Harry Domash presents an overview of attaining $1,000,000. (I wouldn’t exactly call $1,000,000 in assets or net worth rich, but perhaps that has more to do with location.)
Breaking it down, discipline is the most important aspect of getting there. Invest $500 each month and you’ll be on your way, thanks to compounding interest. The other two aspects according to the article are time and income, two things most people have.
If you count yourself a member of the “I want it now” generation, the idea of waiting 20 or 30 years to get rich probably sounds like a dumb idea… For the vast majority of us, wealth creation is a slow and steady — and powerful — process. The tortoise almost always beats the hare.
Slow and steady wins the race… to being a millionaire in the future. What about being rich? I have news for you. Following the technique outlined in the article, you may have $1,000,000, but In 30 years that amount won’t get you far due to the effects of inflation.
Assuming an inflation rate of 3%, having $1,000,000 in 2035 is similar to having $446,269.56 now, according to Tom’s Inflation Calculator. Do you consider someone with $446,269.56 today rich? (I certainly would’t turn away an offer of that amount, but I don’t think I’d be rich after happily accepting the check or unmarked bills and investing the money.)
Updated February 7, 2012 and originally published December 7, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.