What Would You Do With $1,000,000?
How often have you thought about what you’d do if you had $1,000,000? Becoming a millionaire is a dream for many but it isn’t that unrealistic anymore. Aside from winning lotto, there are numerous ways to make a million or more. Once you have a million, what would you do with it?
How to Earn, Save and Invest to have $1,000,000
The most secure way to become a millionaire is to do it yourself through saving and investing. Waiting for an inheritance or lotto win means you could wait your whole life and never reach the financial freedom you want.
Earning, saving and investing puts you in control of your money. Many people become millionaires within 30 years or in time for retirement through living frugally, saving and focusing on their retirement. This is not the way we want to do it in our family.
Those who have their own business and investments can do it in under 10 years, some as little as 5 or 7. You can find out more in the book We Should All Be Millionaires.
Successful businesses seem to be one of the quickest ways to become a millionaire. Investing wisely in indexed funds as per The Simple Path To Wealth is another simple way to do it. Or look at getting into a highly paid job, sacrifice a lot for a few years while investing wisely then retire as per Quit Like A Millionaire.
What Would You Do With $1,000,000 You Saved or Invested?
Once you have saved and invested to have $1,000,000, what would you do with it? If your plan is to use it in retirement, you will likely redraw on it over time until eventually you have nothing or you pass away.
Others, use it to invest more. Once you have $1,000,000 it is much easier to increase your investments quickly. Having a few million invested means you can get an income from the dividends and live quite comfortable without decreasing the value of your investment.
Meaning, you can live off a wage paid by your investments and still have over $1,000,000 stashed in investments. Doing this ensures your future and finances are safe.
What Would You Do If You Got $1,000,000?
This is very different to investing and earning $1,000,000 over a long period of time. Most people who suddenly get $1,000,000 e.g. through lotto or an inheritance, blow it. Having a plan for what you would do with a sudden injection of cash is important to ensure you make the most of it.
If we suddenly got $1,000,000, what would you do with it? We often play a game where we list out what we would do if we won $1,000,000 or $10,000,000 etc.
Be clear on how you want to spend the money. Below is an example from one of my clients. The crypto is because they are interested and if they suddenly got $1,000,000 they feel part of it would be fun money.
$27,000 to debt
$223,000 to develop the property
$500,000 to indexed funds
$250,000 to crypto
Of course, that doesn’t take into account taxes or other expenses. But when you are playing it as a game or pretending you don’t need to include taxes or you can say it is $1,000,000 after tax.
Manage Your Money Now
As is having a budget. If you aren’t in control of your money already and overspend, what makes you think you would manage $1,000,000 any better than that? Get
What Will We Do Once We Have $1,000,000?
This site is about our journey to $1,000,000 net worth. Our aim is actually much higher. $1,000,000 is the first goal. As mentioned, it would be used to develop our land, clear debt and invest. It is when we get to the higher amounts that what we really want becomes clearer.
We have a dream home in Vanuatu we want to buy which is a few million dollars. It’s where we want to get married and have forever. There is land here where we live in Australia we’d love to buy and develop to own a few specific businesses on.
Our desire is for multiple businesses, over $4,000,000 invested in shares/indexed funds/crypto and freedom to travel. Which means, once we hit $1,000,000 we will keep going.
What Would You Do With $1,000,000 And How Will You Get It?
How can you make $1,000,000?
There are multiple ways to make $1,000,000. A million dollars used to be the dream amount for many but now it is much easier to achieve. And for some, won’t be enough to live on in retirement. Personally, we are aiming higher but our first goal is $1,000,000. So how can you make $1,000,000?
1. Save, Save, Save Until You Retire
The average wage in many Western countries is around $50,000. This means, in 20 years, $1,000,000 passes through your hands. If you are part of a couple, you could save one wage and live off the other. Or go further and look at how you can save one wage PLUS a percentage of the other wage.
Saving as much as possible, putting it into a savings account and letting it grow with the minimal interest in there is one of the longest ways to get $1,000,000. For those who don’t like risk and prefer to set and forget with their finances, this is a great option.
Save one of your wages, max out retirement funds and any bonuses from your employment to increase your net worth and eventually, you’ll become a millionaire. If you are a couple, you might want to have $2,000,000 so technically you are both millionaires. It could take decades to do it though and you’ll spend your whole working life scrimping and saving.
2. Invest in Shares/the Stock Market/Indexed Funds
How you choose to invest in the stock market is up to you. Indeed funds have performed the best over time and outperformed hedgefund managers and others guessing at stocks. They are easy to invest in and essentially a set and forget option with a higher payout than just saving.
Invest then as you get dividends, invest more. Learn about the stock market and your risk tolerance level. Some people cannot handle the ups and downs. If you can’t, do not invest in individual shares. Instead, go with indexed funds. Read and learn more about it in The Simple Path to Wealth.
