Bill Gates once said and I quote,
“If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake.”
Well we could not agree more and hence we made an attempt to jot down 10 must haves for becoming a millionaire by the age of 30. Although it might seem like an impossible goal to be a millionaire at any stage of your life. The earlier you start making smart financial decisions, the more likely you are destined to being a part of the millionaires club later in life.
There are in fact ways to become a millionaire before you hit 30 and we have listed the same below.
1. Move away from traditional industries and try something new
While everyone around seems to be in a constant rat race towards becoming a doctor or a lawyer, the fact remains that these professions are not the ones to get you to a millionaire status early in life. The reasons for this are quite obvious- professions require many extra years of schooling, which costs a lot of money. You will likely be repaying your student loan debt well into your thirties, or even later. Moreover, there is always a very real earning ceiling that is difficult to break through and you may never even reach a millionaire status. On the contrary industries, such as Internet marketing are the things of present. Jobs such as Internet marketing do not have an earning ceiling and don’t require a lot of training or education. Hence the return on investment for such jobs is very high.
2. Live Frugally
While your teens and early twenties are the time when you seem to be attracted to all that is flashy- be it the flashy cars, bikes or the most expensive dresses. All you wish to do is, to show off. But most of the millionaires are not the ones doing this and you shouldn’t be doing it either. To maintain your income’s growth, this is the time when you have to seek out the clearance rack or sales and not pay the retail price. What you save today is what you can invest tomorrow. Hence you should know how to live frugally.
3. Plan to invest
While we understand that it is very difficult to plan you investments at such an early age, but if becoming a millionaire is what you have on your mind, then you might need to come out of your piggy bank savings mode and think something big. When saving it is important to remember to save to invest, not save to save. Look into ways in which you can get started creating a portfolio of investments for yourself.
4. Keep your self updated as much as possible
Study and read as much as possible. If you are tackling a new industry where everyone already wants to be king, it’s crucial for you to have an advantage. The best way to do this is simply to read as much as possible. The more you read the broader your perspective is. It gifts you with the power to think ahead of time and that is what matters the most.
5. Manage your money well
The only way to grow your money is to know where it all is and where it’s going out. Hence, to begin with, it is very important that you clear of any bad debts that you might have. You should always be aware of your total net worth from your bank accounts, credit cards, and investments. Having a holistic look at your finances makes savings easier and even offers an incentive to save.
6. Find your passion and fix a prevailing problem by utilising the same
Making millions is not as easy as it may sound, focus on what you love so it doesn’t seem like work and sacrifice to get your business off the ground. Focus not only on the right industry for you but on fixing a problem within that industry, so you know it has value to your consumer base. True passion can take you places, hence, all you need to do is to find what you love doing the most and just do it.
7. Be committed to your goal
You should always aim high and once you do, just give in your 100% to your goal. Your aim should not be to stop after make a million dollar, it should be much beyond that. And this will require a lot of commitment from your end. Since this might not sound easy to begin with, hence, it is always advisable to find a role model who inspires you, so that you may follow suit.
8. Be ready to sacrifice things
If you are really serious about making millions, you definitely need to make some changes to your lifestyle. You need to be make sacrifices to make this much money this early in life. You need to spend less time hanging out with your friends and family. You also need to put a lot of things second and your career first. Although everyone wants that perfect work/life balance, but you have to accept that it won’t ever be the perfect balance if you want to be in the top tax bracket at the end of the year.
9. Follow the 50/20/30 budget plan
It is very important that you budget your expenses as soon as you get the paycheck. With the 50/20/30 budget created by Elizabeth Warren, 50 percent of your income goes to the essentials (groceries, rent, essential utilities), 20 percent goes to savings (savings account, portfolio additions, Roth IRA contributions etc), and the remaining 30 percent goes to what is considered “lifestyle choices). This will help you find yourself at a very comfortable position with your money and you will have a clarity about your expenses.
10. Don’t just focus on making millions
However, weird this last statement might sound, it is a well known fact that while building a business your focus must be on making the best company that you can. Once you put that quality product or service out into the public it will eventually earn millions, you will start to feel very proud of yourself for the product you made, the work you did and the reward you received for this type of hard work. If you continue to do so, making millions will just be an outcome.