It sounds like a lot, but pretty much anyone could become a millionaire with enough time and consistency. The trouble is, a million dollars in today's money isn't really worth a million dollars in the future's money – but following the steps to becoming a millionaire will certainly be more rewarding and valuable then throwing your hands up in the air and saying “I can't do it”! You can save a million even on average income, as long as you have determination and self discipline.
1) Earn consistent income.
Obviously, the more money you make the faster and easier it is to reach your million-dollar goal, but plenty of dedicated individuals have reached the coveted millionaire title on a typical $42,000 annual income. If you make even less than the median income, you don't have to give up hope but you may want to consider what you could do to increase your income. Perhaps looking for a new career to replace what you currently do to earn money; or adding a second job temporarily may be the way to go. Regardless of what you earn and how you earn it, you can be sure that unless you hit a lucky streak at the casino or someone hands you cash – you can't become a millionaire without having an income.
2) Learn to live frugally.
If you have consistent income but you regularly run out and spend every last dime each paycheck (or worse – you spend more than you make with credit cards and loans), you're not going to become a millionaire. Heck, you may not ever become a thousand-aire with that type of lifestyle! Living frugally does not mean going without everything, it just means making wise choices regarding how and when to spend money, and not having to buy the most expensive version of everything you do need to purchase. Cut back living expenses by finding ways to save on utilities, find ways to reduce waste, and cut your grocery bill with simple methods. The money you save can be applied to your savings.
3) Save, save, save.
Everyone will tell you to pay yourself first, because what happens after you've paid the bills, living expenses, had a few drinks at the bar with friends? There is rarely anything left to save, right? Figure out how much you can afford to save per pay period, and consistently set that amount aside into your savings account (preferably one that offers interest, until you have enough to move into other investments and saving opportunities). If you wait until everything has been paid, you'll rarely, if ever, get any money into your savings. Start small if money is tight, but get into the habit of saving that amount each and every pay period until you find ways to increase income or reduce expenses to increase the amount you are able to save.
4) Look for investing and savings opportunities.
As you are putting money into your temporary savings account, you can keep an eye out for opportunities to increase the return you get on your money. You might want to consider a variety of investments and deposit accounts to diversify your portfolio and maximize your returns while reducing risks.
5) Rinse, lather, repeat.
As simple as the instructions on the shampoo bottle – you can become a millionaire. You make money, you save it, you repeat. Consistency is the key. There are many factors that play a role in how much you'll earn in interest, but using these basic steps you can eventually reach the millionaire status you're looking for.