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How can I become a millionaire on a low income? With these 4 steps it might be easier than you think
How can I become a millionaire on a low income? With these 4 steps it might be easier than you think

Yahoo

time25-06-2025

  • Business
  • Yahoo

How can I become a millionaire on a low income? With these 4 steps it might be easier than you think

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. It's easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a lifetime of earning a six-figure salary? But data gathered by Dave Ramsey's team suggests the link between wealth and income may be weaker than most assume. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Only 31% of American millionaires earned an average annual income of $100,000 over the course of their careers, according to The National Study of Millionaires conducted by Ramsey Solutions. Perhaps even more surprising is that one-third of these millionaires never reached that six-figure income milestone during their careers. It's completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest path to millionaire status does require more effort and discipline. The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them. In fact, 36% of Americans earning more than $200,000 a year said they were living paycheck to paycheck, according to a PYMNTS survey from 2024. By comparison, someone earning a five-figure income can become a millionaire with both disciplined saving and smart investing. Building real wealth on a mid-level income means starting early, investing wisely and consistently finding creative ways to reduce monthly expenses, like cutting insurance costs. U.S. homeowners' insurers have hiked premium rates by double digits over the past two years. If you're not paying attention, that could be a major hit to your saving power. Shopping around is one of the best ways to find better rates, but calling individual providers takes time and effort that many working people just don't have. can take the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers all in one place. can make it easy to find the coverage you need at a price that could fit your budget. But home insurance premiums aren't the only thing coming out of homeowners' pockets. If you own a car, you have another cost to deal with. Car insurance rates rose an average of 16.5% in 2024, according to ValuePenguin. Like with home insurance, shopping around can lead to substantial savings. lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you're getting the best deal. Their matchmaking system takes into account your location, vehicle details and driving history to find the lowest rate possible for you. Deals can start at just $29 per month, and you can switch over your policy in only a few minutes. Read more: Rich, young Americans are ditching the stormy stock market — Time can be another powerful tool for building your wealth. Given a long enough horizon, even small savings and average investment returns can grow into a substantial nest egg. For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66. Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential. The best part? You don't need a lot of money to start saving for your long-term financial goals. Over the course of a lifetime, a little can go a long way. Another essential ingredient in your climb from modest to millionaire is reducing your exposure to debt. After all, serving the interest payments on credit cards or high-interest loans can offset the positive impact of a diligent savings and investing strategy. For most people, avoiding debt — especially the expensive type — is their biggest challenge. As of early 2025, U.S. households collectively had nearly $5 trillion in non-housing debt such as student loans, auto loans and credit card balances, according to the New York Federal Reserve. Serving this debt could be one of the key reasons why the average personal savings rate in the United States is only 4.9%, based on data from the Federal Reserve. By limiting or eliminating consumer debt, you can save more. This could be the key to your financial freedom, regardless of your income. A good place to start is by targeting high-interest debt as soon as possible. Doing so can save money in the long run by making fewer interest payments overall, but in exchange for a short-term squeeze. Keep in mind that not all loans are created equal, and it's important to understand not only your interest rates but also the repayment period and what assets could be used as collateral. Life can be messy. Even if you follow all the traditional financial advice, your journey to financial freedom could be derailed by health issues, divorce, bankruptcy or emergencies. If you're approaching retirement without much savings or a high-paying career, your chances of becoming a millionaire are lower. That doesn't mean it's impossible to enter the club. Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a town or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster. You could also delay retirement. Adding five or even 10 years to your retirement plan could make a difference, especially if you're building your nest egg later in life. A 40-year-old would need to save just $900 a month and earn a 7% return on investment to reach millionaire status at 75. You can also potentially increase your returns by investing in alternative assets, such as farmland, small businesses, high-growth tech stocks or rental properties. If you're looking to get into real estate without big down payments or tying yourself to a mortgage, you could tap into the market through crowdfunding platforms like Arrived. Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, allowing you to potentially receive passive income without having to manage midnight maintenance calls or burst pipes. To get started, simply browse through Arrived's selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100. There's always a practical path to the seven-figure club, regardless of your age or income. JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it's too late) This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Millions of Americans now sit on a stunning $35 trillion in home equity — here's 1 new way to invest in responsible US homeowners This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Becoming a millionaire is more realistic than you'd think — here's how to get it done even on a modest salary
Becoming a millionaire is more realistic than you'd think — here's how to get it done even on a modest salary

Yahoo

time03-06-2025

  • Business
  • Yahoo

Becoming a millionaire is more realistic than you'd think — here's how to get it done even on a modest salary

