Wealth Building Information

Is Accumulating a $1,000,000 Net Worth Easy? Yes and NO

Is accumulating wealth as easy as following a 3-step plan? Yes it is and no it isn't. As with many things in life, accomplishing a goal such as accumulating one million dollars (or even $100,000) depends on your desire, your personal choices and your daily actions.

Let's start with one example on how you might miss this goal. One of the first components of successfully meeting any goal is to have the desire (or a compelling reason). You've probably thought about losing weight, running a marathon or accumulating a great deal of wealth.

However, the 'want', 'wish', 'dream' or 'thought' is often not enough to propel you to take continuing action steps to successfully attain your goals. Even if you take the first action step, your ability to sustain enough motivation to meet your goal may soon disappear after a few months or possibly after a few days. Until you create and internalize a 'compelling reason' (true desire) to meet a specific goal, it will be difficult to meet your goal. You have to make this desire a 'must-have' instead of just a 'want'; you need a compelling reason to meet your goal. You need to create a true desire.

The simple part of accumulating wealth is many people have already succeeded in meeting their wealth accumulation goals. I have personally accomplished my net worth goals on two separate occasions and in 3 years I expect to reach my next net worth goal. I started with a net worth of a negative $10,000, mostly consisting of personal credit card debt. Meeting my net worth goal wasn't easy; but I created a compelling reason, made some personal financial choices & took specific, daily actions to make these goals.

Many other people from all walks of life, with all types of educational backgrounds are also very successful in meeting their net worth goals. Since it has been done many times before, setting and making your own personal wealth accumulation goal can be very attainable.

Let's say you determined that accumulating a $100,000 net worth is one of your personal goals. If you've created a compelling reason (a true desire), then you're ready to proceed forward to accumulating $100,000 and probably, much more. If you've not made it a 'must' goal and you are still only dreaming about accumulating $100,000, then you're not ready to start. You're not ready to take the second action step. This first step is critical - you must have a "compelling reason" to make your goal.

Anthony Robbins has made a living by proving that success starts with a strong desire. Check out a product review of his latest - Get the Edge program at www.your-key-to-success.com.

Ok, let's say you have now created your own personal compelling reason to attain your goal. You're ready to get started with the second action step. What are the key elements in meeting your wealth-accumulating goal?

1. Your income must exceed your expenses

2. You will invest your excess funds

3. You will be patient and let the magic of compounding work

1. Your income must exceed your expenses: This is a simple mathematical statement. However for many people, this is the most difficult step to overcome on a consistent basis. It is all about your choices. If your income does not exceed your expenses, you have to make a choice. You will need to cut your expenses, increase your income or if you are really ambitious and have that 'compelling reason' to accumulate wealth, you'll choose to do both.

In my personal situation, I focused about 70% of my energy on cutting expenses & 30% on increasing my income. I decided to spend less on clothing, entertainment, dining out and I also cut coupons to help reduce grocery bills. I decided to live within my personal financial situation. I decided to spend less than I earned. Remember, you have a choice.

A. Do you have a compelling reason & discipline to accumulate wealth?


B. Do you lack the discipline and have an immediate gratification need so strong that to satisfy your need, you need to purchase the newest fashion, go to all the home football games, dine out 4 nights a week, etc? It's all about choice.

2. The second step to accumulating wealth is to invest your excess funds. You need to invest your excess funds to meet your personal financial goals. Investments can range from real estate, stocks & bonds, CDs or possibly investing in a small business. Whichever route you choose, create a systematic approach to investing, change direction if necessary, but don't stop.

Investment diversification is important to help ensure that you can ride through the normal up-and-down cycles of the stock market or the real estate market. Personally, I started with investing in a 401K, then stocks and bonds and eventually real estate. While other young people decided to spend all their weekly paycheck, I made a choice to first, put a few dollars away each week into a 401K and other investment vehicles. I 'paid myself' first and then I spent money on the other entertainment activities. See some of the investing books at the end of this article.

3. The last step is the magic of compounding. You'll often hear the phrase, "The rich get richer." While this phrase can mean different things in different situations; in the context of compounding it has a major impact. Let me share a few examples on how you can accumulate $1,000,000, based on average investment return of 10% (stock market average).

Let's say you are 40 years old and you have $20,000 to invest. To accumulate $1,000,000 by the age of 65, you would need to contribute $567 per month.

If you're 30 and have $5,000 to invest, you'll need $218 per month to reach $1,000,000 by age 65.

Let's say you are only 20 years old and you have no money to invest. You can start with absolutely $0 and still only have to add $94 per month to reach that same $1,000,000 goal by age 65.

