How to Celebrate 'National Be a Millionaire Day' and 5 Tips to Be One
NEW YORK, May 20, 2021 (Newswire.com) - National "Be a Millionaire" Day is a real thing. It's celebrated every year on May 20th, right before Memorial Day. How are you going to celebrate? You could start by consolidating debt and planning to grow your assets so you can reach that millionaire status someday.
According to the Credit Suisse Global Wealth Report, there are more than 20 million millionaires in the United States. Having a million bucks isn't as far-fetched as it once was. The median home price in the United States is $340,000. Buy one of those and you're 1/3rd of the way there.
Most people think that being a millionaire means having a million dollars in cash in the bank, but that's not the case. You can earn the distinction by building $1 million in assets. Celebrate May 20th by planning to do that.
Five tips to become a millionaire
Roughly 80% of the millionaires in the United States earned their wealth. The other 20% inherited. Between 2019 and 2020 alone, 2,251,000 Americans passed the million-dollar mark in total assets. Here are five tips on how you can get there, too:
1. Pay off debt: High-interest credit cards hold people back from building real wealth. Consolidate your credit card bills with a debt consolidation loan and pay it off. Net worth is calculated with assets and liabilities, so get rid of the liabilities.
2. Eliminate wasteful spending: This is easier than it looks. Define the word "wasteful." It basically means, "If you don't need it, don't buy it." That could mean skipping newer generations of technology if your old ones work fine or just opting to brown bag lunches. It's different for everyone.
3. Max out retirement savings: The IRS has set a maximum contribution limit for 401(k) plans and IRAs. In 2021, that limit is $19,500 for 401(k)s and $6,000 for IRAs. Max them both out, if possible. That's tax-deferred savings that you'll have when you retire.
4. Buy real estate: As mentioned earlier, the median home price in the U.S. is $340,000. There are other properties worth more, some of which generate income, like multifamily residential buildings. Buy one of those and your net worth will climb quickly.
5. Create a savings and investment plan: The stock market can be volatile, and savings interest is low right now, but that doesn't mean you shouldn't start an investment portfolio and open a savings account. For best results, hire an investment advisor to make sure you consider every benefit and risk.
Now you can celebrate 'Be a Millionaire Day'
Once your plan is in place, feel free to celebrate "Be a Millionaire" Day. We recommend you do it every year. Use it as a milestone to measure how close you are to achieving millionaire status. Quantifying your efforts and measuring results is a healthy habit to get into.
"Be a Millionaire" Day is the one day you can loosen up a bit. Don't blow up all the work that you did by spending all your money, but you can still go out and enjoy yourself. Go to a nice restaurant and order expensive champagne. Live like a millionaire, at least for a few hours.
Source: Credello
