It's not simple, but it's not as difficult as many people make it to be. Chris Hogan/Dave Ramsey put out a book called everyday millionaires, and what they found were the people who reached millionaire status weren't doctors, dentist and lawyers. The top 3 were:
1) Engineers
2) Accountants
3) Teachers
Yes, educators. How? Well the educators they interviewed had their homes paid off. So, a $400k home. Plus their 403b is worth about $600k. They have a net worth of $1m. It's a very slow process, and it takes decades. The problem with most Americans is when they think of the rich, visions of flashy cars, and million dollar mansions come to mind. That is not true. A good book on this is the Millionaire Next Door. What the author found is people you'd never think were rich because of their appearance/life style were worth millions.
The ohter point I'd like to make is to start as early as possible. I love this quote on compounding by Albert Einstein: “He who understands it, earns it; he who doesn't, pays it." He also described compounding as the 8th wonder of the world. They don't teach you these things in school, and most parents are not conditioned to think in this mode as well. It's why most Americans are broke today. Financial education eludes most people. Finally, much of it comes down to how badly do you want it. If you want to reach millionaire status quickly it's not going to be an easy process. You'll have to give up your hobbies, take on a side business, and work hard. You might get lucky, but it will probably take years before you see any financial benefit from your work.
1) Engineers
2) Accountants
3) Teachers
Yes, educators. How? Well the educators they interviewed had their homes paid off. So, a $400k home. Plus their 403b is worth about $600k. They have a net worth of $1m. It's a very slow process, and it takes decades. The problem with most Americans is when they think of the rich, visions of flashy cars, and million dollar mansions come to mind. That is not true. A good book on this is the Millionaire Next Door. What the author found is people you'd never think were rich because of their appearance/life style were worth millions.
The ohter point I'd like to make is to start as early as possible. I love this quote on compounding by Albert Einstein: “He who understands it, earns it; he who doesn't, pays it." He also described compounding as the 8th wonder of the world. They don't teach you these things in school, and most parents are not conditioned to think in this mode as well. It's why most Americans are broke today. Financial education eludes most people. Finally, much of it comes down to how badly do you want it. If you want to reach millionaire status quickly it's not going to be an easy process. You'll have to give up your hobbies, take on a side business, and work hard. You might get lucky, but it will probably take years before you see any financial benefit from your work.