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how to become a millionaire with no money

How to Become a Millionaire with No Money

In this article I am going to explain how to become a millionaire with no money! Read the simple steps below to learn how!

A million dollars is a magic number for a lot of people. And even though a million dollars is not what it was 50 years ago, $1 million is still enough to allow you to retire in comfort if you manage your money well. Find 9 simple tips to be smart with your money here.

You can become a millionaire in as little as 20 years by following the simple steps outlined below—it’s not as hard as you think!


How to Become a Millionaire with No Money: 7 Simple Steps!

Are you looking to make $1 million? Though $1 million isn’t what it used to be, having a million dollar net worth will still allow you to live a comfortable and very enjoyable retirement.

How can you become a millionaire fairly easily in just 20 years? It won’t be as hard as you think! The answer is compound interest. Albert Einstein called compound interest the eighth wonder of the world. You can learn more about the amazing power of compound interest here.

Read on to learn how you can use compound interest to become a millionaire even when you have no money—in just 20 years!


Tip: Pin the image above to Pinterest so that you can easily refer to this article on how to become a millionaire with no money in just 20 years later!



Become a Millionaire When You Have No Money—in Just 20 Years!

If you want to become a millionaire in just 20 years, you probably think you have to have a huge income and be able to save thousands of dollars a month. But the awesome truth is that you don’t! You can have a good but ordinary household income and still become millionaires in just 20 years!


How Much Do You Need?

In order to become millionaires in just 20 years, you do need to invest a significant amount of money—but not a huge amount of money. If you and your spouse will each invest just $500 a month, for $1,000 a month total, and you will do that for 20 years, then you can reach this goal!

And all that that requires is that you each max out your Roth IRA or traditional IRA each year. (The max contribution for an IRA or Roth IRA in 2019 is $6,000, or $500 a month.) Easy! Or, at least relatively easy, anyway, given the amazing reward that you get if you do it. 🙂 Can you imagine being a millionaire in just 20 years by saving just $1,000 a month? Difficult? Yes. But doable if you really want it? Definitely!

Learn simple changes you can make to your finances to be able to fully fund your Roth IRA or traditional IRA each year.


How Can You Get to $1 Million in 20 Years?

If you invest your combined $1,000 a month and receive an average annual rate of return of 12 percent, which is definitely possible if you invest for the long term in good growth stock mutual funds, your investments would have an estimated value of about $970,000.

Keep contributing your $1,000 a month and letting the money grow, and in just 3 more months you would have an estimated $1,000,904! So in just 20 years and a few months, you would have over $1,000,000! And that doesn’t even include any other investments you might have acquired over the years such as your home or other real estate, business net worth, and so forth.

So you definitely can become a millionaire in 20 years starting with no money by investing just $1,000 a month! Becoming a millionaire is a great goal to help ensure you reach financial freedom later in life!


Do You Want to Make That $1 Million Go Even Farther?

Are you investing yet in a Roth IRA or Roth 401(k)? If you make those monthly contributions into a Roth 401(k) or Roth IRA, then all of that money will be tax free when you withdraw it too! That means no paying Uncle Sam again in retirement. Woo hoo! Learn how you can fully fund your Roth IRA or traditional IRA each year.

Note: Are you new to investing and want to know how to start saving for retirement? Do you want to know, generally, what kinds of retirement plans to invest in, how much to invest, what types of investments I would recommend for retirement, and more? Then check out this article with 5 simple steps to start investing for retirement.


Check out these related articles:


How to Invest Your $1,000 a Month to Become a Millionaire from Nothing

If you have a company 401(k) or other retirement plan where you receive a match, take advantage of it, and invest at least enough money to receive the full match in your company plan.

If you don’t receive a company match, then you will probably be better off investing in a Roth IRA than investing in your company 401(k) because you will generally have many more options in an IRA. (And with many more options you are likely to find mutual funds that offer a track record of better long-term rates of return.)

