Having a million dollars is something we’ve all dreamed about for much of our lives, but unless we won the lottery, there didn’t seem to be any conceivable way to have that much in our pockets.
Most people believe that the only way to become a millionaire is to save and invest from the time you are in your 20s to the time you retire. While this is the easiest way for most people to become a millionaire, it is not the only way.
Don’t give up on that dream yet. Here are some tips to get the ball rolling on the road to being a millionaire, starting in your 20s with a goal of achieving that coveted million dollars by your 30s.
1.) Develop multiple streams of income.
The average millionaire has 7 streams of income.
It took Warren Buffett a mere two minutes to earn the average annual income of an American household. He earned US $13.5 billion in a year, which totals to US $37 million per day, just over US $1.5 million per hour and slightly above US $25,600 per minute.
Figure out ways to create more streams of income one at a time. It is important to take time building each income stream. You do not build 7 income streams at once!
Invest, whether it’s in the stock market or real estate; create a side hustle business, such as freelance work in your field of expertise; get a second job, ranging from Uber to painting walls.
Start by compiling a list of your interests and experience and see what’s out there. You can gain a lot of ground working even a few hours a week at a second job.
Eventually, you will want to transition out of working for every dollar that you own. For now, this can be an excellent start!
2.) Set clear goals.
A successful journey begins with a destination in mind, as well as small milestones along the way.
You do not become an Olympic athlete unless you set a goal to be among the best at what it is that you do. You will not become a millionaire without setting goals and focusing on them every single day.
Have the big picture in mind, but set smaller goals along the way to let yourself know you’re progressing in the right direction and to keep you motivated.
One way to become aware of your progress is to document your results. Try creating a journal where you can write down daily, weekly, and monthly goals and achievements.
As you achieve these goals, big or small, take time to celebrate and feel good! This will encourage you to keep moving forward.
3.) Save to invest, don’t just save to save.
True or False: If your money is sitting in the bank it can’t be growing.
If you guessed true, you’re right on the money. Back in the day, people put their money in the bank as a safe way to store it. But with today’s inflation rates and low interest rates, your money is actually decreasing in value by sitting in the bank.
In this video, Ryan Scribner talks about why the bank is the worst place for your money.
I don’t know anyone who became a millionaire by stashing money in the bank or under their bed. You need to put your money to work!
Resist the urge to stash your hard earned cash in the bank! Start looking for other places to bring in returns on your investment, such as mutual or index funds.
4.) Surround yourself with people you admire and want to emulate.
There’s a saying that we become the five people we hang out with the most frequently. It’s true that we tend to take on the attributes of close friends, so pay attention to people that surround you.
Who are you choosing to spend your time with? How are they doing in life? Do they motivate you to be more successful, driven and confident?
Make it a goal to keep company with smart people that push you to work hard, get ahead and meet your full potential.
If you are the most successful, happy or physically fit member of your social group, you need to find a new group. You need to surround yourself with people who push you to do better!