Wealthy individuals understand the benefits of compounding. Here are examples that show how the rich get richer.

A. If you have accumulated $10,000 and your investments yield a fantastic 20%, you will have earned $2,000 for that year.

B. If you have accumulated $100,000 and your investments don't do as well and you only earn 10%, you still outpace the person with only $10,000 and you'll earn $10,000 for the year.

C. OK, let's say you met your goal of accumulating $1,000,000 and your investments do even worse at 3% for the year. You will still make over $30,000 for the year. If your investments performed well (10%) you will have made an unbelievable $100,000 for that year.

There it is. The 3-step plan for meeting your own personal wealth accumulation plan. Whether it's $100,000 or $1,000,000; you have the potential to attain your personal wealth accumulation goal as long as you have a compelling reason (a true desire), you make the right personal choices and you take daily actions towards this goal.

Is it easy? - Not necessarily

Is it possible? - Absolutely yes!

Take Action Today!!

First, set aside 30 minutes or 3 days and create a compelling reason to set your own personal net worth goal.

Then, set a specific net worth goal for 3 months, 1 year, 5 years and 10 years. Not sure what your goal should be. It doesn't matter right now. Just set a goal and change it as needed - you'll probably change it upward.

Next, take $10 out of your wallet or purse - TODAY - and deposit it into your new "Wealth Accumulation" account. You've just now taken the first steps and are now on your way to meeting your goal. You'll be amazed at what you can accomplish!

To start your wealth building education, there are many great books on the specific subject of accumulating wealth and you can search your local library as an inexpensive and resourceful first action step. In addition, check out some of these titles listed below. You can find these titles and many more online at Amazon.com, Books-a-Million or Barnes & Noble.

The Automatic Millionaire, The Finish Rich Workbook, Smart Couples Finish Rich, Smart Women Finish Rich - by David Bach

Multiple Streams of Income, Creating Wealth, One Minute Millionaire - by Robert Allen

Rich Dad Poor Dad, Rich Dads Guide to Investing, Own Your Own Corporation, Rich Dads Retire Young Retire Rich, Real Estate Riches - by Robert Kiyosaki

The Laws of Money, 9 Steps to Financial Freedom, The Road to Wealth, The Courage to be Rich - by Suze Orman

The Truth about Money, Ordinary People Extraordinary Wealth - by Ric Edelman

Secrets of Six Figure Women - by Barbara Stanny

The Savage Truth on Money - by Terry Savage

The Only Investment Guide You'll Ever Need - by Andrew Tobias

The Millionaire Next Door, The Millionaire Mind - by Thomas Stanley

The Intelligent Investor - by Benjamin Graham

About The Author

Mike Matthews is a writer with many personal successes in the areas of small business, personal finance, real estate investments and reaching fitness goals. He writes informative articles and conducts honest product reviews with a focus on the four main areas outlined above. His articles & product reviews can be found online at, http://www.Your-Key-to-Success.com. His book on 'Taking Action - Your Key to Success' is due out in 2005.


