March 30, 2012

It seems that lottery fever is sweeping the nation, so today we give our thoughts on how you can still be a winner of life’s lottery without hitting the jackpot.

With the Mega Millions reaching $540 million (at the time of this post), it seems that striking it rich is on everyone’s mind lately.  Since we believe it’s important to have a financial plan other than playing the lottery, we decided to consult the real expert on becoming The Millionaire Next Door.

In his blog and book, Dr. Stanley outlines what it really takes to become successful financially.  He says, “The large majority of these millionaires are not the descendants of the Rockefellers or Vanderbilts.  More than 80 percent are ordinary people who have accumulated their wealth in one generation.  They did it slowly, steadily, without signing a multimillion-dollar contract with the Yankees, without winning the lottery, without becoming the next Mick Jagger.  Windfalls make great headlines, but such occurrences are rare.  In the course of an adult’s lifetime, the probability of becoming wealthy via such paths is lower than one in four thousand.  Contrast these odds with the proportion of American households (3.5 per one hundred) in the $1 million and over net worth category.”

The Millionaire Next Door’s Seven Factors of most existing millionaires:

1.  They live well below their means.

2.  They allocate their time, energy, and money efficiently, in ways conducive to building wealth.

3.  They believe that financial independence is more important than displaying high social status.

4.  Their parents did not provide economic outpatient care.

5.  Their adult children are economically self-sufficient.

6.  They are proficient in targeting market opportunities.

7.  They chose the right occupation.

To show you how easy it can be to accumulate $1,000,000 by age 65, we ran some numbers.  Given a 10% interest rate, you should save:

  • $95 per month if you are 20
  • $263 per month if you are 30
  • $442 per month if you are 35
  • $754 per month if you are 40
  • $1,317 per month if you are 45
  • $2,413 per month if you are 50

If $1 million isn’t enough for you, here are the numbers to reach $5,000,000:

  • $477 per month if you are 20
  • $1,317 per month if you are 30
  • 2,212 per month if you are 35
  • 3,768 per month if you are 40
  • 6,584 per month if you are 45
  • 12,064 per month if you are 50

And $10,000,000:

  • $954 per month if you are 20
  • $2,634 per month if you are 30
  • $4,424 per month if you are 35
  • $7,537 per month if you are 40
  • $13,169 per month if you are 45
  • $24,127 per month if you are 50


Your definition of success may lie somewhere between these numbers, but we just want to show you that with some hard work and dedication, reaching your goals is definitely possible.  You don’t have to win the lottery to be happy – you just need to find that balance between preparing for your future and living in your present.

Be sure to tune in to the show for our humorous calculations for retiring with the $540 million jackpot!

As an aside, our Knowing When to Go Pro podcast got so much positive feedback that we have decided to make it available all the time.  Be sure to check it out and share it with your friends and family who may be seeking professional help with their finances.




Most Recent Episodes

What I Learned From Being BROKE!!! (And Why I Wouldn’t Change It)

No one disputes the fact that being broke isn’t great. We want to spread the word that no matter where you came from, you can build wealth. In this episode, Brian and Bo share personal stories about their journey to wealth and lessons they learned along the way....

Top 10 Mind-Blowing Money Stats (2023 Edition)

These 10 money stats will blow your mind! We’ll discuss the unbelievable amount of money Americans save, when most reach millionaire status, and how many Americans carry a credit card balance. Research and resources from this episode: Most Americans don't have enough...

Wealth Multiplier Revealed: The Magic of Compound Interest!

There’s a reason why Albert Einstein called compounding interest the eighth wonder of the world! Do you know exactly how it works and how much your dollars could turn into by retirement? The Money Guy Wealth Multiplier can show anyone just how powerful every dollar...

From $0 to Millionaire in 10 Years (Is it Possible?)

How can you become a millionaire in 10 years or less? We’ll discuss common ways we see millionaires build wealth quickly, including through real estate, entrepreneurship, and the stock market. Discover how real wealth is built and why building wealth quickly may not...

Financial Advisors React to INFURIATING Money Advice on TikTok!

Brian and Bo are BACK to react to some more TERRIBLE financial TikTok advice! Join us as we take a look at some of the worst financial advice on the platform and tell you what to actually focus on in your own financial life. Enjoy the Show? Sign up for the Financial...

Investing Showdown: Dollar Cost Averaging vs. Lump Sum!

It’s a debate as old as time: what’s better, dollar cost averaging or lump sum investing? In this episode, we’ll cover the nuances and pros and cons of both, including in-depth case studies comparing investors at different times. Research and resources from this...

Is Inflation Really Ruining Your Finances? (You Won’t Like the Answer)

Inflation has changed our daily living expenses dramatically over the last few years. While we can’t control all of our expenses, there are many things in your control that can help you become a Financial Mutant and build wealth better than your peers. Enjoy the Show?...

Are $1,000 Car Payments Becoming the New Norm?!

New data shows more Americans than ever have car payments over $1,000. Is this becoming the new normal? How much could having a car payment of $1,000 be costing you for retirement? For more information, check out our Car Buying Checklist!