The nine strategies that can turn you into a millionaire. No, you don’t have to

Who wants to be a millionaire? Probably most of us. While a seven-figure pot of money isn’t necessarily enough to guarantee a life of luxury these days, there is still a certain cache about building this level of wealth.

And for those who save hard and are savvy with their cash, this goal is well within reach. In fact, there are many ways of amassing £1million – and you don’t necessarily have to be a high earner.

So whether you could be stashing more in your savings or have grand plans for your side hustle, here are nine ways that you could make a million.

1. Push your ISA to its limit – every year

If you are serious about growing your cash, you will need to invest it. History shows that putting money into the stock market is a better way to grow your wealth than leaving it in a cash account, as long as you can bear some ups and downs along the way.

You can put £20,000 a year into an Individual Savings Account (Isa) and all gains are tax-free.

Ed Monk, from investment group Fidelity International, says: ‘The key is maximising your contributions, staying invested and allowing compounding to do the heavy lifting.’

Someone who invests £1,666 a month – the equivalent of £20,000 in a year – into an Isa could reach the £1million mark in 28 years, assuming 5 per cent annual growth, calculations by Fidelity International show.

You can put £20,000 a year into an Individual Savings Account and all gains are tax-free 

With 8 per cent annual growth, they would get there in just 21 years. This will likely involve choosing riskier investments.

However, it is not unrealistic. The Fidelity MSCI Index World fund, which tracks the world’s biggest companies, has annualised growth of 12.1 per cent over the past five years.

Those with smaller amounts can still get to their goal. Someone investing £500 a month (£6,000 a year) could grow to £1million in 36 years, assuming 8 per cent annual growth.

2. Power up a pension as early as possible

Pensions are one of the most tax-efficient ways to save, and employed workers get help from both the Government and their workplace, helping to boost their pot even quicker.

Most workers in the private sector now save into modern defined contribution pensions – an invested pot of money that grows as they make contributions.

Under auto-enrolment, those aged 22 and over and earning at least £10,000 are automatically signed up to their company pension scheme. As a minimum, they must contribute 5 per cent of their salary and their employer puts in 3 per cent, though some workplaces are more generous.

You also get tax relief on your contributions. For a basic rate taxpayer, this effectively means the Government tops up an £80 contribution to £100, and for a higher rate payer a £60 contribution is topped up to £100.

Someone who opts in and starts saving into their pension at age 20 could reach £1 million by age 65 with monthly contributions of £1,150, according to PensionBee, a pension consolidator. While that sounds a lot, taking into account tax relief and employer contributions, a higher rate taxpayer would only contribute £431 of this.

Someone starting at age 30 would need to save £1,500 a month (£562 from the worker) to be a pension millionaire by retirement age, and starting at age 40 would require saving £2,300 a month (£862).

Maike Currie, from PensionBee, says: ‘Take advantage of “free money” by maximising the amount you can get from your employer contributions and claiming tax relief. Reaching £1million might sound daunting, but with consistent contributions and good planning, it might well be within reach.’

Some employers are willing to contribute more than the minimum if you do the same. This can give your retirement savings a significant boost.

3. Level up earnings from your side hustle

Anthony Marks, 50, and his wife Louise, 46, both quit their jobs and turned their hobby into a full-time business – Fanattik

Many people have turned their hobby into a side hustle – a money-making enterprise on the side of their main job.

About a quarter of adults say they do this, rising to 34 per cent of Gen Z (those aged 14 to 29), according to Starling Bank.

Under the Trading Allowance you can earn £1,000 a year outside of your job without declaring it to the tax man.

And for some, their hobby can turn into a full-time business – and it can become lucrative.

As a student, Anthony Marks, now 50, went to jumble sales to buy toys and memorabilia from popular shows such as Star Wars and Thunderbirds, reselling them at sci-fi conventions.

About ten years ago, Anthony, who worked as a buyer for a toy company, and his wife Louise, 46, who worked in marketing, quit their jobs and turned their hobby into a full-time business, Fanattik.

This year their company, which…