Archive for June, 2008:
How To Make A Million Dollars For Retirement? My List
How to make a million dollars for retirement? I ask myself that question quite often. Like I said in my previous post, my current job pays me well enough to save and invest to reach my goal of 1.5 million dollars. But I would like to hit my target at an earlier date than the 11 years that I have projected. Strained my brain cells and this is a non-exhaustive list that I have come up with:
Save and Invest
This is definitely my current plan. I intend to accumulate 35% of my paycheck and weigh my investment towards equity funds for the next 11 years. With a projected annualized 5% returns on my annual investments as well as on my current investment pool, I am expecting approximately $1.6million dollars. Any returns above 5% will be added bonus J
Trade Forex
I have had a lot of experience trading derivatives and foreign currency exchange. It is a highly leveraged and risky venture but has the potential to offer astronomical returns. Can I make a million dollars from trading forex? I believe that it is entirely possible but a sizable proportion of my time must be devoted to monitoring the currency markets. Can I afford the time? I am unsure.
Trade Stocks
Trading Stocks is an attractive option as well. I have limited success with trading stocks and am trying to derive a strategy of stocks trading that will not require my daily attention. A weekly or monthly trading frequency will be highly suitable for my lifestyle and schedule. Is it possible for me to earn a million dollars from trading stocks? I think I am unlikely to trade with sufficient size such that the returns will be large enough to earn a million dollars. My current thinking is to devote only $50,000 to a non-leveraged stock trading account and to invest/trade in dividend yielding stocks.
Trade Options
I have an account with interactive brokers which I have left dormant for about a year now. A year ago, I was trading options actively but realized that I had to devote my entire waking hours to this effort in order to achieve any tangible rewards. Basically I burn out trying to trade options actively. This is still an option for me to accumulate my fortune or one million dollars but I would like to find a more laid-back strategy before committing my funds again.
Make Money Online
My graduate degree was on computer engineering and I was always attracted to the idea of making a living online. I have tried affiliate marketing using paid-per-click on google and yahoo and have only broken even. Recently I am trying to utilize google adsense for this blog as well as some hubpages and other sites and is starting to see some results. My assessment is that this is a very possible wealth accumulation strategy for my million dollars venture. Not only that, it would be possible for me to even create a passive income stream that can allow me to retire comfortably. I will be working hard on this strategy.
Gamble & Lottery
Definitely I will be buying my weekly lottery tickets and hoping for the best. But I am not about to put my hopes of retirement on a lottery tickets. Well maybe I can daydream about it each time I buy a ticket but this can never be part of my plan to retire. Any winnings will be a bonus to buy a nice dinner for the family or maybe a vacation to Switzerland..LOL.
Start a Business
Starting a business is also one of my dreams. I have explored a couple of possibilities and have come to the conclusion that it is very possible to setup small scale businesses which requires little maintenance by partnering with skilled and trustworthy people. For example, I have met with a hair dresser who is able to run a small-scale hair saloon but does have neither the capital nor the desire to start her business. She is an honest person whom I feel can be trusted to manage the business and a few employees. This would then create a passive income stream once the business picks up. Incentivizing her with profit sharing will allow me to start the hair saloon with her skills as a competent hair dresser as well as a shop manager. This is an idea still in the conceptualization stage and I would love any comments.
The above ideas are what I can think of from my own experience. If anyone has ideas for earning a million dollars, please share with me through the comments. I will keep you in my mind when I have earned my first million dollars :P.
What Should I Do To Make A Million Dollars?
I had started this blog and my Law Of Abundance Check page to share my thoughts and the knowledge that I have learnt about making money. Making a million dollars for me is about earning my financial freedom, as it is for most of us. I dread waking up early every morning and dragging myself to work but it puts food on the table and I have always consoled myself that my day job pays me well to retire in 11 more years. So hold tight and endure for another decade 
Everyone of us has choices and I can either make the choice to leave my current job (very narrow industry and I won’t be able to get the same pay elsewhere) and risk not achieving my retirement goal of $1.5 million dollars OR I could hold on tight and continue my savings and investment plan, which my current job offers, and hit financial freedom at 45 years old. Tough choice for me. If I was still a swinging bachelor, I would not have thought twice. Not that I am complaining, I love my son and would sacrifice the world for him.
