million dollar club sealWith a blog title like Making Money Fast and Slow, it’s no wonder why we’d want to be millionaires. I’ve read many books about how to become a millionaire, but my favorites are: The Millionaire Next Door and I Will Teach You To Be Rich.

Recently, I came across the Budgets Are Sexy’s Million Dollar Club. As part of his journey to becoming a millionaire, J. Money lists out a pledge that will help him to become a millionaire. Since I want to be a millionaire as well and there are no strings attached to join the Million Dollar Club,  here is my pledge to become a millionaire:

  1. I will continue to pay off my credit cards in-full every month: There is no easier way to sink into a spiraling pit of debt, especially when a lot of those credit cards are rewards cards with >20% interest rates.
  2. I will max out my Roth 401k plan every year: Since I’m only 23, I have many years until I can tap my 401k for income, so why not put in as much as possible and let it grow for the next 30+ years? Considering at normal stock market returns (7% going forward), you double your money every 10 years, it’s a great idea!
  3. I will max out my Roth IRA every year: The more retirement money, the better!
  4. I will never buy a new car: Cars are really expensive. The cost of commuting alone costs over $125,000 over 10 years. Why spend more money on a new car when it depreciates immediately driving off the lot when you can get free cars for life? Any car I buy in the future will have to be at least 2 years old, but in great condition.
  5. I will continue to monitor the economy: This will allow me to make smart investment decisions, especially buying on the dips. The best thing I learned in my college investing group was that the 10-year Treasury Bond, and ultimately the yield curve in general, is a great indicator of the economy. It tells us everything we need to know about the economy: inflation, investor confidence, mortgage rates, and even whether the economy is about to hit a recession.
  6. I will continue to ignore the economy: Despite my previous bullet, I will also make sure I’m not swept up with the over-eager mom-and-pops of the investing community during bull markets and leave the markets on fear when they dip. I prefer a more automatic investing method with index funds, thank you very much.


Following this pledge, I hope I can achieve millionaire status within about 20 years, but who knows what life will throw at me. Granted, being a millionaire is not what is used to be, and in 20 years, inflation will kick in eventually and erode all of our savings anyway and everyone who is not a multi-millionaire by the time they retire will probably never be able to retire.