Smart Reasons to Save, Use and Invest Money

Is A Millionaire Promise Wrong?

I promised to be a millionaire when I was very young!  Here is my millionaire promise story…

My grandparents were in business, and in particular my grandmother was very business and finance oriented. As a young child (maybe 5 or 6 years old) I made a millionaire promise to my grandmother that someday in the future I would become a millionaire. She said surprised at my sudden “out of the blue” millionaire promise and said good and told me that she believe that I could do it if I tried hard enough. I remember her encouragement making me happy back then!

Rich Kid
rich kid

My grandmother enthusiastically encourage me in my new goal and steered me towards creating a target age for my new potentially elusive goal. So after some thinking, I decided on the target age of 25 years old. To me at that time, it was 4 to 5 times my current age, which naively seemed possible to me at my very early age. I was a little off guard when my grandmother chuckled a bit. I started to question my goal and thought that perhaps it’s not possible after all. My grandmother then tried to explain to me that 25 years old was too young to reach such a status. Instead she suggested an age range between 45 to 55 years old, and even then she said it would be hard but doable. Back then, those ages seemed way too old to me. I reluctantly agreed to her proposed age range with the 55-year-old target date being the limit. She has since passed away, but I still intend on keeping my millionaire promise!

Now with some real world experience under my belt, even the “55 years old max age” seems hard to reach, but a millionaire promise is a promise so now I better hop to it! The problem is with the path that I’m currently on is that it doesn’t seem likely that I’ll reach that elusive millionaire status even when I’m ready to retire at 67 years old. Time to rethink the path that I’m currently on. The path that I’m currently on is a good path and should enable me to reach the goal, but not soon enough.

So what can I do to meet my becoming a millionaire promise in the given age range?

  • Work both harder and longer at multiple sources, then investing the money earned so that it will grow passively and hopefully right quick!
  • Invest smarter.  With three brokerage accounts, I can experiment in each one to flush out the optimal investment strategies.
  • Save more money by purchasing more frugally. Instead of spending money eating out for breakfast and lunch, I should pack both (and I have done this in the past)!
  • Use credit card rewards more intelligently. I’ve done okay with my credit card rewards points, mostly buying house computers for the family, etc.
  • Think about finances more. The more you think about it, the more focused you are, and the more opportunities will be seen.
  • Buy Real Estate. If I borrow money for the purchase, in theory, this should be good debt and doesn’t hurt my current finances, at least if I can rent the property out.
  • Watch TV less, watching TV is a huge time and life waster in my option (except “Mad Money”). An occasional movie or maybe 1 or 2 shows a week is okay though.

Starting next month, if I really focus on the points above, I have a good chance of reaching my long ago promised goal of obtaining millionaire status.

We’ll see…

Don

23 Responses to Is A Millionaire Promise Wrong?

  1. Don, I have no doubt in my mind that you will meet your goal by 55, and it will probably be a heck of a lot sooner. I love that you had thoughts of being a millionaire when you were just a tyke!!

    • Thanks Kris!

      Yeah, it’s funny thing thinks we do and say as a kid. I hope I make it sooner than 55 too, after having kids, I not realize time flies for me.

  2. Having goals that are audacious are important IMO. I was going to ask the same thing as retirebyforty. Where is your progress? I would be interested in reading an article on your progress. Keep plugging along and learn, learn, learn. You will get there if you are focused, work hard and learn along the way!

    • Thanks, I would like to display my progress, but because of work reasons. Someday, I may be more forthcoming with my numbers, but I’d have to work either from myself or some other employer in a different industry.

  3. A promise is no different than a wish, if you don’t have a plan. How long have you been working the plan? It is never too late, go for it! Good luck.

    • I’m a numbers geek (really a spreadsheet geek), so quite a while. Based on my results from paying off my house, it take a year or two longer because life happens, so I getter hope to it this year.

      I think I’m going to have to use the bank’s money to pass me other the threshold sooner than later.

  4. I think we’ll need a lot more than a million to retire on. It doesn’t go quite as far as it used to. So even without the promise, it’s a worthy goal.

    We’re well on our way, though haven’t sweated the details. (I definitely think that chasing higher returns than a low-fee index fund is a fool’s errand.)

    What are the numbers on the things on your list? I imagine the eating out part could save a bunch ($20/day, 5/days/week, 50 weeks/year = 5K), but working more on credit card rewards may not, depending on what you’ve already got going. The real payoff is in additional income though.

    I know several people who have crashed and burned with speculative real estate. That “if I can rent the property out” and “if my renters pay their rent” part is by no means guaranteed! (Not to mention “if the renters don’t trash the place.”)

    Good luck!

    • I definitely agree, a million isn’t what it was when I was 5 or 6 years old.

      I’m mostly playing the stock market, and I’m doing better than my 401k, so I’m happy on that plain.

      Rental Property will be my next experiment. There are risks, but I’ll probably buy a cheap duplex where if it’s fails on me, it wouldn’t be a big loss, so I’m hoping to limit my downside risk. It (the duplex or triplex) won’t make me rich, but it will be a good feather in my financial hat.

  5. I see no reason why to doubt this goal. If you had $750,000 would that be a failure? No, you would have $750,000. So, go for it! You may find yourself reaching the goal a heck of lot sooner than you would expect.

    • Thanks Michelle, yeah I hope so!

      If I don’t make the 1 Million level at least I know that I tried to keep my promise, and that’s okay too.

    • haha, yeah I’m sure she would be.

      It’s funny the things we say when we were kids. It would have been incredible if I had a million by age 25 though… oh well.

  6. This is quite one tough promise you made at your young age. But as what your mother said, it is doable. We have seen and heard a lot of rags-to-riches story and if they can do it, then why can’t you. As long as you are determined and will really work hard, this promise is never impossible.