Is Accumulating a $1,000,000 Net Worth Easy? Yes and NO

Is accumulating wealth as easy as following a 3-step plan? Yes it is and no it isn't. As with many things in life, accomplishing a goal such as accumulating one million dollars (or even $100,000) depends on your desire, your personal choices and your daily actions.

Let's start with one example on how you might miss this goal. One of the first components of successfully meeting any goal is to have the desire (or a compelling reason). You've probably thought about losing weight, running a marathon or accumulating a great deal of wealth.

However, the 'want', 'wish', 'dream' or 'thought' is often not enough to propel you to take continuing action steps to successfully attain your goals. Even if you take the first action step, your ability to sustain enough motivation to meet your goal may soon disappear after a few months or possibly after a few days. Until you create and internalize a 'compelling reason' (true desire) to meet a specific goal, it will be difficult to meet your goal. You have to make this desire a 'must-have' instead of just a 'want'; you need a compelling reason to meet your goal. You need to create a true desire.

The simple part of accumulating wealth is many people have already succeeded in meeting their wealth accumulation goals. I have personally accomplished my net worth goals on two separate occasions and in 3 years I expect to reach my next net worth goal. I started with a net worth of a negative $10,000, mostly consisting of personal credit card debt. Meeting my net worth goal wasn't easy; but I created a compelling reason, made some personal financial choices & took specific, daily actions to make these goals.

Many other people from all walks of life, with all types of educational backgrounds are also very successful in meeting their net worth goals. Since it has been done many times before, setting and making your own personal wealth accumulation goal can be very attainable.

Let's say you determined that accumulating a $100,000 net worth is one of your personal goals. If you've created a compelling reason (a true desire), then you're ready to proceed forward to accumulating $100,000 and probably, much more. If you've not made it a 'must' goal and you are still only dreaming about accumulating $100,000, then you're not ready to start. You're not ready to take the second action step. This first step is critical - you must have a "compelling reason" to make your goal.

Anthony Robbins has made a living by proving that success starts with a strong desire. Check out a product review of his latest - Get the Edge program at www.your-key-to-success.com.

Ok, let's say you have now created your own personal compelling reason to attain your goal. You're ready to get started with the second action step. What are the key elements in meeting your wealth-accumulating goal?

1. Your income must exceed your expenses

2. You will invest your excess funds

3. You will be patient and let the magic of compounding work

1. Your income must exceed your expenses: This is a simple mathematical statement. However for many people, this is the most difficult step to overcome on a consistent basis. It is all about your choices. If your income does not exceed your expenses, you have to make a choice. You will need to cut your expenses, increase your income or if you are really ambitious and have that 'compelling reason' to accumulate wealth, you'll choose to do both.

In my personal situation, I focused about 70% of my energy on cutting expenses & 30% on increasing my income. I decided to spend less on clothing, entertainment, dining out and I also cut coupons to help reduce grocery bills. I decided to live within my personal financial situation. I decided to spend less than I earned. Remember, you have a choice.

A. Do you have a compelling reason & discipline to accumulate wealth?

OR

B. Do you lack the discipline and have an immediate gratification need so strong that to satisfy your need, you need to purchase the newest fashion, go to all the home football games, dine out 4 nights a week, etc? It's all about choice.

2. The second step to accumulating wealth is to invest your excess funds. You need to invest your excess funds to meet your personal financial goals. Investments can range from real estate, stocks & bonds, CDs or possibly investing in a small business. Whichever route you choose, create a systematic approach to investing, change direction if necessary, but don't stop.

Investment diversification is important to help ensure that you can ride through the normal up-and-down cycles of the stock market or the real estate market. Personally, I started with investing in a 401K, then stocks and bonds and eventually real estate. While other young people decided to spend all their weekly paycheck, I made a choice to first, put a few dollars away each week into a 401K and other investment vehicles. I 'paid myself' first and then I spent money on the other entertainment activities. See some of the investing books at the end of this article.

3. The last step is the magic of compounding. You'll often hear the phrase, "The rich get richer." While this phrase can mean different things in different situations; in the context of compounding it has a major impact. Let me share a few examples on how you can accumulate $1,000,000, based on average investment return of 10% (stock market average).

Let's say you are 40 years old and you have $20,000 to invest. To accumulate $1,000,000 by the age of 65, you would need to contribute $567 per month.

If you're 30 and have $5,000 to invest, you'll need $218 per month to reach $1,000,000 by age 65.

Let's say you are only 20 years old and you have no money to invest. You can start with absolutely $0 and still only have to add $94 per month to reach that same $1,000,000 goal by age 65.

Wealthy individuals understand the benefits of compounding. Here are examples that show how the rich get richer.

A. If you have accumulated $10,000 and your investments yield a fantastic 20%, you will have earned $2,000 for that year.

B. If you have accumulated $100,000 and your investments don't do as well and you only earn 10%, you still outpace the person with only $10,000 and you'll earn $10,000 for the year.

C. OK, let's say you met your goal of accumulating $1,000,000 and your investments do even worse at 3% for the year. You will still make over $30,000 for the year. If your investments performed well (10%) you will have made an unbelievable $100,000 for that year.

There it is. The 3-step plan for meeting your own personal wealth accumulation plan. Whether it's $100,000 or $1,000,000; you have the potential to attain your personal wealth accumulation goal as long as you have a compelling reason (a true desire), you make the right personal choices and you take daily actions towards this goal.

Is it easy? - Not necessarily

Is it possible? - Absolutely yes!

Take Action Today!!

