Wouldn’t it be nice if there was a specific formula for making millions of dollars? “If you want to become a millionaire, all you have to do is A, B and C.” You know . . . . “Go get a degree in small-business management, talk to Jim at the bank to set you up with a Subway franchise, and invest in Microsoft today because it will skyrocket tomorrow when they report earnings.” Unfortunately, life is just not that gravy. The good news is there are some defining characteristics, habits and belief systems that self-made millionaires share in common. Take this a step further, and I believe almost all self-made millionaires’ financial success boils down to one thing.

Now, I’m not talking about the 0.5% of “self-made” millionaires that hit the lotto or scored big on buying Microsoft at its lowest-low and selling at its highest-high. I mean the people that sacrifice, slave, and sweat their way to become financially free. I’m referring to the people that spent 20-30 years on a strict budget, giving up everything to build successful businesses – all the while living well below their means, and doing it happily at that.

What makes these people not want to spend the money they worked so hard for on a nice car or an extravagant dinner? Why would they choose to read Money magazine and study business over watching the NFL draft? This lifestyle just sounds boring and exhausting. After all, what’s the point then of being filthy rich?

The answer is Drive. But not only drive – the meaning behind the drive. If you peel back the onion, you will find that what makes millionaires become millionaires is an ultimate, singular factor that keeps them grinding away to accumulate so much wealth. How else can someone willingly sacrifice so much over such a long period of time? Because they have no choice. The reason behind their motivation is so strong that there is no alternative. This is living life as they know it.

To become a self-made millionaire, without the big score or a grand inheritance, you will likely have to do it the hard way like most people in this class. If you are truly focused and determined to become a millionaire, you are far more likely not to succeed if you are unable to identify that element that pushes you through the pain. It is essential to dig down and find that “why” factor.

The reason behind your drive should be so strong that it makes you compulsive about becoming wealthy. Your “why” should establish your habits, attitudes and beliefs of money and wealth. It will invariably define who you are as a person.

Once you figure out the real reason you want to be rich, it is important to remind yourself of that reason frequently. The road to financial freedom has many ups and downs, good years and bad years, happy days and bad days. If you remember the why, the how does not matter. At least it doesn’t for those who have achieved their goals. This theory, by the way, holds true in business and life in general. It is what creates Olympic athletes, successful business leaders, great spouses and parents, etc. Those who have a relentless passion to succeed in order to fulfill their “why” are unstoppable. Discover your “why” and you have acquired the one, essential trait for becoming a self-made millionaire.

For most of us, becoming wealthy is not something that happens to us when we wake up one morning. In fact, a very small percentage of rich people in America got that way from inheritance or some other stroke of luck. According to Stanley’s, The Millionaire Next Door, some 80% of wealthy Americans are self-made millionaires that accumulated wealth one dollar at a time. And many of the people that fall into this group do not have a so-called high income. They are just good with money.To plan to be rich, it takes just that . . . planning. Becoming rich is hard work that requires a great deal of self discipline, basic money management skills, goal setting, focus and diligence. I believe the goal setting part is very important. If you are willing to hold yourself accountable to reaching those goals, the rest of the attributes will follow.

The great news is that making a million dollars is completely doable, and is a good place to start, and here’s why:

• Setting a goal “to become wealthy” is too abstract.
• It is completely feasible for a person to start from scratch and make a million dollars in a lifetime.
• Once you make your first million, the laws of compounding interest kick in and you can make your next million at a much faster rate.
• $1M on a 10% return from an investment will pay you $100,000 a year.

Let’s break this down.

Setting a goal “to become wealthy” is too abstract:

If you are committed to becoming rich, you must set goals, goals for reaching those goals, and goals for what you want to do once you reach those goals. I’m sure you’ve heard the phrase, “Think Big.” Thinking big is an excellent way to dream, visualize yourself in a situation and to have high expectations – so keep thinking big thoughts. In the same time, however, set specific, measurable goals.

