How to achieve your first P1 million while Young

April 27, 2017

Earning your first one million pesos have already been written a lot of times, by a lot of people. So why am I writing another one?

The reason is, most people make it sound so complicated earning your first P1 million. Which is not. They make it sound so hard. Which is not. And you can only reach it in your retirement years. Which is optional.

The minimum wage in the Philippines is around P400 per day. That wage is already enough to make you a millionaire before you even call yourself a lolo.

So before I tell you how. Let me first teach you an idea.

Its called frugality.

There's only 2 ways to be rich:

  1. 1. Earn more
  2. 2. Spend less

Since most of us are employees. Earning more is not applicable. Since the salary is always the same and we have no control of it.

So we are left with the second option, which we have control over.

Spend less.

If you are frugal, you are spending less. This is simple stuff, but why aren't there many millionaires around?

Because of discipline.

Not everyone can be frugal for a whole year. Let alone if you're trying to be a millionaire which could take up to 10 years or so. That would mean, you are living just enough and saving everything for 10 years.

Our generation are so entitled that a little bit of hard work, and they think they deserve to splurge all their money. Some of them wants to look successful so they buy stuff.

I have nothing against that, they probably deserve it. But knowing your priorities and sticking with it is part of being a millionaire.

Discipline is key.

You have a choice. You get to enjoy your money now but broke later. Or sacrifice for now and be a millionaire later and enjoy all the perks of being wealthy. Its your choice.

And this is the reason why budgetting gimicks are so viral. Kurot principle and the fund jars are all just hype to make the "undisciplined" feel like they are making progress. They are tricking themselves to save. It could work for a short time. But I have doubts that it could work 10, 20, 30 or even 40 years into the future.

If you want to be a millionaire. Burn that virtue of frugality into your system. Make it a habit. Make it who you are. Tattoo it on your forehead. Do anything to be that frugal person. If you can save more of your income, you can become millionaire faster.

Now that is out of the way, lets proceed onto how a mere P400 minimum wage salary can make you a millionaire. We would need a powerful force so that your small savings can change your life.

With that, we will ask Albert Einstein for help.

Albert Einstein said, "Compound interest is the most powerful force in the universe."

Yes! You heard it. We are going to draw out some divine power from the universe to change your life. And no, its not Jesus. Its just simple math and its called compounding.

P200 everyday can make you a million

Most minimum wage earner might not salvage all P400. So let's keep it at P200. Its acheivable for most of us. Its just a price of a coffee which most of us take everyday. P200 pesos saved per day can make you a millionaire.


Here it is. Let's say John is 20 years old, has P5,000 in savings. He saves P200 everyday. P200 in one month will result in P6,000 savings (thats P200 x 30 days). In 10 years, he is a millionaire using compound interest.

Compound interest calculator

The stock market yields 7% on average.

If John has the discipline to save P200 per day for 10 years, when he reaches 30 years of age, he is a f*cking millionaire. And he is not old yet!

Easy right? You don't need to be in old age to be a millionaire. You just have to have discipline, compound interest and investing.

This is where the Jar lovers and kurot principle will fall behind. Compounding only works if you add it regularly. A Jar lover and kuroter will suffer from inflation. Compounding will not work for them. But if you save and invest that P200 per day directly into your investment as soon as you earn them, you will compound your money faster.

When John reaches retirement age of 65, if he is still discplined enough to continue saving P200 per day, he would have P22,119,139.17 in his retirement. A pretty comfortable retirement if you ask me.

Compound interest calculator

Most people go through life, taking P200 pesos for granted. They reach old age and never wealthy. Most people can afford P200 per day. But not most people end up being wealthy.

You have a choice now.

And with that, I'm off to earn my P200 for today. This is Wayne and thanks for reading.

If you have topics that you would like me to discuss, please leave them in the comments or send a private message to our facebook page.

Try it for yourself

Play with compound interest calculator.

About the author

Wayne quit his engineering job in 2009 to pursue investing. He is now a bum stock investor managing his own money. He wants to teach other people how to invest. How long before he quit is still left unknown.


JEI April 29, 2017 06:36:07

Very good information. Need more.

JEI April 29, 2017 06:36:16

Very good information. Need more.

$plurge! May 01, 2017 04:48:30

Good day sir ,nice info especially the compound calculator .this will give people, some reality in their goals. Or on how much they would want in the future. You see people sometimes need some framework so that they could start moving. I have a question?regarding the 7% (average yield) does that include ,if youre going to to reinvest your dividends?or that's another story?

Wayne May 01, 2017 10:55:02

Hi $plurge!, the 7% average is from a research data that tracked the US stock market index for 50+ years. They found out that it returned 7% per year on average. Yes, it already includes dividend reinvested.

$plurge! May 02, 2017 03:25:17

Thank you Sir for clarifying that .thumbs up to your new vid regarding strategies on investing with stock market. More power.

MADZ June 15, 2017 04:21:22

Hi Wayne can I have your email, I want to ask you some... Thank you for this articles.

Wayne June 15, 2017 07:38:02

Hi, you can private message me on facebook, I don't want to post my email here for fear of spam.

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