Finance:Wealth Building Articles from EzineArticles.com
01/17/2018 08:39 AM
Great Lessons About Money
Money is very important in life. Therefore, there is a need to be properly educated on the issue of finances in order to handle them in a better way. I pray that you may put these lessons into practice. Each lesson is very important. You need to deal with challenges you have that are associated with any of them.
01/09/2018 08:17 AM
Avoid The Next Financial Storm That Will Affect Most American People Very Soon
My greatest fear along with most Americans would be if we will out live our money during retirement or if we will have enough money to retire on at all. As long as our government lives on separate terms than the people they govern I foresee million of Americans suffering from financial strife later on down the road.
12/29/2017 11:40 AM
How to Make Money and Become Richer Every Day
There are countless ways of making money. It all begins with your motivation to get creative and be determined to go for success.
10/31/2017 03:10 PM
Keep Track of Your Total Net Worth
For business owners, a comprehensive wealth plan includes their business value, as well as the projected growth they expect to receive from their business. By taking both into consideration, the owner will build the right value in their business, while simultaneously recognizing and planning for the income he/she will receive.
09/18/2017 11:02 AM
Money - How Do I Get It Effortlessly?
Most people have learned that you have to work long and hard to make money! This is exactly the opposite way rich thinking/believing people "work" for their money. Find out how you can "change" that below!
08/30/2017 12:21 PM
3 Ways a Teenage Can Acquire Wealth and Maintain Financial Sustainability
Making wealth depends on the choice of an individual. This article shows you what you need to attain greater wealth. The groups mentioned in this article will help both teenagers and adults to decide which channel to go through.
08/13/2017 05:01 PM
What Will Make Your Money Stick
So what's preventing your money from sticking? Well, deep down you still have a block to creating the ultimate success level you desire for yourself. You don't believe you are worthy enough at a deep core level. Want to know a little secret? Most people don't feel good enough. It's the ego.
08/08/2017 08:59 AM
Differences Between The Rich And The Poor
Have you ever wondered what the difference is between the rich and the poor? Why are some people wallowing in the abyss of poverty while some are swimming in the ocean of stupendous wealth? Sometimes it may come across to you to say that some people are rich because they were born with silver spoon in their mouth.
07/06/2017 10:32 AM
Fees Vs Commissions - What's the Difference?
'Do the Math' Philosophy Fee-based and fee-only financial advisors have been rising in popularity over transaction based commission accounts. Advisory fee-based accounts provide the wealth management industry with diversity in the way investors pay for financial advice - and we all know that investors love to diversify. There are some key differences between fee-based advisors, fee-only advisors and 'classic' stock brokers.
07/04/2017 10:11 PM
Why Are People More Focused on Money Than On Survival?
It's a sad state of affairs when money supersedes the need to survive. The world is on the brink of total disaster yet authorities are focused on money-making projects rather than on how and why this is the case. Governments appear obsessed with things like trade and big business.
07/04/2017 09:38 AM
Saving Money Doesn't Mean Giving Up Quality
America's mindset today is "the bigger the better." "The more it cost the more its worth." "Get it now and pay later." These ideas are just not smart. Our government is a prime example with our national debt at all-time record high which no one can pay for.
06/22/2017 03:22 PM
7 Wealth Secrets
Money is power; it can be a vital source of happiness and a paramount entity for some people. The gurus can give you hundreds of secrets to becoming wealthy. But, the catch to the "get rich soon" equation is simply a law of attraction. On the contrary, some people ruin their lives by becoming hungry for money that results in destroying and harming themselves and others.
06/16/2017 10:03 AM
Three Reasons the Rich Get Richer
Financial Planning shouldn't be hard. Unfortunately, the reason that people are not more successful with their money is that they are bombarded by financial services marketing. You are constantly being pushed to buy products from financial salespeople instead of simply copying strategies that the wealthy use to grow and protect their money.
06/06/2017 10:39 PM
Bitcoin - Yes or No? Should You Invest in Bitcoin?
Wondering if you should invest in Bitcoin? Wondering what the pros and cons are? Here are a few things you should know before you buy Bitcoin - and what to watch out for!
06/03/2017 09:30 AM
Bitcoin Buying Guide - Easy 3-Step Guide to Buying Your First Bitcoin
Looking for a Bitcoin Buying Guide? Here's a simple, easy way to buy Bitcoins in 3 easy steps - with safety tips along the way!
06/01/2017 08:03 AM
Tips For Living Life On Your Own Terms After Retirement
"Retired in peace" is often a word that is heard multiple times, but seldom has become true in reality. Inflation is an unavoidable factor that slaps financial difficulties hard on your face in case you ignore the changing trend of economy. To make the first three words of this article come true, we request you, our loyal reader to take some of your valuable time to go through the points mentioned below.
05/15/2017 11:02 AM
Trading Or Investing - Which Is Suitable For You?
Many people have asked me, "Is it better to trade or to invest?", "Should I be trading or investing?" I decided to share my views here based on my personal experience in both trading and investing over the past two decades. Trading and investing, in the context of this article, focuses more on the equity market, since most of the questions were asked relating to the equity market. However, similar approaches in deciding whether to trade or to invest apply to other assets like properties and businesses.
04/26/2017 08:35 AM
Make Money While You Sleep - Here Is The How To