If you have a big dream, and you set your achievement bar too high, t can be very difficult to motivate yourself over a period of several years to reach your goal. Setting specifics, however, makes it more of a systematic process that your brain can handle. For example, you can train yourself (or just make it automatic) to put x dollars from your paycheck in an investment account every two weeks if you know that it will eventually turn into a million dollars, which will then quickly turn into two million dollars, then four million, etc. Your big dream, however, is a good reminder as to why you have these goals.

Secondly, if you aspire “to become wealthy,” with no end goal, you will never be satisfied with your accomplishments. There is no sense of achievement, or an “I made it!” experience. So, along the way to making your first million, remember to set little goals – weekly, monthly, annually – and reward yourself for staying on task.

It is completely feasible for a person to start from scratch and make a million dollars in a lifetime:

Remember that 80% of the millionaires in the U.S. are self-made. They did not receive a massive inheritance, college education support, or any handouts for that matter. They were simply determined.

Look at this data from a July 2007 article published by The Motley Fool entitled, Your First Million Is the Toughest, which illustrates how quickly you can obtain a million dollars:

Go From $0 to $1 Million Monthly Contribution	8% Return	9% Return	10% Return	11% Return
$100	52.9 years	48.3 years	44.5 years	41.4 years
$250	41.6	38.3	35.5	33.1
$500	33.4	30.9	28.8	27.
$1,000	25.5	23.9	22.4	21.2
$1,291.66	22.8	21.4	20.2	19.1

$1 Million to $2 Million Monthly Contribution	8% Return	9% Return	10% Return	11% Return
$100	8.6 years	7.7 years	6.9 years	6.3 years
$250	8.5	7.5	6.8	6.2
$500	8.2	7.4	6.7	6.1
$1,000	7.8	7.1	6.4	5.9
$1,291.66	7.6	6.9	6.3	5.7

$2 Million to $3 Million Monthly Contribution	8% Return	9% Return	10% Return	11% Return
$100	5.1 years	4.5 years	4.1 years	3.7 years
$250	5.0	4.5	4.0	3.7
$500	4.9	4.4	4.0	3.6
$1,000	4.8	4.3	3.9	3.5
$1,291.66	4.7	4.2	3.8	3.5

I imagine since most people are not wealthy, they do not think like wealthy people and will probably say, “I don’t have $1,300 to contribute a month.” Wealthy-minded people, however, think things like, “How can I make an extra $1,300 a month? What if I kick that up to $2,600 a month? Once I make my first million I can make another million in a third of the time!” This chart should either motivate you to re-evaluate your spending habits or bring out the entrepreneurial spirit in you.

Start slow with any contribution you can make to your millionaire fund, and increase your deposits as you can. Even if you can only find $10 a month to contribute, it is much more important to develop the habit. Once you have the habit and the discipline your mind will open up to seeing opportunities.

Once you make your first million, the laws of compounding interest kick in and you can make your next million at a much faster rate:

Notice from the chart above that making your first million dollars takes 20 years at 10% with a $1,300 monthly contribution. Making the same contribution when you have two million dollars takes less then four years! See why the rich get richer?

10% on a $1M investment will return $100,000 a year:

Could you live comfortably off of a $100,000 salary without having to work another day in your life? That’s what your return on investment would be if you were making 10% on your money, which is very doable. This is where I like to start to dream and think big. Let’s see . . . $10 million at 10% is $1 million a year just in interest from my investment. Now that’s money working for you!

I get that most people cannot just simply shovel away $1,300 a month, or even in a year. Set your goals with whatever you can right now – even if it is only $10 a month. The important thing is to take action and develop the habit. Focus on making your first $100, 000, your first $100, whatever. Then reward yourself periodically for reaching your goal.

Post the chart above somewhere where you will see it every day, and set your goal to reach you million dollars in x years. If you hold yourself accountable, the craziest things will happen – you will find places to cut expenses, get a better job, become a better shopper, start a business, and stumble on business opportunities. Most importantly, you will develop sound money management habits that will get you there one way or another.

If you are fortunate enough to already have made your first million, congratulations! Now it’s time to have some real fun and see how long it will take you to make $100 million. That would gross you 10 million dollars a year just from the interest paid to you from your money sitting in an investment account.