According to Spectrem Group’s 2019 Market Insights study, there are around 11.8 million Americans with at least a net worth of $1 Million, accounting for 3% of the U.S. population. Although becoming a millionaire is no longer as easy as it once was, it is still a significant achievement.
There is no “secret method” for accumulating riches. But I can tell you that becoming a billionaire is far simpler in your twenties: you have more energy, fewer dependents, and less to lose.
Track the money
You cannot become a millionaire in today’s economic situation. The first step is to increase your income in small increments and then repeat the process. For example, my monthly income was $3,000 nine years ago, now $20,000. Begin by tracking the money, and you will be forced to regulate your income and recognize opportunities.
Put in the effort
Working hard necessitates no expertise. I guarantee you’ll get ahead if you’re the first person in the office and the last one to go. Will your social life suffer as a result? Yes, a little bit. But remember, you’re young. You have boundless energy! Pay your dues in advance, and you’ll be able to rest when you’re older.
Avoid debt at all costs
Debt is not difficult to understand. Paying money to utilize other people’s money momentarily makes you poorer. But conversely, you become wealthy by charging money to allow others to use yours temporarily.
Paying interest makes you poorer. Thus, you only do it in two circumstances: necessary to survive.
You will earn more money on what you are financing than you will pay to finance it. It would be best to avoid borrowing unless it would ultimately make you wealthy.
Rather than one million, aim for ten million
The most common financial blunder is failing to think large. There is no scarcity of money on our earth; there is, however, a scarcity of individuals who do not dream large.
You can probably become a millionaire by following these ten steps. Set aside those who claim that your financial ambitions are motivated by greed. Avoid get-rich-quick scams, be ethical, never give up, and assist others in getting there as well.
Make real estate your best friend
Inflation is a monster. Make it a priority to purchase a primary property as soon as you know where you want to live in the following five to ten years. If you put down 20% on the house and it appreciates 3% every year, you’ll get a 15% return on your investment.
Manage your accounts using a variety of services. Having a plethora of different accounts and cards, on the other hand, might not only be confusing, but it can also prevent you from becoming a billionaire sooner.
Don’t save to save; instead, commit to invest
The sole purpose of saving money is to invest it later. Therefore, please place it in a secure, untouchable account. Never, ever use these accounts, even in an emergency. It will compel you to follow the money.
Begin a side business
Working a full-time job or launching a business are ways to generate money. Even better, you can do both. Over time, your side hustle might grow into a large company that pays more than your full-time work.
Taxable brokerage accounts
You can invest in taxable brokerage accounts after you’ve exhausted your retirement money. Remember that the money earned in these accounts must be taxed in the year it is received.
Don’t succumb to lifestyle inflation
Lifestyle inflation occurs when you spend more money simply because you have more of it. For example, assume you pay $1,000 per month for a comfortable apartment in an excellent location. You obtain a raise at work and relocate to a more expensive apartment that costs $1,500 per month. Was it essential for you to relocate?
If you want to become a billionaire, fight the temptation to spend your money on frivolous things. Instead of spending more simply because you can, save and invest more. You’ll get to your financial objectives much faster.