6 Must-Do Practices to Be a Millionaire at a Young(er) Age
6 Smart Financial Decisions That Could Make You a Millionaire Before Retirement
You don’t have to be the next Mark Zuckerberg or CEO of Apple to reach millionaire status. In fact, we’re seeing the “millionaire next door” mindset pushing more people into this status at retirement, but it’s still taking a lifetime to reach this goal. What if we told you that you could do it sooner? Maybe even as soon as your 30’s? Combine some ambition and perseverance with smart financial decisions and you could have what it takes to be a millionaire… before retirement.
The road to prosperity is paved with good business strategies and responsible financial choices. Check out these simple but powerful practices you can apply to your day-to-day life that may help increase your wealth enough to reach that seven-figure mark.
1. Develop Multiple Streams of Income
Find an opportunity where you have the ability to increase your income. Making more money is easier said than done, but if you can find several ways to rake in some extra cash it can help you grow your net worth more quickly. In a five-year study of self-made millionaires, author Thomas Corley found that most of them had three or more streams of income.
After doing some research and consulting with a financial advisor, you may want to start investing in the stock market. The stock market has many ups and downs so think long-term when you ride out the waves.
Or if you’re the entrepreneurial type, start your own business on the side and work on projects you’re excited about. If you develop a product you love which you’d use yourself, create an online store or sell your products through other vendors.
2. Focus on Your Overarching Goals
When you start making some extra cash and increase your savings, you may be tempted to buy a new luxury car or designer clothes. Although these purchases would be a nice treat, it could spiral into blowing all of your savings for the future. Don’t let all your hard work vanish after splurging on a few big purchases. People who are determined and focused tend to attract (and keep) more money; so make sure you are respected for your work ethic, not the extravagant items you buy.
3. Put Your Savings to Work by Investing
Consider increasing your savings by investing. Put your money in an investment that you can’t easily access. You can start by contributing to your 401(k) and taking full advantage of your employer’s match program if they offer one. Once you’re taking advantage of any free money your company is offering, consider adding money to a traditional IRA or Roth IRA.
If you put a set amount of your income aside every month you probably won’t think twice about touching it; and you’ll learn to live without it.
4. Keep Learning
The safest investment to make is in your future. Build a plan, set goals, read books, blogs and listen to podcasts. Expand your mind with good information that will help you reach your goals sooner and more securely. Be willing to learn and talk with others about multiple subjects. By furthering your education and professional development, you are setting yourself apart from others. You don’t need to be the smartest person in the room, just try to be the most prepared.
Don’t let mistakes paralyze you from reaching your goals. Invest time and energy to plan for the future and learn how you can improve. There are multiple paths you can take to achieve your goals and being versatile will lead you to the quickest solutions to your problems.
5. Shoot for $10 Million, Not $1 Million
People often believe that becoming rich is out of their control, but the rich understand that by committing to their financial goals and continually working towards them, their financial future is in their hands. When you change your mindset about money, you may begin to see a clearer path to that millionaire title.
If you believe you’re thinking big, think bigger. To get and stay rich you should make it a priority. Those who strive to be successful and have a positive mindset are more likely to reach their financial goals. You don’t want to be thinking back on what you could have done.
6. Associate Yourself With People Who Inspire You and Have Similar Goals
If you are around people who discourage you from going after your big dreams, you have to learn to ignore them. Prove them wrong, but be humble about it. Your results will speak louder than words.
The truth is that millionaires think differently than most about money, so surround yourself with hard workers who have a similar vision. We become like the people we are always around, so steer clear of the doubters and nonbelievers.
Matt Reiner is CEO of Wela, a digital financial advisory service.
Disclosure: The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.