Curious thing isn't it? I am a millionaire (say it) and now let us say, I am a multi millionaire (how does it feel when you say it?) While it may be a phrase we all aim for to become ballers and shot callers (isn't that what millionaires do?!) many people think building even $1 million in wealth is unthinkable or impossible. In fact, The Global Wealth Report says that the total number of millionaires in US is 18.6 million in 2020.
Now you are thinking but 2020 was such a crazy year so how on Earth did we get to this number? Knowledge and execution of that knowledge is the wealth maker The more people understand about the difficulties that go into building the first $1 million, the better their odds of surmounting these obstacles and achieving that worthy goal.
First off, let's explore the numbers. One of the reasons that the first $1 million is so hard is that it is such a large amount of money relative to where most people begin. To go from $500,000 in assets to $1 million requires a 100% return—a level of performance very hard to achieve in less than six years according to Investopia. The numbers are important because you need to know where you are in order to figure out where you are going.
Secondly, let's explore the mindset. Most people have doubts, fears, and an overall lack of belief about earning money before they've done it. Once you've achieved something unusual, the doubt, fear, and worry disappear.
The subsequent millions are earned far faster than the first million because you no longer have any hesitation in your mind or actions. It's a direct route to financial success when you eliminate any form of psychological interference.
Lastly, you need to understand the difference between wealth and income.
- Wealth does not equal income, but people often mistakenly think they're the same thing.
- Wealth is the net worth of a household, whereas income is what's reported on an income tax return.
- Being rich isn't about how much money you make or spend — it's about how much money you keep.
So making your first million is the hardest because it is a tough climb, but that climb prepares you for every other battle you will face -Kamni
As for my personal experience, I can attest that college nor corporate America prepares or even wants you to grow wealthy. We (my other half and I) left lofty salaries behind to start our portfolio of companies and it almost killed us (not a joke, it was beyond hard earned). You see perhaps school teaches us to work for others, but it does not prepare us for the world we actually live in.
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