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Joining The Millionaire Club And Not Looking Back

Updated: 02/04/2021 by Financial Samurai 19 Comments

When I turned 28, I became a millionaire. But I didn’t realize I was a millionaire until 30. It was only at 30 did I start diligently tracking my net worth. This post was originally written on September 27, 2009. I’m revisiting it 12 years later! Joining a millionaire club is a good idea.

The Millionaire Club

After putting up my $1 million dollar “Freedom Fund” tracker this past June, I’ve had a number of inquiries regarding what it’s all about.

By starting completely over in my Freedom Fund this past summer, I will be as honest about my finances as possible.  

If you’ve read my earlier recommended net with asset allocation post, you’ll know that I believe people should have a Cash Goal, rather than a Net Worth goal. Very simply, we have a better chance of counting on Cash during retirement, than on all the other stuff.

I was surfing the PF network and stumbled across J. Money’s site, “Budgets Are Sexy.” He started “The Million Dollar Club” for all those who simply wish to be millionaires. 

There isn’t any red velvet rope to get in and I don’t want to be alone in my journey towards gathering $1 million cash, so I’m joining!  It’s all about community and I’m looking forward to J and my fellow members stopping by with their support.

Here is my pre-requisite Millionaire To-Do List:

To join the millionaire club, here’s what to do.

1) I will never dip into savings to buy anything superfluous (shoes, electronics, toys, games, cars, etc).  Cash flow is the only source of my spending.

2) I will not use my credit card if I cannot pay it off every month.

3) I will save and invest my yearly bonus and only live off 85% of my base salary.

4) I will take advantage of all tax efficient retirement plans. At the very least, I will max out my 401K every year knowing that it cannot be counted on.

5) I will pay off my rental property within 8 years and buy another rental property in a no state income tax state within 24 months. I will also buy more rental properties given interest rates have plummeted during the global pandemic. The value of real estate has gone way up as a result.

6) I will find at least 5 sources of alternative investment income, including: interest income, stock dividends, online income, private equity returns, and rental income.

7) I will never let money control my life.  Instead, money will be my own personal servant named Alfred when I choose to retire.

8) I will take care of my wife and never let her financially suffer.

9) I will always value time over money and never be a penny wise and a pound foolish.

10) I will continue to find new ways to financially help others who need help.

Becoming A Deca-Millionaire

Going a day without spending money on things may be akin to going a day without drinking for a recovering alcoholic.  I spend too much money on crap to the detriment of my retirement, and I admit it. 

By joining the club, I’m more confident than ever we’ll be able to succeed in our dreams of becoming financially independent sooner, rather than later.

What’s really interesting is that in 2021, I am now a deca-millionaire ($10+ million net worth). I diligently saved 50% – 75% of my after-tax income every month and invested 80%+ of it into stocks and real estate.

Today, my favorite investment is rental properties and real estate crowdfunding. Real estate is my favorite asset class to build wealth. Join a millionaire club and learn from others!

Related Posts:

The First Million Is The Easiest: How To Become A Millionaire By 30

The Average Net Worth For The Above Average Person

Target Net Worth Amounts By Age, Income, And Work Experience

Regards,

Sam

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Filed Under: Retirement

Author Bio: Sam started Financial Samurai in 2009 to help people achieve financial freedom sooner, rather than later. Financial Samurai is now one of the largest independently run personal finance sites with 1 million visitors a month.

Sam spent 13 years working at two major finance companies. He also earned his BA from William & Mary and his MBA from UC Berkeley.

He left corporate America in 2012 with the help of his retirement income that now generates roughly $300,000 passively. He enjoys being a stay-at-home dad to his two young children.

Here are his current recommendations:

1) Real estate is my favorite asset class to build wealth. Real estate is less volatile than stocks, produces income, is tangible, and provides shelter. Take a look at Fundrise, a top real estate crowdfunding platform with diversified eFunds and eREITs. Roughly 40% of my net worth is in real estate. Fundrise is free to sign up and explore.

2) Take advantage of low mortgage rates by refinancing with Credible. Interest rates are ticking up due to higher inflation expectations. Credible is a top mortgage marketplace where qualified lenders compete for your business. Get free refinance or purchase quotes in minutes.

3) If you have dependents and/or debt, it’s good to get term life insurance to protect your loved ones. The pandemic has reminded us that tomorrow is not guaranteed. PolicyGenius is the easiest way to find free affordable life insurance in minutes. My wife was able to double her life insurance coverage for less with PolicyGenius.

4) Finally, stay on top of your wealth and sign up for Personal Capital’s free financial tools. With Personal Capital, you can track your cash flow, x-ray your investments for excessive fees, and make sure your retirement plans are on track.

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Comments

  1. Ms. Frugal Asian Finance says

    June 21, 2017 at 1:28 pm

    Oh my I just discovered this post through J’s blog. I can’t believe it was written back in 2009. It’s been 8 years!