To help you adequately diversify your retirement account, I recommend spreading your investing equally among four categories: large cap (large company), mid cap (mid-sized company), small cap (small company), and international mutual funds.

We have investment accounts through both Schwab and Vanguard, and they are both good brokerage companies. My Roth IRA is with Schwab, and personally I prefer them over Vanguard. Fidelity is another good option.

To find out how we choose the mutual funds that we invest in, fill out the information below, and I’d be happy to send you the information. No strings attached, and I don’t sell anything related to stocks or make any money off of sending you this information. It’s just the kind of thing I really wish I would have known almost 15 years ago when we started investing for retirement.

Ways to Save $1,000 a Month to Become a Millionaire Starting with No Money

In order to find $1,000 a month in your budget, see if you can reduce your spending or save more money in one or more of the following areas.

1. Cut back on eating out to help you become a millionaire starting with no money.

The average American family spends about $3,000 a year on eating out. Even though you’ll have to replace some of that cost with the cost of buying groceries to eat at home, the savings here can be amazing. 

For more than 10 years we’ve spent less than $300 a year on eating out for our family, and even though that may seem extreme to some, I know that that has been part of the reason that we’ve been able to reach other financial goals that we’ve set even though we have a single, average income. Read this article to learn how we save money eating out (when we do eat out :)).

2. Slash your grocery budget.

The grocery budget is one of the areas where most people can save a lot of money if they choose to because there are so many options involved and because the difference between what is expensive and what is cheap is so drastic sometimes.

For example, the local discount store where we buy most of our groceries regularly sells frozen boneless skinless chicken breasts for $1 a pound. And yet you can also easily spend $5 to $10 a pound or more on expensive cuts of meat. The same goes for produce in season versus produce that is not in season. People spend a lot of money (a lot of money) on junk food and soda and alcohol and other nonessential items; that’s another area where you can likely trim substantially.

To learn how to save money on your grocery shopping, read this article with more than 70 tips for slashing your grocery spending.


Grocery Price Comparison Cheat Sheet

One of the best ways that you can slash your grocery budget is to use a grocery price comparison cheat sheet. With a grocery price comparison cheat sheet you have at your fingertips the information you need to spot great deals and pass over grocery items that are overpriced. Sign up for this free, super handy cheat sheet below!


Plan Your Meals

Another important way to save a ton of money on groceries is to meal plan. Get this free weekly meal planning worksheet (sign up below) to get organized and easily plan your week’s worth of meals! The meal planner comes with helpful meal planning tips that will help you make the most of your grocery shopping budget!


Read this article for more than 70 suggestions for how to slash your grocery bill without needing to use coupons!


3. Cut your entertainment spending and invest the money toward becoming a millionaire.

Another area where you can reduce your spending is with entertainment. Fortunately, there are tons of ways that you can save money on entertainment.


Find Free and Cheap Activities to Enjoy as a Family 

First, find things to do with your spouse or family that are free or cheap. There are so many fun activities that you can do for little or no money that reducing spending in this area really isn’t very hard. Check out this huge list of over 90 free activities you can do with your family.


Cut Your Cable or Satellite Bill

There are a lot of free or cheaper alternatives to cable and satellite, so try pulling the plug on these services and banking the savings. The average cost of paid TV in the U.S. is close to $70 a month, so if you will cut your cable or satellite and invest the money each month instead, you will be one-third of the way to saving your $200 a month to become a millionaire right there!

With digital TV through a standard antenna, there are many channels available just on your regular TV—for free. If you haven’t checked them out for a long time, you should. And if you can be a little patient, the library also carries many of the programs and movies you regularly watch, for free. But if neither of those options works for you, you can try Netflix, Hulu, Sling, or other similar options


Slash Your Cell Phone Bill

Also, as part of saving money on your entertainment, don’t forget to take a look at the money you spend monthly for your cell phone plan. The average family in the U.S. spends over $1,000 a year (about $90 a month) on their cell phone bill. And I know a family that spends (or used to spend—I really hope that it is used to spend) $500 a month on their smartphone plans!

