How can anyone justify being a billionaire?
Many people dream that at some point money will no longer play a role. It is often said that someone wants to be a millionaire. A private fortune of one million euros is not enough to stop working for the rest of your life.
But it is a good start to be able to take it a little more relaxed in the future. At least one then no longer has to worry about a sudden job loss or an unpredictable repair of the car. In addition, with private wealth of this magnitude, one can afford things that other people cannot buy. For example, an exclusive vacation, a great house or a sports car. But you have to be careful, because having money comes from keeping money. Before you even think about it, you have to have the millions in your bank account or in your share portfolio. In this article, we therefore want to give some examples of how normal people can make a million dollar fortune in the course of their life.
Get rich with smart investments
Windy financial advisors have been advertising for many years with the promise of easy money. But those who promise a fortune with little capital investment and little effort are usually just filling their pockets. You don't usually get rich overnight and Bitcoin millionaires are the exception. Much more often people get rich through smart investments who think long-term and patiently build up their portfolio.
Anyone who invests in stocks or a fund month after month has a good chance of building up a sizeable portfolio over the long term. It is important that you inform yourself extensively. This is the only way to protect yourself from the high fees charged by the banks. Time and again it happens that inexperienced investors let themselves be talked about a financial product, which above all makes the bank and the advisor rich. Because fees of five or more percent can hardly be offset in the medium term if there are also custody fees and annual fees.
Those who find out for themselves and take control of their investments can become a successful investor.
Many people consider investing in the stock market to be a gamble and cannot do much with it. But historically it has been shown that buying stocks and equity funds is not as risky as one might initially think. At least that's true if you have a long investment horizon. So far the markets have recovered from every crisis.
Only those investors who sold at the height of the crisis because they wanted to save the last of their investments or were forced to sell for other reasons have lost. This is of course the wrong strategy. Because when the once expensive stocks are finally available at a bargain price, it is better to buy more than invest more money. This takes a little experience and self-discipline. Because it is human to follow other investors in a crisis. But sooner or later the markets will recover. A broadly diversified depot therefore carries less risk than many people believe.
Get rich by saving?
The Germans are considered the nation of savers. While old-age provision is based on shares in many countries, many Germans prefer to put their money in their savings book or checking account. They put a little money aside on a regular basis. But this money is being eaten up by inflation and is therefore not really suitable for being part of retirement provision. Anyone who can pack an average of 500 euros on the high edge during the 40 years of their professional life and do not have to access it once will have saved almost a quarter of a million euros. However, if inflation is only roughly the same over the past 40 years, money will lose around half of its purchasing power during this period. In addition, it is not even possible for many people to really save 500 euros per month, as there are always unforeseen expenses and of course you want to treat yourself to something. Only very few people will be able to build up a fortune by simply saving. Without an inheritance or some other windfall, it is practically impossible to build up a substantial fortune. It was different in the times when there was still interest on savings accounts and fixed-term deposit accounts. At that time it was still possible to increase one's wealth without investing with risk.
Today, however, savers can no longer hope that sooner or later they will get good interest rates again. It does not look like interest rate policy will change in the medium term. Anyone who wants to build something up with the money that is left over month after month must therefore look around for a more sensible alternative.
Wealth through an entrepreneurial activity
Employees and freelancers can of course achieve a respectable income and also afford a certain luxury from it. An important foundation stone is laid with a solid education or a good degree. Those who stick with it, show commitment and continue their education will be able to achieve significant increases in salary in the course of their professional life. But a good salary alone is not enough to eventually reach a private fortune whose dividends you can live on. Employees can actually only achieve financial freedom if they build up a second mainstay or if they invest their money wisely.
Some people therefore decide sooner or later to go into self-employment. Sometimes they do this alongside their regular job. In other cases, they say goodbye to their old employer to start their own business. Stories like those by Mark Zuckerberg or Elon Musk are of course the absolute exception. It is seldom possible to achieve such incredible results within a few years. Some entrepreneurs fail in the first few months because they cannot cope with the long-term burden. But if you fight your way through the first few months and are able to establish yourself in the market, you can earn significantly more than in your old job. It always becomes really worthwhile when employees come into play. Then it is not only your own finite labor force that is sold. Because the number of employees can be scaled almost arbitrarily, which means that significantly larger projects can suddenly be tackled. It is true that entrepreneurs are always faced with new challenges. But with the right attitude and the right team, it is possible to cope with them.
