Here’s an year-wise plan on how to become a millionaire in 10 years…
Table of Contents
Year 1: Setting the Foundation
- Define your financial goals and create a budget.
- Emergency Fund: Start by saving ₹50,000 in a high-yield savings account.
- Invest in a Fixed Deposit (FD) or a Recurring Deposit (RD) account to earn a guaranteed interest rate.
Year 2-3: Increasing Income [How to become a millionaire in 10 years]
- Focus on increasing your income by at least 20% through salary increases, side gigs, or a small business.
- Emergency Fund: Increase it to ₹100,000.
- Start investing in a Tax-Saving Fixed Deposit (FD) or Public Provident Fund (PPF) to save on taxes while earning interest.
To realise the plan, some of the side hustles that can be taken up for increasing the income are listed below:
- Freelancing: Use your skills and expertise to offer freelance services. This could include writing, graphic design, web development, social media management, or consulting. Websites like Upwork, Freelancer, and Fiverr can help you find clients.
- Online Tutoring: If you’re knowledgeable in a particular subject or skill, you can offer online tutoring or coaching. Platforms like Vedantu, Unacademy, and Chegg Tutors connect tutors with students.
- Content Creation: Start a blog, YouTube channel, or a podcast and monetize it through advertising, sponsorships, and affiliate marketing. Building a following takes time, but it can be a rewarding long-term project.
- Dropshipping: Set up an e-commerce store and sell products without holding inventory. You can use platforms like Shopify to create your online store and source products from suppliers.
- Ridesharing or Delivery Services: Sign up as a driver or delivery person for companies like Uber, Ola, Swiggy, or Zomato. This can be a flexible way to earn extra income.
- Home-Based Catering or Baking: If you enjoy cooking or baking, you can start a small home-based catering or baking business. Promote your services locally or through social media.
- Online Surveys and Market Research: Participate in online surveys and market research studies to earn extra cash.
- Affiliate Marketing: Promote products or services on your website or social media and earn a commission for every sale made through your referral. Amazon Associates is a popular affiliate program.
- Pet Sitting or Dog Walking: Offer pet-sitting or dog-walking services in your local area. Many pet owners are willing to pay for someone to care for their pets when they’re not available.
- Photography: If you’re skilled in photography, you can take on freelance photography gigs, sell your photos on stock photo websites, or offer portrait photography services.
- Rent Out a Room or Property: If you have extra space, consider renting it out on platforms like Airbnb. You can also explore opportunities for commercial property rentals.
- Handmade Crafts and Art: If you’re creative, sell handmade crafts or art on platforms like Etsy or at local craft fairs.
- Consulting: Offer consulting services in your area of expertise, whether it’s business, marketing, career coaching, or any other field where you have significant knowledge.
- Fitness Training or Yoga Instruction: If you’re qualified and experienced in fitness training or yoga, offer classes or personal training sessions.
- Gig Economy Jobs: Explore gig economy platforms like Urban Company (formerly UrbanClap), TaskRabbit, and others, where you can offer services such as home repairs, cleaning, or personal assistance.
Year 4-5: Debt Reduction and Diversification
- Pay off high-interest debts (e.g., credit card debt).
- Emergency Fund: Maintain it at ₹100,000.
- Invest in a mix of Mutual Funds (equity and debt) to diversify your portfolio.
Year 6-7: Tax-Efficient Investments [How to become a millionaire in 10 years]
- Maximize tax-saving investments like Equity-Linked Savings Schemes (ELSS) to avail Section 80C benefits.
- Emergency Fund: Maintain it at ₹100,000.
- Consider investing in a National Pension System (NPS) for retirement planning.
Year 8-9: Accelerated Investments
- Increase your investments in equity mutual funds and stocks for potential higher returns.
- Emergency Fund: Maintain it at ₹100,000.
- Explore investing in Exchange-Traded Funds (ETFs) to diversify further.
Year 10: Final Push to Millionaire Status [How to become a millionaire in 10 years]
- Continue investing in equity mutual funds and stocks.
- Emergency Fund: Maintain it at ₹100,000.
- As you approach your goal, consider moving some investments to less volatile options like bonds.
- Keep track of your progress and make any necessary adjustments.
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Disclaimer:
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