You can save a considerable amount if you’re willing to reduce the amount of data you use (or research new data plans with your carrier in case prices have dropped) or switch carriers.

Since September 2018, we’ve been using Xfinity Mobile for our cell phone carrier! If you’re in an area with Xfinity high-speed internet and mobile, you’ve got to check them out! We’re paying an introductory price of $40 per month for our internet (same price as the much slower internet that we used to have from a different provider; it is then set to go to $65 a month, but you can bet we’re going to try to negotiate that down!), and the cell phone plan is virtually free.

Since we’re such light data users (especially given the fact that Xfinity Mobile has free hotspots it seems almost everywhere!), we pay only $3.16 a month for taxes and fees for each smartphone line. (That’s the price if you use less than 100 MB of data per month, which we do; then it’s $12 per GB per month after that, or $45 per month for unlimited.) It’s such an awesome deal!

And Xfinity Mobile has the same coverage as Verizon, which reportedly has the best cell phone coverage in the U.S. You do need to sign up for Xfinity internet in order to use Xfinity Mobile, at least initially. You can then drop the internet service if you want, but then you’ll pay an extra $10 per month per line for the mobile service. Interested in learning more or signing up? Use this referral code to save up to $100 when you sign up: 1RQ4SP 

Don’t have Xfinity in your area? Before Xfinity we were with Republic Wireless for over two years. They were a great company, and they are so much cheaper than having service with one of the Big Four cell phone carriers. I spent about $13 a month for my smartphone data plan. Isn’t that amazing? Check out their website to learn about their plans and pricing, and start saving today!

If you use more that 1 or 2 GBs of data, also consider Mint Mobile, which offers plans starting with 2 GB of 4G data and then unlimited LTE data for just $15 per month. That’s an incredible deal. Visit their website to learn more.

Also find ways you can save money on your current cell phone plan with these ideas to slash your cell phone bill here.


Save Money on Vacation

Another area where you can save a lot of money on entertainment is with your family vacations.


Do Family Staycations!

To save money when vacationing, try going on a staycation, where you vacation at or near your home. No matter where you live, you can still find tons of fun things to do in your own backyard! Chances are there are tons of things that travelers come to your area to do that you have never do—so check them out! 

Read this article to find more than 50 awesome ideas for things to do during a staycation!


Save Money through Services Like Airbnb and VRBO.com

You can also save money by staying at people’s homes through Airbnb and by staying in hostels. And by camping.

We’ve been staying at places through Airbnb for the last couple of years, and it’s been great. It’s how we’ve done most of our vacationing during that time—even more than camping. I love using Airbnb because the hosts are wonderful and the price is awesome. And so are the amenities (my favorite places are those with pools and hot tubs :)). Read five awesome ways that you can save money by using Airbnb here.

Sign up now for an Airbnb account and receive $40 to use toward your first stay. Pretty sweet 


Save Even More Money on Family Vacations

Save even more money on vacations by choosing many fun and inexpensive (or even free!) things to do while you vacation, using discount websites, traveling in the off or shoulder season if you can, comparing prices when you bundle services like airfare and hotel, and more!

You can find many more ideas for ways to save money on your family vacations here.

Read this article for even more ideas on how you can spend less on entertainment in various areas to help you become a millionaire.


Check out these related articles:

4. Save money on transportation.

Another area where families can save a ton of money is on their transportation costs.


Get Rid of Your Car Payments to Really Make Progress toward Becoming a Millionaire

One of the best things you can do to build wealth is to get rid of your car payments (and all debt payments).

The best make and model of car to own is the one that doesn’t have a car loan. 🙂

If you have car payments on a vehicle and it’s squeezing your budget and you can’t increase your income soon, you should look at selling it. Especially if you won’t likely be able to pay off the car in the next 18 to 24 months at the most, I would strongly encourage you to sell the vehicle.

