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How do I get started on the road to my first million?

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As any investment advisor will tell you, having a plan is the best way to figure out where you want to go and more importantly how to get there. If you follow the advise of “Rich Dad, Poor Dad”, by Robert T. Kiyosaki, you actually need three plans.

1) Plan to be secure 2) Plan to be comfortable 3) Plan to be wealthy

What is the difference in the three plans?

The plan to be secure involves taking care of your basic financial needs. This involves securing your retirement. If given enough time to invest wisely you too could be a millionaire by investing just one dollar a day. With the power of compounding and time anyone including you could retire with a million dollars. See the following powerful example of what can happen by investing only one dollar a day.

A Dollar A Day Invested At Various Interest Rates For 66 Years

Interest Rate Accumulated

0% $24,000

3% $77,000

5% $193,000

10% $2,700,000

15% $50,000,000

source. “The One Minute Millionaire: The Enlightened Way to Wealth” by Robert Allen

For this part of the planning process you will focus on retirement by investing in a tax-free investment plan

or company 401(k) where in most cases your company matches your investment or “free money”. You can set these types of investment accounts on auto pilot by having money directly deducted from you bank account or paycheck before you have the chance to spend it.

The plan to be comfortable involves making yourself comfortable by paying down your credit cards or other consumer debts and saving 3 – 6 months of your salary in an emergency fund. The piece of mind you will gain by having money in the bank and not having to worry about your credit card debt will be well worth the time you spend saving money and living below you means. The excess cash you will have after controlling your consumer debt can be used to propel you into the plan to be wealthy.

For many people, just completing the first two plans are enough. It provides them with a feeling of comfort and security. Following the plans one and two may seem like a mundane and automatic way to wealth but keep in mind the goal in these first two phases is to build a strong financial foundation.

While some are content with investing just to achieve comfort, as an investor you may have more lofty goals. This is where phase 3 begins- “Plan to be wealthy”.

The plan to be wealthy is the more aggressive part of your financial plans. At

this point you should be taking your excess cash that you are saving from your plan to be secure and attaching yourself to an investment vehicle which will make yourself rich.

As an eager investor, you may find you have an overwhelming urge to jump into an investment vehicle and take off, without first gaining a solid knowledge base. And some have been lucky enough achieve instant success. However, by building up your knowledge base you will save yourself both time and money when creating your own plan for wealth.

So which investment vehicle is right for me?

Determining which investment vehicle to attach yourself will depend on your own goals and knowledge base. You may choose one or many but, we at www.realestatesleuth.com are most interested in real estate. Why real estate? Because regardless of what happens in the world, people still need places to live and businesses still need places to conduct their operations. You will have to discover what part of the real estate market you are most interested in. This could be single-family, duplex, multi-family apartments or commercial properties. The next question you need to answer is, “do I buy to rent or intend to flip?” Again that decision will depend on your interest and

comfort level.

What is the quickest way to go from zero to a million?

The quickest way to get from zero to

a million is to use leverage. Leverage does not just have to come in the form of money. Leverage can come in the form of:

Other people’s experience Other people’s time Other people’s money

Going from zero to a million can be difficult on your own. The quickest way is to mentor with others who have accomplished that which you are striving.

Many of the world’s greatest investors have used mentors to rapidly increase their own learning curve such as Donald Trump, Warren Buffet, Robert Allen and Robert T. Kiyosaki. Obviously, you may not have access to any of these people but you can still learn from them by

reading their biographies and attending seminars. Because this is an article about starting out and building a knowledge base, we recommend reading “Millionaire Real Estate Mentor” by Russ Whitney and by continuing to visit www.realestatesleuth.com to find information on real estate investing and success stories from our members.

Disclaimer: Professional or legal advice should be sought before making any financial decisions.

About the Author

Real estate investor.