How to Become a Millionaire in 10 Years or Under (Oh, and Market Timing)

The Money with Katie Show

Money with Katie

Self-improvement, Education, Business, Investing, How To

4.8 • 1.3K Ratings

🗓️ 5 October 2022

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

Before I understood the almost-unbelievable magic of exponential compounding, I thought becoming a millionaire was an almost-impossible goal only achievable by the highest earners or people who were already rich. Granted, inflation has certainly shifted the meaning of a million dollars over the last 20 years—but it’s still no small potatoes. Fortunately, we can calculate this path to the magic million with relative ease—so that’s exactly what we’re doing on the show today. If you’re trying to reach a $1 million net worth with a partner in 10 years or fewer, good news—neither partner even needs to make six figures. Of course, the temptation is strong to try to time the market in the context of our current volatile shitstorm. We’ll address why that’s a fool’s errand, historically speaking, and discuss some ~alternative options~. (And reminder: Past performance is not indicative of future returns.) Finally, we're joined by my friend Delyanne Barros, otherwise known as The Money Coach (https://www.instagram.com/delyannethemoneycoach/) and host of CNN's Diversifying (https://www.cnn.com/audio/podcasts/diversifying). Delyanne shares her path from being a high earner and equally high spender to becoming a millionaire on track to retire by age 45. To learn more about our sponsor, Vin Social, check out http://vinsocialvip.com/ Episode transcriptions can be found at https://www.podpage.com/money-with-katie-show/. — Mentioned in the Episode Download the free Money Management Routine resource: https://education.morningbrew.com/budget Data on the world's millionaire population: https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html JP Morgan Asset Management study on market timing: https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/on-the-minds-of-investors/is-market-timing-worth-it-during-periods-of-intense-volatility/ Secret millionaires: https://www.rd.com/article/secret-millionaires-donations-after-died/ The Psychology of Money by Morgan Housel: https://www.goodreads.com/book/show/41881472-the-psychology-of-money Average monthly spend by a single earner: https://www.nerdwallet.com/article/finance/monthly-expenses-single-person-family Incomes making higher than $150K/year or more: https://www.statista.com/statistics/203183/percentage-distribution-of-household-income-in-the-us/ Median retirement savings amount: https://www.synchronybank.com/blog/median-retirement-savings-by-age/ How to Diversify Beyond The Total Stock Market: https://www.moneywithkatie.com/blog/you-might-be-overexposed-to-large-cap-diversifying-beyond-the-total-stock-market-and-sampp-500 10 Stunning Fast Fashion Waste Statistics: https://earth.org/statistics-about-fast-fashion-waste/ — Follow Along - Listen to Money with Katie here: https://www.podpage.com/money-with-katie-show/ - Read Money with Katie: https://moneywithkatie.com/ Follow Money with Katie! - Instagram: https://www.instagram.com/moneywithkatie/ - Twitter: https://twitter.com/moneywithkatie - TikTok: https://www.tiktok.com/@moneywithkatie Subscribe to Morning Brew - Sign up for free today: https://bit.ly/morningbrewyt Follow The Brew! - Instagram: https://www.instagram.com/morningbrew/ - Twitter: https://twitter.com/MorningBrew - TikTok: https://www.tiktok.com/@morningbrew Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	If I told you that you and a partner only needed to invest $36,300 each per year to become
0:09.7	a millionaire couple in just 10 years, would you believe me?
0:14.2	The good news is it's very possible and you don't even need to make six figures to do
0:19.2	it.
0:20.2	Here's how.
0:26.2	Welcome back to the Money with Katie Show Rich Girls and Boys and get pumped because
0:30.4	today we are talking about the magic million with a sprinkle of wisdom about market timing.
0:43.9	Before I understood the almost unbelievable magic of exponential compounding, I thought
0:50.5	becoming a millionaire was an almost impossible goal only achievable by the highest earners
0:56.9	or, frankly, people who are already rich.
1:00.4	Granted, inflation has certainly shifted the meaning of a million dollars over the last
1:05.2	20 years.
1:06.3	And if you're curious to replicate the purchasing power of a million dollars in 2005,
1:11.6	you would need about one and a half million dollars today.
1:15.2	So no, it doesn't go as far as it used to.
1:18.1	But there's still something a little tantalizing about your first million bucks.
1:23.1	It's still a very unique feat.
1:25.6	There are 51 million millionaires worldwide representing just 0.6% of the world's population.
1:35.1	That's right, fewer than 1% of people alive are millionaires according to Credit Suisse.
1:40.8	So while we can argue about inflation and purchasing power, there's still no denying
1:46.5	that it's a very impressive financial characteristic.
1:50.5	Today's guest is a friend of mine, Delian Baros, better known as Delian the Money Coach
	...

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