The Millionaire Plan, part of my Eight Rules for Life series.
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, with the average net effective tax rate for that salary being 5%. The net take-home pay is $45,600 annually or $3,800 per month and the average monthly mortgage payment is $1,150. That leaves $2,650 for everything else.
Now, if you want to be a millionaire take $1,000 per month and invest wisely in stock-based investments and voila. On average, you’ll be a millionaire within 25 years.
Now, you may be asking yourself, how? Well, the average rate of return in the stock market (S&P 500) is 10% historically, 0 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. For example, if you have an employer that provides a company match on a 401k plan, that counts. For those who throw up barriers or make excuses, it’s true you won’t 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 is absolutely possible.
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