You would be surprised about how many ways there are to make a million dollars. Each of them has its advantages and disadvantages and if you want to become a millionaire, you should choose the one that suits you the best and stick to it. None of the methods is 100% sure, but what is in life? If you want a million you should learn to take reasonable risks! No risk = no profit.
So here is today’s method:
Invest $5 every day and employ the Dogs of the Dow investment strategy. Please note, that this method is a long-term one but it’s easy to follow and requires only some discipline from you. Here is the action plan:
1. Put aside $5 each day
2. Invest the money according to the Dogs of the Dow investment strategy, see here: https://en.wikipedia.org/wiki/Dogs_of_the_Dow and here: https://www.dogsofthedow.com/
3. Just wait and after 32 years you will become a millionaire.
Here is the proof for that and how all of this works. That’s the magic of compounding…
If you still don’t believe it, you can make this calculation by yourself with our cool compounding calculator here. Not only you will be able to verify this but also you will be able to play with the variables (interest rate, amount, your annual addition to the investment) to see how you can speed up your journey to a millionaire… Try it out with just a couple of percentage points higher to see how many years you will save with just a slight increase… the magic of compounding is really magic…
If you can invest $5 each day from your income, you can have $1825 at the end of the first year. That’s still far from a million, but that’s OK. Have you heard about the Dogs of the Dow? This investment strategy has yielded 17.7% on average for the past 45 years. It is based on buying the highest dividends-paying stocks from the Dow Jones Industrial Average Index and holding them. Let’s take this return skeptically and fix it at 15% per year. So, saving $5 per day is 1825 per year. Investing that amount at the end of the first year at the rate of 15% and adding to your investment the same at the end of each following year will make you a millionaire in just 32 years. You may say that’s a lot of time but this is a relatively stable strategy and you don’t really need to do much to achieve your goal. It’s really simple and it’s working. The only thing you should do is to keep putting aside $5 each day and investing it as described above.
If you are not one of these patient individuals, this strategy is great for a backup plan. If you want to make a million dollars fast, you could put into work some other shorter-term strategies and you can employ this one as a plan B. If the faster ones fail, this one is simple to follow and has a high chance of success.
If you are not one of those highly disciplined individuals, I don’t think your chances of making a million are any good. Discipline is really important not only for your wealth but also everything in your life. So if you don’t have some, make sure you change this as quickly as possible and see how your life will change. It will not be easy, it’s actually very hard to have good discipline but having it is even more crucial.
The power of compounding is the 8th miracle of the world
The power of compounding is one of the greatest financial forces available. Compounding is the process of earning returns on investments and reinvesting them in order to maximize growth over time. With compounding, a small amount of money can quickly multiply into a larger sum. When you make wise investments, you can use the power of compounding to make the most of your money and turn a small sum into a large nest egg.
The most common example of compounding is when it comes to investing and savings. By investing money and then reinvesting the returns, your money can start to grow exponentially. This is because when you reinvest the returns, you are earning not just on your original investment, but also on the money you’ve earned in the past. This creates a snowball effect that can quickly turn a modest sum into a large nest egg. Everyone can benefit from this strategy, even if you are starting with small investments.
You can see some more methods about how to make a million dollars don’t hesitate to check that link you just went through.
It would be great to share this article if you liked it! Thanks and have the best of luck on your way to the millions!
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