    I second Lily that #8 is really sweet. I want to be adventurous with my future businesses one day (i.e. real estate, blogging, etc.), but I would love to have Mr. FAF catch me if I fail! Even if he doesn’t, I think I’d still want to explore to know what I’m good at. :D

    Reply
  2. Lily @ The Frugal Gene says

    May 23, 2017 at 10:22 pm

    Omg this is a freaking time capsule! I need to sign up too. #8 is so sweet, awh. I wanna make my husband take that pledge :p

    It’s crazy how far Sam and J has come! “Nana nana leader, leader, batman! I mean, leader!” (sorry…binge watching old Simpsons)

    Reply
    • Financial Samurai says

      May 24, 2017 at 7:32 am

      Just read this post again from September, 2009 thanks to your comment. Crazy how things progress over time if we just stick to things!

      This post was written when I first started blogging and during the depths of the financial crisis. Thank goodness for grit and perseverance!

      Best,

      Sam

      Reply
  3. Mel @ brokeGIRLrich says

    November 6, 2013 at 6:59 pm

    Great rules! I just signed up for the Millionare’s Club over at Budgets Are Sexy and I’m trying to figure out how to lay out my plan. Yours is a great example!

    Reply
  4. Ginger says

    July 14, 2011 at 10:29 am

    I like #1, may I steal that. Such a wonderful idea.

    Reply
  5. Benjie @ Zordane says

    March 7, 2010 at 8:00 pm

    This is really cool stuff, I’ll start my list and join this club.
    .-= Benjie @ Zordane´s last blog ..All For One – One For All =-.

    Reply
  6. thriftygal says

    February 3, 2010 at 1:32 pm

    Really? Not use your savings for a car? Seems counterintuitive to use cashflow for a car, assuming by that you mean you’ll be making auto loan payments. No???
    .-= thriftygal´s last blog ..5 Obstacles To Financial Success =-.

    Reply
  7. Roger says

    December 15, 2009 at 8:03 am

    Cool beans, FS; it looks like you have a pretty solid plan, and I wish you all the best of luck in reaching your million dollar goal. Hopefully, I’ll be there to chill with you in Millionaire acres soon.

    Reply
  8. Lulu says

    October 16, 2009 at 2:13 pm

    Well thanks for the shout up….I saw the Million Dollar Club post a while back…but your post inspired me to write my list up. Hee hee.

    Reply
    • admin says

      October 16, 2009 at 2:37 pm

      Awesome Lulu! I’m glad my post was a little inspirational. Your site is inspirational to me! You are absolutely rocking the ranking charts, so hopefully FS will be up there with you some day soon. Best, FS

      Reply
  9. Lee says

    October 1, 2009 at 6:30 am

    Nothing like starting early, Samurai. I shall join you!

    Reply
    • admin says

      October 1, 2009 at 8:08 am

      Lee – Sounds good man. Welcome to the club!

      Reply
  10. admin says

    September 28, 2009 at 2:38 pm

    @Brian Hey Brian, looking forward to it. One team one dream! :) Thanks for highlighting the Blog Talk Radio thing. Sounds like a lot of fun. I’ll try and dial in. Best, FS

    Reply
  11. Brian says

    September 28, 2009 at 2:18 pm

    Excited to have you with us. Gonna be a great day when we all hit that 7 figure milestone!!

    Reply
  12. David@DINKS Finance says

    September 28, 2009 at 8:56 am

    I was always wondering what that logo was, and now I know! It’s cool how you have a list of pretty solid pre-reqs. and guiding principles. If anyone is going to make it, you will.

    Reply
    • admin says

      September 28, 2009 at 9:53 am

      Hey David – Thanks man. My biggest wish is that we can all make it together! It’s so easy to cheat on ourselves if our principles are hidden. I’m a recovering spendaholic, and every time I have an urge to splurge, I’ll remember my publicly announced promise. Besides, it’s more fun being part of a greater community of writers with like-minded goals. Best, FS

      Reply
  13. admin says

    September 27, 2009 at 9:49 am

    @J. Money
    Good stuff J. Money! Good work starting the club. I’m glad I’m lucky #8 on the list! We should have at least a yearly check in, to see how we’re doing and such. It’ll be great. FS

    Reply
  14. J. Money says

    September 27, 2009 at 9:30 am

    Yessir, that’s what I’m talking about! I’ll add you as a “member” asap my friend :) One day we’ll all be at the beach enjoying our money work for us!

    Reply
  15. William & Mary says

    September 25, 2009 at 8:37 am

    Sounds like a cool club! Joining a group with a similar goal always helps. The support network is very important.

    I’ve always wondered about the “Freedom Fund”, so thanks for sharing some more of your thoughts and details. That’s pretty cool. That musta been a very expensive watch you sold!

    Reply

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