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15 Year Millionaire Plan

The 15 Year Millionaire Plan: Year 0


There is a lot of information in personal finance literature and online resources regarding the power of compound interest, how best to invest for the long term, and how much to save monthly in order to become a millionaire. All of this information is vastly helpful for those of us seeking to eliminate debt and grow our net worth. At compounding returns, however, we believe that saving money, investing for the future, and living simply does not require a degree in economics or an in depth understanding of advanced trading strategies, but rather a concrete and workable plan.

Focusing on the Near Term:

This is where our 15 year millionaire series comes in. Most personal finance websites focus on the long term; the very long term. Retirement. 

Sure, we all want to fund a comfortable retirement, and live well along the way. But what about seeing some results in the near term? In our experience, there is nothing more motivating than the achievement of intermediate goals along the way to keep you inspired to achieve great things like being able to fully fund your own retirement, buy your dream home, or fund your children's' college

The 15 year millionaire series is designed for those of us who sometimes become disheartened by focusing too far on the future. The 15 year millionaire series offers a concrete road map to building a million dollar net worth in just 15 years. 

Structure of the 15 year Millionaire Series:

So here is the deal. The 15 year millionaire series will consist of 15 posts, published every Monday for 15 weeks, each of which focuses on a different strategy to increase your earning power, savings, or net worth. 

The idea is that by instituting small changes over time, and following the strategies put forth in this series you (or anyone for that matter) can build a net worth of over $1 Million in 15 years.

Year 0: What You Need to Get Started

Now, lets not kid ourselves. To build a net worth of $1 Million in just 15 years, we are going to need to start somewhere. That's why we have some rules for our future 15 year millionaires. 

Before you start on your path to becoming a 15 year millionaire, we strongly recommend that you have achieved the following basic financial goals:
  1. Debt Free: You will never be able to save and invest aggressively enough to become a millionaire in 15 years if you are crippled by consumer debt. That's why the prospective 15 year millionaire must be debt free (except for their mortgage, if applicable) before starting this plan. For some tips and resources for paying off debt, check out the following posts: A Guide to Paying Off Credit Card Debt, and Prioritizing your Debt. 
  2. An Adequate Emergency Fund: At compounding returns, we advocate having an emergency fund that can cover at least 3 months worth of living expenses for your family before starting the 15 year millionaire plan. (We will continue to build this emergency fund during the 15 year millionaire series).
  3. A 20% Down Payment: An important component of the 15 year millionaire plan will be the purchase of a home for your family. At compounding returns we will seek immediate equity by putting 20% down on a home. (If you are already a homeowner, this does not apply to you).
  4. A Well Paying Job or Job Prospect: Although at passing glance, this may seem like a get rich quick scheme or a gimmick. It isn't. This is a concrete plan, offering a concrete and achievable way to save and invest your way to $1 Million in only 15 years. It can only be achieved by slashing expenses, investing thoughtfully and intelligently, and having a competitive income. According to the Census Bureau, the median household income in America is $50,000 a year. Because this plan will require participants to invest a significant amount, our final requirement for starting this plan is an income or prospects for an income in excess of $50,000 a year. (Keep in mind, this is total household income. If you are married, two 25,000 a year salaries will make you a candidate). 
If you have achieved steps 1-4 above, you may be ready to start your journey to becoming a millionaire in 15 years. This journey will not be easy. It will require sacrifice, commitment, and courage. But if you stick to the plan, chances are very good that you could build a net worth of $1 Million in just 15 short years.

Next Monday's Post:

Next Monday's post will focus on achieving the required level of income to start the 15 year millionaire plan. This will be especially important for those beginning the plan with prospects for a $50,000 a year income, rather than those who have already achieved this level of household earnings per annum.

Read the rest of the 15 Year Millionaire Series:

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