The easiest method to becoming a millionaire,
going from zero dollars to one million dollars. That's what this video is all about.
I'm Tim Wolffe and my channel is about Personal Finance, Investing, Budgeting... just go ahead
SUBSCRIBE I promise you'll benefit from it. Let's jump right into the video!
This road to 1 million dollars is not a get rich quick scheme. It's not about amazon drop shipping,
it's not about starting an "e-commerce" store and overnight having a million dollars of sales. This
is the easiest way, although it may not be the fastest way, it is the way that most millionaires
take. Investing in an IRA or your company's 401k is the easiest way to become a millionaire.
And anyone can invest in an IRA as long as you have a taxable income. Within the IRA or the 401k
you can choose either roth or traditional and the difference is kind of important so if you're
not sure I have a video talking about roth vs traditional. Either watch it by clicking the link
up here or click the link down in the description below. Opening up an IRA account (individual
retirement account) is easy. It can be done in about 15 minutes. You can open one up in a company
like Fidelity, Vanguard or Charles Schwab or any company like this. Once you have your account set
up you can set it so that it "auto drafts" every month from your bank account and then you can set
it so that it "auto invests" whatever money it pulled from your bank account. So you can 'set
it and forget it'. Every single month It'll auto draft - auto invest and you don't have to
worry about it. You know that you're continuing to invest. And the easiest way to get there and hit a
million dollars is to start as soon as possible. If you start at age 20 you only need to invest
$159 dollars a month. That's about $5 dollars a day. If you do that you'll hit one million
dollars by age 60 and that money will continue to bring in millions of dollars over the course of
the rest of your life. But yet if it only takes $5 dollars a day to become a millionaire why does 58%
of Americans have less than $1,000 in their bank account? You have to start! You have
to dig up the motivation to actually get on the computer, open up account, rip off the band-aid
of the initial $100 or $200 that you'll have to put away every month and once you do it,
a couple months from now you won't even remember it. You'll forget that you're even doing $200
and the new income that you're living on you'll come to find that it's sufficient for you to live
on. Why people don't do this; either they don't have the motivation or they just don't know,
they don't understand how an IRA works. I did create a video on a roth IRA,
you can click the link up here or the link in the description below that further explains in
depth the dynamics of an IRA. And if you start at age 25 you'll need to save $264 dollars a month.
If you start at age 30 you'll need to save $443 dollars a month. Starting at age 35 $755,
age 40 $1317 a month. Notice how much aggressively higher it is if you start at age 35 or 40 Which
to most people's standards starting at 35 is pretty young yet when you start at these ages
you're going to have to put in four to eight times more every single month than if you had started
at age 20! At age 45 you'll need to put in $2,413 dollars a month. At age 50 $4,882 dollars a month.
Which is not so easy for most people, pretty much impossible. Also keep in mind there are
IRA contribution limits. For the year 2021 you can do up to $6,000 dollars per year in an IRA or if
you're age 50 and older you can do $7,000 dollars. The rest of it if you're investing more than that
either goes in your company 401k or a regular brokerage account. So the easiest way to one
million dollars is to start as early as possible, set it and forget it, set up your auto drafts...
your auto invest either out of your paycheck or out of your bank account. Check it once or twice
per year to make sure your investments are still performing well. Other than that just let it be a
long-term investment that you know is going to be a million dollars when you're ready to pull
it out. You need to make your mind understand that your investments need to do the work for you. Let
your money work for you and create more money. You don't have to take out large amounts of debt or
buy a ton of rental properties and start flipping houses. I guarantee if you ask anyone that's worth
2 million dollars or more they will tell you the easiest way is to just invest consistently
over time. You got to play the long game because it's safe and it's more guaranteed and it's a lot
less work too then starting e-commerce companies or starting six different businesses or managing
all these real estate properties. That can be something you aspire to do but let's at first just
invest the minimum that we need to retire with a million dollars. Managing an IRA or a 401k or
any other investment account is going to be much much simpler and a lot easier than any other way.
You have to rip off the band-aid, get it over with, start setting aside the money... say
"this is money we're not going to spend", we can't just blow this money. It has to go to investing.
Pay your future self first and then after you have that basis covered you can take your money
do whatever you want with it because you know that you have some security. You have something that
you took home, something in your bank account, you're worth something at the end of the day.
Thanks for watching guys. I'll see you for next week's video about Working Overtime and How That
Affects Your Taxes. Be sure to click the SUBSCRIBE button so you don't miss that video next week!