HOW TO BECOME A MILLIONAIRE 💸 #Best Education Page #Online Earning

 So in this video today, I'm going to

be showing you how to become a millionaire

and basically how much money you need

to realistically invest based on

how young you are when you begin investing.

And as I'm sure you guys can imagine

and as you've seen with the thumbnail already,

the earlier you get started with investing

the better off you are because you're allowing

your money to have more time to grow.

But before we get into those numbers,

I wanna go ahead and dispel two

of the most common objections I get from people

when I start talking about getting rich

or becoming a millionaire through investing.

And objection number one is that a million dollars today

is not equal to a million dollars tomorrow.

You're 100% right about that, due to inflation.

Inflation is basically the deterioration

of the buying power of our money

and it sits at around 2% per year.

What I'm gonna go ahead and do through

this calculation is account for inflation

by subtracting 2% from the overall return.

So the stock market on average returns about 10% per year.

Not every single year, but if you look

at a very long period of time, that is the average figure.

We're gonna go ahead and subtract 2%

for inflation meaning that our real return after inflation

is 8%, which we used for these calculations.

It'll be a lot more than a million dollars,

you know, 10, 20, 30 years from now, but it will likely

have the equivalent buying power to $1 million today,

as long as inflation doesn't balloon

out of control and it stays at around 2%.

Now the second objection I get from people

is that that's great and all but I'm gonna

have to give it all up in taxes

and you absolutely do not have to

as long as you know certain tax loopholes out there.

This honestly isn't even really a loophole per se.

It's something called a Roth IRA.

I have a bunch of videos on my channel about Roth IRAs

if you guys wanna learn more about them.

It's a certain type of retirement account

that allows you to invest tax free

so long as you leave your money

in there until you are of certain age.

So if you are looking to grow your money completely tax free

the Roth IRA is going to be your best option

for implementing the strategy here.

To answer the question here, how much money

do you need to invest to become a millionaire?

What it is that you're taking advantage of here

is something called compound interest.

I'm sure you've heard of this from Warren Buffet

and all kinds of different experts out there.

Hopefully you came across it when you were in school

but if you're like me, you probably never heard

of this until you were in your 20s unfortunately.

But essentially, this is allowing your money

to grow over a very long period of time.

What we're gonna look at here is how much

you have to invest as a 20 year old

to become a millionaire by 65.

Versus waiting until you're 30, 40 or even 50 years old.

Starting off here, if you were looking

to invest from 20 to 65 and become a millionaire

you would have to invest just $216 every single month.

That is just $54 per week or $6.97 per day.

The comparison I always like to use here

is that for the price of a Starbucks cup of coffee

or your morning breakfast you could become

a millionaire by investing passively into the stock market.

If you went ahead and invested $216 per month

at an 8% return per year accounting

for inflation for 45 years, this is how much money

you would have at the end of those 45 years.

You could 100% do this through a Roth IRA

to be completely tax free on all of those gains.

Moving on, let's say you decide to wait a little bit.

You don't wanna invest in your 20s.

You wanna put it off, like most people do

and you want to start in your 30s.

Well if you wanna become a millionaire by age 65,

you need to be investing $484 per month,

which is equal to $121 per week or $15.61 per day.

Notice how only 10 years went by,

but that's as substantially higher figure.

We went from about $7 a day to about $15.50 a day

more than double what you had to contribute

if you had started just 10 years before.

If you invested $484 per day at an 8% return

for 35 years, this is how much money you would have.

We get into a bit of a tricky situation after age 30.

Because when it comes to the Roth IRA there's

a maximum amount of money you can contribute each year.

For most people, that is $6,000 per year.

If you were investing $484 per month,

you could still do this through a Roth IRA.

But once you look at investing more

than $500 per month as you would have

to if you started at 40 or 50 you can

no longer fully maximize those Roth IRA contributions.

Meaning that not only are you having

to invest a lot more money, it's going

to be money you're going to ultimately

have to pay taxes on in the future.

If you decided to wait until you were in your 40s

the first 20 years of your adult life

you said, "I don't wanna invest, I'm just gonna spend

"my money on whatever I want."

If you waited until you were 40

you would now have to invest $1,140 per month

to become a millionaire by age 65.

You would be paying taxes on some

of those gains because you cannot put more

than $6,000 per year into this Roth IRA account.

That is equivalent to $285 per week or $36.77 per day.

It's roughly five times the amount you would have had

to contribute if you started at 20,

by waiting until 40 to begin investing

for your retirement or becoming a millionaire.

If you invested $1,140 per month at an 8% return

for 25 years, this is the amount of money

that you would have at the end but you would be

on the hook for some taxes because you can't

put all that money into a Roth IRA.

The same being the case if you start at age 50.

If you are 50 years old and you've made

this unfortunate mistake of saving absolutely nothing

for your retirement and you're looking

to fast track your way to becoming a millionaire

you would have to invest $3,070 every single month

for 15 years to become a millionaire

and have this amount of money.

This is the issue that a lot of people are facing

by waiting until they are in their 30s, 40s

or unfortunately their 50s to begin investing.

And maybe it doesn't sound cool in your 20s

or even in your 30s to start, but would you rather

be investing $7 per day to become a millionaire

or trying to squeeze every penny to invest $40

or even $100 per day to become a millionaire.

I don't know about you guys, but most 50 year olds

that I know do not have $100 per day or $3,000 per month

to spare, hoping to eventually become a millionaire.

So the lesson here is this.

When it comes to taking advantage of compound interest

and becoming a millionaire, you basically have two options.

Number one, you can take advantage

of time which means you start earlier

and it doesn't really matter if you invest a ton of money.

We're talking $7 per day to become a millionaire.

Or you can wait until you are older

and then you have to invest a lot of money

because you don't have much time left until

you ultimately start needing that money.

Obviously, if you are older there's nothing

you can do about it and the best time to start is today.

But if you are younger, think about this lesson

and how time is on your side and you really don't have

to invest very much money at all to become a millionaire.

But anyways guys, that's gonna wrap up this video.

I hope you enjoyed it.

If this is your first time learning this lesson make sure

you share it with a friend or family member.

If you are new to my channel, make sure you subscribe

to be notified of any future uploads

and I will see you in the next video.

#Best Education Page #Online Earning

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