A Three-Phase Roadmap to Achieving Financial Freedom with 10 Million for Ordinary People

A friend of mine, who has a nine-figure net worth, once told me: "10 million is a crucial threshold." Reaching this amount means that your passive income (interest, investment returns) is enough to cover your daily expenses, truly freeing you from the anxiety of basic survival and achieving financial freedom. Through conversations with several millionaires and billionaires and research into their wealth accumulation strategies, I have developed a practical roadmap for ordinary people to accumulate wealth up to 10 million. This path is divided into three stages, requiring a gradual progression. Though challenging, it is entirely feasible. If you want to escape the anxiety of money and no longer be chained to a life of work, continue reading this practical guide.

Stage 1: From 0 to 1 Million - Establishing a Financial Foundation

For those currently with only a few tens of thousands in savings, the first milestone is 1 million. This figure marks the transformation from "having some savings" to "truly possessing capital."

1. Choose the Right Career Path

The ideal choice is to enter a large company or a reputable platform:

State-owned/central enterprises: Offering stable salaries, benefits, and comprehensive social security.

High-growth industries: Fields like the internet and finance offer high starting salaries and rapid salary growth.

If conditions are limited, consider:

Moving to a big city: More opportunities and higher income ceilings.

Opting for positions with growth potential: Sales, operations, and technical roles, rather than administrative positions with fixed salaries.

2. Cultivate a Compulsory Savings Habit

Save 30%-50% of your income each month.

Control unnecessary spending: Extend the lifespan of electronic products, streamline your wardrobe, etc.

Establish a "financial firewall": Allocate your savings into stable financial instruments like government bonds and index funds.

Example: With a monthly salary of 15,000, saving 10,000 each month, you would accumulate 120,000 annually, reaching 1 million in 6-7 years. With a side hustle, you could achieve this in 3-5 years.

3. Develop Multiple Sources of Income

Enhance your professional skills to negotiate for raises.

Start a side business: Self-media, e-commerce, paid knowledge, etc.

Learn basic financial management to prevent your capital from depreciating.

4. Optimize Your Social Circle

According to advice from millionaires: "The five people you interact with most often determine your income level." Steer clear of negative complainers and seek to associate with proactive, wealth-minded individuals.

By applying these methods, it is entirely possible for an ordinary person to accumulate the first 1 million within five years. This figure will serve as a springboard for future wealth growth.

Stage 2: From 1 Million to 5 Million - The Wealth Acceleration Phase

Once you surpass the 1 million threshold, your wealth accumulation strategy needs to be upgraded.

1. Activate the Capital Appreciation Engine

At this stage, you should start making your money work for you:

Build an investment portfolio with an annual return of 5%-10%.

A principal of 1 million could grow by 50,000-100,000 per year, providing an additional income stream.

2. Continue Strengthening Active Income

Strive for promotions to increase your salary.

Alternatively, turn your successful side business into your main source of income.

Build your personal brand to enhance your industry influence.

3. Optimize Investment Allocation

Core allocation: Stable assets such as high-dividend stocks and index funds.

Satellite allocation: Use a small portion of your funds to explore entrepreneurship or high-return investments.

Collaborative investments: Partner with trusted professionals on projects.

4. Avoid Wealth Traps

Stay away from high-risk speculative behavior.

Control your spending urges, avoiding the "income-expansion-consumption-increase" cycle.

The key in this stage is to establish multiple income channels so that the speed of capital appreciation surpasses the proportion of income from labor.

Stage 3: From 5 Million to 10 Million - The Freedom Sprint Phase

Once your assets reach 5 million, financial freedom is within reach.

1. Advanced Asset Allocation

Keep 6-12 months of living expenses in liquid assets.

Aim for a portfolio return of around 15%.

Diversify your investments to reduce risk.

2. Enjoy the Magic of Compound Interest

Wealth accumulation accelerates:

0 to 1 million: Could take 10 years.

1 million to 5 million: 5-10 years.

5 million to 10 million: Often only takes 2-3 years.

3. Achieve Lifestyle Freedom

Once you achieve financial freedom, you can choose to:

Continue expanding your wealth.

Enter a "semi-retirement" phase and pursue your passions.

Transition into angel investing.

Key Success Factors

1. Personal Growth: Continuously improve your financial literacy and professional skills.

2. Relationships: Choose the right partner and social circle.

3. Health Management: Maintain good physical and mental health.

The road to 10 million in wealth is not easy, but through systematic planning and persistent execution, ordinary people can achieve it. The most important factor is not where you start but whether you are willing to act immediately and persevere. Remember: the key to financial freedom is in your hands.