what you receive, the price is what you pay.
When a person considers that the price they are paying is much more than offset by the value they are receiving, that is where we say there is demand for a product and there is customer satisfaction.
So, if you manage to find specific products or services that are in demand, that generate customer satisfaction, that you can deliver efficiently, without the condition that if your customers increase then your costs or your employment requirements increase, or your expenses of storage or anything else, but you can climb as big as possible, as fast as possible …
… This is where you can really become the owner, not only of your time (because you can even manage time, knowledge, money, other people’s resources), but also a really wealth-generating mechanism that is based on support and help people or companies by providing solutions and delivering value.
When you buy your food at the supermarket, for example, you do not think that you are spending or losing money, but you think that you are investing in yourself, buying something you like, really getting something of value.
So many people, for example, believe that selling is difficult because one is wanting to ask people for money, and it is not.
If one has a truly valuable product, one realizes that selling is an act of help , it is an act of empathy for the other person, it is an act of wanting to help the other person to solve their problems, their difficulties, to be more efficient, save money.
For example, an accountant might think that he is looking for clients only to get money from them, but probably if he is a good accountant he will save them a lot of money when it comes to doing their taxes, when they take into account certain rules, or laws, or tax benefits, or something else.
Likewise, there are many options in which if we analyze providing value to people, it really leads us to have a business that we can say can grow almost unlimitedly.
Ideally, if you are going to start from scratch (if you already have your business, you could think about restructuring it in case it does not apply), think about how you could do so that this business can reach 10 clients, 100 clients, 1,000 clients, 10,000 clients or 100,000 clients without major difficulties.
That is, it is not that with 100,000 clients you receive 100,000 calls and you need 100,000 people to answer the phone, or something like that.
But you can have that part practically automated, how can you provide value to those people, make sure you deliver quality, and many other things.
This is not the fastest way because it clearly requires some experience, nor is it the easiest because sometimes it includes investment, even investment in consulting from people who already know how to do it or who already have experience and can guide you.
And it is not the safest either, because you may have an excellent idea that is suddenly working and collapses from one moment to the next due to the changes that are constantly taking place in the world.
But it is definitely perhaps one of the best ways, and in fact a vast majority of the millionaires that exist in the world are entrepreneurs in some way or another, they own their own businesses.
Therefore, if at some point you want to reach the fortune of a million dollars or more, you want to create great abundance in your life, you must start by asking yourself how to provide value to the world and how to create one, or better yet, more than one business that provide value to the world and preferably that they do not have you as an employee, on which this business really depends.
That is, you can disconnect from that business, even for 1 year and when you check back on how it is, it is even better than before.
If you do that, your abundance creation is really only a matter of time .
And then you become an expert in analyzing, identifying and implementing winning strategies.
And that is the best skill you can acquire because it literally allows you to grow from scratch at any time, in any industry and in any business or market that is really in demand.
Here neither path is right or wrong.
There are many people who with great jobs have really built their wealth and are doing things that they love to do and love their job.
There are artists and athletes who build their fortunes and become entrepreneurs, and they go to a stage where they can manage that wealth and continue to grow it, and use it for good things in life.
What happens is that the third way is easier for normal people, like you and me who do not have exceptional abilities, who are not perfect in a certain thing, who are ordinary.
But that we can really through financial education, financial intelligence, begin to learn and implement certain strategies that are what can lead us to success.