Either start your own or buy one and increase it. Numerous millionaires all over the world made their millions through business. It doesn’t need to be a huge business. See a need, find a way to fill it, expand and you’ll get there. People have made millions through blogging, drop shipping, yard work and all sorts of businesses.
You don’t need to change the world with your business. Find something you are interested that people want or need and do it.
Marketing, business management and the general running can all be learnt or outsourced. However, make sure you are on top of finances. Have the finances separate to your normal living expenses. Too many business owners starting out don’t separate their finances and it ends up messy. Plus it is hard to expand if you can’t prove business income.
Quite a few people I know will inherit over $1,000,000. This isn’t a method to rely on though because who knows when you will actually see it or if you will at all. Plus, inheritances can bring out the worst in people with fights for years to get what people thing they are entitled to.
It is a way to become a millionaire but not one to depend on. However, if you do expect an inheritance, work out what you would do with it before it comes. This way you are prepared and can make it work for you.
How Are We Making $1,000,000?
We are doing it a couple of ways, firstly investing, secondly with a quirky challenge. Our challenge was starting with $2 and doubling our money. Doing this 20 times equals over $1,000,000.
How will you become a millionaire? What ways do you know of others becoming millionaires?
Straight Up Cash
Who doesn’t love free money? The offers below are specifically for cash or can be converted to real cash if you choose to withdraw them.
Disclosure: this post may contain affiliate links.
$100 From ING
I’ve banked with ING for over a decade and love them. So easy to deal with, fee free and you can even get atm fees back if you use other banks. Right now, score $100 for new accounts.
Meaning, if you have never been a customer of ING you can get $100 for opening an everyday account with them.Here’s what you need to do:
- Open an everyday account and put the promo code CNW116 in the promo box
- Deposit $1,000 into the account
- Make 5 settled transactions
- Open a Savings Maximiser
- Make a deposit into the Savings Maximiser
Then you get your $100 the following month. You only have until July 31, 2021 to do it. And you MUST use the code CNW116 to get the $100!
Instant $20 From 86 400 (Online Bank)
86 400 popped up in my life about a year ago and I decided to test it out. They are an online-only bank, fee-free and so far, I’ve enjoyed them. Easy to use, the card is one of my favourite colours and you get $20 instantly for joining with the code S7VL6WF when you join free here.
Instant $5 From Up Bank
Another online only bank. I’ve used UP for a while, including overseas in 2019 and early 2020. We were impressed with how easy they were to use, the fee free banking plus speedy customer service assistance when we needed it.
$10 BitCoin From CoinSpot
If you have ever been curious about cryptocurrency but too scared to test it out, sign up to CoinSpot for free and get $10 free BitCoin. You can see how it progresses, add a little e.g. $10 and watch your reactions to the ups and downs. Doing it this way is essentially risk free since you got $10 worth for free!
$5 Bonus to Invest with Spaceship
When it comes to shares, many people are concerned they will lose money or don’t know where to start. So they avoid it. Spaceship is a great option where you can invest, they split your investments across a great portfolio and you have less risk.
Use the code S8ONS71M9X here to get $5 free when you deposit $5 within 14 days. It is an easy way to test how you feel about investing in shares.
$5 Bonus to Invest with Raiz
Raiz is another microinvesting app but they charge a monthly fee. Get $5 free when you join free here and invest as little as $5.
$20 Cash Back
Shopback and CashRewards are two of my favourite cash back apps/sites. Plus BOTH of them offer a $10 bonus. All you need to do is sign up to each of them, then use their cash back options when you are shopping online. Spend over $20 online and you get a bonus $10 cash back. Use both sites and get a total of $20.
Discounts To Reduce Your Expenses
If you use any of the following discounts, you can transfer the money straight to your account. Remember, a savings isn’t really a savings unless you do something with the money you saved.
$100 off HelloFresh
I have used HelloFresh on and off for years. The quality is usually pretty good, my kids find the recipes easy to follow and you can save $100 off your first box here.
$100 Off Marley Spoon
Another meal delivery service I have used at different times. MarleySpoon has $100 off which is split across your first 4 boxes – $40, then $30, then $20 and lastly $10 off.
$150 off EveryPlate
EveryPlate is Australia’s cheapest meal delivery service. You can get 40% off your first box then 20% off your next two. If you get the biggest box, that is over $150 saved.
$60 off Dinnerly
Another cheaper meal delivery service. Dinnerly has easy recipes with fewer ingredients and less packaging than the others. Get your $60 off which is split across your first 3 boxes.
Other Tips To Get Freebies, Bonuses and Discounts
Above were just a few of the big discounts and sign up bonuses we’ve seen. Here are more ways to get discounts.
Sign up to their email list
Most businesses offer a discount when you sign up to their email list. I find it useful to have a separate email account specifically for this.
Add to Cart but Don’t Check out
Sign into the website you are shopping on. Add everything you want to the cart then leave the site. Businesses often offer an extra discount or incentive to complete you cart within a few days.
