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Do This When You're Young, To Be Rich When You're Old

Publish Date: 15 Nov 2019

Earning a million dollars is something we’ve all dreamed about for a long time, but unless we win big on the lottery, there doesn’t seem to be any possible way to have that much money rolling around our bank account.

Most people think you can only become a millionaire if you save every penny and invest in someone else's fund for 60 years then have a rich retirement. While this is the easiest way, it is not the quickest or the most efficient.

Don’t lose motivation yet. Here are some tips and tricks to get the car moving down the road to being a millionaire, starting in your 20s and ending with a coveted million dollar prize by the time your 30.

 

Develop multiple income streams

The average millionaire has 7 income streams.

Warren Buffet earns the same amount as the average annual income of an American household in two tiny minutes. He generated $13.5 billion in one year, which totals to $37 million per day, just over $1.5 million in an hour, and about $25,600 per minute.

Figure out how to create these streams of income, my advice is to focus on one at a time. It is important to build income long lasting reliable income streams, so you don’t want to rush them or make mistakes by doing to much at the same time.

Here are some of my favourite ways to build wealth.

Investing is one I want to encourage the most because it is mostly passive. Whether it’s in stocks and shares, forex, or real estate you can make money while you sleep and after a certain point someone else can manage it for you. Other ways are to create a side business, do freelance work for companies, get a second job, or take on more hours. The reason you’ll be a millionaire by 30 instead of 60 is because you are going to work twice as hard for half the time.

After creating income from one of these ideas, you will soon transition from relying on your day job, to having more time to generate more income.

You can invest into a multitude of different things even with a small startup fund, here are 6 ways you can invest $100!

 

Set Clear Goals

A goal is something to aim for. All successful journeys begin with a destination in mind, as well as small milestones along the way.

You don’t become a gold medalist unless you set goals to be among the best in the world in your discipline, and focusing on that. You will not become a millionaire without setting a goal and make it your focal point everyday.

Having the bigger picture in mind, while setting smaller goals along the way to keep you progressing in the right direction will keep you motivated to drive on.

One way to become aware of your progress is to document your results. Writing in your journal with daily targets you’ve met or monthly progression will help you stay mindful of the tasks at hand, hopefully give you a chance to celebrate and feel good, but most importantly keep you moving forward.

 

Save to invest, don’t just save

First things first, if you spend more than you make, you need to stop! If you want to be a serious investor and grow your portfolio my suggestions are this. During your 20's save 30-40% of your monthly income and learn how to invest, if you are lucky enough to save $1,000 start buying some shares and you can make peanuts to begin with. Then as you continue to save, invest another $1,000 then another and so on and a couple more times. In time you will have quarterly income from dividend paying shares that will increase your wealth.

Right or wrong: If your money is sitting in the bank, will it be growing?

If you guessed right, you’re bang on the money. Back in the day people put money in the bank to keep it safe and a little yearly interest rate helped grow your cash. But most banks now only offer really low interest rates.

With today’s inflation rates and low interest rates, your money is actually decreasing in value if it is just sitting in the bank. Unfortunately a 2% ISA isn’t cutting it as much as it used to.

I don’t know anyone who became a millionaire by stashing cash away in the bank, you might as well put it under your mattress. You need to put your money to work. Start looking for other places that bring returns on investment, such as index or mutual funds, dividend paying shares, or even peer to peer lending.

 

Surround yourself with people that have similar goals (it’s a group effort)

The running trend is that we become the five people we spend the most time with. This is true and I know it first hand, I have picked up attributes from the best of people and the worst of people over the years, and I’m lucky I found out who to hang out with earlier rather than later. Pay attention to people that surround you, and learn from them.

Who are you choosing to spend your time with? What are they doing with their lives? Do they motivate you to be more successful? More driven? More confident?

If you are the most successful, happy or physically fit member of your friend group, you need a new group. You need to surround yourself with people who push you to be better!

 

Always learn something!

The more you learn the better you understand your mistakes. In the beginning of your career or business venture you will stumble, fall, and even give up, but you need to focus on what decisions lead you to failure. Only then will you be able to improve next time.

One of my mistakes was spending $1997 on a stupid online course trying to teach me how to trade Bitcoin, that is money I’m never going to get back. But the experience taught me to always do my research before making a big purchase, look into who is selling the product and what experience they have, shop around to see if there are any better options, then make your decision based off fact, NOT impulse. (I later found a real teacher and found the topic interesting).

Back to courses again. If you want to see what courses I’ve tried and tested, head over HERE! To see the people and E-courses I trust.

 

Something extra

Finally, I want to recommend a book to people who maybe don’t know how to manage their money, or want a better plan when it comes to saving. Rich Dad, Poor Dad by Robert Kiyosaki. This book really helped me understand the impact my bank balance had on my decision making, and allowed me to formulate a plan around sound investments to generate income.

 

To make sure you know how to start investing check out our latest articles on the stock market:

 

Also, Business Minded has a special offer for our readers. M1 Finance is offering free stock market investing to our readers. M1 Finance is our #1 online brokerage, you can check the out HERE!

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