Theres a well-blazed trail to the million-dollar mark and beyond. Normal people do it every day. It doesnt take entrepreneurial genius, investment wizardry, or wealthy relatives. The secret is that its not a secret at all. Its mostly about dedication and commitment to your goals.
“Be patient,” says Ryan Viktorin, CFP®, vice president and financial consultant at Fidelitys Investor Center in Framingham, Massachusetts. “It can happen over time with a consistent, repeatable process.”
“The people Ive worked with who reached their goals through saving and investing followed a straightforward path. They made a plan, created a saving strategy, and automated their saving. After that its a matter of executing the plan and continuing to refine it over the years,” she says.
Most of us dream about hitting that magical million-dollar mark. But with all the noise about get-rich-quick schemes and overnight success stories, it’s hard to know what actually works. I’ve spent years researching wealth building, and here’s the honest truth: yes, investing can absolutely make you a millionaire—but it’s not about luck or timing the market perfectly.
So how do regular folks like us actually build wealth through investing? Let’s cut through the hype and look at the proven path that has created more millionaires than any lottery or inheritance.
The Four Pillars of Millionaire-Making Investing
According to financial experts, there are four core principles that separate successful investors from those who struggle:
- Start early – The magic of compound interest needs time
- Stay in the market – Through good times and bad
- Invest consistently – Small, regular amounts beat occasional large sums
- Diversify investments – Don’t put all your eggs in one basket
These aren’t just theoretical concepts—they’re the actual blueprint followed by countless millionaires who didn’t inherit wealth or win the lottery.
The Eighth Wonder: Compound Growth in Action
Albert Einstein supposedly called compounding the “eighth wonder of the world,” and when you see it in action, you’ll understand why
Let’s look at a simple example
- Invest $1,000 with 10% annual compound interest
- Year 1: You earn $100 interest
- Year 2: You earn $110 interest (on $1,100)
- This snowball keeps growing bigger each year
The remarkable thing about compound growth is how dramatically it accelerates over time. This explains why starting early is so crucial.
Consider two investors:
- James started investing $1,000 at 10% interest in 2020
- Jane started the exact same investment in 2022
- By the end of 2023, James had $1,464 while Jane had $1,210
- By 2029, that gap expands to $450 ($2,594 vs. $2,144)
This difference occurs because James’ two-year head start continues compounding forever. The lesson? Starting now is ALWAYS better than starting tomorrow.
Staying Power: Why Market Timing Fails
Many would-be millionaires fail because they can’t resist the “fear-and-greed cycle” that Warren Buffett warns about. They jump in when everyone’s making money (greed) and panic-sell when things look bad (fear). This buying high and selling low is the perfect recipe for losing money.
The historical data is eye-opening:
- Since 1960, there have been 20 bear markets averaging 10 months each
- But there have also been 20 bull markets averaging 29 months each
- The average bear market decline was 26.6%
- The average bull market gain was 77.9%
Even more striking—research from Hartford Funds shows that 50% of the S&P 500’s best days between 1995 and 2024 happened during bear markets! Another 28% occurred in the first two months of bull markets, before investors even knew things were turning around.
Missing just the 30 best market days would have cost you 83% in potential returns. This is why staying invested through market cycles is absolutely essential.
The Secret Sauce: Consistent Investing
Let me share something most people overlook: consistent investing beats one-time large investments almost every time.
Compare these two scenarios:
- Mike invests $100,000 once and earns 10% interest compounded quarterly
- Mary invests the same $100,000 PLUS adds $1,000 monthly
After five years:
- Mike has $163,862
- Mary has $240,496
That’s a $76,634 difference! Though Mary only invested an extra $60,000 total, she made an additional $16,634 in compound interest on her regular contributions.
This shows why budgeting to consistently invest part of your income is crucial to becoming a millionaire.
The Path to $1 Million: Real Numbers for Real People
Now let’s get practical. How much do you need to invest to hit that million-dollar milestone? I’ll break it down for different time horizons, assuming you invest in the S&P 500 with its historical average annual return of 10.7%, compounded quarterly.
The 5-Year Millionaire Plan
Starting from scratch? You’ll need to invest about $12,821 monthly for five years.
Already have $100,000 saved? Your monthly investment drops to around $10,648.
The 10-Year Millionaire Plan
Starting from zero? You’ll need to invest about $4,757 monthly for ten years.
Starting with $100,000? Your monthly target drops to $3,390.
Notice that the 10-year amount isn’t simply half of the 5-year requirement—it’s much less! This perfectly demonstrates the power of compounding over longer time periods.
What About Regular Folks?
Most of us can’t invest $10,000+ monthly. That’s OK! Here are more realistic examples:
Investor A – Invests $1,000 monthly with nothing saved currently. At 10% annual return, they’ll need 22 years and 7 months to become a millionaire.
Investor B – Invests $1,000 monthly but already has $50,000 saved. With the same 10% return, they’ll reach $1 million in a little over 19 years.
Investor C – Invests $2,000 monthly with $50,000 already saved. At a more conservative 7% return, they’ll need 17 years and 7 months.
Investor D – Invests $2,000 monthly starting from zero. At 9% return, they’ll hit the million-dollar mark in 17 years and 6 months.
What About Market Volatility?
You might be thinking, “But what about market crashes and recessions?”
This is where diversification becomes crucial. By spreading your investments across different asset classes, you reduce your risk without significantly reducing your returns.
Many financial advisors, including Warren Buffett, recommend that average investors stick with the S&P 500 index for broad diversification across 500 solid companies. Others suggest adding some bonds, international stocks, and perhaps small-cap funds to further spread risk.
Remember that market downturns are normal and expected. The key is to stay invested through them rather than trying to time the market.
