To many people, earning a 6-figure salary is the only sure way to become a millionaire. But that’s not necessarily true.
There are numerous other methods to join the millionaire’s club. And no, we’re not talking about receiving a windfall inheritance or winning the lottery, as these are legit money-making secrets.
In this article, we look at the top ten ways how to make a million dollars. All the listed income-generating strategies can turn you into a dollar millionaire if pursued diligently enough. The rundown encompasses both investing and saving tips.
1. Invest In Real Estate
The United States property market is bullish right now. Recent data by Zillow predicts that home values in the US will rise by an average of 6.5% from July 2023 to July 2024. That makes investing in real estate one of the most lucrative money-making methods.
Contrary to popular perception, real estate is reasonably easy to invest in. That’s due to its relatively low entry barriers, especially regarding regulatory requirements.
Besides, there are multiple ways to set up a real estate venture.
You could go with the traditional method of buying an existing property or constructing one from scratch and then earning rental income by leasing it to tenants. A property can generate thousands of dollars in monthly rental income depending on its location and number of units.
Other popular ways to make money from real estate include investing in a real estate investment trust (REIT), leasing farmlands, becoming a real estate broker, etc.
2. Buy Dividend-paying Stocks
Investing in stocks commonly features among the proven money-making strategies. However, not all stocks are made equal. If you’re keen on becoming a millionaire sooner than later, you’d do well to consider dividend-paying stocks.
As the name implies, dividend-paying stocks are stocks that reward shareholders periodically. The rewards are typically available in cash or as additional shares.
Dividend-paying stocks are, in fact, one of the most reliable ways on how to make money online for beginners. Unlike before, when you had to rely on the advice of real stockbrokers, you can now enlist the assistance of robo-advisors and invest from the convenience of your location.
Another perk of dividend-paying stocks is that you can still sell your shares for a profit. This option is especially ideal for non-dividend-paying stocks.
3. Take Your Chances on Bonds
Bonds are a type of investment security where an investor (usually private citizens) lends money to an entity (typically a government or big corporation). It’s a form of I.O.U between a borrower and a lender.
Bonds are one of the tried-and-tested money-making ideas for both short- and long-term investors. Maturity dates can range from twelve months to thirty years.
But what truly sets bonds apart from most successful wealth creation methods is that returns are way higher than peer-to-peer lending. Earnings depend on the principal amount and duration of maturity.
There are two primary ways to make money through bond investments.
The first and most common method is buying bonds, holding them until they mature, and then collecting interest income.
Alternatively, you could buy into a bond exchange-traded fund (ETF) or bond mutual fund. This option pools funds from multiple investors and then invests the money in different bonds.
4. Put Your Money in a High-yield Savings Account
You’ve probably read countless personal finance articles discouraging stashing your money in a regular checking account. But as you plan on a long-term investment instrument to channel your savings into, you could transfer them to a high-yield savings account (HYSA).
High-yield savings accounts, as the name implies, are savings accounts that pay higher interest rates than normal savings accounts.
Like bonds, income from high-yield savings accounts depends on the principal and contract duration. However, HYSAs have an added advantage in that you can invest for periods as short as three months.
However, like most wealth-building techniques on this list, earning from HYSAs requires the utmost patience and discipline. Most savings accounts will have you forfeit your interest if you terminate the contract before maturity.
5. Become an Amazon Affiliate
Amazon is the world’s leading ecommerce marketplace, with an estimated 300 million active users worldwide. That automatically makes it one of the secret websites to make money, especially for online freelancers.
Becoming an Amazon affiliate is a profitable way to earn from the website if you have a blog or social media account that generates decent traffic volume. Earnings can range from $100 to $20,000 per month based on the number of successful referrals.
There are several ways how to make money on Amazon besides affiliate marketing. For instance, you could join the Fulfillment by Amazon (FBA) program, which lets independent sellers ship their merchandise through Amazon.
You could also private-label your products on the platform or publish your books on its Kindle Direct Publishing (KDP) program.
6. Set Up a Dropshipping Business
The past few years have witnessed a surge in dropshipping businesses. That’s primarily because this retail fulfillment model doesn’t require traders to maintain real inventory.
Retailers simply feature products in their stores and wait for orders to pop up. They then convey the orders to the real inventory owners, typically manufacturers or wholesalers, who process them using the retailer’s branding information.
Dropshipping is an ingenious wealth-creation method for anyone who wishes to make money on phone. The fact that you don’t need to handle real inventory eliminates the need for a physical office or warehouse.
You could also explore dropshipping if you’re looking for reliable methods on how to make money fast as a woman. Career women and stay-at-home moms are advantaged since almost ZERO physical effort is required to facilitate merchandise shipment.
7. Vlog on YouTube
There were more than 51 million YouTube channels as of 2022. And while that may point to a saturated platform, the website still offers immense money-making opportunities.
As the world’s leading video-based social networking platform, YouTube is a vloggers’ paradise. The site appeals to internet users interested in learning how to make money in one hour.
Even better is that you can explore other avenues how to make money on YouTube without making videos. One such method is by offering merchandise sales through your channel.
8. Publish Audiobooks on Audible
Publishing audiobooks is another wealth-building tip right out of the millionaires’ handbook. Generating income from publishing audiobooks has risen steadily after the pandemic. However, earnings vary based on the platform you choose to host audiobooks.
What if you lack the time and expertise to publish your audiobook?
Well, don’t worry. There are many other ways how to make money on Audible.
9. Start Saving Early
Fostering healthy personal finance habits is just as effective a wealth-creation technique as actively pursuing income-generating ventures. And one of the best money management tips you’ll find in a millionaires blueprint is the emphasis on cultivating a culture of saving right from the cradle.
Experts recommend setting up savings and retirement accounts when you land your first earnings. In this respect, the term ‘earnings’ doesn’t necessarily denote direct income. It could also encompass things like inheritance money and life insurance benefits.
Saving early allows you to leverage the power of compounding over the years. That’s especially true if you choose a high-yield, tax-advantaged account like an individual retirement account (IRA).
You should also consider saving at least 20% of your income. And if you struggle with depositing money into your savings account after receiving your paychecks, you could automate the entire process by setting up direct deposits.
10. Stay Out Of Debt
It’s almost impossible to lead a debt-free life. If anything, many of the world’s millionaires were in debt at certain points in their lives. So, what makes debt management one of the proven wealth-building strategies?
Well, you can only become a millionaire sooner if you limit your debt obligations. If you must be in any debt arrangement, ensure you’re the creditor.
One way to stay out of debt is to build an emergency fund. This ensures you don’t borrow money whenever you’re facing unforeseen financial emergencies.
Income diversification is another practical debt management strategy. You can use the extra bucks earned from your side gigs to quickly sort out unforeseen financial crises.
And if you’re already deep in debt, you might want to implement robust debt repayment techniques, such as the snowball and avalanche methods. The snowball method entails paying off debts with lower interest rates first, while the avalanche method emphasizes prioritizing high-interest debts. You might also consider debt consolidation, especially if you have multiple debts with different interest rates.
Becoming a millionaire is a process rather than an overnight event. It entails pursuing lucrative income-generating ventures while also practicing healthy personal finance habits.
We hope you can use this millionaires’ guide to kick-start your journey towards financial independence.