Becoming a millionaire can seem like a goal that's only attainable for a select few. However, it's possible to become a millionaire by investing in the stock market -- even if you're not already wealthy.
The right strategy is key, though, to reaching millionaire status. While not everyone will be able to accumulate $1 million or more in the stock market, there are a few investing moves that will give you a better chance of achieving that target.
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1. Start investing as early as possible
Time is your most valuable resource when it comes to generating wealth in the stock market. The more time your money has to grow, the more you will accumulate over time -- and the less you'll need to invest each month to get there.
Regardless of your age or how much you can afford to invest, it's wise to get started now. It's never too early to begin investing, and waiting just a few years could make it more challenging for your money to grow. Even if you can't afford to invest much, investing a little now is better than putting it off.
2. Invest consistently
Whether you're investing $200 per month or $2,000 per month, consistency can help your money go further.
When you invest a set amount on a consistent basis, you're taking advantage of a strategy called dollar-cost averaging. The stock market is constantly fluctuating. When you invest a certain amount on a set schedule throughout the year, sometimes you'll be buying when prices are high, and other times when prices are lower.
Over time, those highs and lows should average out. If you were to invest a large amount of money once or twice a year, you could risk only buying when prices are high. Similarly, if you stop investing when the market is in a slump, you'll miss out on the opportunity to buy when prices are lower.
3. Stick to long-term investments
The investments you choose can make a significant impact on how much your money will grow. Invest too aggressively, and you could risk losing more than you gain. Invest too conservatively, though, and you could have a tough time reaching $1 million.
While everyone's portfolios will be slightly different depending on personal preferences, it's wise to keep a long-term outlook when choosing investments.
Long-term investments may not experience explosive growth, but they are more likely to see positive average returns over decades. This slow-but-steady approach is safer than buying high-risk, high-reward stocks, and it can make you more likely to achieve $1 million in the stock market.
When choosing long-term investments, keep an eye on the stock's underlying fundamentals. Is the company in a strong place financially? What does its leadership team look like? How has it handled market downturns in the past? Questions like these can help you choose solid investments that are more likely to grow over time.
Reaching millionaire status isn't always easy, but it is possible. With the right strategy -- and the right investments -- you'll be on your way to a million-dollar portfolio.