Even if that means selling the car at a little bit of a loss (when you’re upside down on it) and taking out a small loan for the difference if needed, I would recommend you do it. And then sell some stuff or work extra or even borrow a little extra money from your credit union or local small bank to be able to buy a $1,000 to $3,000 car that you can get around in for a while till you can save up money to buy a more expensive vehicle with cash.

Because having $3,000 to $5,000 of debt on a personal loan and inexpensive car is a better option than keeping a large debt and having to make large monthly payments on your current automobile. And then you can save up and buy a nice vehicle you can afford—with cash! Learn how to buy a (nice) car with cash here.

If you will commit to buy cars with cash from now on and invest some of the money you were spending on car payments in your own awesome financial future instead, you will be well on your way to becoming a millionaire. Let’s work on building your wealth instead of the bank’s, shall we? 🙂

Upside down on your car? Learn how to turn things around and get out of an upside down car payment.

Learn how to get (and stay!) out of debt here.


Try These Other Ways to Save Money on Transportation

You can also save money on transportation by driving less through carpooling or biking or telecommuting, saving money on gas with apps like GasBuddy, saving money on car maintenance and car repairs, driving the speed limit :), finding cheaper auto insurance or saving money on your current auto insurance by taking advantage of discounts, and more. Find more than 30 ideas on how to save money on transportation here.


More money-saving tips: Do you want even more ideas on how to reduce your spending in order to find your $200 a month to invest? You can find ways to save money on housing, save money on utilities, and save money on clothing.

Also read this article that has more than 20 ideas for ways to reduce your spending in nearly every budget category.


5. Increase your income to help you become a millionaire.

Even though I spend a lot of time teaching people how to spend less money, and I honestly feel that learning to control your spending is the more important of the two factors when it comes to gaining financial stability and building wealth, I feel that earning more income has the greatest potential impact. And let’s be honest—it’s just more interesting and more fun. Because there are only so many things that you can do to reduce your spending (but check out this article to learn more than 20 ways to reduce your spending), but the opportunities to increase your income are nearly limitless!

Here are some simple ideas for things you can do to make more money starting today:

  • Work overtime. If you have the opportunity to do so, working overtime is a great way to help you to save money quickly.
  • Ask for a raise or promotion. If it’s been a few years since you received a significant raise and you’ve been an exceptional employee at work, make a list of your contributions and your accomplishments, and schedule a meeting with your boss to request a raise or a promotion. Focus on ways that you’ve earned the company money or saved them money. If you learn that a raise or promotion isn’t going to happen right away, ask what specific steps you can take in the next year or two to make it a reality. Read this article for more information on how to seek a raise or promotion.
  • Do freelance work. If you work in a field that lends itself to doing freelance work, take advantage of that opportunity to earn extra income to help you save money fast! I have been doing freelance writing and editing since before I graduated from college with my English degree and editing minor, and doing freelance work has not only helped me gain experience in other areas besides what I do for my full-time job but has also at times (when I wanted to give the time to it) brought in significant additional income.
  • Do coaching or consulting. Similarly, if you have job experience or a skill that lends itself to coaching or consulting, put that skill to use! Popular areas for consulting include human resource (HR) consultant, public relations (PR) consultant, marketing consultant, business management consultant, and accounting consultant. Popular areas for coaching include financial coaching, job coaching, personal fitness coaching, and leadership coaching. Look for opportunities on indeed.com or your favorite job website.
  • Get a (second) job. If one spouse is available to get a second job in the evenings or on Saturday, for example, then this is another great potential way to earn additional income. And if you are a one-income family, or if one of you works only part-time, you might want to consider reentering the workforce or going full-time temporarily in order to save money more quickly.
  • Start a side hustle. If you would rather earn money without working another regular job, there are a lot of things you can do to earn a little extra income with a side hustle. Some ideas include starting your own small business where you turn a hobby into a money-maker, being a virtual assistant, or driving for Uber or Lyft. Learn how to start a side hustle and find out about many side hustles that you can explore.
  • Start a money-making blog. The potential for significant income is one of the reasons that I started this blog. If you love helping people and enjoy writing, being a blogger might be a great fit for you. In addition to great income potential (check out these amazing income reports of bloggers who make $10,000 to $100,000 or more per month!), there are many other benefits of being a blogger, such as being able to be your own boss and work on your own schedule. Learn how to start a blog for less than $5 a month.
  • Earn passive income. Some options for earning passive income are to create a product you have someone sell, write a book, create a money-making podcast or vlog, develop an online course, or participate in affiliate marketing. Read this article to learn more ideas for earning passive income.
  • Use rebate apps like Ibotta and Ebates. With rebate services such as Ebates and Ibotta, you can earn money by shopping for things and at places where you would shop anyway. With Ebates, you generally buy items through their website to save up to 40 percent on purchases. It is primarily an online service. Ibotta, on the other hand, is an app you use primarily after you make purchases at brick-and-mortar stores. Because of this, you can actually sign up for and use both apps to save on purchases. Sign up for a free Ebates account here, and sign up for a free Ibotta account here. You can literally sign up for both in just seconds and let the savings start stacking up.
  • Sell stuff on eBay or Amazon. If you have a good eye for a bargain, you can buy items at thrift stores or garage sales and sell them for a profit on eBayAmazonCraigslist, or your local online classifieds.
  • Sell your clothes to consignment shops. If you’re like most people, you probably have more clothes than you need. So use them to bring in some quick cash!
  • Have a garage sale. Declutter and earn money, all at the same time!

