Your Seven-Step Game Plan to Reach Your First Half-Million

Your Seven-Step Game Plan to Reach Your First Half-Million

So you want to be a millionaire. And with your killer drive and professional achievements, there’s no doubt you’ll get there in due time. Up first: Aim to save $500,000. Cutting your goal in half will put you in the right mindset and allow you time to ace the habits and skills you need to join the millionaire’s club.

Here are seven tips to help pave the way:

Fifty-two percent of wealth accumulated by millionaires comes from earned income. In fact, the majority of millionaires save, on average, at least 20% of their income.

Sources: http://www.ustrust.com/ust/pages/insights-on-wealth-and-worth-2016.aspx

Educate yourself on entrepreneurship—and network like it’s your job. Millennial millionaires are more innovative and entrepreneurial than older generations. They’re 3.4 times more likely to be serial entrepreneurs, and 5.6 times more likely to have achieved massive gains by taking bigger risks.

Source: http://www.ustrust.com/ust/pages/insights-on-wealth-and-worth-2016.aspx

Related: Your 6-Step Plan for Managing Student Loans and The Tools to Help You Do It

The sooner you get rid of student loan and credit card debt through student loan refinancing or a personal loan, the quicker you can put your hard-earned dollars toward growing your nest egg. For instance, if you invest the $316 monthly average SoFi members save by refinancing their student loans, at a 6% return, you’ll accumulate nearly $52,000 in 10 years.

Source: http://www.bankrate.com/calculators/savings/simple-savings-calculator.aspx

Investments, in general, account for 32% of the wealth among millionaires. And 86% of millionaires saw their largest wins by using buy-and-hold strategies.

Source: http://www.ustrust.com/ust/pages/insights-on-wealth-and-worth-2016.aspx

Because time is on your side, you can better weather the ups and downs of the stock market than, say, someone who is nearing retirement. If you’re in your 20s or 30s, invest 80 to 90% in stocks, and 10 to 20% in bonds.

Source: John Foley, President, SoFi Wealth

If you make $150,000 a year and save 13% ($19,500) at a 6% annual return, you’ll have about $257,000 in 10 years. If you get a 3% annual raise, and save 13% of your new income each year at a 6% return, you’ll have about $290,500 in 10 years. However, if you invest that 3% raise plus 13% of your income, at a 6% return you’ll have about $514,500 in 10 years.

Source: John Foley, President, SoFi Wealth

Recommended: Where Your Money is Really Going – How to Minimize Wealth Management Fees

Consult an experienced financial advisor to help you strategize and manage your wealth. Active management of your portfolio will ensure your nest egg is growing in step with your personal goals and time frame. Sixty-two percent of millionaires work with a financial advisor, and 55% like their advisors enough to recommend them to their friends.

Source: 8th Fidelity® Millionaire Outlook Study

Discover how SoFi’s Wealth Management team can help kick-start your way to your first million.

Original article and pictures take www.sofi.com site