Becoming a millionaire by 30 seems like a work of fantasy but what if you really could? And the trick isn’t just saving; it takes a lot more to become a millionaire in a young age including making sound financial decisions. Here’s how to become a millionaire by 30.
#1. Concentrate on Earning
Grant Cardone, an international sales expert was broke and in debt at 21 and by 30 he was a millionaire. How did he do it? According to him, one cannot become a millionaire just by saving given today’s economic conditions. The first and most important step is to concentrate on increasing your income and ways to replicate it. Start following the money and you will see where is it going and lead you to possible opportunities for additional revenue generation. Start looking for high-paying side jobs or how you can earn additional income.
#2. Invest
Let your money do the heavy lifting and work for you. Don’t let it sit idle. If you want to become a millionaire by 30, you have to invest in places that work for you. Investing isn’t all that complicated as people make it to be. Start simple, like with your 401(k) and make use of the 401(k) match program if your company offers you one. You can also contribute towards an IRA or retirement accounts with different tax structures and contribution margins. And after that, if you are still left with some surplus, you can follow Warren Buffet’s suggestion and start looking into low-cost index funds.
#3. Avoid debt that doesn’t pay you
Make it a golden rule not to take debt just to buy things. Do not use debt that will not make you any money. borrow only when you know it will increase your income directly or indirectly. Rich people have become rich because they know how to use debt to leverage investment.
#4. Get a millionaire mentor
Most of us belong to middle class and that also acts as a confinement to our thoughts and ideas. It’s like we belong to that group. But if you want to move to the upper section, you will have to do what they have done. Choose your own millionaire mentors and study them, see what they have done to reach where they are.
#5. Think Big and take the right risks
Think big! Don’t just look at the first $1 million, shoot for $10 million. Most people don’t aim high enough and that’ why they never make it. Before you reach this million mark, you have to take various risks. You cannot make it big with low expectations. Most wealthy and successful people play to win and think big. Your risk appetite can decide where you end up- an average life or a rich and lavish life! Have faith in yourself and take the right risks. Take help from people who have made it big and learn their risk taking mechanism. Learn from what Bill Gates had to say, “If you are born poor, it is not your mistake. But if you die poor, it is your mistake.”