Many people aspire to reach a $1 million net worth, but some of these same people feel like deer looking at headlights the moment they see a second comma in their portfolios. Sure, it's worth celebrating once you achieve this milestone, but what happens next?
A few high earners discussed this phenomenon, and the conversation started with a high earner who just achieved a seven-figure portfolio. The original poster asked fellow Redditors if they adjusted their investment style or risk upon reaching $1 million. Several high earners jumped into the comments and shared their thoughts.
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Don't Do Anything Different
There isn't much of a difference between a $999,999 portfolio and a $1 million portfolio. An extra dollar shouldn't lead to revolutionary changes to your portfolio. Instead, you should keep embracing the approach that turned you into a millionaire.
You don't have to do aggressive options trading strategies or avoid any risky assets and put everything in a high-yield savings account. It's just as important to avoid inflating your lifestyle just because you have $1 million to your name.
However, some Redditors celebrated the moment they reached seven figures. A few husbands took their wives out to nice dinners the moment they became millionaires. It's fine to take some time to celebrate the achievement before going back to work.
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Set A Higher Goal
A $1 million portfolio puts you in a better position than most people, but it's still not enough for retirement. This amount is also relatively low if you are young and want to start a large family. Children are the greatest joys of life, but they are also expensive. A $1 million portfolio won't be enough, and that's why high earners set more ambitious goals after reaching the first threshold.
One Redditor said that her husband set the mark at $2 million the moment the couple reached $1 million. A lot of people liked a high earner's suggestion to aim for a $2 million portfolio once you cross the $1 million benchmark.
Once you get to $2 million, you can set the next goal and aim for $3 million. Every million gets easier due to the power of compounding. Going from $1 million to $2 million requires a 100% jump, but you only have to grow your portfolio by 50% to go from $2 million to $3 million.
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Keep Up The Pressure
It takes a lot of financial discipline to amass $1 million, and the strategies you used can help you reach bigger financial goals. It's good to celebrate for a day, but now isn't the time to let up the pressure.
The more you work, earn, and save, the quicker your portfolio will grow. Someday, you will have to tap into your nest egg. You will have living expenses, but you may also have to contend with medical bills when you get older. You never know, and it's better to have a massive nest egg than it is to burn through all of your retirement savings at a vulnerable moment.
You don't have to stress about building wealth. A $1 million portfolio indicates that you are heading in the right direction and have achieved an incredible feat. Just keep going instead of riding off into the sunset.
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