The Emotional Challenge of Becoming a Millionaire
The most difficult part of becoming a millionaire through investing isn’t the math—it’s your emotions. As Buffett emphasizes, investment success is 80% emotional discipline and only 20% intellect.
You’ll face numerous challenges:
- Watching friends get rich quick on speculative investments
- Seeing your portfolio drop during market corrections
- Being tempted to withdraw money for current expenses
- Doubting your strategy during extended market downturns
This is why many people fail despite knowing the principles. They lack the emotional discipline to stick with their plan when it feels uncomfortable.
Bottom Line: Yes, You Can Become a Millionaire Through Investing
Investing in the stock market remains one of the most accessible ways to become a millionaire. It doesn’t require extraordinary luck, rich parents, or business genius. The only variable is how many years it takes to reach your goal.
By following the four principles—starting early, staying invested, contributing consistently, and diversifying wisely—almost anyone can build significant wealth over time.
Forget lottery tickets. Forget waiting for inheritance. Forget trying to be the next tech entrepreneur. When done correctly, investing is the most reliable path to millionaire status.
The question isn’t whether investing can make you a millionaire—it’s whether you have the discipline to follow the proven path.
Ready to Start Your Millionaire Journey?
Here are some practical first steps:
- Set up an investment account (401(k), IRA, or regular brokerage)
- Determine how much you can consistently invest each month
- Consider low-cost index funds that track the S&P 500
- Automate your contributions so they happen without thought
- Commit to staying invested regardless of market conditions
- Calculate your own timeline to a million using the principles we discussed
Remember, the best time to plant a tree was 20 years ago. The second best time is today. The same applies to investing your way to millionaire status!
What’s your first step toward becoming an investment millionaire? I’d love to hear about your journey in the comments below!
Plan for it to happen
Making $1 million as a saver and investor often starts with a financial plan. A financial plan is simply a strategy for your future money. It can be back-of-the-envelope estimates, or it could be a formal plan created on your own, or with a financial professional.
Only about a third of Americans have a financial plan, a recent survey found. But nearly everyone who has a financial plan (96%) said they feel confident that they will reach their financial goals.1
A financial plan can be like a map showing you how to reach your goals, Viktorin says.
For in-depth help on foundational financial steps like budgeting, emergency savings, and paying off debt, read Viewpoints: 5 small steps that can make a big impact.
Set up a savings strategy
Consistently saving what you can over time can be a powerful tool when it comes to building wealth.
- Establish a habit of paying yourself first, even if its a few dollars from every paycheck to start, to get the ball rolling. Aim for at least enough to capture the full match from your employer in a workplace retirement plan, if applicable.
- Prioritize increasing the amount that youre able to save over time. As your income rises through your career, make sure your savings rate keeps up. Fidelity suggests aiming to save 15% of pre-tax income to help keep your lifestyle in retirement—which includes any employer match.
- Your total savings rate might need to be higher than 15%, depending on your goals and time frame.
- Save and invest in tax-advantaged accounts when possible. Contributing to accounts that offer a tax deduction like a traditional IRA, a 401(k), or health savings account (HSA) can help lower your tax bill for the year in which the contribution is made. That can help free up some money you may be able to save for the future. Contributing to a Roth account does not confer any tax breaks today, but qualified withdrawals of earnings are tax-free.2 Learn more: Which IRA is right for you?
- If you dont have access to a workplace savings plan or youve already maxed out your tax-advantaged options, investing in a taxable brokerage account could help you save and invest more for the future. Using tax-efficient investment strategies and products can help keep taxable events in the account to a minimum. Plus, you do have access to the money when you need it. Read Fidelity Wealth Insights: 5 ways to be a tax-smart investor
Assumptions: Starting salary at age 25: $60,000; at age 35: $69,632. Ending salary: $112,131. Annual contribution of 15% which includes any employer match with a salary growth rate of 1.5% and a hypothetical return of 7%. Contribution of 15% of salary is made at the end of the year. Starting at age 25, the annual contribution was $9,000 a year and it grew to $16,820 by age 67 to match salary increases of 1.5% annually.
The ending values do not reflect taxes, fees, or inflation. If they did, amounts would be lower. Earnings and pre-tax contributions are subject to taxes when withdrawn. Distributions before age 59½ may also be subject to a 10% penalty. Contribution amounts are subject to IRS and plan limits. Systematic investing does not ensure a profit or guarantee against a loss in a declining market. This example is for illustrative purposes only and does not represent the performance of any security. Consider your current and anticipated investment horizon when making an investment decision, as the illustration may not reflect this. The assumed rate of return used in this example is not guaranteed. Investments that have potential for 7% annual rate of return also come with risk of loss.
Invest THIS Much To Become A Millionaire (In Every timeframe)
FAQ
Can I be a millionaire by investing?
If you can start as early as possible, stay in the market through the highs and lows, invest monthly and diversify, you can be on your way to becoming a millionaire. Forget the lottery, forget inheritance, forget business genius. Investing, when done right, is a sure path to wealth.
What creates 90% of millionaires?
In fact, it’s estimated that 90% of all millionaires invest in some form of real estate. Here are the top 7 reasons why: #1: – , !
How much will $10,000 invested be worth in 10 years?
The table below shows the present value (PV) of $10,000 in 10 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 10 years can range from $12,189.94 to $137,858.49.
How long will it take to become a millionaire if I invest $1000 a month?
If you start with $100,000 and invest $1,000 per month, you’ll become a millionaire in 17.5 years. If you start with $200,000, you’ll get there in 13.5 years. Another option is to boost your returns. According to Vanguard, the US share market has returned 11.1% per year for the past 30 years.