t first glance, it might seem out of reach to make one million dollars.
However unattainable it might seem, it’s more realistic than you think. For example, did you know that there are 10.8 million millionaires nationwide?
That’s right. So, if you want to become a millionaire, it’s entirely possible and easier than you think.
Believe it or not:
Making your first million dollars will be the easiest and hardest thing you will do at the same time. But it's all worth it.
If you're looking for ways to make one million dollars in one year, this post may not be for you. But if you're open to making it in a few years (not decades), then this post is for you.
If you are ready to find out how to do it, then, read on!
13+ Realistic Ways to Make One Million Dollars
In this post, you'll find the different ways (sometimes a combination of ways) to help you reach that one million dollar.
Wher you are a teen looking for online jobs for teens to help you make money towards your one million dollar goal or a grown-up individual who wants more, these ways are for you.
Some of these ways are very obvious (that people, unfortunately, tend to look over) and some…. not so much.
1. Pick the right major
While your college years may be fleeting, your career could last several decades. So, it's crucial to choose a degree that lends itself to a career that is going to suit and pay for your lifestyle.
And, did you know that you can significantly increase your earnings by just picking the right major?
According to CNBC, the highest-paying majors are in the Science, Technology, Engineering, and Math (STEM) fields with the average college graduate earning $61,000 out of school.
2. Invest early
How to become rich or one million dollars at any age? Start investing early. It’s never too soon.
In fact, the earlier you start investing, the better chance you give your money to grow.
This is because of little thing called compounding interest that causes your wealth to snowball over time, meaning you don’t have to save as much to reach your money goals. How cool is that?
Now investing doesn’t have to be complicated.
It's best to start small with investing before dipping a lot of money on it. This way, you can learn the ins and outs and get a feel of what it really entails.
There are a few apps out there that make investing very simple. Here are some of them:
- Fundrise. If you like to invest in real estate for a few hundred dollars. Try Fundrise, which only requires $500 to start. Fundrise funds return an average of between 8.7 – 12.4%. You won't get that if you park your money in a bank.
- Acorns. You can start investing cents with Acorns – a great way to dip your feet into investing. I've only been using Acorns for a year now, and my investment is already around $2,300. Plus, earn $5 sign-up bonus with Acorns.
3. Get free money
If someone told you could get free cash, would you take it?
Heck yeah, I would!
First things first, does your job offer an employer-sponsored 401K? If so, this is an excellent place to start.
A 401K allows you to invest part of your paycheck, pre-taxed, into an investment account where it grows tax-free until you’re ready to start withdrawing after age 59 ½.
Better yet, many employers provide a matching incentive where, for example, if you invest 6% of your income, the company will match 3%.
If your company doesn’t offer a 401K, make sure to check for other benefits such as bonuses and stock options. Remember, every penny counts, so even things like free gym memberships can help you get closer to making that first million.
Beyond your 9-to-5, there are plenty of ways to make free money.
For example, did you know that you can get paid to take surveys, watching videos, and even get cash back if you shop online through certain sites?
Some of my favorite ones if you need money:
- Swagbucks: Earn $5 sign-up bonus and earn when you browse, shop, play games, etc. I made over $1,550 using this site.
- Ebates: Earn $10 after making $25 of qualifying purchases within 90 days.
- MyPoints: Earn $10 after making $20 of qualifying purchases. You can also make money from home by taking surveys, shopping, using coupons, etc.
4. Invest in real estate
Real estate in the U.S. has increased in value by 6.9% year-over-year. So, if you were to purchase a home worth $150,000, it could be worth $292,000 in 10 years.
If you’re asking yourself “how to make one million dollars at any age,” investing in real estate is a solid option.
If you’re not in the market to buy real estate, Fundrise is a good alternative. Fundrise is a real estate crowdfunding investment platform.
It's your ticket to real estate investing without you investing a ton of money.
So, what do you need to make that happen?
The answer is $500 (minimum).
One Million Dollars Means Tackling Debt
You can be a millionaire and still have debt. But would it be a better scenario if you own a million dollar or more and debt-free.
For many financial independence doesn't start when they've made their millions. For many, it starts when they're debt-free.
It makes sense.
When you're debt-free, you can save money fast and see your net worth grow faster.
Let's talk about debt in this section.
5. Take on the right debt
Believe it or not, there is good debt and bad debt.
Good debt includes things like taking out a student loan to complete your degree or borrowing money to buy a home. Good debt is essentially an investment, just like a stock or bond.
Bad debt is non-essential debt like using your credit card to buy stuff you don’t need.
However, no matter good or bad, smartly paying off debt is essential for you to make one million dollars.
6. Pay off debt
In paying down your debt, it’s always good to find ways to pay it down as fast as you can.
That's what I did, and have been debt-free for years now. Now, we see our savings account continue to grow day after day and keep building wealth with less effort.
If you can't pay it all right away, one option is to consolidate your debt.
Want to save on interest, penalty, and other fees? Want to pay your debt off faster? You can do that with SoFi, a personal loan issuer.
