How to become a millionaire with $100 a day — The Fire Investor
How many different ways can you make at least $100 a day? Making $100 a day on average is making about $3000 a month. In order to make $3000 a month you have to make about $20 an hour. You can make $100 a day/$3000 a month day trading, selling covered calls, working a nine to five or collecting dividend payments from stocks. The best thing is that you can even achieve all of these $100 a day payments in the same day making $400 a day. Now this is easier said than done and I will go over exactly what each of these $100 a day tasks would look like, and if done over 10 years would yield over 1 million dollars.
Lets first discuss how much time it takes for each of these $100 a day tasks and then also how much it costs to achieve each $100 a day task. If you make $20 an hour or more it would take 40 hours a week or 160 hours a month to make at least $100 a day. With day trading it may take 2 to 4 hours a day to make $100 a day or 60 to 120 hours a month. If you’re selling covered call options it may take 1–2 hours a week to make $100 a day and that’s 4 to 8 hours a month. If you’re collecting dividends from stocks or REITS it may take 1–2 minutes a month to transfer the money from your brokerage account to your bank account. If you’re investing in a real estate syndication deal it may take up to 6 to 8 hours up front to vett multiple deals and pick one deal that will pay $100 a day for 3–5 years with 2–5 minutes a quarter to review updates from the operator.
Now that we have gone through the time aspect of these $100 a day income producing ventures, let’s discuss the cost. How much is 40 hours a week/160 hours a month worth to you in order to make $100 a day. Time is priceless. I think we can all agree that trading maximum time for money is not the best way to make $100 a day. With day trading you may need a couple thousand dollars to make $100 a day with 60 to 80 hours a month needed. All you need to do is make 10 cents in one position a day with 100 shares to accomplish this goal. With selling covered call options you will need around $100K to $200K to make $100 a day with a time investment of 4 to 8 hours a month needed. For example you would need $100K invested into Block or $200K invested into SHOP to comfortably make $100 a day selling covered call options. You would need about 500K invested into a real estate syndication deal to make $100 a day with an added appreciation bonus with the sale or refinancing of the property at the end of the deal. The time invested is 6–8 hours per 3–5 years or 10 to 15 minutes a month on average. You would need about $500k to $1 million dollars invested in dividend stocks or REITs to make $100 a month with a time of 1–2 minutes a month needed. For example, you would need $500K invested in AT&T and 1 million dollars invested into Verizon to make $100 a month.
As you can see the higher risk investments cost the least and lower risk investments cost the most. Time is the highest risk because you can never get it back. Day trading carries considerable risk, as well but has the lowest barrier of entry. The more money you have the less time commitment needed to put it to work and the more options you have to obtain those $100 a day investments. This is why saving always comes before investing.
Published by The Fire Investor
Financial Independence hobbyist offering practical wealth building advice for all income levels with a focus on achieving early financial independence. View more posts
Originally published at https://thefireinvestor.com on May 13, 2022.