What's the easiest way I can I become a millionaire?

[peanuts]

OK, I'm sixteen and I just got my fist job. It's nothing big, just working at a local company picnic spot cleaning the grounds and setting up for company parties on weekends and then throughout the summer. I want to know what would be the easiest way for me to be a millionaire?

[disneysteve]

I'd say the best way is to start investing early and continue investing regularly throughout your life. If you have a job, you are eligible to open a Roth IRA. If you could theoretically max a Roth with $5,500/year starting at age 16 and get an 8% average annual return, you'd be a millionaire by the time you are 44. And that would be without doing any other savings.

[JoeP]

Congrats on your job!

First, you'll need to define what your definition of "millionaire" is. Does it mean that you have assets valued at 1 million dollars? Or is your net worth (assets minus liabilities) valued at 1 million dollars? Or does it mean you have 1 million in actual physical cash sitting in a pile in front of you?

Second, I'd want to know why being a million is important to you. You say you're 16...do you assume all your problems will go away when you are able to say you're a millionaire? Or is it just for bragging rights?

Finally, I'd ask this question: What are your goals in life? Most people here say they want to be debt free by a certain stage in their lives. Others want to save up enough money in their retirement and other accounts so that they can retire by a certain age and have enough money to live in dignity, independent of government aid, and be able to do (pay for) X and Y. Still others want to be able to pay for their kids' education and donate X% to charities of their choice.

[peanuts]

I just want to have enough money so that I'm not constantly arguing about it like my parents.

[disneysteve]

I just want to have enough money so that I'm not constantly arguing about it like my parents.

That doesn't take a million dollars. That just takes marrying someone with whom you are on the same page about finances. Lots of people don't talk about that stuff until after they are married which is way too late. It is something that you need to consider when selecting a spouse.

It also helps to have a budget that you both create together and agree on. That's what avoids money arguments whether you have very little or are very wealthy.

[scfr]

Spend less than you earn. That means that you are putting some money away every time you get paid.

Avoid debt; think long and hard before you take on any debt. There are a couple examples where debt may be "worth it" (possibly student loans and possibly a mortgage), but most of the time it is not. ZERO credit card debt; when/if you get your first credit card, commit to yourself that you will not buy anything you could not afford to pay in cash and pay off the entire balance each and every month starting with month 1.

Don't worry about "keeping up with the Jonses" when it comes to material possessions.

Take some time to educate yourself about personal finance. If you can find one or two adults whose financial behavior you wish to emulate, observe them and ask questions if they are receptive to mentoring. FYI, you can find some folks like that right here on Saving Advice.

More long term, if you have an entrepreneurial streak, consider the possibility of starting a company or being self-employed rather than being an employee.

If you get married, choose your spouse carefully.

Develop a strong moral compass and good social skills.

According to Dr. Stanley who wrote "The Millionaire Next Door" and "The Millionaire Mind" 5 traits that millionaires have in common are: Integrity, Discipline, Social Skills, Supportive Spouse, and Hard Work.

Haha - Re-reading my post I just realized that what my answer boils down to is "it's not going to be easy, but it is possible." If it is a goal that is important to you, are you willing to do what it takes?

[JoeP]

I just want to have enough money so that I'm not constantly arguing about it like my parents.

Arguing about money happens at all income levels. If you gave your parents a million dollars, do you think they'd stop arguing?

Arguing usually occurs because people have different opinions regarding what the money is being spent on, so the issue is much deeper than the amount of money they have on hand.

Taking into consideration the advice given here, I'll also add this: Find out what your parents are doing to put themselves into their current situation of having to argue about money, and DON'T DO THAT!

[snafu]

Congratulations on your first job. So many people are spending wa-aay more than they earn and it's not going to work out. Here's a formula which will help you get to your goals...divide income/earnings 20% savings often called 'paying yourself first.' 50% spent on Needs, those are important living expenses like home/food/electric/heat/phone etc. That leaves 30% for WANTS. Stuff like car, clothes, entertainment, eating out are all really Wants, Once money runs out, spending stops.

If you can teach your dad this formula they can fix their money problems if he can get your mom on board.

[danthecashbackman]

Just do it!

Just do it! This is it! I'll show you how to do it - will you do it? This is the question. There are many ways to achieve the millionaire status but what is it really? And this is a question you might need to ask yourself: what is a millionaire? Because a millionaire is more than the million bucks in the bank - it is freedom, it is the symbol of success, it is a desire. Will you become a millionaire? It is entirely up to you - you have all the tools at your fingertips.

[Tabs]

Absolutely the EASIEST way? Play the lottery. No, I'm serious. It's the EASIEST way I know. The only catch, of course, is you have to win it.

But if you want the SMARTEST way to become a millionaire, then I would listen to what the others have written.

Edit: Actually, no I am wrong. I would say the EASIEST way to become a millionaire is to be born into a rich family that has already set aside a million-dollar trust fund for you. Yeah, I can't think of anything easier than that.

