Being A Millionaire Is Just 11 Steps Away – The Doubling Game

If you were to work for 50 years of your life and then consolidate all your earnings in your entire life just to see if you’ll be able to earn a million dollars, you would be able to achieve it with an average income of $20,000 per year, even without investing. As you can see, that is an easy sum to achieve with an annual income of $40,000 if you save 50% of your pay.

In fact, you might already know a millionaire in your social circle. Man, I wouldn’t even be surprised if you are already one yourself.

But really, do you want to work for 50 years of your life?

I would! But on different circumstances from now, of course. I would love to be able to have the opportunity to work for love, and not for money.

Yes, there are many reason why I can’t do it now, and these reasons may also hold true for you. But it doesn’t mean that we can’t be there any time in the future. All we need is just some guidance and learn how to make our money work for us. Hopefully, it works hard enough to sustain our lifestyle so that we can continue on to pursue other events that may seem more fulfilling to us. And hopefully too, these events may also possibly be able to generate income.

So I would like to think that being a millionaire is not difficult for the average working society. The real question that we should ask is how fast one can be a millionaire.

I chanced upon the concept of how money is a doubling game, and it allowed me to view money in a very simplistic way. Let’s see how $1000 can be developed into the wonderful million with just 11 steps.

Now, the idea is this. If you’ve made $1000 this year, would you know what it takes to make $2000 next year?

If your answer is yes, then you’ll practically breeze through Stage 2 and land yourself a sweet spot between Stages 2 and 3 at the end of next year. Or you could be a smart kid and go through multiple stages within a year.

As you proceed up the first few stages quickly, you would also see your net worth increasing as you go along and the graph grows exponentially, similarly to how compound interest would work for your investments.

Bringing myself now into the picture, you can see that my net worth is currently in between Stages 8 and 9. So to speak, I’m actually only 3 stages away to doubling my money and becoming a millionaire. :O

Okay, let’s get more realistic. When the graph grows much more than how it was supposed to in the first few stages, things get a little bit tougher. My incoming cash flow is kinda stagnant since my income is kinda predictable and wouldn’t grow like crazy overnight. I would definitely need to minimize my expenses to increase my savings rate and also find other ways to increase my income.

So I’m at the part of the graph where I gotta be creative with making money, and it might not take me only 1 year to move up the next stage anymore. By using this model, I can perform some assumptions and predict the amount of time that I would need to reach Stage 11 and finally become a millionaire.

What would be my predicted time period for me to be worth a million bucks, then?

The answer lies in my personal cash flow. Assuming that my annual income stays the same and my expenses are around $20,000 a year, it would take me roughly 12-13 years with a 4% yield for my net worth to reach that million.

Doesn’t sound too far off now, does it?

Although I’ve used the doubling effect against my net worth, but you could also apply the same doubling effect to many other things. For example, you could substitute your net worth with your total earnings for that year. Or if you’re running a business, you could use it to estimate how your business would grow to reach the next milestone.

P.S. The calculations are similar to the spreadsheet in this blog post: Passive income of $3000 per month – How did I arrive at this number?

Thanks for reading!

Miss Niao xoxo