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- How To Become A Millionaire In 1 Hour
How To Become A Millionaire In 1 Hour
I'm serious.
You’ve been told your entire life that money is confusing.
Investing is confusing.
Rich people inherit all their money.
You need an investment advisor.
None of this is true.
The financial world has tricked you into believing these things to charge you fees for handling your money.
Most financial advice is niche, awful or purposely confusing. I can break down everything you need to know about investing in 4 minutes.
You can set up everything you need to become a millionaire in under an hour. All you’re going to need is an investment account, $100 a week and some patience.
You’re 1 hour (and 31 years) away from being a millionaire.
Step 1: Open An Investment Account (30 Minutes)
First, you need to open an investment account to be able to invest your money. It’s best to start your investing journey with a tax-advantaged account.
In Canada that’s a TFSA or an RRSP.
In the USA that’s a 401(k) or an IRA (Roth or Traditional).
These accounts can be opened online with no hassle and minimal paperwork.
This experience can be enhanced by pretending each question on the sign up form is being asked by Regis Philbin.
Step 2: Set Up Pre-Authorized Deposits (15 Minutes)
The next step is pre-authorized deposits. This will automate your savings, save time and eliminate the need for discipline.
You invest first and spend the rest.
Broke people spend first and invest the rest.
Link your checking account to your investment account, and set up an automatic weekly transfer of $100 (or more, depending on your financial situation).
Step 3: Set Up Automatic Investments (15 Minutes)
The final step is setting up automatic investments and not getting fancy.
80% of actively managed mutual funds DON’T beat the S&P 500 over a 10 year period.
Here’s the simplest, fastest and safest way to gain exposure to the stock market…
Set up automatic purchasing of an S&P 500 ETF or index fund. Some popular ticker symbols for these funds are $SPY, $IVV or $VOO.
In Canada we gain some tax advantages by using $VFV inside our TFSA or RRSP because it is traded on the Toronto Stock Exchange and not the New York Stock Exchange.
At this point, I probably sound like Charlie Brown’s teacher but the takeaway is to invest regularly in an S&P 500 index fund.
Step 4: Wait (31 Years)
Now you’re on the roller coaster. You can’t just ride the chain at the beginning all the way up…
You’re going to get to the top and coming crashing down (almost vertically) sometimes.
But, as long as you keep your arms and legs inside the ride at all times you’ll arrive in the station much richer than when you started.
The average annual return of the S&P 500 from 1926 (before the great depression) until today is 10.13%. That means your weekly contribution of $100 will grow to roughly $1,014,993.40 in 31 years.
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