How to make my first Million

How to make my first million?

For a mid-class regular person, it may seem impossible but it’s not!

It is difficult because it requires self discipline and sacrifice, but if you don’t get of the track, it is reachable.

Please be aware that there are no short cut for wealth and it takes time to build it. Otherwise, you might just go to a casino and play!

Rule n.º 1

Decide and Start – You have to commit yourself with a goal and then start acting accordingly with your target. The earlier the better!

Rule n.º 2

SAVE – You have to control your expenses and save. Set a saving target, like 30 to 40% of your income. Let’s imagine that the reader has a monthly average wage of 4800 USD and saves 35% – 1680 USD.

Rule n.º 3

Invest – Make a well diversified portfolio that suits your risk profile and invest.

Quoting Albert Einstein

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

In my opinion, the best way to achieve the “eighth wonder of the world” is using a long term buy and hold strategy, making an efficient portfolio by maximizing return at the minimum risk.

Let’s imagine that you make a portfolio that has an anual rate of return of 10%.

I suggest the reader to check the Intelligent Investor Portfolio.

Rule n.º 4

Follow your plan and reinvest your portfolio returns.

Rule n.º 5

Control your emotions, be self disciplined and be aware of news traps.


Considering the previous hypotheses, at the end of  20 years you will have 1.154.663,99 USD.

You can download for free a simple excel model so you can adjust it to your goals as you wish.

Personal finance – first million

Keep calm and invest.

António Ramos

Financial Analyst

(CEFA holder)

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