You can find even more ideas for increasing your income in this article.

And learn about side hustles you can do from home here.

 If you are ready to earn more money (and who isn’t?!), then sign up for my free 10-day Earn More Money, Change Your Life challenge below.

6. Automate your investing.

Automating your investing will help ensure you become a millionaire even starting with no money. This is so important! So just do it! 🙂

If you have a 401(k), make sure you have a percentage of your income at least equal to the company match automatically withdrawn from the paycheck and invest in your 401(k). If you don’t have a 401(k) available, then open and set up automatic investing for your IRA through a brokerage company such as Schwab.

When you automate your finances it not only saves time but makes life much simpler—and it helps you stick to your financial goals!

To learn more about how to automate your finances to simplify your life, get out of debt, begin to save, and start to build wealth, I recommend The Automatic Millionaire by David Bach. It’s one of my favorite personal finance books because it gives simple, actionable steps you can follow.

Learn how to automate your finances to build wealth.



7. Track your progress as you work toward your goal of becoming a millionaire, even with no previous money.

Even if you have no money saved yet, you can still become a millionaire in just 20 years by following the recommendations above! And tracking your progress is a great way to help ensure that you reach that goal.

Tracking your progress will help you see that reaching your goal really is possible, it will help you stay motivated, and it will allow you to make course corrections if and when you need to.

One important way to track your money is to do a monthly budget or spending plan. Another important task is to monitor your progress as you work to get out of debt. And especially once you are out of nonmortgage debt, another is to periodically review your net worth, including reviewing your retirement and other investment account balances.



Want a Great (Free!) Way to Track Your Financial Progress?

Check out the free app Personal Capital, which allows you to track how your investments as well as checking and savings accounts are doing and also view your account history to see how your accounts and overall portfolio have done over time. It’s a great tool! Sign up for your free Personal Capital account here.


Final Thoughs on How to Become a Millionaire with No Money!

If you are looking for how to become a millionaire with no money, the tips in this article will help you to accomplish that awesome goal! Becoming a millionaire in 20 years, even with an ordinary income and even when you currently have no money invested, definitely is possible!

To learn more about how to become a millionaire by investing for retirement, read this article.


What are your best tips for how to become a millionaire with no money? What questions do you have about how to become a millionaire in just 20 years starting from scratch? Leave a comment below and let me know your  questions and thoughts!


Invitation to Share

Was there something in this article that inspired you to change something about your money? Are there ideas or tips that you feel could help others? Would you please take a minute to share this article via email or social media? I would love your help to share these principles of financial well-being. Thank you!

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