Lecture Notes on Becoming a Millionaire in 10 Years

Introduction

• Real Wage Stagnation: Real wages have barely increased in decades.
• Financial Insecurity: Over half of Americans live paycheck to paycheck. 70% of US households do not have savings.
• Financial Goals: Survey suggests $500,000 is needed to feel financially secure; $1 million to retire.
• Objective: Discuss strategies to achieve millionaire status in 10 years starting from zero.

Speaker’s Background

• Built a million-dollar net worth by age 26 without a wealthy background or inheritance.
• Initial Income:
  • Worked part-time at age 16.
  • Earned money through results rather than time (e.g., $1 per photo edited in Photoshop).
• By age 18, accumulated $5,000 savings.

Career Path

• Real Estate Agent: Chose real estate over college.
  • Worked under an agent, split earnings 50/50.
  • Worked 10-12 hours daily, saved diligently.
  • Saved $200,000 in four years.
• Investment in Real Estate:
  • Noticed wealthy clients investing in real estate.
  • Bought and renovated multiple properties.
  • Achieved millionaire status from property equity and cash savings by age 26.

Recommendations for Achieving Millionaire Status

1. Save Aggressively

• Key Principle: Income is less important than savings.
• Frugality: Live like you're broke; avoid unnecessary expenses.

2. Increase Income

• Career Choice: Opt for careers not limited by hours worked (e.g., sales).
• Job Switching: Employees switching jobs every 2-3 years earn more.
• Entrepreneurship: Start a business addressing an unmet need.

3. Invest Wisely

• Investment Importance: Essential for wealth accumulation.
• Stock Market: Invest in diversified index funds for consistent growth.
• Real Estate: House hacking and repeated investments can accelerate wealth.

Practical Steps

1. Expense Reduction: Cut unnecessary expenses; invest savings.
2. Income Growth: Enhance earning potential through career changes or side hustles.
3. House Hacking:
   • Buy multi-family properties, live in one unit, and rent others.
   • Leverage low-interest loans for primary residences.
4. Investment Strategy:
   • Aim for an 8% average annual return on investments.
   • Consider strategic real estate investments to expedite wealth growth.

Real-Life Example

• Mike Rosart: Grew a million-dollar portfolio with limited income through frugality and strategic real estate investments.

Conclusion

• Summary: Achieving millionaire status requires disciplined savings, strategic income growth, and wise investments.
• Final Message: Control spending and increase income for optimal results.