Apple's $1 trillion Mark With the Millionaire Plan

 On back of Apple's $1 trillion valuation and added attention to stock market investing, I thought it opportune to break out my millionaire plan.  

It is absolutely true that the average American, making the average full-time income can become a millionaire within 25 years and even own a home in the process.  It’s just math and a little dedication.    

The average full-time salary is $48,000, the average net effective tax rate for that salary is 5%. That makes the net take-home pay $45,600 or $3,800 per month. Keep that in mind, the average monthly mortgage payment is $1,150 leaving $2,650 for everything else.

Now, if you want to be a millionaire take $1,000 per month and invest wisely and voila. On average, you’ll be a millionaire within 25 years.  How?   

The common rate of return in the stock market (S&P 500) is 10% historically, so after 25 years at an average rate of return, you’ll have $1,298,181.

It's important to note that the $1,000 per month is an "all-in" number. So, for example, if you have an employer that provides a company match on a 401k plan, that counts. Occasionally, some people will say it’s just not possible or call me an elitist for suggesting that coming up with one thousand per month is doable. For those who throw up barriers or make excuses, it’s true you won’t ever achieve elevated financial status and reach loftier goals. For the average person in the workforce with dedication and a little good fortune along the way, it’s absolutely possible.    

Further reinforcing the point that it's more about saving and investing wisely over the years. The typical household income of the American millionaire is currently $93,000. That is significantly higher than the average household income of $54,500. But, it's still not an exponential or unrealistic number for most motivated people. The biggest reason why people don't reach their financial goals is their decision making, not because they can't.  

Photo By: Getty Images


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