Brian Mudd’s Eight Rules for Life; The Millionaire Plan

As part of my Eight Rules for Life series, this is my Millionaire Plan.

It’s 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 $50,000. The average net effective tax rate for that salary is 5%. That makes the net take-home pay $47,500 or $3,950 per month. The average monthly mortgage payment is $1,200 leaving $2,750 for everything else. 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. 

How? The average rate of return in the stock market, the S&P 500 especially, is 10%. After 25 years at an average rate of return, you’ll have $1,298,181. Also, consider the $1,000 per month as 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’s possible. Millionaires are minted every day in this country. The United States stock market is the greatest wealth creation machine in world history. Be intentional and take advantage of the opportunity we’re blessed to have in this country. If you’d like to achieve your financial goals. You will.

Photo by: Spencer Platt/Getty Images

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