Making $1 million a year can help you live the life that you’ve always dreamt of. More so, you can buy the things that you’ve always wanted and live more comfortably. Making this much money a year can help you pay off debts and give you financial freedom however nothing worth having comes without a cost and here’s the brutal truth about making $1 million a year.
The Importance of Money
Indeed, money doesn’t buy happiness but I’m yet to see a poor person that is happy because of poverty. Making more money, especially making up to $1 million in a year, can help you improve your life. Think about all the things that you’d miss out on doing simply because you don’t have enough money.
Ask yourself, how much money do you have left every month after paying for all your basic needs? This is one of the reasons why many people want to make more money. For so many people, they realize that they don’t have any money left to spend after paying for their basic needs like accommodation, food, and clothing. As a result, they may have to rely on credit card debts for their other needs.
Also, have you ever wanted to get something so badly but you just had to walk away because you did not have the money to pay for it? Maybe it was a pair of shoes or even a neighborhood where you wished to live. It could also have been a location for your dream vacation or an expensive car. Whatever it was, you could have been able to achieve it faster by making more money. Making more money gives you the freedom to choose where you want to live because you can afford it. It also means that you can choose the type of lifestyle that you want and live a stress-free life. You may also be able to achieve financial independence and retire early.
Not making enough money is one of the major reasons why people end up having debt. When you live from paycheck to paycheck, it becomes difficult to handle emergencies. However, making more money can help you increase your savings and build up emergency funds. You may also be able to easily pay your debts if you make more money. Therefore, I want you to pay full attention as I go further into showing you the brutal truth about making $1 million a year.
Making $1 Million A Year
Now, let’s talk about what it takes to make $1 million a year but firstly, I will explain the math behind making this amount. To find out how much money you need to make monthly, divide $1 million by 12. You would need to make at least $83,333.33 every month to end up having a total of $1 million income in a year. For many, this figure is astronomical and may seem unattainable for you, therefore, I am going to break it down to how much you need to make on an hourly basis to make $1 million in a year. To save you from making any calculations, I’ll just go ahead and provide you with the answers. There are 8,760 hours in a year and you need to make at least $115 every hour to make $1 million in a 12 month timeframe.
As you can see, the importance of breaking down this amount on an hourly basis is to create a realistic figure and plan to achieve your goals. You can easily tell if you are making enough money or if you need to make more money. In other words, if you are not making enough money, you can create actionable plans to increase your earning. For instance, the hourly rate for most people without valuable skills can be as low as $10 per hour and only a few people with valuable skills may earn up to $100 per hour or more. Hence, if you are in the category of people not making up to $115 per hour, you may decide to acquire additional skills to make you more valuable. This may even involve going back to school so that you can start a career with a higher salary than you are making right now.
Now, for some people, they may actually be earning $115 per hour but have yet to ever make $1 million in a single year. Why is that? Well, the answer is it’s not easy to make money by actively trading your time. In order to make this amount a year, you have to set up systems that will help you achieve your goal. Whether you work a 9–5 job or you are self-employed, the average number of hours you’re going to work in a day is 8. You may be able to work for longer hours but studies have also found out that doing more than 11 hours of work a day can increase the risk of heart disease by 67%. And I’m sure you don’t want to trade your health for money, therefore, the best way to make that much money is not to work for a long time but to create a system that can work for you all the time!
Creating The System
Now, the next question is what is a system? A system helps you recognize a particular problem and find strategic and effortless ways to solve it. A system is a procedure that helps you automate a specific issue that requires your effort or intensive thought. For instance, if you need to reply or send emails to several people in a day, a system can help you solve that problem by automating the process. By having an automatic responder, you could save a lot of time while you focus on other important things. Setting up a system can influence your business and bring about tremendous growth.
Another example of a business activity that you can automate by creating a system is your social media post. You can reduce the time it takes to publish a content across your social media platforms by creating a template and using tools like Hootsuite that can help you publish them on multiple social media platforms at once.
I know you may be thinking of what other business activities can be improved by setting up systems. That’s why I’m going to share with you a few other examples and show you how you can make $1 million a year with them.
Firstly, you must find a way to set up a payment system for your business that can work without your involvement. That is, paying for your products should not interfere with your other activities. Another business activity that you can set up a system for is delivery. Just imagine how stressful it would be if you sell a product online and you have to send it to each customer yourself. A delivery system will ensure that the product gets to your customer while you do other things. For example, your customers can be redirected to a download page after payment for a digital product.
According to Warren Buffett, “if you can’t make money while you sleep, you will work until you die.” My goal here is to show you that it’s easier to make $1 million a year if you can find a way to make money 24/7. The amount that you can make is limited if you only rely on actively trading your time for money. You can create more than one system that can earn you money every hour of the day since you do not need to be actively involved.
Furthermore, another example of a system that can make you money while you are asleep is blogging. Some people started blogging as a side hustle but later quit their job because they found it lucrative. You can be making up to $1,000 or more every month from your blog by having a great strategy. The main reason why most people fail to make money with their blogs is that they don’t run it like a business.
One of the ways to make money from your blog is through advertising. Although how much you can make through this method depends on the level of traffic that your blog receives and the number of users that click on the ad. This can be lucrative however and can be done by registering with advertising companies like Google Adsense or by getting users to pay you directly for sponsored content. You can also make money on your blog through affiliate marketing. What this simply means is that you promote another person’s product or service on your blog and get paid when a user uses your link to make payment. In addition, you can sell your product instead of marketing for other people and make money when people purchase it. You may make up $0.02 to $0.8 for each user that clicks an ad on your blog and about 30 to 40% commission each time a user purchases an affiliate product using your link, and you can set any price on your product.
Another system that can make you money is writing books and selling them online. It may interest you to know that you don’t have to be the best writer to make decent money from publishing books online. The internet has made it easy to sell books. You can even sell your book as an e-book and avoid the costly process of printing them since there is no guarantee that your work will be successful. You can sell your e-book on an established market place like Amazon or directly on your blog. If you’re still wondering if e-book publishing is profitable, then you should know that there are over 300 million users on Amazon! Just imagine how much you could make by selling your e-book to a tiny fraction of this population. You could be making hundreds of dollars on each e-book you publish every month and you can even make more by publishing more than one book.
Also, you can build a system that makes money for you by teaching other people. Online courses are becoming more popular and many people are making a lot from it already. Think of how many times you use the internet every day to search for how to do something. One of the advantages of an online course is that you don’t have to be physically present with the people that you are teaching. Your online course can also be in various formats like text, audio, video, or a combination of these. Video courses are excellent, and have been widely accepted as a reliable form of education. For example, a video course would be very appropriate if you are a fitness coach who wants to share a workout program with their clients. The best part is that there is no limit to how much you can make from selling your course online. You can make hundreds or thousands of dollars every month.
And finally, you can also build a system that will make you money through drop shipping. Dropshipping is a type of business model where you don’t have to keep an inventory of goods but supply goods directly to your customers from a third-party supplier. Dropshipping is profitable as more people prefer to buy things online and often your products can be sourced for cheap. Your job is to create an online store and connect with a supplier whose job is to deliver the products. This business model is excellent because you don’t have to keep any goods yourself or pay for an item that you may not be able to sell. Another advantage of dropshipping is that you can sell to any customer no matter their location in the world. However, if you want to run a profitable dropshipping business, you have to do your research and know the right type of product to sell and the best supplier to use. There are people who make thousands of dollars every month from dropshipping and if you learn to operate this form of business properly than so can you!
Therefore, it is entirely possible to make $1 million every year. However, you must learn to create a system that will make this possible!