It’s possible to become a billionaire, but it’s not easy. Becoming a millionaire is much easier, though.
How to become a millionaire
Becoming a millionaire is achievable if you have time, patience, discipline, and perhaps a little luck. Consider that the stock market has grown by an annual average rate of close to 10% over many decades. If you still have 25 years to retirement and you can sock away $10,000 per year in a broad-market index fund, you can end up with almost $1.1 million, if the market averages 10%. If it averages 8%, you’ll amass close to $800,000, which is still pretty solid. Withdrawing just 4% of that in retirement per year can get you $32,000. Add Social Security to that, which was recently averaging about $16,000 per retiree, and you’re at nearly $50,000 in annual income.
One way or another, if you take reasonable risks and don’t give up, you should be able to build significant wealth — enough to provide for yourself in retirement and perhaps even enough to become a millionaire. If you have a brilliant idea or two, along with great perseverance, skill, and a little luck, becoming a billionaire isn’t out of the question, either.