Investing money is the second key tool to help you to become a millionaire. While there are ways to get wealthy without this tool, investments provide the engine that can hugely speed up your way to your first million and beyond. Through becoming a successful investor you can make your million dollar dream happen sooner rather than later.
Saving money is a pre-requisite for investments - otherwise you will hardly have much to invest at all. When you are generating savings, though, it's really worth your while to learn to invest money in the most profitable ways.
Saving money requires - literally - hard work, some tough choices, and sacrifices. Investments are what maximizes the pay-off of all this hard work. They will make your money work for you as hard as you have been working for that money. If you are good at investing your money, you create a real virtuous cycle: the more you invest, the more you can save, and the more you save, the more you can invest. This will make your journey to wealth much quicker than just working harder or finding more ways to save money.
When hearing the word "investments", many people automatically think about the stock market. Yes, stocks - and bonds which often get mentioned together with stocks - are one of the most popular ways to invest. They sure aren't the only one, though, and in many cases not even the best way to invest money. While we will cover stock market basics and show you successful ways to invest in stocks, we will also cover other major millionaire-making alternatives for investing money, such as real estate investments, starting your own (internet based or not) business, or buying art.
While there are people who got rich through the stock market, majority of millionaires are not in this group. Instead, the most common way to become a millionaire is through investing in your own business. If you add to this group the people who made their first million in a self-employed job, you end up covering the vast majority of all millionaires. Setting up your own shop and being your own boss turn out to be the most common and fastest way to your first million. That's why we give quite some coverage to this method of investing money. We will discuss the key steps of setting up your own business. In order to give you practical examples from the different ends of the spectrum, we will also have a closer look at two popular types of business: real estate investing, and ways to make money on an internet based business.
We will also cover the key aspects of your career as an investment and show you how it can boost - or slow down - your journey to your first million. While in most cases a career is mostly a matter of investing time rather than money, it can still have major impact - positive or negative - on your wealth building. We will show you how to leverage your job in your million dollar plan and how to prevent your career from slowing down your journey.
No investment comes without risks. Some risks are worth taking, while others are simply threats that you'll want to minimize. Learning to evaluate and manage risks and finding ways to stack up probabilities in your favor is a key part of becoming a successful investor. Investing without these skills is actually not investing, but gambling. We discuss risks in generic terms as part of the process for building wealth. We also cover risks in a more specific way in the discussion for each type of investment.
While saving provides the fuel and investing money provide the engine that powers your trip, compound interest is your turbo charger. At the beginning you hardly notice it's there, but when you gather speed and get your investments engine running at higher revs, you start to notice an extra acceleration that you didn't really expect. Compound interest is the secret ingredient that makes possible the seemingly impossible, but only if you allow enough time for it to work its magic. We'll show you how compound interest will accelerate your investments and give examples of the mind-boggling results it can produce for you.
So, go ahead and get started - invest money today! The sooner you begin, the sooner you will see the benefits of compound interest, and the sooner you will reach your million dollar milestone!