5 Things To Prioritize To Become a Multimillionaire, According to Money Coach Chloé Daniels
Written by
Nicole Symon
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Jenna Klaverweiden
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Growing wealth is a major financial goal for many people. Perhaps you’re even hoping to reach the ambitious milestone of becoming a multimillionaire. That’s the financial goal money coach Chloé Daniels is working toward.
In a recent Instagram post, Daniels explained the five things she’s prioritizing to help her become a multimillionaire. If you’re trying to boost your net worth like Daniels, adopting her financial approach may help you get there.
Here’s a breakdown of the five things she’s focusing on to reach multimillionaire status.
Renting Instead of Owning a Home
Focusing on saving up to afford a down payment and homeownership is popular financial advice. However, Daniels is taking the opposite approach and choosing to rent rather than own for now.
She explained that “the numbers just don’t make sense” for her to buy a home in the current market. Even if she made a 20% down payment, she’d still need to spend around $5,500 per month to own a home similar to the one she rents for only $3,000 monthly. Plus, she’d have around $200,000 locked up in one asset.
Daniels’ housing situation isn’t unique. In the 50 largest metropolitan areas across the United States, renting is cheaper than buying a home, Realtor.com reported earlier this year. The average monthly cost for a starter home is over $1,000 higher than the median monthly rent.
You may prefer to rent to save on monthly housing costs and retain greater financial flexibility like Daniels.
Investing Instead of Paying Off Debt Early
Many financial professionals also advise paying off debt as quickly as possible before focusing on other financial goals. Daniels, however, said she prefers to make minimum payments on her debt and use the extra cash to invest.
Daniels noted that she is specifically referencing her low-interest debt, which has a 3.54% interest rate. If the interest rate on your debt is higher than the return rate you could make investing your extra money, this strategy would likely be ineffective. Credit card debt, for example, had an average interest rate of 21.51% in the second quarter of 2024.
Make sure you understand how much you’re paying in interest on all your debt accounts before deciding to prioritize investing over debt repayment.
Building Passive Income Streams
Everyone has only 24 hours in a day, and no one can spend all that time working. Building passive income streams is a way to increase your income without spending more time actively working. The idea is that after the initial time to set up the income stream, you can continually make money from these ventures with only minimal additional effort.
Daniels said she’s specifically focusing on automating aspects of her business so she doesn’t need to be “as hands-on.” Other popular passive income ideas include selling online courses, making financial investments and self-publishing books.
Swapping Rigid Budgets for Intentional Spending
If you’re trying to cut costs so you have more money for saving or investing, you may think you need to stick to a rigid budget. Daniels rejects that idea. “Right now, I’m in the season of intentional spending rather than tracking every dollar. This is lower stress,” she said.
Considering that finances are the No. 1 cause of stress, as reported by CNBC, any financial approach that reduces stress is worth considering. Tracking every dollar of your spending and trying to adhere to strict limits may be overwhelming. You might benefit from Daniels’ approach of focusing on spending in categories that bring you more value instead.
Think about every purchase and whether it’s something you actually need. Does this item help you reach your goals? Is it the best use of your money? Asking questions like these will help you be more intentional with your spending.
Increasing Income To Save and Invest More
Cutting costs to save money is great, but you probably won’t become a multimillionaire anytime soon using that strategy. That’s why Daniels is focusing on increasing her income so she has more money to invest.
“I’m always looking for new ways to increase my income, create new products, provide value — rinse and repeat,” she said.
You don’t necessarily need a business to grow your income. Asking for a raise at work or starting a new side hustle are other options.
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