How to be a Millionaire in 10 Years (Starting from $0)

what's of you guys it's Graham here so let's talk about something that probably most of us want to achieve at some point and that is the milestone of becoming a millionaire and I remember growing up I wanted to achieve this and I heard the term millionaire and I imagine some rich businessman with like a convertible red Corvette parked in front of a mansion that is right on like the golf course and that's something that I just wanted to achieve at some point in my life no in reality becoming a millionaire is not living in a beachfront mansion playing golf all day instead it's sitting in your garage making YouTube videos on a Saturday at 5:00 p.m. living in a duplex and driving a ten-year-old Lotus that you bought used and I realized by now you're probably asking yourself wait a second Graham how can I have free time on a Saturday at 5:00 p.m. to make YouTube videos and live in a duplex and buy a used Lotus - and you know what that's a really good question and we should discuss this and I say this as basically someone started off with a few thousand dollars pretty much whatever I had saved up from working throughout high school to being worth over a million dollars by the time I was 26 - now in the multi-millions and all of that without rich parents and without a sugar mama so let's break this down and explain some of these strategies that you can replicate as well to go from being worth nothing to being worth over a million dollars in the next ten years but before I get into the specifics here's where you first need to start in order to make this actually worth because I promise without this part your plan will absolutely fail and when it comes to increasing your net worth it makes very little difference how much money you actually make now you might be thinking to yourself that that makes absolutely no sense I've gone crazy dislike unsub Graham is lying to us but let me explain when it comes to increasing your net worth what really matters the most is how much of your income you can actually save not necessarily how much money you can make I can't even tell you how many people I know making five hundred thousand dollars a year but they spend four hundred and eighty thousand dollars a year on random bullsh I've seen so many people who make 250 thousand dollars a year who somehow live paycheck to paycheck with absolutely nothing to show for it because they rent a very expensive house in the hills with a nice view they lease a Ferrari and they take very fancy Instagram pictures from vacations they have spent $20,000 on and on the other hand I've seen people who make $80,000 a year who somehow are able to save $40,000 a year and invest that consistently I've seen so many people who are worth more earning $100,000 a year than the dude who's making seven hundred and fifty thousand dollars a year simply because the hundred thousand dollar a year person saves more and if you guys want to know the secret about how I was able to become a multi-millionaire my 20s it's because I lived and spent like I was broke I pretty much spent my money as though I'm making a MacDonald salary that sounds like celery like I'm making a McDonald's celery salary with an S and no matter how much money I make in a year I spend the exact same amount I don't care if I make nothing in a month or if I make a hundred thousand dollars in a month my spending doesn't change at all instead I wear $4 and $0.99 shirts from H&M i buy clothes on Black Friday because this was like 60% off I live in a duplex so I could rent out the other side and pretty much just live for free I make food at home instead of going out to expensive restaurants and also I make sure to smash that like button if you haven't already now I get that this might be pretty extreme and it's not for everybody but the reality is that most very successful people don't necessarily have an income problem they have a spending problem and if you're watching this video chances are you already have the ambition to go out there try to make as much money as you possibly can it's just you need to be prepared to make the sacrifice they're really hunkering down for the next ten years saving and investing as much money as you can and that will set you up for the rest of your life you really got to think to yourself is one decade of frugal living worth it for an entire lifetime of freedom to never have to do something you don't want to do to never have to worry about losing your job or never have to listen to the boss that you hate it's definitely not for everyone and there are many people who feel that they just deserve to spend money because they've worked hard for it and that's totally fine but you know what that's not me and by living frugally I have never once felt deprived because of that if I really wanted to go out and get the Lamborghini that I've been saying I've been wanting for like the last year I can go out and buy one right after this video in cash but I'll tell you something the real joy doesn't come from going out and buying those things that comes from having the choice that if you wanted to you could just think about that for a second enjoyment comes from the freedom of choice not the choice itself but I realize this is some hippy New Age [ __ ] but you know what I mean that's been my experience so with that said if you're not able to get your spending under control you really only have two options the first one is that you need to make a ton of money starting a business to the point where it doesn't matter how much money you spend or you need to make a very speculative investment that pays off very very well now that might sound pretty black and white but when you