Anyone can become a millionaire. Honest. There are a couple of easy ways but you have little control over those two routes: Inherit a million (well, you can be really nice to that odd maiden aunt....) or win a lottery. Either of those methods are pain free(unless that aunt is really awful or you sell your house to buy tickets - not recommended!)

But, even without having rich relatives or lucky numbers given to you by a psychic, you can, given time and a simple investment strategy keep a million dollars out of all the money you make in a lifetime. After all, even at $25,000 a year for 45 years you will make $1,125,000.

The numbers here can be even better if you take advantage of tax strategies in your country, IRA’s in the United States, RRSP’s in Canada, for example. But for now, let’s say there is an even playing field and let’s also ignore taxation. Let’s just look at the magic of compound interest!

Starting early is always best. If you have a partner that may make your plan easier, too. Live on one salary for a time, accumulate together. Okay, than you will have to share the profits, but sometimes life is like that. Here is what you can do to create a million in a specified time. Investing in equities will be necessary unless interest rates really soar. A balanced portfolio with some safe, some adventurous investments is also a wise idea. For now, let’s assume you discuss all this with a seasoned financial advisor or that you do research yourself. Let’s also assume you average 7% a year. Some years may be better some worse, but we will go with this average. Now, here’s the brass tacks, the gold shillings, the polar bear toonies or the American dollars you will have to invest to get that million:

There are choices:

- Come up with a lump sum.
- Do you have an asset to sell?
- Invest monthly or annually but always faithfully.
- Will live cheaply for a few years to gain long-term luxury?
- You make the decisions.

- Here is what you will need to do to make your million assuming a 7% return: If you
- Invest for 45 years you will need $ 47,614.
- Invest for 40 years you will need $ 66,781
- Invest for 30 years you will need $ 131,268
- Invest for 20 years you will need $ 258,428
- Invest for 10 years you will need $ 508,350
- Want it now, you need $1,000,000

Start early!

If you do not have a lump sum, maybe you can save some each month. If you don't ahve a big income, maybe you can find a savings partner. Have any expectations signed and witnessed. Never, never sign away your rights!

If you'd prefer to take the slow and steady route, here is how much you need to invest monthly at 7% to create your $1,000,00 (million dollars):

- If you invest for 45 years, you need to save $ 285
- If you invest for 40 years, you need to save $402
- If you invest for 30 years, you need to save $850
- If you invest for 20 years, you need to save $402
- If you invest for 10 years, you need to save $5,813
- If you have never started to save, you need $1,000,000

Start early!

How much will you pay with your monthly payments?

- 10 years: 120 X $5,813 = $697,560 gain: $302,440
- 20 years 240 x $1,958 = $469,920 gain: $530,080
- 30 years 360 x $ 850 = $306,000 gain:$694,000
- 40 years 480 x $ 402 = $192,960 gain:$807,040
- 45 years 540 x $ 285 = $153,900 gain:$846,100

Start early!

What is your payout at 7% a month interest from $1,000,000?

Take an income of $5,654 a month and you will never have to touch your $1,000,000!

In 15 years you will have received $1,017,720 in income payments and you will still have your $1,000,000, your million dollars.

So, you see, yes, you, too, can be a millionaire! Why not start today?

submitted by Deborah Hedd