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How to Make 2 Million Dollars (Realistically!)

When you think about how to make 2 million dollars, it may seem completely impossible. But surprisingly, it can be a realistic goal! Now, this is not a get rich quick guide, and I’m not going to lie and say that you’ll make 2 million dollars overnight. However, it is completely possible to become a multimillionaire, and this entire post is about how to do it.

How to Get 2 Million Dollars

We’ll first start with various related questions that you’re likely asking yourself.

Questions like:

  • How hard is it to make 2 million dollars?
  • What jobs make 2 million dollars a year?
  • How to make 2 million dollars in the stock market
  • How to make 2 million dollars in 10 years
  • Does 2 million dollars make you rich?
  • How much interest does 2 million dollars make a year?
  • How to make 2 million dollars on the internet
  • And finally, how to make 2 million dollars realistically

Phew!! It’s going to be a jam-packed post! Are you ready to learn everything there is to know about how to earn 2 million dollars? Let’s dive in!

Does 2 Million Dollars Make You Rich?

First of all, let’s dig into that $2 million figure. Is it one that you should be shooting for? Is it too much for you? Too little?

Based on a survey by TD Ameritrade, less than 12% of retirees have more than 1 million dollars saved for retirement. If you figure out how to earn 2 million dollars, you’ll be well ahead of the game!

And based on this, then I’d say YES, 2 million dollars makes you rich!

How Much Do Retirees Have in Retirement

How Hard Is It To Make 1 Million Dollars? Is It Hard to Make 2 Million Dollars?

I wouldn’t say it’s *hard* to make a million dollars, but it’s certainly not as simple as waking up, asking for a million dollars, and getting it right in your bank account. With that said, focusing on a few key factors can help you make 1 million, 2 million, and even more, dollars over your lifetime (more on this later in this post).

If you want to make two million dollars, but don’t want to work overly hard for it, then expect it to take 40+ years (again, not hard, but it will take many years of consistent investing). If, however, you want to make 2 million dollars and focus intently on it, you can make this amount of money in 10 or fewer years (this is obviously harder in the shorter timeframe, but still possible!).

Want to know how? 

Keep on reading through the various ways you can earn 2 million dollars below.

Related: The Fastest Way to Make a Million Dollars

How to make 2 million dollarsHow Much Interest Does 2 Million Dollars Make a Year?

So what if you do save up that massive nest egg? How much interest does 2 million dollars make a year? Is $2 million enough to retire on?

Based on my experience and my recent research, below are the various interest rates you can expect with the different investment types:

  • Savings: 0.5%
  • Certificate of Deposit: 0.65%
  • Short term government bond: 1%
  • Short term corporate bond: 2-3%
  • Annuity: 3%
  • Real Estate: 7%
  • S&P 500 Index Fund: 10%

What if you put your full 2 million dollars into each of these categories? 

In other words, what is the interest on 2 million dollars annually for each of these percentages?

  • With a 0.5% savings account: $10,000 a year
  • 1% government bond: $20,000 a year
  • 3% annuity: $60,000 a year
  • 7% real estate: $140,000 a year
  • And, 10% in S&P 500: $200,000 per year

Sheesh! Those numbers look pretty good!

With the combination of index funds, real estate, and some safer investments (like annuities), it’s not too tough to make 6% during retirement. That would equate to $120,000 a year. Not too shabby!

Related: What is the Interest on 2 Million Dollars?

What Jobs Make 2 Million Dollars A Year?

Now that we’ve established what 2 million dollars can do for you, now it’s time to start thinking about how to earn that 2 million dollars! (And start answering your internal question, “How can I make 2 million dollars?”)

Unfortunately, unless you become the CEO, CFO, or or COO of a company are, chances are that you wouldn’t make 2 million dollars in one year.

However, that doesn’t mean that you can’t make 2 million dollars in a short amount of time (think 10-20 years). In fact, later in this article I included a tip on how to get a higher paying job, so you can make more money in your lifetime (thus reaching 2 million faster!).

Related: What Jobs Pay a Million Dollar Salary?

How To Make 2 Million Dollars In The Stock Market

Wondering how to make $2 million dollars in the stock market? Many people out there have done it, so there’s no reason that you couldn’t either!

