Can you believe it’s already December?! I don’t want a lot for Christmas. There’s just one thing I need. I need to know how I’ve done this year! It’s the season for celebrating with family, drinking a little eggnog, and for going over how I did financially. I’ve been working at my job for 5 months now, longer than any employer I’ve ever worked for (full-time, at least). With the 40 hours a week that I invest in my employer, I want to see some returns and have something to show for it. I want it to contribute to the thousand mile journey of becoming a millionaire. .
One of my favorite 5 minute past times is logging into my Personal Capital account and visualizing exactly what my net worth is. I like seeing a steady increase month after month, especially for my 401k. I reached my first meaningful milestone: the first $10,000 in my 401k.
Small Wins Matter
Small wins are important. I would even go far as to say that small wins are even more important than big wins in the long run. Celebrating small wins give you confidence, it gives you the push to know that you can do this. That is why I am very proud of the fact that I just took the first step to achieving millionaire status and to show you, my readers, that if I can make the first step, you can too.
Becoming a millionaire is no easy feat. The steps it takes to get there isn’t rocket science, but it still takes time and discipline. There’s many steps that are needed but having a good start doesn’t hurt and helps tremendously. I have the belief that I can get there without a doubt. There could be unforeseen life events that could prevent me from reaching that goal but I have a good shot at reaching them. I just hope that this step is the first of money $10,000 steps.
The second milestone would be to reach my first $100,000 balance in my 401k. That goal will take me longer than 5 months. Going at the same pace would allow me to reach that goal in 50 months (or, in 4 years and 2 months), without the help of compound interest. I would like to reach it sooner but if I keep up at the same pace without external forces at play, the LATEST I will reach it will be in 4 years 2 months. That is completely fine with me.
First Step Still Takes Work
I remember being back in college. Two weeks before it started, I was obsessed about money and I began detailing ways of making money. I thought of selling Hershey’s chocolate to classmates. Heck, I did that when I was 6 years old in kindergarten, so how hard could it be? Reflecting back, I probably lost money when I did it. The joys of youthful exuberance. However, this time it’s different. This wasn’t when I was 5 years old, this was when I was 17 years old, I could do this!
I thought about how If I could just sell about 10 a day for a profit of $1 a day by buying in bulk, that’s an extra $3,650 a year! Add that with working 15 hours a week for $8.25 an hour for 52 weeks, then that’s an additional $6,435, which adds an extra $10,000 to my net worth. Exactly how much it could cost my tuition for a year. My tuition was paid for by scholarships. If it wasn’t, I would be on the hook for paying that and so I worked jobs as if I didn’t have any scholarships backing me up.
As fool-proof (sarcasm) as my plan was to add an extra $10,000 to my net worth, it failed miserably. I didn’t know anything about sales, communication, or anything else business. So I went the old-fashioned way and got 2 jobs working 20 – 25 hours a week on top of my classes to add the $10,000 in net worth I wanted to add. It still took quite a bit of work to get there.
Visualization Leads to Reality
For the next 2 years, I am completely focused on building wealth. It isn’t the only nor is it the most important thing that’s on my mind but I am determined to increase my net worth. I completed the first step. Now the next step is to reach the $100,000 milestone. It may be easy or it may be hard, but what’s important is that I recognize the milestone steps to know that I’m heading in the right direction.
I may not be going 100 miles per hour to reach my goals (I’ve been reading stories of Googlers who live in their cars for 2 years to save up to buy a house and I can’t go that extreme to reach my dream) but I do know what direction I’m going and that’s what matters.
Maybe you’re trying to get out of debt, go for the second million, or just starting to save and build wealth. Whatever your goals are, there’s multiple steps to every huge goal that’s out there. It’s only fitting to celebrate whenever you reach a new step. Then you can look back and realize how far you’ve been walking!
Readers, how has your first steps been? How was your first milestone achieved and if you haven’t achieved it what are you doing to try to get there? Let me know in the comments below!
My goal is to enable your success in personal finance so that you can realize the American dream. The first step is starting today!
Read more about me here.
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