How long it takes to become a dollar millionaire

Is it me or does a million dollars sound like small money when converted to the local currency?? Or is it because it is suddenly fragmented even into coins that make it less appealing?

According to finance experts, there are three paths to becoming a dollar millionaire, namely the hard way, the harder way, and the easy way. But first, let's look at the 51-year plan that will make you a dollar millionaire or a Shillings billionaire.

CHECK OUT: 10 money-intensive habits with zero value

According to Scott Burns, a personal finance columnist, the reality is that you have to work (or should have been working by age 16) four summers, save the money with NSSF, invest wisely, and patiently wait until your 67th birthday.

While there's no doubt that's how vampires, robots, and the like become dollar millionaires, it is a gruelling life to imagine for anyone. What if you aren't the patient kind? What if you aren't 16 and below?

There is still a way, "but the faster you try to get there, the harder it becomes," says Amy Fontinelle, personal finance expert.

"Becoming a millionaire may seem like it is out of reach, but it is nonetheless achievable. Being a diligent saver and investor in a well-diversified and tax-advantaged portfolio can help you get there, but this, of course, will take some patience. If you start saving in your 20s, you can be on track to having at least a million bucks by the time you retire," she adds.

Okay, but how long does it take to make dollar millionaire status?

Five to 20 years.

READ HERE: The number of dollar millionaires in Uganda increases amid economic hardships

What's the catch?

Online millionaire calculators estimate that you need to save from $13,000 (Shs48.45 million) to $15,500 (Shs57.77 million) a month. Then you have to invest wisely so that you get an average of 10 per cent returns each year. This is if you hope to become a millionaire in less than ten years.

This means your annual income has to be really good. For couples, it might be easier if one partner's salary can cater to living expenses in order to share the millionaire status.

The seven-year millionaire

All in all, it means calculated risks, avoiding avoidable fees in investment and diversifying. Like in the case of Alan Corey, author of “A Million Bucks by 30” (2007). Corey claims he made a million dollars in seven years when he was living in New York but he was strategically placed in time for the real estate boom, according to Fontinelle. Nonetheless, he possessed determination, a strong work ethic, confidence, and a willingness to make some extreme sacrifices, which improved his position to achieve this success.

BROWSE: Pulse business news updates on current economies

Personality traits are also usually supported by timing, luck, and/or having an extremely valuable idea backed by implementation and marketing.

How about making room for the bucks to pile up?

This is the long way to wealth and it can span a period of 15 to 20 years. It includes tactics such as; avoiding consumer debt, diversifying your investments, minimizing your investment fees, tax planning, minimizing housing expenses, and living on one income.

Sounds far off but it is better than 51 years.

Takeaway

In the end, it is not so much about how long but how hard/easy it can be to hit dollar millionaire status. If nothing else, it can put your financial goals in perspective.