What is the role of wealth in your life?
Becoming wealthy is not everyone’s priority.
Some people think about love, beauty, sports, sex, dance, fashion, etc. They are committed to their goals and for them, they just need enough money to continue working towards their goals.
Many people don’t have any goals, they are social lemmings who live their lives without a sense of direction, they just follow what everyone else is doing.
For some other people, wealth takes a front seat, they believe that everything else will become easier if they are wealthy.
The two tracks to wealth
For those interested in building wealth, there are two tracks. The slow track and the fast track. Which track you take depends on your priorities, your ambitions, your self-confidence, and your willingness to put in the work.
What is the slow track to wealth?
The slow track to wealth is to become wealthy through working a regular job and saving for decades. This method has proven to be reliable. If you work a regular job, save every month and invest in low-cost index funds or ETFs, it is almost guaranteed that you will become wealthy.
Let’s do a quick example. For this example, let’s ignore the effects of inflation.
Let’s imagine that a person saves $5,000 per year and he/she gets and average return from the market of 8%. How long will it take this person to become a millionaire?
It will take 36 years to accumulate $1,000,000.
To save $5,000 per year is not that difficult, practically anyone can do it, but most people are conditioned to spend, not to save, therefore very few people will become wealthy even though it is within their reach.
With one million dollars, a person can spend about $80,000 per year for the rest of their lives without running out of money. The slow track is not bad at all.
What is the fast track to wealth?
Most people who become millionaires, they do so by creating businesses or by investing in real estate. They take risks and responsibilities that others are not willing to take. They have a vision of where they want to go, they eliminate all the excuses and work relentlessly towards their goals. A fast track business should make you wealthy in 20 years or less.
I will give you an example:
I am in the Airbnb business. I have an apartment which I rent via the Airbnb website. If my goal was to become a millionaire as fast as possible, I will be able to do it without too much difficulty. I earn about $1,000 per month with one property. If I were to get an additional Airbnb property every 4 months, by the end of one year I would be earning $4,000 per month. By the end of two years, I would be earning $8,000 per month. By the end three years I would be earning $12,000 per month. On year number three I could be earning $144,000 per year. If I spend $44,000 on my living expenses and invest the other $100,000, I could be a millionaire in less than 10 years.
I don’t have to be a computer genius and I don’t have to spend half of my life getting master’s or doctorate’s degrees. I could simply become a millionaire by running a business which doesn’t require much brain power.
This is just an example of how easy it is to become a millionaire. Many people who become millionaires have simple ideas.
We are masters of our destiny
We are not helpless. We can take control of our destiny any time we want. If we wish wealth, wealth is there at our feet. The only obstacles in becoming wealthy are self-imposed. Financial success is only limited by our lack of imagination.