break it down that you need to save 273 dollars every single day for 10 years in order to save up enough money to say you have a million dollars that's a lot for 99.999% of the population to handle but here's the thing now when it comes to doing this usually just saving up money alone will not get you to that point now what you realistically need to do in order to speed up this process is invest your money no even though I've been able to keep my expenses pretty low the reality is that I would not have become a millionaire by 26 if I didn't invest my money it's as simple as that the fact is that you can really only do so much on your own before you need a little help so that's why you should really have your money working for you and if you want a million dollars in the next 10 years what that breaks down to is investing six thousand dollars a month every single month at a 7% annual return and congratulations after ten years you have become a millionaire from investing six thousand dollars a month unfortunately though that's easier said than done and the reality is that investing six thousand dollars a month for the majority of the population is simply not doable because remember that works out to be seventy-two thousand dollars a year after you pay taxes and that's also 72 thousand dollars a year after you paid all of your living expenses like food shelter car bits connect life just adds up and if you're actually earning that much money in order to save $72,000 a year chances are you're making more like a hundred fifty thousand dollars a year gross and you're living frugally at the same time so when it comes to actually making that amount of money or saving that amount of money rarely does that happen from strictly a salary job especially if you're watching this and not already 150,000 dollars a year and if you are in one of these careers or you do have a great job that's paying you over $150,000 a year like I said congratulations it's really just a numbers game of saving six thousand dollars a month over ten years at a 7% return and there you go that is how you become a millionaire in ten years no earlier in the video I give an example of someone who's making $80,000 a year after paying taxes and saving half of that income that works out to be $40,000 a year or 3,300 dollars a month no even when it comes to investing this chances are you're not going to be able to get a high enough return to become a millionaire in 10 years by simply investing $40,000 a year for example if you invest $40,000 a year and take the typical 8% average stock market return over 10 years you're only going to be at seven hundred and twelve thousand dollars that's nearly three hundred thousand dollars shy of your $1,000,000 goal however by investing your forty thousand dollars a year at an 8% return you could still become a millionaire it's just going to take you thirteen years to do it not quite our 10 years that we're going for here so in order to increase your return without too much risk of losing all of your money you need to actively work on your investments to increase that return and for many of you who have watched my channel already you know my favorite way of doing that is in real estate now here's how you can do this and yes I totally understand I'm definitely simplifying things a lot but here's the basic concept so let's take our example you're making $80,000 a year after taxes and from that you're able to save $40,000 a year and what you do with that extra forty thousand dollars that you save you use thirty thousand dollars of that as a down payment towards real estate and then the remaining ten thousand dollars you spend on renovating that property you just bought so in order now to increase those returns this relies on you finding a property that you could buy for twenty thousand dollars below what it's worth so this means you end up buying a $200,000 property for one hundred and eighty thousand dollars then from there you're gonna be spending your remaining ten thousand dollars renovating the property and typically when you do this any renovation you do should at least double the return in terms of equity so when you spend ten thousand dollars renovating a property it should bring up the value of the property by twenty thousand dollars so sometimes it's a little bit more sometimes a little bit less but again this is my example but in this example you've invested $40,000 total in this property again $30,000 is a down payment $10,000 in a renovation but in return you've received back in additional $40,000 worth of equity in the property essentially just doubling your money now you should have $80,000 worth of equity in the property that should hopefully be generating you about an 8% cash on cash return that you could then use and save to reinvest back into the next deal now if you can go and find one of those properties every single year and then reinvest all of the profit you will be worth way more than 1 million dollars within 10 years that's pretty much what I ended up doing except here in Los Angeles with much more expensive properties and if that example sounds a little bit far-fetched to you just keep in mind that was a real example from micros hearts who I had on my channel earlier this year who became a millionaire at the age of 25 doing exactly that he's a prime example of someone who became a millionaire and really about seven years by working a day job living frugally and reinvesting all of that back into real estate but what about now for everyone else who isn't making $80,000 a year because if you're watching this right now and you're making $25,000 a year the chance of you becoming a millionaire without taking some incredible risk is just it's