That is right. All you need to become a millionaire is an extra 5 dollars. That is what many of us spend on coffee each day.
Today I will be teaching you how to become a millionaire. The truth is, you only need an extra $5 each day to set aside to become a millionaire. No, you cannot save your way to millionaire status by stashing it in the bank. In fact, if you saved $5 a day from the time you were born to the age of 100 you would have accumulated $182,500!
Saving $5 a day is equal to saving $1,825 a year. It is what you do with that money that determines whether or not you will become a millionaire. What you need to do is invest. You want to take advantage of compound interest and time. Compound interest allows you to make interest on your interest. The longer you allow your money to earn interest, the better the results.
Here is the strategy. Become a millionaire with $5 a day.
1. Set aside $5 each day. At the end of the month, you will have $150 to invest.
2. Each month, invest in a diversified investment portfolio. One of the most lucrative investing portfolios over time has been 50% in blue chip stocks and 50% in investment grade bonds. Over the last 100 years on average, blue chip stocks have paid 10% interest and investment grade bonds have paid 6%. This gives you an average return of 8%.
3. Keep doing this for 50 years.
4. After 50 years, your portfolio will be worth $1,032,786.28
Congratulations. You just became a millionaire for the price of a coffee at Starbucks.