How to Buy and Resell Items
I shared how doubling your money, starting with $1 can get you to $1,000,000 if you double it 20 times. One of the first things I did when I started looking for ways to make and save money years ago was buy and resell items. I quickly learnt where to shop, what to buy, where to list and which items were most profitable.
What We Bought
When looking for items to buy and resell, I wanted to start small to fit in the doubling your money concept and also to show how it’s done. I was at the second hand store and saw a copy of The Barefoot Investor for $2. I figured that was an ideal start for doubling our money.
Where We Listed
I bought it, took a photo on my phone then uploaded it to Facebook Marketplace. I had already checked how much this book was selling for on there and knew it would sell quickly.
How Much and How Quick
There were other copies on there being sold for $10 so I listed mine for $8 and it sold within a few hours. We met that night at the local shopping centre where I was going to do my groceries and I made $6 on that book.
Managing the Money
With flipping items, as the aim is to double our money, I set up a separate bank account for it. 86 400 is an easy to use online only bank which will give you a $10 bonus for signing up with the code S7VL6WF here. Having a separate bank account also means I have no issues giving out the bank details or using Osko/PayID for payments to make them quick and easy.
Currently, there is $8 in there and I will be out this week looking for items to flip using that $8.
I’ll be continuing finding items to buy and resell. There are so many opportunities out there, waiting to be explored. As we progress and the amount we have increases, it won’t just be items in second hand stores we flip.
Previously, I did well buying and reselling websites, I’ve done it with cars and eventually want to do it with some real estate too.
So the next few flips will be smaller items but soon we plan to be doing bigger items.
Double your Money 20 Times and you get from $1 to $1,048,576
It sounds simple and in the beginning with the lower amounts, it is. You can buy things to resell easy enough but once you start getting into the thousands, what can you do? Property, cars, websites? You can read how to do it below and if you want to see exactly what we are doing I am writing down each flip of ours here.
$1 to $1,048,576
The first time I mentioned doubling the money to make $1,000,000 my kids were skeptical that it was only 20 moves. So I wrote it out:
$1 x 2 = $2
$2 x 2 = $4
$4 x 2 = $8
$8 x 2 = $16
$16 x 2 = $32
$32 x2 = $64
$64 x 2 = $128
$128 x 2 = $256
$256 x 2 = $512
$512 x 2 = $1,024
$1,024 x 2 = $2,048
$2,048 x 2 = $4,096
$4,096 x 2 = $8,192
$8,192 x 2 = $16,384
$16,384 x 2 = $32,768
$32,768 x 2 = $65,536
$65,536 x 2 = $131,072
$131,072 x 2 = $262,144
$262,144 x 2 = $524,288
$524,288 x 2 = $1,048,576
How can you Double your Money?
20 transaction might not seem realistic but there are plenty of things you can do to double your money. With the lower end, books, clothing and things from garage sales, op shops or similar can be acquired and flipped for a profit if you know what you are looking for.
There is some risk, you don’t know if the items will sell or they may take a while to sell. But if you get good items with a higher profit margin it can see you quickly move up into the thousands.
Larger amounts you can use for websites, cars, crypto, real estate etc.
How to Double Thousands?
When you get into the thousands it might seem trickier. I’ve bought and sold cars for a profit. Websites I would buy then increase their traffic and sell them for 10 to 20x what I paid.
Websites were the clear winner here for flipping for a profit but life got busy. It’s something I will be picking up again and will share how I do it, my sales etc.
How to Double your Money at the Higher-end?
Websites, cars and property are all quite viable here. Property can take a little time to increase and with the way the world is, it might be harder to do in certain areas. There are whole TV shows on flipping so if you have the time and skills, you can make a decent profit.
Be aware, you need a good budget, time and a lot can go wrong. Patience is key here. It won’t happen overnight but if you are committed to learning and taking action, you can double you money in some cases or with a few houses.
Is it Realistic to Become a Millionaire? Or Financially Free?
For us, it is realisitic but I also understand, it’s not for everyone. I do believe everyone can improve their financial situation a little though and sometimes having a clear goal such as this helps. Doubling your money as outlined above is one example to get there but it isn’t the only way.
Investing in shares, investing in business, starting something or taking it over and making it grow. If you don’t mind waiting, simply investing in super, savings and shares will get you there at retirement age, especially if you start younger.
It is about dedication and a focus on your goal.
Our Millionaire Goal
Millionaire status isn’t my main focus. Having flexible incomes with multiple income streams enabling us to be financially free is my goal. FIRE – meaning Financial Independence Retire Early is our goal.
I’ll be sharing our journey as I go. The focus of this site and project is to start with $2 and turn it into $1,000,000. However, that doesn’t mean I won’t be using our other resources.
The main aim is to buy things to resell and get to the higher amounts quickly so we can focus on property. And we will be sharing the journey the whole way.
What is your big financial goal?