Excellent question. I’ve done a great deal of reading on the subject over the last 20 or so years and I can say that the only realistic plan I have seen is the one put forth by Micheal Masterson.
He wrote a book published in 2004 called, “Seven Years to Seven Figures.”
From what I recall, he recommends:
1. In your own field of work try to get promoted or work harder or switch jobs, or all three, so that you make 50% more money per year in gross income. This seems to be the lower limit. But he’s realistic because if you have an actual skill or education, you can usually do more with that than trying to switch fields or careers.
2. Live below your means *before* you were promoted or got the new salary.
3. Invest in real estate, since you have to live somewhere, using the proceeds from your new boosted income.
This was published in 2004 and probably put together in 2002 and 2003. His timing here is pretty good.
You can also invest in the stock market, but I don’t recall the details of that one.
After the gains in real estate, your higher income, and whatever gains in other investments you have, there should be enough money in 7 years to make up 7 figures of actual dollar-denominated wealth.
He’s not a huckster like people selling newsletters, books or investment seminars. In his book he has several case histories of people who have *made it*.
His book is not for the untalented, the lazy or the impatient. That’s why not everyone can be rich or have 7 figures.
I read parts of the book last year and have not made much headway. One thing I did figure out is that I could *save* seven figures by not living in Coastal Southern California.