Personal loans like those from SoFi typically have lower interest rates than other loans and credit cards, thereby helping you pay off your debt faster.
Yes, that's one long term secret of how to get rich quick. That's how my wife and I did. It worked.
7. Be mindful of your credit score
The world is falling apart!!!
That's exactly how I felt when my credit score sunk to its lowest level.
Like it or not, your credit score dictates everything from whether you’re approved for a credit card application to what interest rate you’re offered in a mortgage.
In a nutshell, it is important to have a good credit score. Check it often and understand the different factors that affect it.
I regularly check my credit report monthly for FREE using Credit Sesame.
Best of all, the credit pull Credit Sesame does is a soft one and won't affect my credit score.
Payment history and credit utilization are two important factors in determining your credit score, so pay those bills on time and always pay as much as you can towards your debt.
One Million Worth of Investments or Cash Starts With The Basics
The six-figure net worth you've always wanted starts with the basics (e.g., budget). You'll never get there without understanding the best ways to start.
Here are the things you need to consider before reaching your dream net worth.
8. Get on a budget
The foundation of getting yourself closer to making one million dollars is having a budget and sticking with it.
If you aren’t sure where to start, you can begin by using the 50/30/20 budgeting method. It goes like this:
- 50% of your income goes toward essentials
- 20% goes toward financial goals
- 30% goes toward personal spending
When budgeting, make sure to create a budget that works for you.
Don't just get a standard template online and use that. Remember that each situation is different, and each calls for a different budget template.
9. Earn more money
One of the best ways to get yourself closer to making one million dollars is earning more money.
I know, it might seem obvious, but if you’re only making enough money to pay for rent, food, and utilities, it’s unlikely you’ll achieve your goal.
There are plenty of great passive income ideas out there.
For example, blogging turned out to be a money-making side hustle for me. I make over a thousand dollars per month by blogging.
It really is one of the best passive income streams I've ever come across.
For just $2.95/mo, you can now start your blogging journey with Bluehost. That’s the special discounted price for you, my readers. Imagine, that’s just a cup of coffee! There is actually zero risk and very high rewards with blogging. Click here to start blogging.
If blogging isn’t for your, check out these best side hustles to make $10,000/mo.
10. Don’t buy things you don’t need
Many of us think it's hard to make sound financial decisions when there's not that much money sitting around. An easy way to keep money in your wallet is by not buying things you don't need.
It may be difficult not to click that ‘purchase' button, but try this trick that helped a man pay off over $70,000 of debt: Pump the breaks and ask yourself “Do I really want that? It is really important to me?”
Remember, every time you don’t spend money on things you don’t need you’ll be that much closer to your goal to make one million dollars.
11. Pick the right location (where to live)
No matter how much you make, being able to live within your means should be one of the most significant considerations you make when picking the right location to live.
You can even learn how to move with no money involved.
In all comes affordability. A 100K salary in New York City won’t mean much of anything because your expenses will likely be higher.
When choosing where to live, do to do a Google search for the average cost of the following:
- Average housing costs, like rent
- Prices of utility services like electric and water
- Expenses for consumable goods, like groceries
- Amounts of other things like gasoline and taxes
12. Do things one step at a time
When it comes to making one million dollars, it’s not a sprint; it’s a marathon.
By focusing on one financial goal at a time, you'll be able to work on achieving that one instead of spreading out your efforts too wide and not accomplishing any of them.
Maybe you need to pay down credit card debt or are ready to start investing money, whatever it is, focusing on that single goal is the best way to get you closer to making one million dollars.
Plus, The Millionaire Mindset – 5 Traits All Millionaires Share
Becoming a millionaire might seem unattainable, but it can be easier with the right mindset.
Try enacting these 5 traits that all millionaires share.
Frugality is all about looking for ways to get the best value for your money and not wasting money on things you don’t need.
From housing expenses to groceries, try to find ways you can cut on costs.
2. Willing to Make Wise Investments
Most millionaires make their money work for them.
Whether investing in a good education, starting a business, or making contributions to your retirement fund, millionaires do the research and know what investment is going to bring them a good return.
3. Focus and Discipline
Millionaires know it takes focus and discipline to make not only your first million but the next and the next.
Don't get sidetracked. If you need to make an extra $500 a month to meet your goal, focus on that. Find ways to cut costs or find a side hustle to help you achieve that goal.
It’s not always going to be fun, but sticking through those moments and showing restraint will ultimately help you meet your goals.
A millionaire knows that there are going to be times when things go wrong, and they will find ways to learn from those mistakes.
5. Willing to Get Their Hands Dirty
Through and through, millionaires know it takes hard work to get there. You’ll need to make sacrifices and put in extra work if you want to make one million dollars.
In Summary …
At first glance, it might seem out of reach to make one million dollars.
However, with a little hard work, it’s completely attainable.
I challenge you to identify one financial goal today and start working towards completing it.
What’s your favorite way to make one million dollars? How do you encourage yourself to stick to your financial goals?