realistically not gonna happen so in order to do this you really need to work now on increasing your income so you can save and invest more so when it comes to actually becoming a millionaire in ten years starting from nothing without right now having income you really need to work in an industry where your income is not tied to how many hours you work because if you're paid per hour unless you're already making like $500 an hour or something like that there's only so many hours in a day that you could work and in over a decade of doing that it's very easy to get burnt out very very quickly so instead if you're working in a sales environment or anything where your income is not tied to the amount of hours you work but instead by the results that you get it becomes very easy to scale up very quickly to a very high income I know a lot of people for instance that are making over two hundred and fifty thousand dollars a year as a real estate agent and they're only 2 or 3 years in the business now and while this definitely is not the norm and many people don't ever achieve those sort of numbers in sales the reality is that if you're very good at what you do you can achieve some incredibly high-income very quickly and become a millionaire in just really a few years and that's how I was able to do this I worked as a real estate agent I was able to leverage my time as effectively as I possibly could and then funneled all of that money back into real estate investing and Here I am today making YouTube videos about doing exactly that and sales can really be a great career path for those that are into it that find it exciting that like to work with people and you really want to make as much money as they can and not get paid per hour and another option here would be to go ahead and start your own business now I know that this might be a big commitment for many people to make but the reality is that if you hit it big in business and you find something that you really enjoy doing oftentimes you could scale up very quickly and make a lot of money and anything you could do online has the potential to scale up very quickly I know many people who are now making a hundred thousand dollars a month in profit who a year ago we're not making anything and short-term if these people can just live frugally save as much of that as they can and just write it out for a few years they will have over a million dollars saved up and we'll never have to work another day in their life and online scalability is absolutely amazing for the same amount of work it takes you to reach ten people online you could expand that and replicate that to reach ten thousand or a hundred thousand people and because of that you can leverage your effort not your time to make significantly more money and if this video ends up getting pushed to mine on audience first of all what's up nan audience thank you so much for watching if you haven't already make sure to smash that subscribe button I have a feeling though that most people would say this is wildly unrealistic and that the average person isn't able to do this and you know what they're absolutely right the average person is never gonna do this the average person is never going to try the average person is going to think this is a massive waste of time and the average person is never going to want to make the sacrifice needed to actually make that happen and if you guys want the harsh reality that mentality is exactly why they are average but I have a feeling though that if you're watching this especially towards the end you don't categorize yourself as someone who is just average trust me when I say this that if I believed that none of this was achievable I never would have achieved it I was able to achieve this because I had the belief in the that I could actually do it and that became a self-fulfilling prophecy you will need to think the exact same way and if you follow this cut back on your spending put in the work invest consistently long term and work in an industry where your income isn't determined by the amount of hours that you work but by the results that you get you too could become a millionaire in the next ten years and by the way for anyone interested in my program the real estate agent Academy which details how you can grow your business as a real estate agent I'll be offering $100 off for the first ten people with this coupon code just one hundred and then the word off so just one hundred off again for the first ten people if you've made it to this point in the video I feel like you know there you go I'm not putting this in the description I don't really mention this in anywhere else so it's just right here for anyone who's made it to this point so anyway that's it I hope you guys enjoy again thank you so much for watching I really appreciate it if you haven't already subscribed you know I think it's pretty self-explanatory subscribe like button also add me on snapchat and Instagram opposer pretty much daily so if you want to be a part of it there feel free to be a part of it there and thank you again until next time

Channel: Graham Stephan

Views: 1,431,956

Rating: 4.9272943 out of 5

Keywords: how to be a millionaire in 10 years, how to be a millionaire, how i became a millionaire, how to be a millionaire in 3 years, how to be a millionaire in 5 years, how to be a millionaire in 1 year, how to be a millionaire dave ramsey, how i became a millionaire at 26, how to make a million dollars, how to make a million dollars a year, real estate investing, real estate investing strategies, real estate investing for beginners, stock market investing, stock market 101

Id: XNOpdpydY_I

Length: 14min 21sec (861 seconds)

Published: Wed Dec 19 2018