Become A Millionaire With Just $5 A Day

Becoming a millionaire must seem like a dream come true for those who are barely getting by. After all, who wouldn’t want the funds to live well and care for loved ones?

Sadly, that dream seems impossible after accounting for living expenses, loans, and mortgages. It’s undeniable that poverty is a widespread problem in today’s society.

So how can someone of low income reach that goal? Isn’t wealth for those born into families with power and connections?

Not quite. Achieving financial stability could be easier than you thought. The greatest obstacle to achieving sustainable wealth is not birth status, but character.

If you’re looking for a simple way to become a millionaire, you’ve come to the right place. This post is a less ambitious version of my billion-dollar plan. But if you prefer aggressive growth, I urge you to read that post as well.

You may be wondering why I have a post for millionaires and one for billionaires? I would’ve asked the same question. But I realized that most people don’t even believe they can make it to $1 million, let alone $1 billion. How can you fathom becoming a billionaire if you don’t even think you can achieve millionaire status?

What is The Billion Dollar Plan?

I have a confession—I created The Billion Dollar Plan by pure accident. It began with a modest attempt to invest in my company’s 401(k) plan that contained stock market funds.

Like any spreadsheet geek would do, I played around with the numbers Excel. I used historical stock market performance to project my 401(k) profits. But I had no idea that I would manage to create a $1 billion net worth by the end of my life!

Once I saw those numbers, there was no going back. Empowered by this information, I knew that I would quit my six-figure career someday.

Author’s Note: I started Breakaway Limit to live my best life and help others do the same. As a former pharmacist, I had to weigh company profits against my patients’ health. Sick patients generate more profit than healthy ones. But doing so—along with other factors—ended up making me sick. All I wanted was to make a positive difference in people’s lives.

How Anyone Can Invest Into the Million Dollar Plan

When I consulted some of my readers for feedback on my billion-dollar plan, I was in for a huge surprise.

All I wanted was to enlighten others about investing and compound interest. After all, anyone should have the ability to pursue their dream life or career if they put in the effort.

Ironically, the people who needed the most help were also the ones I alienated the most.

Some readers felt it wasn’t worth investing because they didn’t think they could earn $1 billion. Either they were too late to the game or didn’t have enough to invest. So they admitted defeat before even trying.

I realized I had done a huge disservice to some of my readers. Although not my intention, I had set the bar too high by not considering their circumstances. As a result, they felt overwhelmed and turned off from investing.

This millionaire post is to make up for that. I’ll be illustrating how investing can be accessible to everyone.

The Power Of $5 in Compound Interest

Investing $5 a day is by no means a large sum of money. It’s only worth 20 minutes of work at minimum wage. Giving up 20 minutes of watching shows browsing social media will give you all the time you need to earn that amount.

The fact that you could use this method to make $1 million means there’s a low barrier to entry in the investing world. Whether you’re a student or professional, not investing due to choice, not lack of ability.

Although $5 is a modest amount, don’t underestimate the power of compound interest.

If you’re not convinced, take a look at this chart. It outlines the projected growth of investing in the stock market with only $5 a day. Let’s see how doing this daily can pave the road to financial stability and how long it takes to reach $1 million.

If you take a close look, you’ll notice that your initial asset growth is slow. But don’t worry, because it accelerates with time. By 20 years, you’ll have saved over $100,000. The best part? You’ll only have invested a principal of $36,500 total, which means your money has increased by almost 200%.

In another 20 years, your investments would skyrocket to about $880,000. For investing a total of $73,000 in principal over 40 years, you’ll achieve over a 1000% return on investment (ROI).

What’s more, you’d be making more in passive income than you put in. A 10% annual yield on $880,000 would earn you $88,000 per year for your $73,000 principal.

We haven’t reached millionaire status just yet, but we’re quite close. Wait two more years and enjoy your six-figure passive income and millionaire status.

Remember that you’ll pay taxes on withdrawals from a regular IRA or 401(k). Opt for a Roth IRA or Roth 401(k) for tax-free withdrawals when you retire!

Sign up for WeBull to get no-fee Roth IRA. You’ll earn two free stocks valued up to $1400 when you sign up and make a deposit.

Invest For Your Family

So great, you’ve achieved millionaire status for yourself in 40 years. While enjoying your six-figure passive income, you regret not investing for your kids.

Let’s suppose you had also set aside $5 for your kids daily from the day they’re born. We’ll also assume they continue investing until they’re 80. Here are potential returns after the initial 40-year projections we did above.

The total you and your child contribute to that fund over 60 years would be only $109,500. But your child would enjoy a phenomenal retirement balance of over $6 million at 60 years old!

If they continue investing until the age of 80, their savings could hit a staggering $40 million!

And that’s it. There’s no point in projecting any further because I’ve already covered that in my billionaire post. I don’t know about you, but I prefer investing $5 a day to set my family up for life than investing in life insurance.

Making $5 to Invest

Now that you know how to turn your daily $5 into millions, let’s figure out where you can get $5 a day.

$5 daily translates to $35 a week. Assuming you work 40 hours per week, setting aside $1 for every hour you work will easily cover the cost.

Your first option should be to try asking for a raise. You’d only need to make $1 more per hour to put aside $35 a week.

But if your job isn’t offering a raise, then learn these networking secrets and land a better job and get paid your worth.

You can also work more to earn your $35 a week. I would suggest trying to create a side business first. You may create a stable source of passive income this way to invest.

If that isn’t an option, your last resort would be asking your employer for extra hours. At a minimum wage job, this could mean working an additional 2 hours and 20 minutes a week.

Saving $5 to Invest

If getting a raise or working more isn’t for you, you can shave $5 off of your expenses.

I’m sure one of you is waiting to rip out my throat for suggesting skipping your $5 coffee or brunch four times a week. Don’t worry; I won’t do that. But I also won’t deny that those are valid options.

Ultimately, it’s up to you how to budget your expenses. You can splurge once in a while, but don’t spend on too many unnecessary indulgences. With all the “couple of dollars” you spend “here and there,” your costs can start to pile on.

So go enjoy your time off. But try not to travel halfway across the world every year or go fine dining weekly. You can enjoy your time off without breaking the bank by planning free, local activities.

How I Spent Money on a Six-Figure Salary

My spending habits haven’t changed much since the days I was making a six-figure salary at my old job.

I was so focused on investing early that I put 60% of my pay into stock accounts and 30% towards savings. My expenses accounted for less than 10% of my pay, and I even lived with my parents at the time.

Don’t waste your when you could be frugal and far more productive. Instead of going out to eat, I try to buy and prepare foods in bulk. What might cost $20 at a restaurant will cost me less than $2 to make.

By preparing in bulk, I also maximize the time and money I have. I don’t have to travel to food destinations or wait for a table. I don’t have to deal with poor service and still feel obligated to tip.

Focus on activities and assets that generate the most value (or cost the least) in the least amount of time.

The $5 Challenge

If you made it all the way here, remember to thank yourself in the future. Once you choose to invest $5 a day in the stock market, your success is almost guaranteed. Set a recurring monthly deposit to your brokerage and learn the stock buying strategies to pay less for your shares.

If you don’t already have a brokerage account, I recommend checking out WeBull.

WeBull Features

• Two free shares (up to $1,400 value) with this link for signing up and making a deposit
• Zero fees on stocks AND options.
• Roth IRA for tax-free earnings.
• Longer trading hours—Extended hours begin at 4 AM and end at 8 PM EST.
• Free paper trading to hone your skills with virtual money.

So why are you still here? Start investing $5 a day and get your financial life in order!