Do you want to be a Decamillionaire?
You’ve probably seen the TV Show Who Wants To Be A Millionaire and thought, “Well, that’s a dumb question! EVERYONE wants to be a millionaire!” The trouble is that most people do not know HOW to become a self-made millionaire or even more rare a self-made decamillionaire.
Having a million dollar goal is a great place to start but if you want to be rich – not just rich but filthy rich, you need to consider being a decamillionaire. No, there’s no new, cool game show for this. A decamillionaire is simply someone with a net worth of over ten million of a given currency. It used to be that having a million dollars was enough, but now inflation has reared its head and a million doesn’t get you as much as it used to.
No may be your time to shoot for eight figures instead of seven and figure out how to become a decamillionaire.
Let’s talk through some ways that could become one of the 1.3 million American decamillionaires.
Obviously the earlier you start, the easier it is going to be to become a decamillionaire. Think about it. If you earn $10,000 by the time you’re 15 and you invest it at 15% annually for 50 years, you’ll end up with $10,836,575. If you wait to do that until you’re 25, it’s only $2,678,636. The earlier you start, obviously the more you can save and earn.
This is a hard concept for a lot of people to understand, but if you want to become a decamillionaire you’ll need to learn to be frugal. If you can find a way to increase your savings by just $300 a month for 50 years, you will have $2.2 million. Even better, if you can save $1,000 per month over 50 years, you’d be almost 75% of the way to $10 million. People with the most money typically are the best at “delayed gratification” – waiting and saving for things they want.
Your living expenses are probably one of your biggest expenses, so if you can reduce your daily expenses, it’ll help you to be able to save more. How do you save on your living expenses? Start thinking outside the box. Maybe you can rent a room from someone in exchange for something else like house cleaning or yard work. Maybe you join with your friends to rent an apartment or house together and split the rent. The second biggest expense is transportation. Living within walking distance to work would cut down on that cost as well as driving an older car that is already paid off or taking cheaper public transportation.
Use Debt Wisely
You might not think about this, but you can grow wealth by using debt wisely. It could be as simple as taking out a longer term mortgage. If you take out a 30 year mortgage instead of a 15 and you invest the difference between those two payments you would have, that’s one way to use debt wisely. Rental properties might be beneficial too if you have a good advisor and can learn to manage them wisely.
Get a High Paying Job
This probably sounds like a no brainer if you want to become a decamillionaire but sometimes the simplest things are the hardest to do. If you can save 50-75% of your income, reaching that goal is much easier. For example, if you can live on $70,000 a year but take home $150,000 after tax – you can definitely make a huge dent in becoming a decamillionaire. In order to work your way up in the company, make sure you prove to your boss why you deserve it. Remember everyone in the company thinks they are the best and want to move up too so you must stand out and give them something to talk about.
Pair Up Intelligently
You’ll want to marry someone with decent earning potential. Being tethered to someone who isn’t a go-getter or has zero ambitions will make it infinitely more difficult to earn your decamillionaire status. Find someone who is OK sacrificing, delaying and staying focused on your goal. You can find a match like that for you and you both can enjoy the options that come with so many coins.
That means stay together with the person you decide to marry. Divorce is expensive and can derail the best laid financial plans. It’s helpful to make sure not only your spouse has earning power and is on board, but that they’re going to stick with you and you’re going to stick with them. Learn about your significant other and accept each other for better or for worse. Bottom line – stick together!
Get Better Returns
Do your homework and consider talking to a financial advisor who knows the current market. Be willing to do some research when it comes to your investments. Whatever investment you decide on – be it real estate, lending money, stocks, or other business returns make sure it works for you.
Here’s an example of 4% robbing you of money:
$12,000 per year invested at 8% over 50 years would be $7.4 million.
$12,000,000 per year invested at 12% would be $32 million.
Huge difference, so take advice and make your decisions wisely.
Don’t Quit Early
Obviously you probably have a goal of wanting to retire early and enjoy the money you have worked long and hard to amass. That’s all well and good, but quitting early isn’t going to get you to that eight figures. As you make more money you can be more picky about the kind of projects you want to do, depending on the industry you’re in. But quitting early won’t get you to be a decamillionaire. It takes hard work and perseverance, but in the end you will be so happy with your wealth and be able to enjoy it even more.
Own a Business
Many decamillionaires own a business. There are so many great opportunities by owning your own business. Some business tax benefits include writing off a portion of your home if you use it as a home office, your business car expenses, internet, cell phone, and sometimes even your business meals you can written off. Oh, and that business trip you took to Vegas – yeah you can write that off too! Of course, always consult your tax advisor before getting too crazy with write offs so you don’t get a call from the IRS. Aside from the tax benefits, you can also grow capital inside your business and help propel you to your final goal.
These are a few ideas for you to become a decamillionaire.
It takes time, delaying gratification, smart investments, great advice and someone by your side to help you stick to your plan.
It can be done. Being a decamillionaire is within your reach no matter your age or current net worth!