In fact, one of the easiest ways to make a your first 2 million is likely through the stock market. Now, this would mean that you would need to focus a lot of your discretionary income towards investing — and you’d likely also need to take some bigger risks.

But, the stock market has only gone up with time, so your chances of being a multi-millionaire are greater if you take the slight risk and invest your money here.

How to Make 2 Million Dollars in 10 Years With the Stock MarketHow to Make 2 Million Dollars in 10 Years With the Stock Market

How much do you need to invest a month to make 2 million dollars in 10 years?

If you’re investing in the general stock market (think S&P 500 index funds), then you’ll likely earn 10% on your money each year (that has been the average for decades anyway). So, if you can earn 10% each year on your investments, how much do you need to invest each month to earn 2 million dollars in just 10 years?

The number here might seem big…but remember, we’re talking about 2 million dollars here!

To make $2 million in 10 years, you’ll need to invest $9,800 a month

Yikes!

Is that even possible?

Well, it may be for some…but probably not for most.

If this solution won’t work for you, then be sure to read the section below titled, “How to Make Two Million Dollars in Real Estate”.

How to Make Two Million Dollars in 20 Years With the Stock Market

Let’s say you still like the idea of earning 2 million dollars in the stock market and you have more than 10 years to reach that milestone. What if you extended your time horizon a bit and tried to earn 2 million dollars in 20 years instead?

How much would you need to invest a month to earn 2 million dollars in 20 years?

If it takes $9,800 a month to earn $2 million in 10 years, then how much will it take per month to earn $2 million in 20 years?

Should be half that amount, right?

Wrong.

Thanks to compounding interest, it will take FAR FEWER dollars invested each month to earn 2 million dollars in 20 years.

What’s the amount?

Just $2,650.

Still a decent chunk of change, but certainly much more doable than $9,800!

Can you make 2 million dollars in real estate? Absolutely!How to Make Two Million Dollars in Real Estate

What about real estate? Is it easier to make 2 million dollars in real estate than the stock market? 

I don’t know if I’d say easier, but you could potentially get to $2 million faster with real estate. 

Why?

Because not only are you earning money on your investment every year through rents, but the value of your asset is also going up!

Making Money Fast With Real Estate – an example

The explanation above may not have made sense…so let’s try an example. 

Let’s say you buy a rental house for $200,000.

  • That rental earns $2,000 a month
  • AND, after that first year, it will probably be worth $210,000 (house values typically rise with inflation…and sometimes faster than inflation!)

So, after that first year, you earned $24,000 in rents AND $10,000 in value. This means that you actually earned 17% on that $200,000 in the first year!

Realistically though, you’ll have some expenses on the rental, so let’s just say you earn 15% on your money (instead of the pie-in-the-sky 17%).

How to Make 2 Million Dollars in Real Estate in 10 Years

If you earn 15% in real estate (instead of the 10% in the stock market), how much money will you need to invest each month to make $2 million dollars in 10 years? 

Instead of having to invest $9,800 a month like you may have to in the stock market (since you can only expect to earn 10% there), if you put your money in real estate earning 15%, you’d “only” have to invest $7,300 a month.

It’s a better story, but still unrealistic for many people. What if we extend the timeframe like we did with the stock market investing scenario? Let’s take a look at making 2 million dollars in real estate in 20 years instead of 10 years.

How to Make $2 Million Dollars in Real Estate in 20 Years

If it takes $7,300 a month to earn two million dollars in 10 years, how much would need to be invested each month to earn 2 million dollars in 20 years?

Here’s the amazing result here. 

You’re not going to believe this.

If you want to earn $2 million in real estate in 20 years, you only have to contribute $1,340 per month into your real estate portfolio! There’s quite a few people on this planet that could do that!

If you want to retire with $2 million in your nest egg, you might want to do it with real estate. The compounding interest is just incredible!

Make millions on social mediaHow To Make 2 Million Dollars On The Internet

We talked about earning 2 million dollars with the stock market and with real estate.

What about on the Internet?

Can you make 2 million dollars on the internet?

Yes, it’s possible! (For some, this could be the answer to the question, “How to make 2 million a year?”!! I’ve seen it before, and it’s entirely possible for some.)

