Ramit Sethi Outlined 4 Paths to Becoming a Millionaire. Which Is Right for You?

Finding your path to the millionaire club is key to financial independence.

Becoming a millionaire may seem like a pipe dream -- especially if you're coping with credit card debt or other financial worries right now. But it is theoretically possible for many people to amass a seven-figure net worth if they make the right financial decisions.

If you want a big brokerage account and freedom from major financial worries, there are a few different options to make that happen. Finance expert Ramit Sethi outlined four different paths you could take. Here's what they are, along with some tips on figuring out which path is right for you.

Here are four ways Sethi says you can get to $1 million

According to Sethi, there are four different ways you can end up with $1 million invested.

Your first option is to let time work for you. Sethi explained on Twitter that if you invest around $400 per month every year for 40 years, you will end up with just over $1 million, assuming you earn 7% average annual returns.

As Sethi explained, this option is "very conservative because it does not factor in income growth or marriage." It doesn't require a large monthly investment from you, so it should be doable for many people -- if you start early enough.

Income is your second option. With this approach, you'd invest $1,666 on average every month for 22 years. That obviously requires you to earn much more money in order to have this much extra cash to invest. But, as Sethi explained, this is an average over time. "At 20, this would be difficult for most people," Sethi said. "As you grow in your career, this becomes more possible for some. A good reason to focus on income."

Starting with money is a third option, and one Sethi acknowledges is rare but could work for those who have a lot of money in a checking account, or for people who sell a house and walk away with a profit. This approach would involve starting with a $150,000 initial deposit, and then putting another $10,000 per year into investments for the next 20 years (either on a monthly basis or on whatever schedule works for you).

Finally, the fourth approach is a combination of all of the other three. If you start with a $150,000 investment and make $25,000 investments each year for 15 years, you'd hit your millionaire goal in just 15 years.

Which of these approaches is right for you?

The best approach to becoming a millionaire is going to depend on where you are financially right now, as well as where you expect to be in the future.

Obviously, if you are not very young, then investing very small amounts over time probably isn't going to be sufficient to amass a seven-figure brokerage balance. So you may need to opt for a more aggressive investing approach, ideally by increasing your income to free up money to invest.

The important thing is to pick which option is feasible and then start working toward it -- even if that means finding a way to boost your earnings to make your millionaire dreams happen.