Make 2021 be the year you get on track to become a millionaire.
You know that age-old question that’s so ubiquitous, they made a reality TV show out of it?
Who wants to be a millionaire?
The answer is everyone. Everyone wants to be a millionaire. Duh. But HOW do you become a millionaire?
A lot of people look at becoming a millionaire like winning the lottery, or being chosen by those guys from Queer Eye to change your entire life for you, and you don’t have to lift a finger. Or, they look at it like climbing Mount Everest without any training, and at the top is a suitcase full of bearer bonds worth $1,000,000.
They look at it like, yeah, I’m sure it’s possible, but not for me.
Here’s the thing: becoming a millionaire doesn’t have to be as hard as you think it would be. It’s not about finding the perfect job that pays $400,000 a year, it’s not about buying enough lotto tickets to fill a tour bus, and it most certainly is not about luck.
It’s about saving, investing, and consistency.
I’m too in debt to even think about investing right now.
That’s okay. Don’t think of getting out of debt as an end goal; think of it as a hurdle you’ve gotta jump on your way towards the finish line.
According to Equifax, Canadians carry an average of $23,000 of non-mortgage debt. You’re not alone. But it is ABSOLUTELY possible to go from being in debt to becoming a millionaire.
Sometimes, the hardest part isn’t earning enough money to become a millionaire, it’s getting out of debt. And the hardest part of getting out of debt is controlling your spending. Better late than never — being fashionably late is called that for a reason, after all — but don’t be any later than now.
TL;DR: If you need to get in control of your spending before you even think about saving, try out the Mogo Visa* Platinum Prepaid Card. It's (in our humble, unbiased opinions) the best way to spend mindfully since you're spending with your own money and not relying on the 'credit' part of a credit card. Not to mention, you’re spending sustainably, since you offset a pound of CO2 for every dollar you spend.
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I’ve gotten out of debt. Now what?
Congratulations! You’ve leaped over a big hurdle.
It takes the average millionaire 28 years of investing before they hit that 1 million dollar mark. The lesson is clear: consistent, long term investing can be the surest path to success. But, what most people don’t realize is that even a small amount of money could get you there.
Just $4 a day - that’s right, what we would spend on a latte- could turn into over $4M if you invested long enough. This is based on the average annual return of the market as measured by the S&P 500 of 10%. If you doubled that to $8/day, you could get to double the returns.1
Scenario time! Let’s say you’re currently $4,000 in debt, and put away around $300 a month.
The bottom line is: $300 a month can turn someone into a millionaire.
According to one of the largest studies ever on millionaires, building wealth isn’t about luck. Smart spending, consistent investing, and avoiding debt were the keys to hitting that million dollar mark.
Okay, what now?
Even if you’re not making a big income, there are realistic, tangible steps you can take to help get yourself there. Besides, how much you make is actually not the most important thing in becoming a millionaire. Some people have made millions that are now bankrupt. Some are retiring as millionaires, but they’ve never made more than $40,000 a year.
It’s time for the first step: get in control of your spending and out of debt. The Mogo app is designed to help you take your money game to the next level by motivating you, inspiring you, educating you and helping you achieve a new level of financial health. If you haven't already, download the app today to get started!
Our goal is your goal: getting you confident in your money game, to help you get on track to becoming a millionaire. So, so many Canadian millennials and Gen Z-ers experience financial stress. We want to help.
–The Mogo Team
* Trademark of Visa International Service Association and used under licence by Peoples Trust Company. Mogo Visa Platinum Prepaid Card is issued by Peoples Trust Company pursuant to licence by Visa Int. and is subject to Terms and Conditions, visit mogo.ca for full details. Your MogoCard balance is not insured by the Canada Deposit Insurance Corporation (CDIC). MogoCard means the Mogo Visa Platinum Prepaid Card.
This blog post is provided for informational purposes only, is not intended as investment advice, and is not meant to suggest that a particular investment or strategy is suitable for any particular investor. You should always do your own research and, if you’re unsure about an investment, you may wish to obtain advice from a qualified professional. Nothing herein should be considered an offer, solicitation of an offer, or advice to buy or sell securities. It’s also important to remember that past performance is no guarantee of future results and Mogo cannot guarantee that you will become a millionaire.
1 - Past performance is not indicative of future results. For more information on historic average annual returns for the S&P 500, see: https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp.