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.
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.