It's easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a high-income stream? However, data gathered by Dave Ramsey's team suggests the link between wealth and income may be weaker than most people assume. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) According to The National Study of Millionaires, conducted by Ramsey Solutions, only 31% of American millionaires earned an average annual income of $100,000 over the course of their careers. Perhaps even more surprising is that one-third of these millionaires never reached the six-figure income milestone throughout their careers. In other words, it's completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest income path to millionaire status does require more effort and discipline. The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them. In fact, 36% of Americans earning more than $200,000 a year said they were living paycheck to paycheck, according to a PYMNTS survey from 2024. By comparison, someone with a modest five-figure income coupled with better savings and investing skills could be more likely to reach millionaire status. However, a high-savings rate isn't a silver bullet. To break into the millionaires club with a mid-range income, you'll need to invest wisely and start as early as you can. The magic fuel that drives the compounding growth effect is time. In a long enough time frame, even modest savings and lacklustre investment returns can turn into serious wealth. For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66. Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Another essential ingredient in your modest-income-to-millionaire journey is reducing your exposure to debt. After all, a high-interest loan can effectively offset all the positive impacts of a diligent savings and investing strategy. For most people, avoiding debt — especially the expensive type — is their biggest challenge. As of early 2025, American households collectively had nearly $5 trillion in non-housing debt such as student loans, auto loans and credit card balances, according to the New York Federal Reserve. Serving this debt could be one of the key reasons why the average personal savings rate in America is only 4.9%, according to the Federal Reserve Bank of St. Louis. By limiting or eliminating consumer debt, you can save more. That could be the key to your financial freedom, regardless of your income. Life can be messy and even if you follow all the traditional financial advice, your journey to financial freedom could be derailed by health issues, divorce, bankruptcy or emergencies. If you're approaching retirement without much savings or a high-paying career, your chances of becoming a millionaire are greatly diminished. However, this doesn't mean it's impossible to enter the club. Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a town or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster. You could also consider delaying retirement. Adding five or even 10 years to your retirement plan could make a significant difference, especially if you're starting to build your nest egg later in life. A 40-year-old would need to save just $900 a month and earn a 7% return on investment to reach millionaire status at 75. Finally, you could boost your investment returns by investing in alternative assets such as rental property, farmland, small businesses or high-growth tech stocks. There's always a practical path to the seven-figure club, regardless of your age or income. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Tony Robbins: How To Become Rich No Matter What Your Salary Is
Tony Robbins: How To Become Rich No Matter What Your Salary Is

Yahoo

time16-03-2025

  • Business
  • Yahoo

Tony Robbins: How To Become Rich No Matter What Your Salary Is

Tony Robbins is a highly successful performance coach and a bestselling author of eight books, including three No. 1 New York Times bestsellers. Robbins frequently shares financial advice through his books, during his seminars, on his social media accounts and via YouTube videos. He posted a YouTube video explaining how people can build wealth and become rich, even with a small salary. In the video, Robbins shared the story of Theodore Johnson, who worked at UPS, saved and invested 20% of his income throughout his life, and ended with a net worth of $70 million. Consider This: Trending Now: The New York Times even wrote a story on Johnson and how he donated his fortune to education, providing scholarships to students who might not otherwise be eligible for one. The key lesson in Johnson's story is that he paid himself first. Johnson lived frugally, even as his fortune grew. Based on Johnson's story, here's how Robbins said to build wealth no matter what your salary is. What Johnson's story shows is the power of consistency and compound interest. The UPS employee never made more than $14,000 per year, Robbins explained, but he had a large nest egg because of how much he saved and invested consistently. 'When you save 20% and you compound it, its numbers are incredible,' Robbins said. Ramsey Solutions found similar statistics about the benefits of consistency. According to The National Study of Millionaires, 75% of participants credit consistent investing to their financial success, rather than an inheritance or financial windfall. Check Out: Another important skill people need to develop if they want to become wealthy is awareness. In the video, Robbins explained that Johnson treated his savings as a sort of tax, knowing he wouldn't see that money again. While Johnson's initial reaction was to think he couldn't save 20%, having the awareness of his finances and thinking of it as more of a tax showed him that he actually could save that much and build wealth. 'You can't wait until you have a ton of money to start investing and think, 'I'm not an investor,'' Robbins explained. Ultimately, having awareness and being in tune with your finances is another way to build wealth, regardless of income. In an article, Robbins explained that '20% of the money game is mechanics, while 80% is psychology.' He explained that many people self-sabotage or believe they can't learn how to manage money. But this can be detrimental to growing your wealth in the future. In Johnson's case, his limiting belief was that he couldn't save 20% of his money. Instead, Robbins recommended adopting positive thoughts like 'I deserve to make money' and 'I will use the money I make to create a positive impact on the world,' which can help break down mental blocks people may have when it comes to working on their money beliefs. Ultimately, having a positive and abundant mindset can go a long way in helping people learn about money and confidently invest in their future, regardless of how much they earn. More From GOBankingRates10 Most Expensive Meals in the World10 Cars That Outlast the Average Vehicle This article originally appeared on Tony Robbins: How To Become Rich No Matter What Your Salary Is

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