Are you ready to step up and take action? Are you ready to fall in love with yourself and believe that you can have it all? Remember, you can achieve all your dreams and goals. You can make it all happen. But it starts with taking the first jump.
How to Make 1 Million Dollars Online (Even If You’re Broke)
It may sound crazy to make a million dollars online even if you’re broke, but if you are open to infinite possibilities and you have a positive mindset, it is actually possible. I did it, and this episode will show you how. I am super excited to share my secrets with you today in this solo round of The School of Greatness .
In life, there can only be two paths on your journey to your goals — you can either wait for the opportunities to come or hustle your way through and create your own opportunities to succeed and be great.
I experienced both. I waited for good opportunities that never came, and I ended up broke and without my own place to live — I had to sleep on my sister’s couch. I couldn’t even buy my own food and barely put gas in my car — I started to freak out. So, I decided to do things differently and made a major shift in mindset that started my journey to my first million. Six key takeaways made things possible for me, and I’d like to share them with you to guide you on your journey.
Start With $10 Million
“Start with $10 million” is actually a joke, and it reflects how our brains tend to trick us into doing the wrong thing when investing. The best way to circumvent our “inferior mental angels” is to learn about investing, create a plan and stick with it.
Our psychology often works against us, said Kirk Chisholm, principal at Innovative Advisory Group. It’s not difficult to make a million with investing — if you start young enough and avoid psychological pitfalls, such as following the crowd.
Avoid trading in and out of your investments. Create a sound investing plan, invest through thick and thin, and over time you can become a millionaire. Those who buy and sell more frequently tend to underperform compared to those who buy and hold, according to Vanguard Research.
Final Thoughts On How To Make A Million Dollars
Recommended Just For You
About Kelan Kline
Hi, I’m Kelan Kline! A personal finance expert, entrepreneur, and passionate money nerd. With my bachelor’s degree in business administration and finance, my drive in life is to help others learn how to make money online, create passive streams of income, and reach financial freedom! I have been featured in online publications like Forbes, USA Today, Huffington Post, Business Insider, Marie Claire, CNBC, Acorns, The Penny Hoarder, Bankrate, Nerd Wallet, Yahoo Finance, MSN, GoBankingRates, Her Money, Thrive Global, The Simple Dollar, Money Crashers, Readers Digest, FinCon, Best Company, Rent Cafe, Romper, Intuit Turbo, Opp Loans, CreditCards.com, Debt.com, Discover, LifeLock, Quick Sprout, Money Geek and many more! Click here to read all of my posts.
Buy When Stocks Are Cheap
A stock market slide like the one that occurred earlier this year may be nerve-racking if you need to cash out your investments. But stocks still offer the best choice if your long-term goal is to hit the million-dollar mark.
How long it takes you to reach seven figures depends on how much you start with, how much you add to your kitty and how often, and how much you earn on your investments. Over the long haul, U.S. stocks have returned an annualized 10%, including dividends. Building at that rate, it would take a bit less than 32 years to turn $50,000 into 800 million. If you invest $10,000 per year, it would take 24 years to reach the milestone. (The calculations assume that you invest in a tax-deferred account.)
But now, seven years into a bull market that has seen share prices more than triple from the 2009 bottom, many pros expect less-generous returns in the future. For example, Jim Paulsen, chief strategist at Wells Capital Management, estimates that stocks will return an average of 6.5% a year for the next decade. If his projection is right, it will take 31 years to reach 800 million if you invest $10,000 per year.
As the market’s performance since the financial crisis underscores, taking advantage of big declines to buy stocks can pay off handsomely. Few of us will be lucky enough to time the next big upward move perfectly. What’s key is that the more share prices drop, the greater the future opportunity. So one way to boost your gains is to set thresholds for buying on the dips. You could do so after a decline of 10%, for example. And if stock prices fall another 10%, buy more.
Staying disciplined in the face of downturns should pay off. “One of the biggest mistakes people make is that they pull money out of stocks when things look cloudy,” says Princeton economist Burton Malkiel. You should be doing the opposite. Before you know it, you may be sitting on a million bucks.
See All 10 Ways to Make 800 Million
Look for Stocks on Steroids
The surest way to make a million bucks in stocks is to go for growth and not worry so much about the price. Your chances of earning spectacular returns improve if you hop aboard companies that are generating equally spectacular sales and profit growth. And you don’t need to take a flier on small technology firms.
Consider the 30 best-performing stocks over the past 15 years. Not surprisingly, the roster includes such familiar tech firms as Apple (symbol AAPL) and Amazon.com (AMZN). But their returns pale beside that of retailer Tractor Supply (TSCO), which we recommended in our October 2001 issue. If you had invested in Tractor back then, you’d have earned 9,222%, an average of 36% per year. And if you hit the jackpot with the top 15-year stock, Monster Beverage (MNST), you’d be up by more than 48,000%, turning a $10,000 investment into $4.9 million today.
Finding the next monster stock isn’t easy; if it were, we’d all be multimillionaires. But dynamic, innovative companies that have long runways for growth offer the best chances of supersized returns. Consider Acuity Brands (AYI, $200), one of North America’s top makers of lighting products, such as LED bulbs and fixtures, sensors and control systems. Sales for commercial buildings are growing steadily. Acuity is also developing digital lighting products for the “Internet of things” (the expanding web connecting everything from buildings to appliances). Analysts see sales rising 20%, to $3.3 billion, in the fiscal year that ends in August, and profits soaring 39%, to $7.50 per share.
Also compelling is Icon PLC (ICLR, $71), an Ireland-based company that helps drugmakers test their products in laboratories and conduct late-stage clinical trials. Pharmaceutical firms are contracting out more of their research to try to bring products to market more quickly and less expensively. That creates long-term “growth tailwinds” for Icon, says Morningstar analyst Stefan Quenneville. Wall Street expects sales of 800.8 billion this year (an increase of 8% from 2015) and forecasts that profits will jump 19%, to $5.25 per share.