Here Are Graham Stephan's 4 Steps to Save $1 Million in 10 Years

Will this Graham Stephan advice help you become rich? 

If you don't have a lot of money available to you right now, the idea of becoming a millionaire might seem like nothing more than a pipe dream. But, if you listen to finance expert and YouTube personality Graham Stephan, accomplishing this task isn't optional. 

"Financial independence isn't a choice any more -- it's a necessity,” Stephan said on Twitter. "Interest rates are unpredictable, real wages are falling, and inflation keeps rising." 

While becoming financially independent may seem daunting, Stephan assured his Twitter followers that you "can go from 0 in savings to $1M in 10 years," and you can do so by "focusing on what you can control." 

If you're not sure exactly how to do that, the good news is that Stephan laid out a step-by-step plan you can follow to make millionaire status happen for you. Here are the four steps he suggests you take. 

1. Cut back on spending

Reducing your spending in order to save more is the first crucial step Stephan recommends taking if you want to end up with $1 million after a 10-year period. 

"​​Saving is the most underrated aspect of investing," Stephan said, explaining that "20% of those who earn $250k+ spend more than they earn!" 

Stephan himself said he's extremely frugal and the money he saved enabled him to make investments when he was young that started him on his own wealth-building journey. 

2. Increase your income 

Although Stephan said cutting spending is important, he also made clear that "saving alone won't get you there." That's why the next step he recommends taking is increasing your income. And, to help you do that, he suggested picking "a career where income isn't tied to time."

Stephan said that jobs where he's been paid by output rather than time invested have worked out well for him. And, he advised: "The route to real big money is Business." Although he acknowledged starting your own business is difficult, he also said that "if you commit to the right niche and work hard, the upside is unlimited."

Of course, starting your own business is a huge undertaking, and Stephan also had some advice for people who would prefer to remain in traditional jobs. For those with a 9-5, his suggestion was to leverage the job market by changing jobs every few years rather than staying put where you are.  

3. Invest in safe choices

Making smart investments is the next crucial step to becoming a millionaire over 10 years time. In fact, Stephan warned that "without investing, the odds of hitting $1M in 10 years are tiny."

The example he gave demonstrates just how important investing is. He explained that you'd need to save $158 daily to hit your $1 million goal if you invest and earn 8% returns but would need to save $273 daily if you didn't invest. 

Of course, you don't want to lose money, though, which is why Stephan warns that you need to recognize that risk is proportional to return when choosing investments. While you may feel like you want to take some chances for the possibility of a higher ROI, he said "I'd rather buy an index fund and chill."

4. Experiment with house hacking

Finally, Stephen suggests trying to slash housing costs when possible by buying a duplex and renting out the top floor while living on the bottom floor. "The rent pays for your mortgage and you own the house after a while."

By following these steps, Stephan says your $1 million goal should be within reach. In fact, he even gave some specific numbers. "If you find a way to earn $120k a year and live off $3k a month, you can hit $1M in 10 years," he said.

Now, taking all of these steps may not be doable for everyone -- but if you can try to implement them, you may just find yourself on the path to millionaire status.