Are you wondering how to become a millionaire by 30 💎💸💰? According to Spectrem Group’s 2019 Market Insights report, only 11.8 million Americans whose net worth is at least $1 million net worth which is just 3% of the country’s population 🌎.
Then how do you join the millionaire’s club? Good news; you can become a millionaire despite your education or your family’s financial background.
Follow these simple tips and your journey to financial freedom will be smooth:
1. How to Become A Millionaire: Steer Clear of Bad Debts
“Debt is like any other trap, easy enough to get into but hard to get out of” – Henry Wheeler Shaw
Bad debts are a common phenomenon, and a lot of people struggle to manage their bad debts. But with an attitude change and the right strategy, a debt-free lifestyle is achievable.
a. Live within your mean
Avoid spending more than you make, or you end up living from paycheck to paycheck and without enough to cover your bills. If you don’t have enough for a Friday hangout 💄💃✨🥂🎟, that new trendy bag, or to take your girlfriend out to the movies, then don’t use money intended for other things. Learn to be satisfied with your limitations!
b. Have a clear Financial Map
Step 1: Know your monthly earning
Step 2: Know your recurring monthly bills
Step 3: Know expenses that may vary month after month
Step 4: Set aside for unexpected expenses like hiring a website developer or replacing your busted laptop
Step 5: Record all your debts
Step 6: Start clearing the smallest debt first while making the minimum payment to the rest.
Avoid consolidating your debts and make financial management your personal ‘Do-it-Yourself’ project.
2. How to Become A Millionaire: Invest Early
Something that will bear fruits thirty to forty years from now can’t be exciting since when young we look for instant gratification. But the early start will give you an edge, and you won’t be googling how to become a millionaire overnight when you are 30.
So why is investing at a young age the easiest way to build massive wealth.
a. Time allows you to take risks
Volatile ventures yield the highest return on investment, and being young gives you the time you need to recover from risker moves. Young people are not bound when making risky moves.
b. Compound Interest
When your investment gains interest and you reinvest the interest, you stand to make a lot of money in the long run.
“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant,” Jeff Bezz – the third most rich person in the world.
c. Improved Spending Habit
When you start investing early, you will learn how to streamline your spending and focus on your budget.
d. Become a Creditor
When you get your money in different avenues early in life, you will have enough to lend to other people and start making interest.
e. Gain Experience
The rule of the 10, 000 hours. You need to practice 10,000 hours to become a master in a given field. If you want a faster answer to how to become a millionaire in 5 years, then start putting in the work today.
3. How to Become A Millionaire: Start Savings
a. Set up a Budget
Track what you spend your money on and decide what is a must-have and what you can overgo. Then save the money that you could have spent on what you decided you can live without.
b. Separate Saving and Checking Accounts
Don’t have all of your money available for spending, open a saving account to make some of your money less accessible. You can make a lot of interest if you find an account with the highest rates.
c. Arrange for direct deposits
In the book think and grow rich, the author suggests that if you are used to spending $10 and decide to spend $9 and save the $1, then you won’t notice a change in your daily life. Most of us spend most of our money buying new clothes, treating ourselves, which means we are willing to pay other people rather than pay ourselves.
Make an arrangement so that some of your money can be deposited to your saving account rather than to your regular account, this ensures you always pay yourself first.
d. Start an emergency fund
Try to save money that can take care of least three to six months of essential expenses since you can’t know when you may need an emergency fund.
4. How to Become A Millionaire: Increase your income
If you want to learn how to become a millionaire, you must know how to increase your income. Here are some of the ways you can earn more:
a. Start a side hustle
You can start a business with just a Facebook page or Instagram profile. If you have a hobby about dogs, you can start uploading content about dogs on your Instagram profile. With time, you will have a following who can become your customers on a Shopify store.
If you are a video editor, then there are millions of people willing to pay for your skills.
Don’t know how start as a side hustle? Don’t worry, just contact me, and we will figure it together.
b. Add a new skill
If you are a video editor, you can learn new skills to add value to what you offer, like you can learn how to do caption on a skillshare. New skills will enable you to charge more for your service.
c. Start Affiliate Marketing
Maybe there is a software, program, or products you buy and love using. Do you know you can earn a big buck by just promoting these products to your friends?
Yea, that sweater you bought on Amazon and loved can help you earn extra this month. You can try platforms such as Clickbank and make some money.
d. Start a course
Are you a full-time coder? Then you can start a course to help start teaching people on how to become coders and start earning money. You can build a simple site and add your course there, or you can join a place like Fiverr and Udumy and sell your course to millions of people.
e. Build a business from your passion
Do you love taking photos? Then don’t you make a portfolio website and start getting clients right away. Do you feel it will need a lot of money to build your website, then feel free to contact me and I will help you with this?
Do you love writing? Then join here and start earning.
5. How to Become A Millionaire: Cut Unnecessary Expenses
Cut unnecessary monthly expenses. Small recurring expenses might not even make a dent to your finances when they stand alone, but when you combine them, they can be enormous.
To minimize damage to your expenses, you should cut down on these easy to implement small expenses:
a. Cook Your Meals 🍟
Make your coffee at home. Even though the cost is small; when cups add up, the cost goes up. Try to make your meals at home, and this will add to the money you want to invest in thousands yearly!
b. Prepare Shopping List
Shopping without a list on an empty stomach will encourage you to pick more than you need. A list will help you take everything you need to avoid spending more gas to back to the store and save time for the side hustle. It also helps you not overspend while shopping and saves that money for something you may need in your small business.
c. Cancel club memberships
Do you have a recurring gym membership that you never use? Do you have a cable plan, but you only watch Netflix? The cable only cost $100, right? But $1200 per year.
d. Do things yourself
Start fixing things by yourself. The door break or sink leaks, just head to YouTube and learn to do it by yourself. Had one type of meal the enter week? Why don’t you learn a new dish with free recipes online instead of going out for pizza? Use Pinterest to learn how to make your face marks.
e. Use public transportation
Use the subway when you can to save on maintenance, parking, and gas over time. Do you have something to do on the other side of the town? Then why don’t you just walk? You save money every time you leave your car behind.
6. How to Become A Millionaire: Professional Help
Busy on your day job and other daily responsibility to a point you can’t find time to invest? That doesn’t mean you should give up the whole idea of investing. An investing professional will help you make decisions on what to do with your money.
If you don’t have money to pay for an Investing professional, you can read books that show how to become a millionaire from someone who has already done it. This will act as a blueprint to learn how to do it by yourself.
Why do you need an Investing professional?
When you decide to go alone, you may be influenced by emotion on your investing decisions, leading to many losses.
Go Do It
We have covered several tips on how to become a millionaire; please start experimenting with them today.