You need to be a hundred thousand-aire before you can be a millionaire

People often say to me “I want to get rich”, “I want to build a property portfolio”.

I tell them, before you can be a millionaire, you need to become a hundred thousand-aire. I’ve never heard that term used before, but I say it regularly. The point is that, you won’t magically propel from having almost nothing to millions, unless you perhaps develop an app.

We could break the goal down even further, and say that people should save their first ten grand first, but let’s be honest, that isn’t a big goal. Most people who are employed should at least have that much, and if not, they aren’t likely to make it to millionaire status anytime soon anyway. If you are employed and don’t have $10,000 to your name, it’s time to get out of debt and start saving.

If you are aware of Warren Buffett’s book the snowball, the name is based on the idea that he had a small amount to start with, and rolled it up over time, to turn it into a fortune. That is the exact same concept of starting with a small amount, rolling it into $100,000, then eventually that $100,000 will turn into a million.

The thing with investing less than $10,000 is that you’ll be too tempted to gamble on the basis that the money is small relative to earnings-even in a modest job. Once you are talking about $40,000–50,000 even, people will be more serious about their decisions. When you get to $100,000 net worth, and are considering putting all of your money into an investment, you’ll be very serious and will definitely be sure of yourself before making the move.

This is why it’s important to accumulate a reasonable amount of cash to start using to invest, not only because when you are dealing in real money you can properly build toward actually becoming a millionaire, but also because you’ll be forced to make real decisions that will actually have a chance of getting to your goal.

For most people, I find that purely saving $100,000 is a pretty large goal, so generally I advise people to make sacrifices and to take on additional work until they can at least get $40,000 saved. After that, they can start to make investments and build toward the $100,000 goal. Once you are at $100,000, and you make a few good moves, becoming a millionaire will no longer be beyond your reach.

My background is as a Financial Advisor and currently I am focused on helping people achieve their property goals. Tune into my podcast at for more information. My book is available at

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