Many people work hard for several years or decades to reach a seven-figure portfolio. However, some people get comfortable after reaching a $1 million net worth and stagnate. A bunch of millionaires discussed this phenomenon on Reddit and shared how they stay disciplined after reaching the $1 million mark.
“Now I find myself relaxing,” one millionaire mentioned while looking for some guidance. The original poster has a $1 million net worth but hasn’t been hustling as hard to turn it into $2 million.
These were some of the suggestions.
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Several Redditors rushed to the comments section to mention that $1 million isn’t what it used to be. In many neighborhoods, $1 million is not enough to buy a large house. Most people cannot retire on $1 million due to the rising cost of goods and services.
Keeping this fact in perspective can help you work toward a more ambitious goal, such as a $5 million to $10 million net worth. Many Redditors mentioned that this is the sweet spot for feeling rich. Not everyone gets to $1 million, but if you are already there and want to retire on your terms, it’s worth setting your sights on $5 million to $10 million.
A more ambitious target can also result in more action. If you have a $1 million portfolio and will feel content with $1.1 million, there isn’t much of an incentive to make any additional effort. The stock market can get you there in less than a year if it’s bullish. However, if you want a net worth that ranges from $5 million to $10 million, you will have more motivation to go from $1 million to $2 million.
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One Redditor mentioned that every $1 million gets easier over time. It’s very hard to go from $0 to $1 million. However, you only need your portfolio to double to reach $2 million. That can happen within a decade, depending on your investments. However, you can also retain the good financial habits that turned you into a millionaire, such as making regular contributions to your portfolio.
Then, you only have to grow your portfolio by 50% to go from $2 million to $3 million. The jump from $3 million to $4 million only requires a 33% boost. Every million gets easier over time, but you must remain financially disciplined. Compound growth can work in your favor, but if you balloon your lifestyle as your net worth grows, you can negate all of the positive effects of a high income and a seven-figure portfolio.
