The Millionaire’s Math

In our society, we see that everyone is chasing jobs. Although, I hardly see anyone becoming a millionaire from jobs. Today, we will be uncovering the truth of millionaires, and the math to become a millionaire

Why The Mindset Of People Needs To Change…

If you plan to become an engineer or a doctor, then this might not be the ideal article for you. But if you plan to become a millionaire or become a BILLIONAIRE, then this is the perfect place for you.

Since childhood, we are taught to go to school, go to college, get a degree, get a job, and make a lot of money. Well, that is not actually how it works.

If you want to become a millionaire, then you won’t be able to achieve your goal in this manner.

In some cases, jobs can make people millionaires, although it is going to take way more than a year. For becoming a millionaire in under a year, you have to do one of the following:

• Have several sources of income
• Have an impact at a lot of people’s lives

If you have several sources of income, Its almost easy for you to become a millionaire. There can be several sources of income, and the following might actually work for you(except of a 9–5 job):

• Creating a YouTube channel
• Start blogging
• become an Instagram influencer
• invest in the stock market
• Start freelancing
• Start a startup

Now, lets do some Math…

For a typical 9–5 job, paying you $1,000 per month, you are making approximately $640,000 for working for the next 40 years…

That’s still not a million dollars.

And I know that you might have a REALLY good job, but that still won’t make you a millionaire in the next 5 years.

If your end goal is money, then I am sure that this is not the best way for you to achieve your goal.

Why can you make a million dollars from a business(for example) in under a year but you can’t make a million dollars from a job?

SCALABILITY.

Many people do not consider this as a factor, but think about it.

When you are doing a 9–5 job, you are only providing value to 1 person. Hence, you can only expect to make an income from 1 person. But with a business, you do not have a limit. You can reach a million people in no time. And think of it, if everyone of that million people pays you only 1$ for your service, you have hit a million dollars already.

But even with businesses, people do not reach a million dollars some time. That is because they limit their reach. If you have an offline business, the maximum distance that you can influence is 2 miles’ radius. That’s the limit with an offline business. But with an online business, you can influence people living in Switzerland and you might be in Japan.

Case Study:

Mike is trying to start a business. He sees that due to the Covid situation, the physical activities have drastically reduced among people. He decides to start a yoga course for 3 months.

His idea seems to be amazing, because it solves the problem of several people. But, would it be enough profitable for him if he decides to make the business offline? Maybe, but then he might need to ask 2000 people for 30$ per hour and provide 16 lessons. That means that each individual will be paying him a total sum of 500$. Do you think that people would actually buy his course?

At max, 100 people might buy it, considering that there are 50,000 people living in his locality. What are his expenses?

1. Hiring a few trainers
2. Paying the rent of a REALLY big place for the next 3 months
3. Paying the electricity bill
4. Paying the bills for hygiene management of the place

I do not think that all this will cost him any less than 50,000$ for the next 3 months.

So his net profit is 45,000$, which is good, but then he is also going to have to spend a lot of money on advertising, and many people will not even come, because of the covid situation.

So what happens if he takes the business Online?

If he takes his business online, then the following is going to happen:

• He has a way larger reach
• He does not need to charge people some exclusive rates
• He will not have to spend money on rents and bills
• His overall profit will increase by a different level

The key point here was scalability. Now, even if he charges only 10$ per hour, that sums up to 150$ for the next 3 months for a total of 15 lessons. This seems to be kind of affordable for those who have been training in the gym for a long period of time. Normally, people might pay over 200$ for the gym per month, and here they are only paying 150$ for the next 3 months. If he is successful in marketing his product well and getting more than 1000 people to enroll, then he has been able to make 150,000$ in just 3 months. And this is just an example. You can think of several other cases where this revenue model can generate over a million dollars in just some months’ time.

The more you can scale, the more you can make.

Also, your business will not succeed if you do not have an actual impact in people’s lives. This is because people will never buy a product just because they want it. They will buy a product or a service only if it can actually help them in some manner. Let’s take the case of Facebook here, and see why did it become successful. The main purpose of Facebook was that it would help people connect from all parts of the world. This was a really big revolution, because this was exactly what people wanted. Because it was able to create an impact on a billion people’s lives, Facebook could easily generate revenue. Keep in mind that their revenue model is advertisement, and they are not actually selling anything themselves. So, again, there can be several revenue models, I just gave you an example in the above case study.

Now, let’s say that you do want to become an engineer, or a doctor, but still want to become a millionaire in a few months’ or years’ time. How can you do that?

SEVERAL MODES OF INCOME

If you have several modes of income, then you have allowed yourself to have more people paying you. Therefore, even if you can make 10$ per day from one source of income, you still have several more backing you up.

Remember, by several sources of income, You can but do not need to work at each one of them for a lot of time per day. For example, if you make a YouTube video where you just record your entire day, what you do, how you do what you do, etc-, then you only have to spend 1–2 hours on editing. This might vary, although I am taking an average. You might have a blog which took you 30 minutes to write. So, it’s not necessary for you to actually put in another 8 hours of time in your other streams of income, but you surely could do that.

This is what we call Passive income.

The concept of passive income is basically this: you do something once, and you do it really well, and then you get returns for a time span for doing it.

lets take a YouTube video for an example.

You made a really good YouTube video today, and you publish it. Even though it doesn’t instantaneously, but it might turn out to be really good in a month or two’s time. You could put ads on it, and you can generate revenue from it. I find myself watching 6 to 8 years old YouTube videos sometimes, and I do not bother to do that, because it might still be informative or entertaining for me.

So, this is again just 1 example. You can make a lot of income passively. I hear people making over 150,000$ per month with just affiliate links.

The possibilities are endless. You just have to get up and do some work.

Thank you! I hope that you found this informative.