Making Your First $1 Million: Here's How You Can Do It!

Making Your First $1 Million: Here's How You Can Do It!

I know you’ve always dreamed of making your first $1 million, and now it’s time to make your dream come true! That sounds great, but the question is, how can you do that? There are tons of different ways to make $1 million, whether you want to become an entrepreneur or find a great job that pays you well. You might even be surprised to find out that there are so many opportunities out there, and they don’t all require you to be an expert! All it takes is a bit of research on your part and some hard work. 

  Leverage Good Timing Timing can be everything. When looking to make your first million, it’s important to think about your life goals and how you want to spend your time. If it’s something you really want, start planning sooner rather than later.

 You need at least seven years of work experience before you’re likely to become a millionaire (on average), so if that doesn’t sound like a lot of time, know that 50% of people don't even make their first million by age 60—and by age 65, only 25% do. And while there are no guarantees in business, you can increase your chances of success by choosing a field that is growing or has more demand for skilled workers. For example, many health care jobs will be needed as our population ages and baby boomers retire. 

And technology is always in demand; companies are always on the lookout for talented programmers who can help them develop new products and services. Or maybe what you really want is to travel around the world? If so, you could take advantage of an up-and-coming industry like eco-tourism. In fact, according to PWC Travel & Tourism estimates, global tourism spending will grow from $4 trillion today to $6 trillion by 2020.

 In any case, when considering which way to go with your career and moneymaking aspirations, remember that sometimes things happen when they're supposed to happen—not necessarily when we expect them to happen. Just because someone else made a million dollars doing something doesn't mean it'll be easy for you too. But if making money is important enough for you to plan around making your first million dollar business idea come true then good timing may just find its way into your plans. 

  Choose something you're passionate about For many people, a career isn't something they take on because it sounds lucrative or because their parents want them to go into it. Instead, they choose what they're passionate about—and that passion often pays off. If you do something you love, chances are you won't mind putting in those 70-hour workweeks and getting up early every morning to get there on time. Instead of following your heart and enjoying yourself at your job, try following your wallet: what can you expect to make in a year if you make X amount of money? Will you be able to live comfortably? What will you have left over for savings and retirement after taxes? If making money is important to you, think about choosing a career based on how much income it can provide rather than whether or not it's enjoyable. Just remember that when starting out, most jobs pay less than minimum wage so don't quit your day job just yet! 

  Commit yourself to a lifestyle that supports your goals Habits are tough to build, but they’re even tougher to break. But you can start small and work your way up to big changes that can dramatically affect your overall financial future. For example, put a little cash away for retirement every week by scheduling automatic transfers from your checking account into a separate savings account (so you don’t have to think about it). It’s easy to do when you don’t have enough extra cash lying around—as anyone who had to scrimp and save in their early 20s could tell you. And before long, it will be second nature and you’ll have one more thing off your honey-do list. 

  Network like crazy For most people, getting to where you want to be requires building relationships and finding mentors. Even if you don’t need money from them (and it’s a lot easier to get it from them if you do), don’t underestimate their importance in your success. Often, we focus more on our own goals than helping others achieve theirs. And while there is something special about being self-sufficient, don’t forget that those who have helped you are often those who can help you again. Remember that and value your relationships with them; they could have huge payoffs for both of you down the road. 

  Don't be afraid to ask for help The world is full of successful people who are willing to help others make their first million. Most experts and entrepreneurs aren't shy about giving advice and mentorship to others who are trying to follow in their footsteps. To make your first million, learn from those that have already done it by networking with like-minded individuals. Listen to what they have to say, take in all their advice—and don't be afraid to ask for help when you need it. Asking for help is a sign of strength, not weakness, so don't be hesitant; instead, follow up on all suggestions and advice given without hesitation or shame. 

  Have some skin in the game, but don't overdo it Make sure you have an ownership stake in your new business, even if it’s just 5 percent. If you don’t have some skin in the game, you might get discouraged when things get difficult—and give up too easily. However, having too much at risk can cause people to take a lot of risky chances because they’re afraid of losing everything. So find a good balance between risking enough and risking too much. The best way to do that is by talking with experts about what makes sense for your situation.

 For example, if you’re going into business with friends or family members, make sure you understand how much each person is putting in (i.e., their skin in the game) and whether everyone is on board with taking risks for potentially big payoffs down the road. 

  Automate your finances Automating your finances gives you more time to focus on other things. When money is going out and coming in automatically, you won’t have to worry about keeping track of when bills are due or which bills need paying right away. Automatic payments also make it easier to know how much money is available, without having to check multiple bank accounts manually. 

Ultimately, automating your finances helps keep you financially secure while allowing you more time to focus on more important tasks. Set up automatic bill payments that come directly from your paycheck through your bank or set up an automatic direct deposit plan with your employer; either way will help eliminate late fees and reduce stress related to paying bills on time. 

  Choose your investments wisely The first step in making your first million is saving it. (Hey, you're reading a personal finance site.) Investing can be complicated, so we'll keep it simple here. When you invest, you want to put your money into assets that are profitable and low-risk. Some great ones include stocks (like Apple or Tesla), mutual funds (like index funds), real estate investment trusts and bonds. In any case, make sure to read up on how to pick your investments wisely; that advice applies whether you've got a million dollars or just have enough for breakfast every day until Friday.

  Show up every day and keep at it The best way to make your first million? Start with your first dollar. What many people don’t realize is that you don’t need a lot of capital to start, especially if you keep costs down by starting small and on a shoestring budget. To get started, consider taking advantage of free or discounted products and services until you're able to ramp up funding for more comprehensive offerings. If nothing else, be sure to set aside some time each day in order to work on your business while still paying attention to another source of income.