How to Turn $100 into a Million Dollars
by:
Jim Hart
Financial success is tough to achieve when people don't have much money to start with. I have been pondering this dilemma and have come to a logical conclusion, which has tremendous potential for those who can grasp the simplicity of the concept.
Let's debunk and/or clarify a few issues: First, it does not take much money to make money. Secondly, it is true that you can make more money selling products than services. Why? Because your income potential with services is limited to your ability to deliver quantity-of-service-per-hour. Whereas; a product can be produced and delivered at nearly infinite levels depending on consumer demand and production capacity. It is also true that millionaires have a superior perspective on how to make money over the common person and this can be proved true by the fact that not everybody is a millionaire.
So how does a millionaire make millions? By investing money into things and ideas that “make money”… Millionaires want a return on their investments and ROI is the KEY to success. The problem for most people who dream of making a million dollars is how to get from zero, or nearly zero dollars to a million—that's where the mental grid-lock happens. People can't figure it out and give up, get a job and do what everybody else does, follow the followers.
As I was contemplating this issue it dawned on me that making a million dollars, with no inertia, is way to complex and basically an unachievable goal, and that is why most people cannot achieve it. Then the simplicity of the process hit me. The way to make a million bucks starting with one hundred dollars. The KEY is ROI. The key is to smart small and apply one rule of thumb to whatever you do and here's the formula that will allow you to take $100.00 and turn it into a million:
Whatever you invest in with your money, double your profits when you sell it. It is that simple. Knowing this, then you must buy/invest into something (anything) for the lowest possible price with your initial $100.00 so that when you sell it, you recover your initial investment, cover all your costs associated with selling the product, and after the dust settles, you have $200.00. Then, repeat the process. It's kind of like the “double a penny everyday for 30 days” angle where at the end of 30 days, you have a million dollars… only this is more practical because you are exchanging a product for money rather than just doubling pennies without a source for pennies.
Let me say it again: Invest $100.00 into any product so that when you sell it, it is priced to recover all your costs and doubles your money. Then, repeat the process. That product could be anything from A to Z. The key is buying low, selling high and doubling your initial investment. If you can't double the investment under this theory, don't invest. Let's look at the math:
$100-initial investment.
$200-first ROI
$400-second ROI
$800-third ROI
$1600-fourth
$3200-fifth
$6400-sixth
$12 800-seventh
$25600-eight
$51200-ninth
$102400-tenth
$204800-eleventh (1/4 million)
$409600-twelfth (1/2 million)
$819200-thirteenth (nearly a million)
$1638400-fourteenth (nearly 2 million)
Instead of thinking about “making a million dollars” change your thinking to “doubling your money” on everything you invest in and start small. In fact, starting with $50.00 only adds one additional step to making a million dollars. Don't have $50.00? Start with $25.00, you get the point. I have pondered this and here is a truth: If you can't implement this simple, logical plan to make a million dollars, the chances are extremely high that you will never become a millionaire. Why? Because if you can't do the little things first, you will never get the big things done. Start with whatever you have to invest and double your ROI.
I don't know about you, but as you are reading this, I am thinking about my potential investments.
Think about it…
Copyright © 2006
James W. Hart, IV
All Rights reserved
About the Author:
Quick View All Hart's Articles
Top 10 Business Tips
Be Smart, Visit SBS. Click this link www.smart67.com
SBS, Where Smart People Get Smarter Faster...
No. of Times this article has been viewed :
769
Date Published :
Jan 3 2007
Most Recently Published Money Management Articles as of
|
|
Mar 18 2010
How to Resolve Money Problems
by
BMA Editorial Team A
Why do many intelligent, talented people under-earn? What is the psychology behind why people short-change themselves, earn less than they are capable, and experience financial problems because their needs exceed their income?
|
Mar 15 2010
Money and Spirituality - Do They Mix?
by
BMA Editorial Team A
The hoary argument that you cannot have both - spirituality and abundance - continues to proliferate and entangle the minds and experience of many seekers.
|
Mar 14 2010
Your Money Thermostat- Is It Stuck?
by
BMA Editorial Team A
What's your "money thermostat" set to?
Interesting question, huh?
|
Mar 6 2010
Learning Effective Money Management
by
BMA Editorial Team A
Increasing wealth and net worth is about more then just making good investments or even "getting lucky". The key to lasting wealth comes from good money management.
|
Jan 21 2010
Essential Trading Money Management Strategies
by
BMA Editorial Team A
Like any leverage, do the basics, do the homework, prove yourself doing the stocks. They're the easiest. Do that for a period of time and then move on to something else. An understanding of trading money management should underpin all of this.
|
Jan 20 2010
Jobless No More: Make Easy Money on the Internet
by
BMA Editorial Team B .
There are different ways for you to learn and know how to make easy money on the internet. These often include companies that either have a physical branch with an online catalog while some can totally operate online.
|
Jan 14 2010
4 Money Rules to Live By
by
BMA Editorial Team A
These four rules work no matter where the economy is heading, what the stock market is doing and where interest rates stand. Time-tested, biblical principles work regardless of worldly circumstances.
|
Jan 4 2010
The Market Cycle Investment Management (MCIM) Program
by
Steve Selengut
Investing with a calendar year focus has no basis in the realities of finance, business, or economics... isn't it obvious that the Stock and Bond Markets are far more closely related to the Business Cycle than to the Earth's around the Sun?
|
Dec 19 2009
Family Money Management - Advice on Borrowing and Lending Within Families
by
BMA Editorial Team A
These 5 rules for family money management will help you to control your own money and reduce the opportunity for money to destroy your family relationships.
|
Dec 14 2009
Outsource Your Money Management and Personal Finance Tasks
by
BMA Editorial Team A
There you have it, tips to simplify and automate your finances so you can focus on leading and managing your money rather than handling it. Becoming a money leader and a money manager is vital to ensuring your long-term financial success.
|
Dec 3 2009
Why You Shouldn't Save When You Have Debt
by
BMA Editorial Team A
I know it can be hard. You just have to remember that any money you've 'saved' hasn't really been saved at all. It is money you should have been spending instead of making purchases with a credit card.
|
Dec 3 2009
Foreclosure Laws, Debt & Divorce: 3 Pieces of Critical Info for Dependent Spouses
by
BMA Editorial Team A
Money problems are the number one cause of discord in a marriage. And nowadays, certain factors have aligned that make these times a "perfect storm" for divorce. If you're a dependent spouse in a divorce, following are three things you need to know about debt, divorce and foreclosure laws.
|
Nov 18 2009
Tips on Selecting the Right Structured Settlement Company
by
BMA Editorial Team B .
Before we move on to the tips that will help you find the right structured settlement company for your needs, are you really sure what you've got on your hands is a structured settlement?
|
Nov 18 2009
How to Save Real Money When Shopping for a Used Car from a Private Seller
by
Bruce Hokin
Apart from your home, this can be one of the largest financial expenditures and therefore one of the most important to your financial well-being. If you can learn a few rules and remember some proven tips then this can be an enjoyable experience. Here's how.
|
Nov 18 2009
How to Save Real Money When Buying Nearly Anything at an Auction
by
Bruce Hokin
Auctions are a fun, yet sometimes stressful way to buy goods. It could be a car, it could be real estate, it could be antiques or items for the garden and around the home. You can pick up a bargain or get caught. Learning a few tricks can make this process a lot more enjoyable, saving you money too.
|
|
Search for ebooks on Management & Business