But I’d only recommend this route if you…

  1. love being a public person, and
  2. can handle owning your own business.

Let’s be honest, not everyone can make money from their passions or become Instagram famous. I’ve been my own boss for 5 years, and I have yet to make 2 million dollars. But then again, I’m not an extrovert and I hate social media, so I’m okay with that.

But, there are many millionaires that have become so because of the internet. And, if you’re looking to make a change in your life, what’s a bigger change than starting your own online business?

Related: How and Why Do Influencers Make So Much Money?

How To Make 2 Million Dollars Realistically

We’ve talked about how you can earn $2 million dollars as a big-wig executive and as a social influencer…but neither of those options are likely for most of us. Instead, let’s talk about how to do it realistically – and for those of us that aren’t interested in HUGE risks either.

How can you make 2 million dollars realistically? Below are the realistic steps I am following personally.

It’s shockingly simple really. But that’s a good thing! It just means that nearly anyone can do it!

1) Get A Higher Paying Job

First, the easiest way to budget and save more money is to make more money. And that usually requires getting a higher paying position or job. Fortunately, there are many jobs that pay well and don’t require college degrees, advanced certifications, or lots of experience.

Here are just a few posts that you can dive into to learn how to earn more:

Of course, it is important to also focus on up-leveling your skills. That way, you can demand more money and showcase why you’re worth it.

And in certain cases, you may want to get an advanced degree or certification. Just make sure that you weight the pros and cons and can make sure that the extra education will benefit you salary wise.

Related: Investing In College: Is Going Back to School Worth It?

Make 2 million dollars with a budget2) Have A Budget

Have you ever heard the quote “It takes money to make money”? Well, in the case of making more money “It takes a good job and a budget to make 2 million”.

Overspending can easily eat up all of the extra money you make with a higher paying job. It’s important to focus on having a budget that allows flexibility but also helps you reach your goals.

You don’t have to be super strict with your budget either. In fact, as long as you’re…

  • taking care of your needs,
  • are able to pay off debt,
  • save money,
  • invest money,
  • and can have a bit for wants…

…then you’re good to go!

But, just make sure to spend within your means, and that saving money is at the forefront of your mind. Making 2 million is the goal, and the more you can save and invest, the better.

3) Reduce Your Debt

Debt sucks, and it can eat up a big chunk of your budget if you’re not careful.

Try to avoid consumer debt if at all possible, and focus on paying off the more important debts (like medical or student loan debt) as fast as you can. Having debt lowers your net worth and makes it harder to make 2 million (and actually keep it!).

Related: The BEST Debt Snowball Excel Template (and it’s FREE!!)

How to make 2 million dollars a year with investing4) Focus On Saving & Investing

Once you’ve got the other three steps complete and in good shape, your next step is to save and invest as much as possible.

There are plenty of ways that you can do this.

The first would be to set up your emergency fund, so you don’t have to get into debt in order to pay for emergencies.

After setting up your emergency fund, it may be worth signing up for life insurance, short and long term disability, and better health insurance, among other options.

Why?

Because we never know what will happen. And, no one wants to lose out on money just because of a disability or health concern.

Paying for these things now could save you thousands (and even millions) over time.

Next, investing is going to help you make 2 million dollars in a shorter amount of time.

Again, this will all depend on how big your risk is, but there are many people who invested over time (20+ years) and are now millionaires. The more you invest and the bigger your risk, the better the chance that you’ll make 2 million faster.

Here are just a few posts to help you get started with investing:

Making 2 Million Dollars… Is It Possible?

As you can see, making 2 million dollars is actually fairly realistic and totally possible.

The key is to make sure you’re making more money and investing it appropriately, to help you reach that goal faster.

Or, you may just get lucky and make 2 million online or through the lottery (but certainly don’t count on this!!).

So how about you? You came in wondering how to make 2 million dollars.

Have you found your answer? Are you ready to take action?? I certainly hope so!

Grow Rich Investing Money Passive Income

AUTHOR Kimberly Studdard

Kim Studdard is a strategy consultant and course launching expert. When she isn't spending time with her daughter and husband, or crying over This Is Us, you'll find her teaching other mompreneurs how to scale their business without scaling their workload.

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