Earning one million dollars each year is a tricky thing, and even for the most disciplined few who can save $10,000 or $15,000 each year; it would take 66 years to accumulate $1 million without compounding. The modest rate at which people save early in life is one of the most significant barriers to having $1 million in the bank. Further, more often than not, fresh graduate students are scraping by paying rent, repaying school debt, and maintaining some sort of life.
5 Best Ways to Make $1,000,000 Every Year
- Starting A Business Starting a successful business can help you become a millionaire (or perhaps a billionaire if you invent the next Facebook), but it also comes with a lot of risks. Maintain accurate records, produce an operations manual, and cultivate a varied consumer base. Not only will your company be more likely to flourish, but you'll also make it more appealing to wealthy buyers.
- Saving Early The sooner you begin saving, the more likely you are to meet your goal; however, you must be willing to raise your contributions as time goes on.
For example, If a 30-year-old earns $60,000 per year and contributes 3% annually, he will have around $367,000 by the age of 65 (that assumes a 3% annual raise and a 7% rate of return). However, if he increases his contributions to 10%, he will end up with $1.2 million.
- Stocks & Investments When it comes to stock investment, the key is to focus on its future potential value rather than its current value. This is four times the return you would have gotten if you had invested in Apple stock. It's a 20-fold increase above the return you'd get from Disney shares. To make $1,000,000 in five years, you'll need to discover 20 additional stocks that perform as well as Netflix.
Example: Ten years ago, a $1,000 investment in Netflix shares would have yielded a portfolio worth at least $50,000.
- Learn High Paying Skill If you don't have enough money to start a business, then don't start a business. Spend your $100 on books and training to master a skill that will earn you $10,000 or more per month. Choose high-paying expertise that aids revenue generation for businesses, such as copywriting, marketing, or sales. They're simple to learn and adaptable to a variety of companies.
- Personal Branding Entrepreneurship is the sexiest thing today, and everyone wants to be a part of it. As an influencer or a business, you can make millions by developing your brand. Today, thanks to social media, everybody can have a voice, making it easier to be heard over.
With so many brands pushing online offers, the key to success is to develop a trustworthy one. People will only support you if they understand why you do what you do and believe in your objective.
One Million Wealth v/s One Million Income: Difference
To begin, it's critical to understand the difference between making million dollars and having one million dollars as wealth. While most people can achieve a net worth of over $1 million throughout their lives, only a handful will ever make that much in a single year. Furthermore, "earning" a one-million-dollar paycheck may not make someone as wealthy as many people believe—recent history is littered with examples of sportsmen, artists, businessmen, and lottery winners squandering their fortunes on frivolous spending.