How to Become a Millionaire. Really.

Date: 15 Jan 2024

The question ‘‘How do you become a millionaire?’’ is one almost everyone asks at least once. We look for answers in motivational books, inspiring stories, documentaries and advice — sometimes for a price. The real recipe, though, is surprisingly simple, timetested and — this time — completely free.

We’ll give you the punchline straight away: first, invest in yourself — your education and skills — so you can do work that is valued and well paid. Then get a job that pays you more than you spend, save the difference, and invest it regularly and wisely. Do that consistently and patiently, and one day you’ll wake up to find you’re a millionaire — or a millionaireess.

Sound disappointing? It shouldn’t. According to a Fidelity Investments study, about 88% of millionaires reached their wealth this exact way. They didn’t inherit it, weren’t unusually lucky, nor did they necessarily have a worldchanging idea. They worked hard, lived somewhat below their means, and invested patiently, smartly and with purpose.

Why investing matters — and where to invest

The crucial piece of the wealthbuilding puzzle is investing. Facts are clear: the greatest longterm gains come from equities. Stocks outperform most asset classes over long horizons. But stocks are volatile over short periods: big gains and big losses are possible, and timing is unpredictable. Stocks alone won’t provide the cashflow you need to pay the bills on a rainy day.

So what is statistically the secondbest longterm investment that also offers more stability? Real estate — but only the right kind. Land and buildings are finite resources, and the basic law of supply and demand applies: buy properties that are desirable and where demand is likely to grow. The key is learning to find and evaluate such properties — which means investing time in education and information.

Why we invest in industrial real estate in Croatia and Slovenia

“At Sympatia we direct a large portion of our investments into industrial real estate in Croatia and Slovenia. We identified these markets as strategically promising because of location, quality infrastructure, EU and NATO membership, and a shortage of quality warehousing and manufacturing space. That’s why we were among the first foreign investors in the segment and have made systematic investments there,” says Branislav Habán, CEO of Sympatia Group.

A new gateway to Europe

The pandemic didn’t create online shopping — it accelerated it. Rising ecommerce volumes strained traditional shipping routes from Asia through the Mediterranean to northern ports such as Antwerp, Hamburg and Rotterdam.

One response: a new container transshipment terminal at the Adriatic port of Rijeka. This gateway can deliver goods to Europe roughly a week faster and about 20% cheaper than previous routes.

Maersk became a key partner, investing around €1bn in the new terminal and signing a 50year operating agreement with the Croatian government. Combined with government investments in roads and rail, and reconstruction of rail links to main hubs, this infrastructure makes the region a crucial logistics crossroads for four European transport corridors serving Central and Southeast Europe.

Strategic location

The new gateway has increased demand for quality, strategically located logistics and industrial projects. Croatia and Slovenia have adopted the euro and are EU and NATO members, which lowers geopolitical risk and makes the region more attractive for longterm international tenants.

Sympatia was among the early foreign investors in the segment and has delivered projects that generate rental cash flow in the millions of euros. Several more projects (near Rijeka, Zdenčina and Brnik) are nearing completion or are under construction.

Sustainable, predictable cash flow

We choose locations carefully. We never invest more than the project’s value and initiate construction only after signing tenant contracts. Current and prospective tenants include major global names such as Bosch, DHL, Maersk, Kuehne+Nagel, CargoPartner and Electrolux — companies with revenues exceeding €1bn and often traded on leading stock exchanges. Such tenants provide predictable longterm rental cash flow.

Why industrial real estate?

Typical useful life of industrial buildings is around 50 years; at an average return of 9% p.a., the investment can be paid back by year 12.

Over the building’s life, total investment costs can return roughly fourfold — an attractive risk/return ratio.

Highvalue construction adds security to investors’ capital.

Stable rental income from major international companies.

Rent indexation to inflation provides a natural hedge against price rises.

Become a millionaire through compound interest

Albert Einstein reportedly called compound interest “the greatest mathematical discovery of all time.” Compound interest is what turns steady saving into exponential growth. Your interest earns interest; over time this snowball effect accelerates dramatically. The longer you leave your money invested and the higher the average return, the more powerful compounding becomes.

A closing tip

Selfmade millionaires offer one repeated piece of advice: start sooner than you think. Invest in your education, your free time and how you use it. Choose your profession carefully and commit to doing it well. Save consistently, invest intelligently, and let time and compounding do the rest. It’s never too late to begin.