Elon Musk is a perfect example of a wealthy person investing in multiple businesses simultaneously. He owns Tesla, Solar City and SpaceX. Solar City feeds the energy demand of Tesla car owners in certain parts of the United States. Solar City also complements his Tesla Powerwall range of products. Not being one to hedge his bets, he also has SpaceX to fall back on should the worst happen.
Wayne Duggan is a freelance investment strategy reporter with a focus on energy and emerging market stocks. He has a degree in brain and cognitive sciences from the Massachusetts Institute of Technology and specializes in the psychological challenges of investing. He is a senior financial market reporter for Benzinga and has contributed financial market analysis to Motley Fool, Seeking Alpha and InvestorPlace. He is also the author of the book “Beating Wall Street With Common Sense,” which focuses on the practical strategies he has used to outperform the stock market. You can follow him on Twitter @DugganSense, check out his latest content at tradingcommonsense.com or email him at firstname.lastname@example.org.
Turning $500 into $1 million may seem like a fantasy, but it’s certainly possible, at least theoretically. Transforming such a small amount into a fortune would likely involve some combination of high risk, time and blind luck. After all, if there was an easy path to $1 million, everyone would take it. However, some basic investment principles can increase your chances for success.
Rule #7. Customer Service. You can treat each customer, new and old, like a real human being. “We intuitively sort of knew what we didn’t like in customer service everywhere else: automated calling trees, slow response times, poor problem solving, etc. So we made sure there was as little friction as possible between the customer contacting us and actually getting their problem solved.” When you are a small business, there’s no excuse for having poor customer service. Your best new customers are your old customers, and the best way to touch your old customers is to provide quick help when they need it. Customer services is the most reliable touch point to keep selling your service to them.
Above all else, living within your means is the key to financial success. If you can combine both of these principles, earning more and spending less, you will be ahead of 95% of the world. If you want to supercharge your millionaire journey, it’s important that you aren’t spending every dime that you earn.
Self-made millionaires all follow the same basic advice we shared with you in this article. There are no secret societies or groups where future millionaires are given the secrets to generating wealth.
When he launched business #15 – a fitness store – he had lines of cars trying to get into the parking lot by the third week. And it never stopped. He used to have to hire traffic cops on Saturday’s for the hefty fee of $75/hour (an extra cost he absorbed because the business was raking in so much money).
Only you know what gets you into a peak and passionate state. So, do whatever it is that gets you there, and then write down your goals. Declare what you’re going to do. Then write that goal down and visualize it’s achievement every single day until it becomes your reality.
In fact, a study found that many don’t actually know how much debt they owe. It makes complete sense too. Humans are sensitive creatures who would rather run from their problems than tackle them head-on.
About one in five Russian and Hungarian Americans become millionaires perhaps due (besides their strong entrepreneurial spirit) to not being overly free with their affections. Another common way Americans fail is by throwing good money after bad for a family member (about a third of those ages 25-30 today still live at home) or friend. We are often excessive givers, whether due to some prosperity doctrine or just not being able to say no. Many of us work at jobs where we’re underappreciated. Then, 60% to 80% of divorces are initiated by women (and an amazing 90% for college graduates – or ten times the rate for college educated men) likely due to there being so much money in it (with roughly 90% of child support dollars going to women). Choose carefully or skip having a family altogether (a depressing reality these days for guys in America as per Dr. Helen Smith’s Men on Strike: Why Men Are Boycotting Marriage, Fatherhood, and the American Dream – and Why It Matters, 2013).
If you want to do something extremely well, you need to surround yourself with the right mentors. Anything that you’ll ever do well will be the result of high quality mentoring. If you suck at something, it’s because you haven’t received quality mentoring in that thing.
But let’s spin that more positively: If you give yourself 40 years to invest, you’ll spend just $220,000 in your lifetime to wind up with $1.4 million in time for retirement. That’s a $1.2 million gain! On the other hand, if you save $5,500 a year for 20 years, you’ll turn $110,000 in total contributions into $251,000 — a respectable $141,000 gain, though not nearly as mind-blowing as coming away $1.2 million richer.
Another practical way to legally make a million US dollars in one year from the scratch is by launching a bestselling book. The truth is that loads of bestselling authors have been able to make well over a million US dollars from the sale of their books in just one year.
In this video Stefan shares in 2 minutes how to make a million dollars online. This is one of the most important strategies that can be applied to ANY business that will allow you to make money online.
My belief is that you should focus on buying value on the the things you enjoy, and you should focus on making big wins to reduce your expenses on non-essentials and things which don’t bring you joy. For example, in our family eating out is a treat. We save a lot of money by not dining very often. But, when we do dine out we focus our efforts on nights where kids eat free. Not only do we save money this way, but if my son decides that tonight’s dinner choice is not high on his list of priorities, we didn’t waste money on a meal. This takes the financial tension out of any wasted food and allows my wife and I to enjoy the meal more.
I’d say an interesting thought to add would be an idea suggested by Mark Cuban a while back on his blog. It was basically the idea that you’re not necessarily saving money so that you can invest slowly and retire comfortably, but that you were saving every possible penny, at every moment, so that when an actual fantastic opportunity came around you’d have money to invest.
That couple of hundred bucks might sound impressive, but imagine if my buddy had invested $1,000? He would have made a return of over $60,000. Or – let’s take this to the next level – what if he’d invested $10,000 in that ICO? That would have resulted in a return of over US$600,000!
Bryan found 10 customers (out of the first 12 he approached) who would switch their credit card processing to him. He figured he needed to make $2,100 a month to quit his job. With his first 10 customers he was making $6,200 a month, so he had margin of safety. He quit his job and suddenly he was in business.
Participating in a talent hunt show or reality show is yet another practical way to legally make a million US dollars in one year from the scratch. Just like sport betting and lottery, this is also another means for someone to become a millionaire overnight.
When we feel a little blue or unhappy there is always a good reason for that, which in most of the cases the true reason dwells is in not having enough money or being unhappy with a current job, or live in the place where you don’t want to live.
If you’ve watched “The Wolf of Wall Street” you might have found yourself almost admiring Jordan Belfort. But making money on the stock market isn’t nearly as glamorous as the movies make it out to be. It’s also not as profitable for the vast majority of investors. You’re just as likely to lose some, or all, of your investment capital as you are to bank millions.
Making a financial plan and investing your savings responsibly can be a bit overwhelming to someone with limited experience, but there’s no shame in seeking professional help. Even if you’re confident in the plan you come up with on your own to become a millionaire, it never hurts to have a financial advisor take a second look. Of course, professional money managers can be a major expense in their own right. Rather than simply turning over your money to a costly active money manager, consider implementing most of your financial plan as independently as possible after initially discussing it with a professional.
Rules #3. Get a customer! This is probably the most important rule for any entrepreneur. People want to find and take the “magical path”: get VC money, quit their jobs, build a product, and then have millions in customers. It NEVER works like that.
Editor’s note: James Altucher is an investor, programmer, author, and several-times entrepreneur. His latest books are I Was Blind But Now I See and 40 Alternatives to College. Please follow him on Twitter @jaltucher.