Steve Harvey, famous comedian and host of the show Family Feud, said it the best. He said that some people make vertical money and some people make horizontal money.
04/25/2017 10:48 AM
Why Asset Allocation Is So Important in an Investment
In this article author explain "Why asset allocation is so important in an investment?" Asset management is very important to build good portfolio, with proper asset allocation it becomes very easy in investment management to make your assets performs best in future.
04/22/2017 11:06 AM
Create Astonishing and Seemingly Impossible Wealth Outcomes
All you need to do is start living specific, proven financial habits early enough with sufficient consistency and the result will be financial freedom with almost total certainty. Anyone can do it, yet studies prove fewer than five percent reach their goal. It's absolutely amazing.
04/19/2017 08:41 AM
What Is Roth IRA?
Times have become more uncertain and the financial status of our economy is becoming more shaky forcing investors to look for alternative ways of securing their future. Most people have turned to investing in gold. Though the investment is tricky and risky, it offers better returns as compared to any other investment.
04/17/2017 10:08 AM
4 Wealth Drains Robbing You Blind Each Month
Our tax system is designed to penalize hourly and salaried workers while rewarding entrepreneurs and business owners. Salaried workers pay taxes based on what they gross, while business owners pay taxes based on what they net. To that end, most people think Fortune 500 companies getting something over on little guys. Keep in mind, you don't have to be a big business to get great tax advantages. Even startups get huge tax benefits. So rather than complain, maybe you should run a business from your kitchen table.
04/06/2017 09:19 AM
Waiting Out Brexit in Asia
Following the referendum on Brexit last June and the subsequent triggering of Article 50 the United Kingdom have decided to leave the European Union and seek individual trade negotiations with the rest of the world. As a Britain living in Asia this presents itself with both threats and opportunities, not least for investment outside the UK. Here are my top investment opportunities for Brits living in Asia.
04/05/2017 12:22 PM
Getting Rich Overnight - The Truth About Getting Rich Overnight
Wouldn't it be great to be able to go to sleep one night and wake up the next morning to millions of dollar in your bank account? Of course it would! So how do you get rich overnight? The simple answer is that you can't! However, you can reach the next best thing in which will be explained here in this article! Check out the absolute truth about this entire "getting rich overnight" idea.
04/02/2017 06:43 PM
Your Stock Broker Doesn't Love You
Learn what a fiduciary is and why it is important that you work with one when planning your financial future. There is a critical difference between working with a fiduciary and a stock broker and you should know who you are working with as it can impact the quality of the advice you receive.
04/02/2017 11:35 AM
Creating Extra Income - 3 Ways To Earn Extra Income On The Side With A Full Time Job
Things get tough in life, especially finances! Are you looking for a side job where you can make extra additional money every now and again in order to keep up to date with bills or maybe you just want a little extra spending money? If so, check out this article over 3 super easy to do side jobs that can provide you with a little extra spending money in your wallet each month!
03/29/2017 11:03 AM
10 Reasons Why You Are Not Rich Yet
Everyone desires to be rich, but it's not possible to obtain wealth until you realize what holds you back. Once you recognize the beliefs and negative thoughts that you've carried in your head all your life regarding money, only then will you realize the power you hold to start manifesting money in your life. The rich perception most people have is attainable through financial freedom to live the life you desire once you achieve your goals.
03/28/2017 11:36 AM
Owner Finance College Fund
I love owner financing. There is no better way for a regular person to create wealth than owner financing.
03/08/2017 02:56 PM
Top Hedge Fund Trends to Consider
Learn more about the latest in hedge fund trends. And find out how it can help you increase your profitability.
03/06/2017 11:21 AM
Idea Mapping for Manifesting Money
Using color and creative expression creates a faster way to manifest money in your business. Build your skills through mapping your imagination.
03/06/2017 11:07 AM
How to Invest Time Instead of Money to Earn Passive Income
If you are like most folks you know that investing is a great way to build wealth. However most assume it takes being rich to get richer. But there is another way.
03/03/2017 02:45 PM
10 Lazy Man's Secrets To Online Riches
Nobody wants to stay poor forever. Everyone wants to earn to fulfill his needs, and at the same time have some savings. In most of the cases, the amount of money that a person makes depends on the hours he put in to his endeavor. Many a times we find ourselves lagging behind in making enough money so that we can fulfill all our needs rather than a few. Since time immemorial, men having been looking for secrets to riches, be it a treasure hunt, invading places, going through old maps and scripts, and what not. But not many have been successful in their quest to their steps to riches. But what if we can use some technique and have a proper planning to make more money than what we currently earn? That too, after a minimum initial hard work, we can keep lazing around but still be able to earn massively? Anyone would be lured. There are quite a few way that can make your steps to riches with smallest of efforts.
02/13/2017 11:22 AM
Give Your Way to Wealth