First, set aside 30 minutes or 3 days and create a compelling reason to set your own personal net worth goal.

Then, set a specific net worth goal for 3 months, 1 year, 5 years and 10 years. Not sure what your goal should be. It doesn't matter right now. Just set a goal and change it as needed - you'll probably change it upward.

Next, take $10 out of your wallet or purse - TODAY - and deposit it into your new "Wealth Accumulation" account. You've just now taken the first steps and are now on your way to meeting your goal. You'll be amazed at what you can accomplish!

To start your wealth building education, there are many great books on the specific subject of accumulating wealth and you can search your local library as an inexpensive and resourceful first action step. In addition, check out some of these titles listed below. You can find these titles and many more online at Amazon.com, Books-a-Million or Barnes & Noble.

The Automatic Millionaire, The Finish Rich Workbook, Smart Couples Finish Rich, Smart Women Finish Rich - by David Bach

Multiple Streams of Income, Creating Wealth, One Minute Millionaire - by Robert Allen

Rich Dad Poor Dad, Rich Dads Guide to Investing, Own Your Own Corporation, Rich Dads Retire Young Retire Rich, Real Estate Riches - by Robert Kiyosaki

The Laws of Money, 9 Steps to Financial Freedom, The Road to Wealth, The Courage to be Rich - by Suze Orman

The Truth about Money, Ordinary People Extraordinary Wealth - by Ric Edelman

Secrets of Six Figure Women - by Barbara Stanny

The Savage Truth on Money - by Terry Savage

The Only Investment Guide You'll Ever Need - by Andrew Tobias

The Millionaire Next Door, The Millionaire Mind - by Thomas Stanley

The Intelligent Investor - by Benjamin Graham

About The Author

Mike Matthews is a writer with many personal successes in the areas of small business, personal finance, real estate investments and reaching fitness goals. He writes informative articles and conducts honest product reviews with a focus on the four main areas outlined above. His articles & product reviews can be found online at, http://www.Your-Key-to-Success.com. His book on 'Taking Action - Your Key to Success' is due out in 2005.

feedback@your-key-to-success.com

---

What Do You Mean By Diversity?

The word 'diversity' is a unique one. It can represent... Read More

Controversial Wealth Audit Reveals Over 90 Percent of Us Could End Up Working Forever...Are You One

Results from a new tool developed by UK based firm,... Read More

Who Will Become Wealthy in the Information Age?

As you know, we're now well and truly in theInformation... Read More

What is Your Creative Retirement Plan?

The idle are a peculiar kind of dead that cannot... Read More

Still Using Federal Reserve Notes?(How to Beat Inflation)

"My people are destroyed for lack of knowledge." Hosea 4:6... Read More

Clearing Blockages to Increase the Flow of Money into Your Life

Money is probably the most challenging thing for many people... Read More

The Predicament of the Newly Rich

They are the object of thinly disguised envy. They are... Read More

Pennies From Heaven

I want to share an experience I had in common... Read More

It Adds Up

Loose change that is, if you want a easy way... Read More

21 Secrets of Self Made Millionaires

Self-Made Millionaires are not smarter or better than you. They... Read More

Increasing Your Wealth by Increasing Your Financial Literacy

Perhaps the primary message of Rich Dad, Poor Dad is... Read More

Business Ownership, Cash in Your Pocket - Today!

Yesterday we learned that 74% of all wealth is created... Read More

10 Ways to Save $50 Per Month: The Art of Pinching a Penny Until It Screams

1. Save up to 50% per month on convenience cleaner... Read More

How Much Do You Need To Earn Per Hour To Achieve Your Yearly Financial Goals

Have you ever asked yourself what your highest income producing... Read More

The Old Monied Dupont Nemours and Roosevelt Families Buy a Tax Haven

This 4,000 acre sale (now a marina and resort town... Read More

Trustee Fees: How Much is Enough and How Much is Too Much?

I am often amused by the ads and offers I... Read More

The Philosophers Stone

"If you know how to spend less than you get,... Read More

Discover the Secrets and Possible Solutions To Money Problems

It is sometimes pitful how many projects are never born... Read More

Lesson 1 - Why Arent You Wealthy?

We will start the Financial Fitness System with the assumption... Read More

Thieves Continue to Pull Off the Biggest Heist in History?Until Now!

Imagine being able to steal untold millions of dollars in... Read More

Financial Planning for Beginners

Financial planning at an early age may seem complicated, however... Read More

Methods Of Raising Instant Cash

The inability to come up with the necessary cash when... Read More

Asset Diversification Is NOT Boring?And Will Make You Money

OK, this article will start with the cheapest piece of... Read More

Wealth Building Tips: Manage Your Money

As someone who loves to shop, enjoys holidays and owns... Read More

The Underlying Belief System

Many of us do not consider the underlying belief system... Read More

Understanding the Three Different Types of Income

Part of learning to become financially free is to begin... Read More

Financial Planning For Singles

Financial planning often gets a bad rap. Part of the... Read More

Residual Income - 3 Ideas for Long Term Profits

A residual income is one that comes in no matter... Read More

Top 7 Lucrative Paper Businesses You Can Run

Why not run a lucrative paper business? Paper businesses do... Read More

Principles to Ensure a Fantastic Financial Finish

Most people want to get to the end of their... Read More

Who Wants To Be A Millionaire?

Steve Martin once delivered an opening monologue for Saturday Night... Read More

Surefire Ways to Attain Moneymaking Success

You have probably heard other people say that "Money isn't... Read More

Want Money? You Got It!

Six out of six people who were asked to list... Read More