Last week we featured a handful of ordinary people who paid off ALL their debt (and by ordinary, of course I mean “EXTRAordinary” ;)), so this week I thought we’d focus on those who have hit the next crazy milestone:
Hitting a million dollars of net worth.
I’ve always thought it would be fun to interview a few millionaires and pull out all their “secrets” they’d share with me, but turns out people like Jaime Tardy from Eventual Millionaire, and (new) friend Tom Corley from Rich Habits, have already done that. And do a mighty fine job of it too, I might add.
But, it ALSO turns out that we have a healthy group of new millionaires off our Millionaire’s Club here on BudgetsAreSexy too! Yup! You might remember our very 1st member crossing over the $1,000,000 mark back in May of this year – Big Chris B, member #62 – and since then we’ve had TWO others hit the finish line too. Increasing our grand total of millionaire friends to 3 :) 3 out of 115 current members – not bad odds if you were a betting man! Haha…
But the number itself isn’t that important. What *counts* is HOW they got to reach these million dollar levels. Did they get lucky? Win a jackpot? Work their asses off 24/7? Or just do what everyone already KNOWS what needs to get done to have lots of money? Cut expenses, make more money, and save/invest all money?
Here are the answers:
Millionaire #1: Stock Market and Retirement Accounts
The fist person to reach a million dollar net worth from our club was Big Chris B, as recently mentioned. His blog is now closed off to the general public so unfortunately we can’t read his post all the way (hope he’s okay!), BUT since I already blogged about it I can tell you how he got to this millionaire goal: by heavily investing in the stock market and maxing out his retirement accounts.
Two things we all know how to do, right? We may not know exactly *what* to invest in, or have as much as we wished we did to invest and max out those accounts, but no real big secret here in pumping up that net worth. You just invest your money.
Millionaire #2: High Salary and Stock Market
Millionaire #2 from our club is member #42, Anon Lawyer. Who’s, as you can guess, an anonymous lawyer ;) For this guy it was all about his high salary and ALSO the stock market.
Here’s clip from his announcement:
About 3 1/2 years ago, I participated in J. Money’s Million Dollar Club. At that time, I estimated that I would become a millionaire by 2016. Turns out I beat that estimate by almost 3 years. This is due in large part to a continuous increase in my income.
In 2010, I was a 4th year associate making $210K a year plus bonus. Now, I’m making much more than that, not including my wife’s income. Another contributing factor was starting to invest in the market late last year. In the last week, we probably made $20K in the market. “
So this route required a big honkin’ salary on top of jumping into the stock market. Also things we know, but one being a LOT harder than any other way to get your hands on money, haha… $200k+ salary and now making even MORE than that??? Damn. That’s big pimpin’ right there.
But we can’t of course forget all the time and effort and probably lack of a social life to even *get* to that point. Becoming a lawyer is no easy feat. Nor is a *successful* one. But, such is one way to get you to a million dollars should you want to go down that path.
Millionaire #3: Real Estate and Retirement Accounts
Millionaire #3 on our list today is my favorite, but only because I’ve been good blogging friends with James and his wife, Miel (from DinksFinance.com) going on almost 6 years now. James was one of the first pf bloggers I ever met in “real life,” and coincidentally enough the first one to sign up to our Millionaire Club too! Woo!
Neither of us could have guessed we’d still be in the game all these years later, but here we are and one of us has finally crossed that $1 Mil mark. And it wasn’t me ;) Congrats buddy!
You can read more about it over on his announcement here, but it grew out of mostly investment properties and, again, maxing out retirement accounts. And it helps that bot him AND his wife are doing it – something that should be noted, of course.
Here’s a snapshot of the details I stole from his site:
Pretty neat stuff. And look at him putting that cherry on top with an extra $32,000 – overachiever! ;)
The point of all this? Just like paying off all your debt over time, the same strategies can be used to do the opposite: Pay YOURSELF over time. You may not have grand dreams of reaching that million dollar mark (or maybe you want 10 Mil!), but regardless it’s important to keep in mind that it is, without a doubt, POSSIBLE.
And just like with all that debt squashing, the same words can be used to describe this journey as well: Hustling, prioritizing, and “not being easy” ;) Possible, but not easy.
Also – people tend to forget to *track* their net worth vs their debt – which is of course easier to see since the numbers stare you in the face 24/7. So to even be able to tell us you’ve crossed this mark, you’ll have to start tracking it first. Possibly even today (*gasp*). But it’s really easy: add up your assets and subtract your liabilities – BAM. There are some gray areas to this, but that’s all you really need to know to get you going…
Want to join our Millionaire Club?
If you’d like to become a member of the sexy elite (aka our Millionaire Club ;)), pass me a note and let me know how YOU plan on reaching that incredible number.
Will you be cutting back major expenses? Saving all your money from your side hustles? Maxing out your 401(k) or Roth? Or both? Investing in the stock market?
Let me know and I’ll happily add you to the list :) Brownie points for those who blog about it too.
Shout out to our most recent members of this sexy little club:
- Anton Ivanov @ Dreams Cash True –> Anton’s millionaire list
- Leona @ All My Dollars and Cents
- Christine @ ThePursuitofGreen –> Christine’s millionaire list
- EJ @ Money Making Mummy
- Kim @ Eyes on The Dollar –> Kim’s millionaire list
- Mel @ Broke Girl Rich
- Izzye G
Continue working hard and saving that money, everyone!! It’s not a race, but I do hope you beat me to the end :) I need a party of people waiting for me when I crack open that bottle of bubbly! Or, better yet, my un-opened $40.00 bottle of bling water. I believe it would prove I’ve come a long long way since falling for that one! Haha… To us!
Photo cred: jthetzel
- The "Budget/Net Worth" spreadsheet - the colorful Excel template I personally use.
- The "Money Snapshot" spreadsheet - a simple Excel template I created for my old $$$ clients
- PersonalCapital.com (free) - a great way to track your net worth AND investments. You can see our full review of them here: Why I Use Personal Capital Almost Every Single Day
- Mint.com (free) - the original lazy way to automate your budget/net worth
Featured savings tip
You already know that banks pay $$$ for the privilege of holding your money…it’s called interest. But maybe you didn’t know this: that so-called interest can be as little as .01%. If your cash savings aren’t sitting in a high interest savings account that earns you at least 1%, you’re basically saying “no” to free $$$!
Now, obviously the 1% interest you get with a high interest savings account like the one at Discover bank won’t make you rich, but that extra 1% compounded over 30 years can grow into a *big* pile of cash. And if you wanna hit lofty $$$ goals, you should be looking for every edge possible.
Here’s another way to look at it: if you leave $50,000 in a regular savings account, that’s almost $500 you’re just throwing away, each and every year you don't setup a high yield savings account! Will you do 5-10 minutes of work right now to earn an extra $500/year for years to come?
If you said “heck yes”, then you can setup your high interest savings account here to start earning 1% on your cash savings.