Parents, most times, think that their children are too young to give and therefore do not teach them the concept of giving. I am talking of charitable giving which is different from children sharing with their siblings. I am making the above clarifications because a parent had argued with me before that she teaches her children to share whatever each of them has; and thus has taught her children the concept of giving. It is natural and easier to give to close relatives, especially those you know will (or can) give you back. Charitable giving is not usually taught in most homes. The first exposure children have to charitable giving is usually in religious gatherings (church, mosque, etc.) Even then, children don't fully understand the concept and may not even be involved in the process. They give offerings in church and see their parents do the same but may never be aware of what the money is for. At best, they know it is "God's money".
02/10/2017 09:02 AM
Top 8 Websites For Students For Earning Money
As a student, you will face times when you won't have a single penny in your pocket, and you will be struggling for a minor job while managing your studies. It's super challenging, that's why nowadays students are seeking different methods for earning money wherever and whenever possible.
02/07/2017 10:20 AM
3 Smart Ways to Make Money
The Internet has truly touched lives. It has opened several opportunities for the people who stay in their homes and make us of this advanced form of technology. It does not require the person to be an expert technically.
12/29/2016 10:01 AM
Canadian ETF Strategies: Why A Canadian Bond ETF Is Better Than Investing In Individual Bonds
The only thing that might be worse than purchasing bonds directly through Canada's dealer network is purchasing a bond mutual fund. The average expense ratio on a Canadian bond mutual fund is close to 1.75 percent. In an interest rate environment where long term yields are hovering around 2.5 percent, that's like sharing my hamburger with a stranger and seeing three quarters of it gone. So how can the retail investor get the fixed income exposure with a handsome seniority and a tight bid ask spread? The average investor should consider Bond ETF's to re-create fixed income exposure.
12/07/2016 02:41 PM
Trading Trilogy-3: Money Management
Remember, money flow in trading equals blood flow in the human body. Your survival as a trader finally depends on it, and is not to be taken lightly.
12/07/2016 08:12 AM
Stay Broke Not Poor
Staying broke is a financial strategy to help you reach financial freedom. What does staying broke not poor really mean? First, it means having a monthly cashflow plan (budget). Second, you are practicing delayed gratification. Third, reinvesting your money into yourself and your business.
11/30/2016 09:41 AM
Common Questions About Inheritance
When it comes to inheritance there are many questions that people have. It's difficult to know what to expect when a loved one dies and how to manage everything that comes with it.
11/30/2016 09:40 AM
Eight Complex Inheritance Problems
When there's a death in the family it often brings up conflict. People can feel jilted when they didn't get what they wanted or expected out of the will.
11/29/2016 10:19 AM
Building and Starting Your Own Passive Income
This article educates people on how to build as many streams of passive income possible that would allow them to get out of the rat race. People now-a-days believe that employment is what would drive them towards financial freedom yet that is a challenge this article poses.
11/28/2016 08:26 AM
You Need More Income
The middle class crunch is real. You need more income to survive.
11/21/2016 12:54 PM
Why You All Need To Strive To Make One Million Dollars
The songwriter says: "If I can see it, then I can do it, if I just believe it,there's nothing to it". For you knuckleheads out there; this means that whatever you can envision and believe that is very easy for it to happen. Think about making a million dollars and guess what?
11/15/2016 11:26 AM
Long Term Investing: Trend Following Vs The Herd Mentality
Many experts advise against "following the crowd" when it comes to managing a portfolio. For long term investors, following the crowd usually produces the best results for their bottom lines.
10/27/2016 02:09 PM
The Nuts and Bolts of Triple Net Leases
One way to achieve better, more solid returns is by investing in a better grade of real estate. Triple Net Lease properties offer solid cashflow, reputable tenants and a faster way to grow your portfolio. Learn more.
10/12/2016 11:33 AM
The Difference Between Savings and Investment
Not all earning members of the society are aware of the merits and demerits of a savings or an investment plan or of the difference between the two. This is the knowledge which is not considered basic education sadly and ultimately you have to rely on internet sources or an accountant to take the best decision for you as far as your income is concerned. This is the reason why new professionals are confused about what to do with their leftover money after they have paid their bills.
09/26/2016 11:16 AM
Teach Your Children About Money - Very Essential
Man's journey on the road to success begins at the age of accountability and continues on a daily basis for the rest of his life. As soon as a child is wise enough to claim any money given to him/her as 'my money'; that child is ready for Financial Literacy lessons.
09/26/2016 11:16 AM
How to Create and Sustain Wealth
The process of wealth creation, though not so easy, is quite simple. Anyone who simply follows the basic principles of wealth creation shall surely become wealthy. There are four basic principles for creating and sustaining wealth. These are: Giving Saving Investing and Spending wisely It is very important that we teach our children these principles of wealth creation and sustenance. If our children start practicing them now, they will become wealthy early enough and will be able to pass those wealth creating habits onto their own offspring as well.
09/15/2016 08:37 AM
The 40 Percent Rule
How do the wealthy stay wealthy? The 40 percent rule of course.
09/13/2016 09:31 AM
Robo-Advisors Match Technological Precision With Human Wisdom
Technology has made everything better, faster, and cheaper over the years, and investing is no exception. Indeed, many robo-advisory firms have launched in the last five years touting the benefits of algorithmic investing rather than human selection. But in a world where convenience sometimes seems to trump involvement, can we really rely on the marvels of our modern age to their fullest.

home | site map
© 2006