Anyone who has been thinking about taking this step for a long time should just start with the concrete planning. When the first aspects are planned, starting a company is suddenly within reach. Not every employee has the potential to become successful as an entrepreneur. But if you don't use the potential, you will get annoyed at some point.
An entrepreneur won't become a millionaire overnight. But at some point there comes a point where the company is sold or resold to the next generation. Then it becomes apparent how much this step has paid off.
See money as a means to an end
Those who only focus their life on money will have a very difficult time on their way to becoming a millionaire. It is true that losing money is always annoying. But successful millionaires can usually handle it very well and do not get upset if they have made a bad decision in the past. But that doesn't mean that they don't blame themselves anyway. Those who learn from their mistakes in dealing with money will get better and better over time. This is especially true when it comes to the lure of money. Over time you can train to increase your resistance to the numerous temptations. Because if you spend less money and don't let yourself be guided by money, you will be able to keep increasing your wealth.
This is how employees can get rich
If you don't want to try entrepreneurship and don't want to go public, you have to try your luck as an employee. It is true that there are relatively few employees who earn so much money at all that they can save a million euros in one working life. But these jobs exist and it is not impossible to work your way up to such a position. Your own abilities, your own network and, of course, up to a certain point luck also play an important role. But with a degree as a lawyer, engineer or business economist, it is quite possible to achieve a six-figure salary with just a few years of experience. Anyone who goes to a large law firm, a consulting company or a large corporation can certainly earn these salaries. It must be clear, however, that eight hours of work per day are of course not enough to justify such pay.
If you enjoy your job and have a career in the company, you can even increase this salary and move up to a higher position. The price for this, however, is a social life that takes place primarily within the group of colleagues. In the area of large law firms and consulting firms in particular, executives are often still with customers after work or meet for a private conversation. Starting a family becomes difficult and the partnership often suffers as a result. Those who have found their calling there can become a millionaire early on in their professional life. Sooner or later, many employees leave these industries and can shape their lives according to their wishes if they have saved enough money by then.
With an apprenticeship, the path to such a salary is even more difficult and, above all, longer. Numerous advanced training courses are necessary and you often come to a limit where only studying alongside work can really help. But if you are ready to leave your life in Germany behind you can look for happiness abroad. German specialists are particularly popular in the Arab and Asian countries. The know-how is very well paid for and flights home are also possible for urgently needed experts. But whether you really want to leave home for this is a very individual decision that should be carefully considered.
Become a millionaire with a lottery win
Many Germans play the lottery week after week and hope to win big. Again and again you read about lucky winners whose lives have changed after winning the lottery. Originally, the state lottery was only drawn on Saturday. At some point there was a second appointment on Wednesday. This gave the players another chance to hit a sizeable jackpot. In addition to the classic lottery, players now have another option to hit a big jackpot. Many European countries have come together for the Eurojackpot. This means that even higher distributions are possible. The Eurojackpot is always played on Friday. If no one reaches the top prize category, the jackpot can theoretically increase to a level of 90 million euros.
To be honest, however, it must also be said that the chances of hitting a jackpot in a lottery are negligible. A few can become millionaires with it. However, if you are serious about building a fortune, you should possibly look for another way.
Millionaire - What Now?
If you really want to become a millionaire, you don't necessarily have to worry about the time after that. But just because you suddenly have a million euros in your bank account or deposit, absolutely nothing will change in your life. Of course you have a little more freedom and don't need to be afraid of the things that can quickly become a problem for people with financial worries. But otherwise very little changes.
Millionaires usually live very inconspicuously and people like the Geissens are the absolute exception. Most millionaires have a rather frugal lifestyle. They treat themselves to something from time to time. However, they regularly make sure that they do not use up their money. Otherwise, at some point they could find themselves in the uncomfortable position of having problems with their dear money.
For the first million you have earned yourself, you should still reward yourself and fulfill a long-awaited dream. Because that is a very respectable achievement that not many people achieve.
Still, it's not really that special for millionaires to have so much money at their disposal at some point in their lives. Because the privations that were necessary for this in other areas of life should not be neglected.
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