Hello, and welcome to Millionaire Dojo! Did you know most Americans have the potential to become millionaires?
It takes a lot of hard work, but that’s exactly what we’re going to be doing here, working our way to a million dollars. Growing your net worth to a million will take a lot of discipline and focus, kinda like getting a black belt in martial arts does. Although those six zeroes seem so far off now, you have to start somewhere. By reading this post you are officially a white belt in the art of finance.
Where I started
My journey began as an 18 year old clerk at a gas station. I was mopping the floors one day and realized that I had to do something to change my life. I was miserable working at that gas station and decided to start looking into ways I could get a job that I would enjoy doing. Six years later, I’m a systems engineer in the I.T. field and working diligently towards financial freedom.
No matter what your job is, you are probably making enough money to be saving at least a little bit. There’s almost always something you could be doing to cut back on expenses. Especially if you live in America where there are so many opportunities to spend your hard earned money.
Since this blog is going to be all about net worth, lets see where my wife and I currently stand.
- Cars: $23,000
- Home Equity: $15,000
- Investments: 24,291
- Emergency fund: $9,000
- Everything else that we own that could be sold: $15,000
- Total net worth = $86,291
We are currently 10% there and have a long way to go. We are in much better financial shape than most of America though and only have one debt – the mortgage. So what’s your net worth? Add up all the things you owe and subtract the debts you have. You may even have a negative net worth (meaning you owe more than what you own). If this is your situation, don’t be dismayed, with a few life changes and some guidance from your new financial Sensei here, we’ll be kicking that debt in the face and making our wallets fat as sumo wrestlers in no time.
In light of the martial arts theme here, lets setup a ranking system to track where we are.
Net worth ranking
- White belt: $-0 – $10
- Yellow belt: $10 – $100,000
- Orange belt: $100,000 – $200,000
- Purple belt: $200,000 – $300,000
- Blue belt: $300,000 – $450,000
- Green belt: $450,000 – $650,000
- Brown belt: $650,000 – $750,000
- Red belt: $750,000 – $999,999
- BLACK BELT!!!: $1,000,000
Alright, we’ve got a handy ranking system setup now. Where do you rank? If you have no debt and $10 in savings, you’re ready to move out of that embarrassing white belt status and into that sun shiny yellow!
Some of you are probably thinking, “how does this guy expect me to listen to him when he is just a mere yellow belt?” Well, this blog is about progress and although I’m not a black belt yet, you might get some valuable advice from following me on my journey. Also, I can kinda do anything I want here so I can be a yellow belt Sensei if I want to.
Why should you care about becoming wealthy?
Lets talk some about why I want to become a millionaire and why you might want to be one too. A million dollars has the potential to generate $70,000 a year in interest if invested properly. With $70,000 coming in, I could choose to work when I want and only work on things that are fun for me to do. $70,000 a year is more than enough to do pretty much anything you want to do. If you’re making $70,000 a year or more you’re probably thinking “I sure don’t feel like I can do anything I want.” We’ll be discussing how you can cut your unnecessary expenses down and live more than comfortably on $70,000 a year in the future.
I don’t want to be rich just to be rich. I want to mold my life to be frugal enough to live on a small income and still be completely fulfilled. With a million dollars in the bank, I could give freely, spend time with loved ones, travel the world and help others who are struggling. That’s why I think it is a worthy goal and something we should all strive for.
I’m excited to be on this path and I hope you’re getting excited as well. Keep tuning in for more training and the endless ideas and tips I’ll be sharing along the way. We’ll be black belts in no time!
So what belt are you? Comment your ranking and let’s work together.