I read this fantastic recipe for success by Warren Ingram in an excerpt from his book, “How to make your first million.” Only three easy steps and if I follow through, I will be a millionaire! Right?
So naturally I make myself a dashboard to track my progress. Once I have imagined that millionaire lifestyle I want the first taste so bad! Since there are only three steps it shouldn’t be that bad right? Phew, I was wrong! These are wonderfully simple steps, but it takes grit to actually get these things in place.
Step 1 is to eliminate all debt. This is a hard one for me. I live In a society where credit is everywhere. As a South African, the good credit, like a loan to buy a house, is only awarded to people with a good “credit score.” This means that everyone who wants to be able to buy a house with the help of a bank needs to first have a history of using credit and paying it back on time. Once you realise that a credit score is a part of being an adult, it’s a slippery, Instagram-fueled slope down into an abyss of things you can’t afford but think you must have. Right now I’m in the fourth year of five years to pay off my car! Man is it going to be sweet when those payments are done. I have had a nightmare with credit cards but I’m finally cautious enough to be responsible. Until proven otherwise. And the cellphone bill is coming down nicely. I have put cheaper internet options in place and can begin cancelling recurring add-ons as they are up for renewal. Yes!
Step 2 is to save up enough cash to have an emergency supply that is equivalent to between three and six months worth of your month expenditure. This is going to take me a long time but I can absolutely see the value. Since we are at Step 2, we can consider ourselves debt-free! Now that we are debt free, this is actually achievable. Here we go! Don’t skip on this because this money is going to be the reason you never need a credit card again and why you will never have to pay interest to other people for using their money instead of yours.
Step 3 is the genius part of this system. Passive income. Now you could keep working at the same job until you have a million (in addition to your emergecy savings) but that is not the point here. What we are trying to do is create a lavish lifestyle that is full of the things that make you happy. That’s why we’re taking millions and not just a good old twenty thousand for a holiday. Passive income is a very rare thing. It means you are not trading your time for someone’s money. You set something up and it will continue to make money for you while you jet-ski, eat breakfast at midday and especially while you sleep. In this example I am using Airbnb rental income and interest earned from a portfolio of shares. Another option could be royalties you earn when a book or piece of music written by you is sold. I learned all about passive income in Robert Kiyosaki’s book Rich Dad, Poor Dad.
So in closing, you can see how far away my life is from having a cool million in my bank account. I am far, but at least I know where I am. This dashboard is a map for me. It shows me exactly where I need to put my next step, and the step after that, in order to get my feet all the way to my first million.
In case you are wondering and missed it in the beginning, these three steps come from another book, “How to Make Your First Million,” by Warren Ingram. Please look it up if you think this is a system that you need in your life.
Please look me up if you think you need dashboards in your life! There is a fantastic free video series on Kickstarting your Dashboard and I would love to see how you interpret the book into a tracker for a future full of light and happy things (like a birthday party on a yacht).