[lorraineb]

Make saving a habit that you do with every one of your paychecks starting now while you're young. Open up an account and always put away a certain percentage. Do that and should should make the goal you want.

Also remember not to look for quick ways to become a millionaire as they will almost always cost you a lot of money.

[Randomsaver]

One of the common mistakes is setting savings goals that are not realistic to achieve and hence creates a sense of failure and then abandonment of saving at all.

When you're young, you can't even save. You even borrow money sometimes due to emergencies. If you accept this, then you're in a good frame of mind already. Try still though to set up in a bank 2 accounts -- and make an auto-transfer from your pay/main account to the other account (which will be your savings).

Start realistic on what you're going to auto-transfer every pay. If it's $1 then so be it. Pretty soon, you'll find that you can save more and that's when you increase. But the goal is that it should be something that does not push you into failure. Be ready to scale back when you're not met your saving target and build up from that.

[danthecashbackman]

math

Very simplistic, an example: if you save straight $5000/month, you will need about 16 years to achieve the 1 million status not considering interest. With proper investing strategies, you could about cut the time to 8-10 years. If you are smart about investing and can take big risks, you might do it in a year, and so on. There is a certain degree of risk in any investing. Good luck!

[JulieAlbright]

The trick to not being stressed and fighting over money is having a clear view of what your priorities in life are and then constantly evaluating how where you put your money meets those priorities.

I suggest you sit down and make a list right now of your goals. Most people do 5 or 10 but maybe at your age you'll only do 2 or 3 goals. For instance, you have expressed solid financial security as one of your major goals. If you get into the habit now of saving 10, 20 or even 30% of all the money you earn, that will be an excellent start toward that goal. If you choose to spend your money on entertainment or a new iPhone every year, then what you spend won't be meeting stated goals. Actions count much more than words.

If you don't already, I'd suggest you Google "MrMoneyMoustache" and read his blog. They are a couple who made their main priority in life to be able to retire financially secure at a very young age and he speaks heavily about the financial choices they made early in life to achieve that goal.

[Singuy]

Huh, I'm surprised no one on the forum is actually giving this 16yo any real advice on how to actually increase income, but most are just focusing on saving and investing. I highly doubt making 8 dollars/hour for the rest of this kid's life will yield him 1 mil no matter how he tries to save (assuming parents are not going to support him forever).

Since you are 16,

Step 1. Study your ass off for the PSAT, or maybe even take a class. If you do well, this will prevent you from acquiring a massive amount of student loans from 18+.

Step 2. Start looking into all state scholarships, how to obtain them, their requirements, etc.

Step 3. Pick a career. THIS WILL MAKE OR BREAK YOU. Look up US Ranking's top Careers, which is usually a good start. I would also shadow some professionals and ask a lot of questions. Find something that pays well and interests you, BUT also easy to acquire. (ie, picking a career path that requires you to go out of state or private universities may not be the wisest choice, or if the career requires a PHD. I would stick to careers with set programs (ie, dental school). Pick something interesting, high paying, and cheap to obtain if possible.

My rule of thumb. I wouldn't want to borrow more than 1.5x of the career's yearly income.
Stay away from any liberal art majors or general studies majors(like microbiology/biology/chemistry..unless you career requires these as a pre-req to get into the program). Make sure your degree can distinguish you from the average joe who didn't go to college but read a lot at the local library.

Also understand you abilities. If you are not the brightest or have a lot of heart, maybe becoming a doctor is not for you(10%-20% of most university students are pre-med majors).

Step 4. See if you can DUAL ENROLL into a community college while in highschool and take ALL pre-reqs for that particular major/career. This is a FREE ride for your AA degree. I would SKIP AP classes and just dual enroll. If Dual enrollment is not offered, then take as many AP classes as possible.

Step 5. If possible, go to a community college first after you graduate. You can skip this step if you already finished your AA degree out of highschool.

6. Once in college, STICK TO YOUR CAREER/MAJOR. Do NOT change majors or waste ANY TIME. If your parents are not supporting your cost, then you are on BORROWED MONEY WITH A 7.49% INTEREST RATE!!. EVERY bottle of beer you decide to buy will cost you 2x that with interest. Live with roommates, don't go on crazy spending sprees, and do not drop out of classes you already paid for. I know college is suppose to be the best time of you life. Unfortunally, a lot of people ends up paying for this fun 20-30 years after college. If you ask anyone on this forum, real world+debt = not fun.

7. ....Profit. I know a girl who did the steps above, graduated as a pharmacist at 22 yo, making 120k/year. By the time she turns 30, she will end up making 1 million just from salary alone.

Now, with very low amount of student loans(hopefully), you can focus on saving and investing.

I believe in the money that's sitting in front of me, not some number that goes up and down in a retirement account. All though I do have a retirement account and it's important, I don't trust my money will yield a 8-12% return..and I don't really care if it does or not. As of now, focus on making cold hard cash, save it, and wait until it hits 1 million