How to become a millionaire at an early age

Becoming a millionaire at an early age is determined by a lot of factors. If you want to become a rich and affluent person by the age of 30, what you do in your 20s will determine whether or not you will achieve this goal. In the report by the Spectrem Group’s 2019 Market Insights, it was revealed that there are about 11.8 million Americans with a net worth of at least $1 million. This is roughly 3% of the population of the United States. Only a few out of these people achieve their net worth before the age of 30. Those who were able to achieve this reveal that there is no secret formula to becoming rich, achieving this feat would be based on your decisions. This article gives a breakdown of some rules to apply if you want to become rich at an early age.

Start a business

Grant Cardone who went from becoming very broke at 21 to becoming a millionaire at the age of 30 writes that “you cannot save your way to millionaire status.” This implies that beyond saving, you should have an income-generating business.  

Having a business automatically makes you an entrepreneur no matter how small the business might be. Grants revealed further “my income was $3,000 a month and nine years later it was $20,000 a month. Start following the money and it will force you to control revenue and see opportunities.”

Even when you decide to save from the little money you are making from a job, this won’t be as effective as having a business of your own and earning from it. Most of the rich and affluent people we have in our society today started their business in high schools and in colleges. 

Start a business in a line you know more than one million persons would want to buy. Most of the thriving business we have in society today started as a small home business. A good example of such business is the meal industry. Many of these industries started as a home business with customers around the neighborhood of the owner. Gradually it developed into a small restaurant, and later to a big one. Your business idea does not have to gigantic. You don't have to break a bank to build your business. Start small. Start with what you have.

Start to invest your money as early as possible

Invest your money 

Investment is one of the effective ways to become a millionaire at a very young age. The simplest definition of investment is to save your money in a platform where the money grows for you. If you are an employee and your employer opened a 401(K) account on your behalf, start investing as early as possible into the account. 

Next, consider investing in a Roth IRA or a traditional IR. Your choice will depend on your source of income. Whichever one you choose, map out a specific amount that to save in the account every month. 

The best way to go about this is to make your saving automatic. This way you won't be bothered with the decision of whether or not to save. With time you will get used to the amount deducted for your paycheck. 

Don’t splurge on luxury items

“I didn’t buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income,” said Cardone. “I was still driving a Toyota Camry when I had become a millionaire. Be known for your work ethics, not the trinkets that you buy.” Save as much as you can.

The fact that you aim to become rich at an early age does not mean you should start living a rich life at an early age. Learn to spend your money only on the things you need and not the things you want. Wasting more on things you don’t need simply because you want to show off to your friends is the route to becoming a pauper. That you are wealthy is not known by showing off, it is built by your money worth. Learn to spend as little as possible while you save and invest as much as possible. 

The simple truth is, the amount of money you save is far better than the amount of money you earn and the amount of money you squander. Let your savings and investments speak for you.

Invest in yourself

Your brain is your greatest asset. Invest as much as you can in growing your brain. Never stop expanding your knowledge. Invest your time on reading and generating ideas from happening around you. 

The internet has made reading very easy. You can learn almost anything from the internet. Rather than waste your time on frivolities on the internet, spend the time investing in yourself. Spend time on personal development. 

Remember you already have a business to run. Read more about the business. This would help you find the key to grow the business

Solve a problem that many are willing to pay top dollar for

Ideas, they say, rule the world. If you want to become rich as early as possible, study your environment, study the world around you, and identify a problem. It was the urge to solve a problem that leads to most of the developments we have around us today. Electricity was brought about to solve the problem of darkness, vehicles were invented to solve the problem of long-distance transportation, planes were invented to make traveling to other countries an easy feat, telephones, mobile phones and a lot more were invented to make conversation with people around the world very easy. Look within and around you, identify a problem, and work on solving it.

Note: the problem you are going to solve does not necessarily have to be a big one like the ones mentioned above. What matters most is that the problem you are willing to solve has monetary worth. No matter how little the problem is, find a way to solve it and people will pay you for doing this. 

Spend time with people of like-minded

The people you walk with can determine how well you will achieve your goal to become rich at an early age. Separate yourself from people who believe in squandering their money. Focus on those who believe in you and who are as focused as you are. If you don’t have such persons, start looking around for them. Talk to people, show an interest in them, and learn from them. Once you are able to get someone of great significance by your side, your career and business will advance as fast as possible. Build a network of supporters and work with this network.

Set your goal and keep track of your progress

Everybody wants to be successful at an early age, but only a handful of persons were able to achieve this. Our society is one in which your confession will not be enough if you don’t back this up with a goal and a plan on how to achieve the goal. If your goal is to become rich, work toward this goal by keeping track of your progress. Have a plan for the amount of money you will earn at the end of the month. 

Keep track of your success and edit any plan that is not working for you. Learn and relearn. It might not be as easy as you think but with persistence, you will get there.

If you follow the steps listed above, it will for sure boost your net worth.