How much do you need to become a millionaire? That number is very likely lower than you imagine — especially if you’re young. The stock market builds your money for you. And if you made the right moves 30 years ago, you could be sitting on $1 million dollars right now.

If the incredible returns we see in the market continue, you might still have a shot at becoming a millionaire. All you need to do is follow this advice:

Manage Volatility

Investing in stocks is not without its lows and highs. Low years would have been 1931 where you would have lost 43% of your money while high ones like 1933 would have earned you 54% in just a year.

It might be possible that you are ok with these kinds of fluctuations now, but that could change when you’re older. Take a serious look at your risk tolerances annually, making sure they have not changed. Then react accordingly. That is the best way to avoid getting too aggressive.


The S&P 500 opened in 2001 trading at 1,320. After getting hit with losses that year, in 2002, and again in 2008, it ended the decade lower than where it began, at 1,258. But the next decade was an exciting one with extreme growth, and this index ended at 3,756 — almost three times greater than 20 years before.

Having a lot of exposure to the worst years while skipping the best years can significantly harm your average. And to make sure this does not happen, you must stay invested in the market every year, no matter what happens.


Making your yearly contributions, investing your money, and staying in the game are very important. There might be times when you cannot invest what you had planned. There might also be times of great volatility when you get anxious and you lower your exposure, or your money sits in cash longer than you had planned.

When investing, consistency is key. The more contributions you miss, the further you get from your projections. And ensuring you pay close attention to any unplanned pauses in your investing can help you keep yourself accountable to your goal.

The stock market has gone through steady growth since its start. And investing can help you reach millionaire status with only $500 a month. And the earlier you start, the higher your chances are to get there.


Author: Blake Ambrose

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