What would I do to make a million dollars? Would I risk my family lifestyle? Would I risk my financial freedom at 45? Those are tough questions for me but it is clear that there are things that I would not do to make a million dollars. I would not
- sacrifice my family’s wellbeing
- sacrifice my time with my son
- rob or hurt another human being
- lie or cheat or take part in any scams
But what are the things I would do to make this one million dollars? I ponder about what I would be willingly to sacrifice and I would
- sacrifice my after-office time
- have less sleep in order to work on any million dollars making venture
- have less social activities to work on my million dollars business
- invest up to $5000 for a business venture
Would doing all the above hasten my journey to my retirement goal of $1.5 million dollars? I would hope so. There are many ventures that I have already tried and while some have succeeded, there were many that had failed. I have taken a timeout recently to think about setting my goals but my thinking has not really crystallized yet. To help me on my journey, I am going to adopt the simpleology method to get myself faster to my million dollars goal. Perhaps I should document my simpleology journey here as well.
How to make a million dollars? Leverage your social capital to make your first million.
In my last post, i shared some information that i have collected from my interviews of 50 over millionaires. I shared on the ways that these average joes, who were like you and me, were able to make a million dollars. Many of them made their first million dollars through investment in real estate and the stock market. They were also many of them who were able to make a million dollars by starting a business.
In this post, i would like to share on what is one of the key common factor that have led to each of their success in making their first one million dollars. In my selection of potential millionaires for interview, i have chosen only millionaires who started with minimal tangible resources and made their one million dollars from scratch.
When you look at this data, you will probably think that the information is as expected. But take a moment to consider the starting profiles of these millionaires, they did not attend Ivy League colleges nor did they have rich uncles who own large silicon valley companies or long-distance god mothers who left them an inheritance. These are guys and girls who started from file and rank and broke free from the daily grind.
Why did they all say that knowing someone with the correct connections or knowledge was one of their key success factors? This was what i was interested to find out. As i delve deeper, each of them revealed that they were able to start a business with help from friends that they knew or invested in the right stock or real estate with advice from trusted professionals.
Before each one of these millionaires started their venture, they mapped out their connections to friends and professionals that they know. Not all of them may have mapped out their web of friends and professionals deliberately, but each have taken time to consider their network. I would suggest doing an exercise to mind-map your million dollar network, which is your social capital to make your one million dollars. I use a free software called freemind. You can download it here. It is a free and easy to use software for mind mapping. Below is an example. The names are changed for privacy considerations.
After mapping your million dollar network, you will be able to pinpoint where are your greatest leverages in your social network. You will be able to instantly identify where to get help when you need it. You will also understand where you could strengthen or build up so as to increase the effectiveness of your network. Raju Sykam created a local courier service in his city for businesses that needs to send documents and parcels within the city. He was able to use his million dollar network build up from his days working as a door to door salesman for office supplies. Now Raju is a millionaire boss who has more than 100 couriers working for him daily.
How to make a million dollars is not a difficult question to ask nor a difficult venture to start. To many of us, it is the tapping into our social network that will be the most difficult step of all. Some of us will feel that we are acknowledging that we are in need of help or that we are not successful yet and needs favors to get there. While some will feel that leveraging into our social capital is equivalent to making use of your friends. I say this to those of you who feel this way, the breaking of this barrier will be the most critical step towards making your first one million dollars and the sooner you step out of your comfort zone to reach out into your million dollar network, the sooner you will become a millionaire.
Note: Sorry about the pictures..you may want to click and view them in a new window for better resolution 
How To Make A Million Dollars? How Others Did It?
More than 300,000 people became millionaires each year. Why aren’t you one of them? Perhaps they were lucky and strike the lottery, or perhaps they inherited the money from a dead relative. Or perhaps they rob a bank. Ok I am pretty sure that the last example was not counted into the statistics but 300,000 is still a pretty large number and what is their secret to achieving a million dollars to be entitled to be called a millionaire? How did they make their million dollars? Where are all the opportunities that were available to them? Is it possible for me to also take advantage of their opportunities?
We have all heard of the guy who made his fortune on the stock market and of the neighbour who sold his investment property and made a million dollars of the sale. I interviewed a Dave Sheldon, from Los Angeles, whom I met during an investment seminar late last year. He works in a training consultancy firm that develops training systems for companies, and he has joined the ranks of the millionaire when he sold his investment property in LA two years ago. Dave was an average guy drawing a four figure salary from his daily grind but invested in the real estate market ten years ago. When he finally cash in on his property, his profits was more than a million dollars and was more than sufficient to allow Dave to live the life that he has been dreaming of. Nowadays, he fetches his kids to school and is currently attending college again, to pick up a few more languages. By the way, Dave is only 35 this year. Is it possible for all of us to be like Dave? Join the millionaire club before 40 and escape the daily grind?
