Two Easy Strategies to Help You Become a Millionaire

by | BiggerPockets.com

I know that BiggerPockets.com is a website devoted to real estate investing, but our ultimate goal is to help our visitors find wealth. I was just reminded of a few simple steps towards creating enormous wealth from an article, Meet the Automatic Millionaires. The article actually profiles two relatively hardworking families that have set their sights on becoming millionaires (and have succeeded). What is their big secret?

Related: How to Become a Millionaire: The Ultimate Guide

1. Living frugally / below your means.
2. Paying yourself first

 

Using this two-prong approach, you can be on your way to becoming a millionaire. Think of all the money you can save by cutting out the Starbucks or a pack of smokes. In a year, you could have a decent down payment on some property. Packing a lunch for work and cooking more often at home are other really easy ways to save up. What about holding off on that new car, and staying with the tried and true used car. Your friends may not be impressed, but they will be when you retire 10 years before they do.

Paying yourself first is another easy thing to help you towards millionairedom. If you take money out of every paycheck and set it aside towards your savings or investments, you will be on your way. The easiest way to do this is by setting up automatic transfers into a savings account from your paycheck. You should set what you pay yourself according to what you can afford, but you must make sure you do it. Setting up a regular program will bring rewards very quickly. Imagine what you can save by taking out $10, $50, $100, $250, even $500 a paycheck to pay yourself. It adds up.

The Figures Below do not include interest:

Paying yourself $10 every two weeks saves you $260/year
Paying yourself $25 every two weeks saves you $650/year
Paying yourself $50 every two weeks saves you $1,300/year
Paying yourself $100 every two weeks saves you $2,600/year
Paying yourself $250 every two weeks saves you $6,500/year
Paying yourself $500 every two weeks saves you $13,000/year

Imagine what interest will add . . . (interest rates are rising steadily!)

So, if you’re looking to start acting like a future millionaire, create a plan of living below your means and paying yourself first. You won’t regret it!

About Author

Joshua Dorkin

Joshua Dorkin is a serial entrepreneur, investor, podcaster, publisher, educator, and co-author of How to Invest in Real Estate. He started BiggerPockets to help democratize the real estate investing landscape for himself and others, aiming to make it accessible for everyone, regardless of income or education. Today, BiggerPockets is the premier real estate investing website online with over one million members and reaching over 70 million people with the message of financial freedom through real estate investing. Joshua, along with his wife and three daughters, make their home in Denver, Colorado, and spend any time they can traveling, exploring, and adventuring. Read more about Joshua’s story in 5280 and Inc.com.

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