Way back in 2008, the influential and righteous blogger from Budgets Are Sexy known as J. Money started what he called the Million Dollar Club.
No, it’s not a club for millionaires to sip brandy and light cigars by burning $100 bills. It’s just a way for people who want to become millionaires to create a useable action plan and follow their progress.
It’s a great idea because it is much easier to achieve your goals if you actually formulate a strategy to achieve them rather than simply crossing your fingers and hoping for the best.
So in a classic case of better late than never, I’ve decided to join J. Money’s challenge. I have every intention of accumulating a million dollars and then some, and here’s my plan…
- Keep contributing to my company’s 401k plan to take advantage of the employer match which is free money. Also open up Roth IRAs for both me and the wife to sock some more away.
- Aim to save at 10% of income in other investments (mostly index funds).
- Last year I started a small account at Sharebuilder where I have been slowly buying large company stocks that have a long history of paying dividends. It’s puny right now but the plan is to let it grow through a monthly contribution and reinvested dividends until it creates a viable stream of income.
- Continue to diversify income streams via web properties. I plan to have a handful of sites earning enough to support me within a few years. Wealthy Turtle may only be an infant but it’s going to grow into a monster if I stay the course and do things right.
- Don’t worry about the Joneses. Competing with friends and neighbors only leads to a bottomless pit of spending. I’m pretty good about not comparing myself with others and trying to out-do them, but we all have the potential to fall into that trap.
- Keep learning new skills and looking for new opportunities to grow and increase earning potential.
So that’s my plan for now, though it will be a flexible one that can be updated as circumstances change.
What about you? Are you going to be a millionaire? What are you doing to get there?