How to become a millionaire if you hate managing your money

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Some people love to go over financial statements, research investments down to the smallest detail, and obsess over every aspect of their budget to make sure they’re on track to achieving each of their financial goals.

But, a lot of people don’t. And if you are one of them, it is always possible to be financially successful. In fact, if you just take a few simple steps, you can be extremely passive in your money management endeavors and still become a millionaire. Here is what you need to do.

1. Adopt the 50/30/20 budget

Having control over your spending is important if you want to become a millionaire. But if you hate managing your money, budgeting in detail probably isn’t for you. The good news is, you don’t have to budget for every dollar.

Instead, you can go for an 80/20 budget. This type of budget basically specifies that you save 20% of your income, keep fixed expenses at 50%, and spend the remaining 30% as you see fit. Now you might need to tweak that a bit if you can’t reach your millionaire goal by saving 20%. It will depend on your schedule. But, if you find out that it does, you can make a different version of it, like Budget 40/30/30.

The big advantage of this is that once you make sure you’re saving enough and your fixed expenses are within limits, you can spend the rest of your money guilt-free regardless of every dollar – and still be on the safe side. good way to become a millionaire.

2. Use a simple savings calculator to set your millionaire goals

You will need to know how much you need to save to become a millionaire, especially if you have a specific date in mind to reach this milestone.

Fortunately, a simple calculator on Investor.gov lets you figure this out effortlessly. It takes a few minutes to enter basic information, including:

  • Timeframe for investing
  • The amount you start with
  • Expected future returns

And the calculator will spit out a number telling you exactly how much you need to save. You don’t have to mess around with fancy formulas or enter a lot of parameters to find your desired monthly savings goal.

3. Automate your investments

After setting your investment goal, set up automatic contributions for that amount on a brokerage account. Depending on whether you plan to use your million dollars to help you retire or want to access it sooner, it could be an IRA or 401 (k), or it could be a taxable brokerage account that you can access at any age. without penalty.

If you automate your investment contributions, you never have to think about investing money in your savings to become a millionaire. This will be done effortlessly as your contributions will be transferred to your brokerage account without any action on your part.

4. Buy ETFs

Finally, you will have to invest to become a millionaire because otherwise you will have to save such a large amount of money, reaching this goal may be beyond your reach.

Fortunately, there is a simple and easy investment that is great for people who hate managing their money. You can put an appropriate portion of your invested funds in an exchange-traded fund (ETF) that tracks the S&P 500, which is a financial index made up of around 500 of the largest US companies. You can put the rest in a bond ETF that diversifies your portfolio.

ETFs come with low fees and less risk than individual stocks. You can choose one in seconds and automatically transfer money to it. You just need to maintain the right asset allocation. If you subtract your age of 110, you can put that percentage of your money in the S&P fund to get exposure to stocks and the rest to bonds. Or, you can take Warren Buffett’s advice and keep 90% of your portfolio in an S&P fund at any time.

By following these four steps, you can achieve millionaire status without having to spend a lot of time, if any, on financial management. You will be able to build the financial security you deserve without obsessing over every little detail and you will be able to focus on your enjoyment of life with a lot of money in the bank.


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