Like the title subjects this article is about how to turn 100 dollars into 1 million. There are millions of ways to do this. Some of them require little skill some require a lot. Some require very little time, some require a lot of time, all of the ways to make 1 million dollars require two things though, hard work and luck! In this article I will show you how to turn 100 dollars into a million. I am not saying that by reading this article you will become a millionaire but if you work hard and follow the guidelines listed out in this article, you should be able to succeed in making a million dollars.
How To Make A Million Dollars
You can always play the lottery and hope to get lucky, but I do not think that is a strategy to rely on to make money. The best way to make money in my opinion is to make it cautiously,throwing money in a well and hoping you will get lucky, will not get you anywhere, while you may in fact get lucky, 99.999% of the people who try will not. In general by working hard you can make 1 or even 2 million dollars. I do not advise playing the lottery to make a million dollars. Below I will show you how to cautiously and intelligently make money!
First you must evaluate your skill set, what type of education do you have,are you a college graduate,highschool graduate or even a middle school graduate. Maybe you've never gone to school. Whatever the case is you should strive to get more education, education is the key to success. Just by reading this article, you will and have learned. Learning is a huge factor in making money. With your level of education, what jobs can you get? If the jobs you currently have access are low paying, you can still make money, by being frugal. My advice is to evaluate where you are in life. Are you young,old,healthy,wise. Understand your position and map out a plan for for getting ahead of where you are now. Write a list of some paths you can choose. You can choose to go back to school,work longer,save more money,ect. There are many things you can do, as long as you evaluate your position and life and realize were you have to go to get ahead you will be ok.
Even if you are the CEO of a fortune 500 company by saving money you will benefit. My rule of thumb is that you should at least save a minimum of 5% of your salary, the more the better. If this means you can't go out to eat every weekend, so be it. Good things come to those who wait. You should try to save as much money as possible, every cent counts. There are many ways to save, maybe you can refinance your mortgage,or bring food to work instead of buying it. There are many things you can do. Like when you are evaluating yourself, I recommend writing a list of things you can do to save money. You do not have to starve yourself to save money, but you may find a better place to buy food at a better price. DOing things like these can save you money, while not significantly lowering your standard of living.
Once you have saved up some money, invest it, leaving your money under your mattress will get you only so far. You do not have to be an expert to invest, investing can be very simple. To start off, move some money from your bank or wherever you keep it to a brokerage firm, usually with about 1,000 dollars you can start a brokerage account. Using this money, if you are clueless to investing, invest in safe things such as treasures and municipal bonds. These offer around 1-6% interest and are very safe. If you can stomach risk and volatility(which means change in price) you might chose to invest your money in the stock market. The stock market historically has made people the most money. The return on investment in the stock market is very high over the long run. Since the 1900's the stock market has returned an average of over 10% on investments, meaning if you had put 100 dollars into the stock market in 1900 by the year 2011 compounded you would have earned over 2 million dollars. Few people will live to 111 years but think if you put your money in the market for 50 years how much money you could potentially make.
One of the best ways for beginners to enter the stock market is to buy an index fund, which is a fund that owns a large number of stocks in the market. This basically means by buying a fund, you can own a small piece of major stocks in the market. The iShares S&P 500 Index (ETF) with the ticker symbol (IVV) is a great safe fund to invest in, it tracks the S&P 500 which is an index that has 500 large stocks in it. In general large stocks(big company's) are safe to invest in. These company's have a low chance of going bankrupt and tend to give steady returns. Once you get a brokerage account you should try to learn all the information you can about the market and investing. The more you read and learn about investing the better. Eventually you will have enough knowledge to invest straight into stocks. Once you get to this stage, you could be earning over 10% on your investments. With 10% growth, in a little over 7 years, if your income is compounding, you will double your investment. This means at 10% compounded 100 dollars would be worth about 700 dollars in 20 years. This is assuming you are not adding money into your account and are just leaving the 100 dollars in. imagine if you added lets say 100 dollars a year to your account. The possibilities are endless.
Invest in yourself
Investing the money you have saved in the economy are good, but you can also invest in yourself. Many people spend money to go back to school or learn a new trade. This can be very valuable. Who better to invest in then yourself. You don't just have to invest in a better education. You might want to consider eating better or exercising. If you eat better you will have a smaller chance of getting sick which means in the long run you will have to pay less for medical bills. There are little things you can do to invest in yourself. For example you can brush your teeth more often or exercise more. Little things make a huge difference.
In conclusion the tips I show you, will help you succeed in life and hopefully will help you make 1 million dollars and more. I truly believe that by doing what I have said in this article, you will make your self a better and richer person. If you have any comments or ideas about this article please write them down below in the comments section of this page. I would love to hear what you have to say! If you enjoyed this article, please check out my other articles which can be found on my profile page.