Where did all these millionaires make their millions? Are there many secrets that we are not aware of and need to attend $3,000 seminars to learn from? After speaking to more than 50 millionaires, I have compiled a simple statistic of where did these average guys and girls make their million dollars and how we can follow their example. Note that these are people whom I have met over a period of 3 months and have no relationship with each other whatsoever.
From my interviews and research, I could see that most of millionaires that I have met made their first million dollars from starting a business or investment in real estate or the stock market. This is not surprising since the last few years before 2007 were economically strong years. Significantly less folks saved a million dollars from paid employment or just spending less. What does this data tell us? Quit our jobs today and start a business in investment into real estate. LOL.
It does tell us that it is becoming difficult to become a millionaire by simply working hard on your job and hoping that your 401(k) plan will grow into a million dollars. At least it is not a popular method to becoming rich. Why so? The median income in US is $21,587, which does not leave much on the table for savings after you deduct expenses and taxes. Yes, taxes. To really jump onboard the million dollar club, most of us will need drastic actions and this path is likely the entrepreneurial route, where we can start a business which we are passionate about.
Starting a business is not for everyone. The financial risk that comes along with the business can be quite foreboding but if one take careful steps in managing the risk, the rewards can be extremely gratifying financially and emotionally. I will talk about starting a business in another post next time.
How To Make A Million Dollars? Becoming Rich Through Hard Work Is A Myth
How to make a million dollars? You could say that this is one of the most asked questions after questions on the existence of God. For many of us, making a million dollars seem to be an obstacle in itself rather than an ambitious goal. Even though we see successes around us daily, it can sometimes be hard to imagine that we can achieve the goal of making a million dollars in our lifetime, especially when we start from scratch.
Despite the fact that each year 300,000 new millionaires enter the million dollar club, many of us cannot perceive how can we make a million dollars. We see it all around us, many success stories of average folks who pull themselves out of poverty and became multi-millionaires but to imagine ourselves in their shoes, we simply shut out that idea.
A Positive Attitude Towards Money
Worse still, some of us were brought up to think that the pursuit of wealth and desire of riches is a sin and we should be contented with whatever we have. That is probably one of the greatest stumbling blocks in the pursuit of wealth and to make a million dollars. The pursuit of wealth and to become rich is neither a sinful nor virtuous act. The pursuit of riches is a neutral action but how you eventually use your wealth will determine the morality of your actions. You must become receptive to the idea of chasing wealth otherwise you will never even see the goal. Staying positive and committed to making a million dollars starts from having a positive attitude towards money.
Does Hard Work Always Pays?
The other incorrect belief that we have been led to believe is that Hard Work always pays and that the pot of gold will lie behind every rainbow. Just chase that rainbow daily and you will see that pot of gold. That’s the story that we were all told and many of us, believing in that myth, slogged ourselves silly even at the expense of our health. Instead of making a million dollars, we become frustrated and want to leave our daily grind.
We have also seen some of the more senior colleagues in our workplaces who have achieved little despite years of slogging. Did he not work hard enough? Or was it just bad luck that he did not made it? Is hard work really the way to go? Your own experience should have already told you that pure hard work is not the way to go, if you are really keen to make a million dollars. To make a million dollars, you must be able to channel your energies correctly and very often, less work can mean better results than more work.
Have a Game Plan
Stop for a second to think. To make a million dollars, would you need a plan? Would you need a focusing of efforts so that you will not become worn out and give up along the way? Setting a game plan is one of the most critical steps to take towards earning that first million dollars.
Sit down and analyze your situation. What would it take for you to become a millionaire? What resources (friends, business contacts, experts, knowledge etc) do you currently have that can help you on your path? Do you need to make drastic actions to your current employment of life in order to achieve that first million dollars.
Sit down and think about how you can start towards making that first million dollars. You may eventually decide that loyal employment to a large multinational corporation is the best way to earn that one million dollars or you could decide that starting your own business is the only way. Regardless, you will have a plan. And that is the most important step for many millionaires that have come and go.