Ranked in order of ease, these are:
1. Start off as a billionaire, spend till you become a millionaire
I suppose a portion of the world's millionaire are actually formed this way. It's the best way to be a millionaire. Shiok until cannot shiok.
2. Use SGD $3,494.28 and exchange for 1 million Zimbabwe dollars
You want to be a millionaire right? Next time, when you rub a magic lamp, make sure you tell the genie exactly what kind of millionaire you want to become. 3 wishes are very precious...
3. Start saving 3k per month for the next 27.8 yrs
Hey, even by putting aside 3k per month regularly under your pillow, you can amass 1 million given enough time. If you start working at age 23, and do that consistently till you reach age 51, you'll get 1 million. Not so simple, because in order to save 3k, assuming 50% savings rate, you'll need to earn at least 6k and spend only half of your income. And make sure you don't hire a new maid and forgot that you had a million under your pillow....
4. Start with 25k, invest at 9.7% per year over 40 yrs
Or start off with 50k and invest at 10.5% for the next 30 yrs. Too long? How about starting off 100k and investing at 10.5% for the next 23 yrs? Easier said than done, I know. A mixture of trading and investing might just push it through. Unless you're Mr. B himself, who gets a CAGR of 20% at last count. Hey, at this rate, you'll double your money every 3.6 yrs.
14 comments :
you forgot the easiest way, which is property play....
recently just sold my 5 rooms flat and move to 4 rooms flat, and that make me a nett profit of $180K.. in just 2 years holding of my resale flat... you have to sacrifice somewhere, (meaning space from 123 sqm to 92 sqm), but you got the hard cold cash to invest in various area...
(1) another property for rental
(2) stocks (blue chip stocks), from now until STI 3,900 points, we still have long way to "huart ar !"
Actually it is not difficult for a person with average income ($3k to $4k monthly) to accumulate one million in one's lifetime as long as one is financially disciplined to save and invest regularly over a long term (at least 20 years).
However, life does not consist of only wealth accumulation. Life is fragile and anyone can leave the scene without him knowing. Wealth is just a fleeting thing that one cannot hold on to. It is fascinating to see people get obsessed with chasing after wealth, something that is fleeting.
Hi anonymous,
Oh yes, I really forgot about properties. But hey, guess what, you still need to save up to get your first property, unless you're willing to borrow a lot.
Can't escape savings...
Hi jeremy,
Thanks for visiting :)
I think it's difficult to accumulate 1 million with 3-4k salary. Esp if one has family commitments, it's really next to impossible because the spending will increase exponentially.
But I do agree wealth accumulation isn't everything. Different people different strokes. As mentioned in the article, it's not my life's mission to accumulate 1 million. I just want to live comfortably without worry about money, that's all.
Live a simple life - Lessons from Warren Buffet
I just naturally want to do things that make sense. In my personal life too, I don’t care what other rich people are doing. I don’t want a 405 foot boat just because someone else has a 400 foot boat. - Warren Buffett
Find happiness in simple pleasures
I have simple pleasures. I play bridge online for 12 hours a week. Bill and I play, he’s “chalengr” and I’m “tbone”. - Warren Buffett
If one of the richest men in the world is doing it, why aren't we?
1. Learn not to be so materialistic because not everything must be of high prices.
2. Learn to strike a balance in life and decide between wants and needs. Needs are easily met, but wants can be unlimited, you probably have to struggle very hard, and spend long hours earning more money to meet your wants.
3. Simplicity is the key to your early financial independence path, but, you don’t have to be a miser to lead simple life
Hi LP
I too am "guilty" of having goals to become financially free which incidentally includes a scenario of having $1m investible assets (excluding home) to generate passive income.
The more I work towards it, the more I realise that it's difficult to rely on passive income alone. Now my strategy is to think of alternate income sources now and to expand these as I near retirement age e.g. doing consultancy and training in addition to living off passive income from savings (CPF and non-CPF sources).
The $1m is many people's target because it is the minimum you need to be a MILLIONAIRE :-)
Be well and prosper.
My goal is more modest haha. S$500,000 (half a million) is my goal. After that is reached, then I can start to think about a million. :P
From Investopedia.com ...
The average millionaire doesn't find it until age 45, and tends to be 54 (on average) before becoming a millionaire.
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I believe it is refering to self-made millionaires. I jialiat liao next year 54 still not a millionaire.
If you read the Sunday Times today.... the lady only age 32... flipped one property in year 2007, bought at 900K, and sold at 1.5 millions in just 5 months! and now staying at landed property, driving mercedes.... at age 32 ! wow... respecting her ...
No doubts the self-made millionaires in Singpaore top 2 are Insurance seller & Property agent... If you want to be rich, you cannot be an engineer, architect, IT programmer, but the above 2 positions, sound discouraging but, it is true... I am neither of them , but a poor engineer... ha....
Hi guys,
Thanks for your contributions in the comments :)
Can see a couple of pple here with big dreams taking small steps at a time, haha
Anon Sunday, June 28, 2009 8:17:00 PM
Actually, the other route to be millionnaire is to be a politician under the ruling party. Of course, you need to be of certain "calibre" to become minister.
Other professions such as lawyers, accountants and even engineers can be millionnaires. The catch is that need to be partners or owners of businesses so that they have profit sharing.
Employees can do it but takes longer time.
No risk, no return?
Seemed kinda quiet after all these comments from the blogger and its ardent fans?
Hi anonymous,
Been very busy to blog and pretty much do anything else :) Thanks for visiting here though!
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