Wouldn’t it be cool to be not just a millionaire, but be a stock market millionaire? That’s way sweeter than inheriting millions or winning the lottery.
Because the status of stock market millionaire has 3 main advantages below the surface.
For one, you get the pride that both your hard work learning how to invest and your patience paid off extremely well. Inheriting money comes nowhere close to the high feeling of earning your own money.
Making your own lot builds confidence in yourself in all aspects of life going forward.
Second, how life changing would it be to have a million dollars to your name? Imagine the increase in living conditions for the loved ones around you and yourself if you pulled this off.
Just paying off your cars, education, and house in full would be unreal, and your overall financial stress would almost vanish.
So there’s no question investing in the stock market can change your life.
And third, becoming a stock market millionaire doesn’t mean you’re maxed out on making money because you have to save some for the other fish in the sea. It’s the opposite!
The amount of money you can make is unlimited, which leads to my point. You can take what you’ve learned to earn your first $1,000,000, and use that financial knowledge to go make yourself $2, then $5, and then $10 million in the future.
See what I mean? That’s why no one disputes the saying “the rich get richer” because it’s spot on.
Liking what you’re reading? Nothing is stopping you from achieving this reality.
Here’s the simple roadmap to become a stock market millionaire.
Where To Invest Your Money
If you’re familiar with my money talks, you already know I’m a big fan of investing in the S&P 500 Index.
For new audiences: In my book Freedom Mindset, I recommend every beginning investor puts their money into a S&P 500 Index fund. And I’m making that same recommendation to you.
Just take a look at this chart to see why.
You can bet on anything close to a 10% annual return if you put your money here.
I’ve covered this all over the place in my book, articles, and YouTube videos so I won’t go too far in-depth. Check out my other resources if you’re interested in learning more about index funds.
Related: In Index Funds I Trust
The Key: Automatic Investing Contributions
Those S&P 500 Index performance numbers are great in all but you only get the lion’s share of them if you’re consistently contributing to your fund.
Problem is most people are inconsistent in general, and even worse when it comes to being discipline with their money. This is why 76 million Americans are financially struggling or barely getting by.
Missing months of contributing money to your portfolio every year will cut off anywhere from $100,000 to $10,000,000 in potential lifetime earnings or more. No discipline will cost you if you commit this unforced error.
To protect yourself from this error and guarantee you always hit your monthly investment contribution, do this one thing: Set up automatic monthly contributions to your investment account.
By automatic monthly contribution, I just mean setting up a recurring transfer from your checking account to your investment account to buy more shares in your index fund every month.
If you can set this up (and continue to make enough money where there’s enough money in the checking account for the transfer to go through), you can ensure you eventually become a stock market millionaire.
That’s basically it to be honest. Not too complicated right?
The best part in my opinion is that this is 100% hands off labor once you set it up once. Setting up this monthly transfer could take as little as 5 minutes.
Just don’t stop these monthly contributions and the gravy train will keep cruising along to increase your net worth. You have to love this!
Gameplan Going Forward
Once you’ve set up your automatic monthly recurring investments (say that five times fast), all there’s left to do is sit back and relax baby.
Well not really, but it sounded good.
Your objective at this point is to make more money (and save more) so you can feed the beast more ammunition so it brings you back more money.
Your goal isn’t to make money so you can save it, but so you can invest it to earn a higher income. That’s what the 1% has learned and the middle-class struggles with executing.
But once you’re closer to retirement, or if you decide to retire early with your stock market winnings, then the gameplan will change. Eventually the beast will feed you money to live on instead of you feeding it.
Until you’re at that comfortable spot though, feed the beast with automatic monthly contributions and he won’t let your finances down.
Cheers to mastering our money!