You’ll never become a millionaire unless you understand this concept. Right now, this is where you are, and this is where you want to be. The space in the middle? I call this the performance gap. The difference between someone who becomes a millionaire and someone who’s just getting by lies in their obsession with closing this gap. Most people’s paths look something like this—up and down all over the place—and they never reach their end goal.
A person who becomes a millionaire in their 50s will have a path a bit more like this, eventually getting to their goal. My path was a little different; I managed to go from point A to point B pretty quickly. To be honest, the only reason I managed to bridge this gap was because I didn’t have any other options. I wasn’t particularly talented or smart, had no qualifications, and after getting bullied by my first boss, I quit the usual nine-to-five grind. I promised myself to become wealthy as fast as possible and did everything in my power to bridge the performance gap, becoming a millionaire in my 20s.
The amount of money you make is directly proportional to the amount of perceived value you give. The bigger the problems you’re able to solve, the more money you’ll make, and the faster you’ll bridge the performance gap. Draw a Venn diagram: write down the things you like to do, the things you’re good at, and the things people will pay you a lot for. The trap most people fall into is only considering one of these factors when deciding what to do with their life. The only solution to becoming rich and happy is finding something in all sections—the value zone. I found this early by combining my passion for model helicopters with my skill for building models and advice people would pay for, leading to multiple model shops and a global brand.
Now, you need the right vehicle to drive you straight to your destination. Would you rather have a million dollars in assets or earn a million dollars per year? You need two vehicles: one for making money (active) and one for investing money (passive). Start with an active vehicle like a product-based business, a content business, or a service-based business. Your initial side hustle should rake in about 100K a year, but the venture that catapults you to 1 million or 10 million a year won’t be the same. For investing, set up a passive vehicle using pies in an investment app like Trading 212. Investing isn’t about overnight riches; it’s a tool to grow your wealth. Invest consistently in diversified stocks, and over time, you’ll see significant growth.
Focus is key. When I was building my first business, I devoted all my resources to it. Once I achieved my dream of becoming a millionaire, I restored balance to my life. But initially, any distraction could have derailed my efforts. So, prioritize your resources and cut out distractions to dramatically reduce the time it takes to achieve your dreams.
Understand the difference between obstacles and excuses. If you really want something, you’ll find a way; if you don’t, you’ll find an excuse. Overcome obstacles to achieve your dreams, and don’t let them become excuses. If you’re facing an impossible obstacle, ask yourself. “If I could, what would I do?” Write down solutions and try them.
Finally, the compound effect is crucial. Never stop learning, as knowledge compounds over time. This accumulation of knowledge is what supports wise decisions and continued success. If you aren’t willing to make sacrifices for your dream, your dream becomes the sacrifice. Understand the compounding effect, keep learning, and stay focused on closing the performance gap to achieve your millionaire goals.