Becoming wealthy at an early stage of life is something most youngsters dream of achieving and contrary to what some people believe, being rich in your 20s or 30s is a possible and sweet experience.
According to article published on INC, building wealth isn’t about putting all your hopes into “someday.” You’re never too old to start building wealth, but if you start when you’re young, you have far greater potential to amass a fortune–and more time to let that fortune compound into your later years.
Life in your 20s and 30s is not without its challenges; you might have student debt, a tenuous career, and dozens of unknowns that keep you from doing everything you’d like to build your wealth faster. Just bear in mind that there are no easy, merry ways to accumulate wealth but following these strategic steps can help you make it young:
1. Take Risks
There’s a wise saying, “If you’re not afraid of dying, there’s nothing you cannot achieve.” Being young means you have a lot of years ahead of you. Now is the time to take risks. Invest in higher-risk, higher-payoff stock opportunities. Jump on new ventures and new opportunities.
If things go awry you’ll have plenty of time to make up for it. Most wealthy individuals will tell you one of their greatest keys to success has been taking calculated risks. The majority of the population sticks with the safe route, so if you want to break away from the pack, you have to try something new, possibly something uncomfortable.
2. Focus On Earning
“In today’s economic environment you cannot save your way to millionaire status,” writes Grant Cardone, who went from broke and in debt at 21 to self-made millionaire by 30. “The first step is to focus on increasing your income in increments and repeating that.
“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.”
Earning more money is often easier said than done, but getting a side gig is one of many options you can explore to earn more.
3. Save To Invest, Don’t Save To Save
Saving money for keeps is not going to get you there on time. The only reason to save money is to invest it. Put your savings into secured, untouchable (fixed) accounts and never use these accounts for anything not even an emergency. This will surely force you to keep focusing on earning more money. Plus, get use to spending money now on things that will fetch you money in the future
To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.
4. Ask for help
“At a certain point in my business, I couldn’t grow any further until I hired a few key people,” writes Daniel Ally, who became a millionaire in less than five years at 24.
He continued: Asking for help wasn’t my forte, but I had to make it happen. Within months I had a lawyer, editor, personal trainer, part-time chef, and other personnel. It cost me a fortune at first, but eventually helped push me into the million-dollar mark. Most people won’t ask for help because their ego is in the way.
Asking for help extends beyond hiring key people. As self-made millionaire Steve Siebold explains in his book “How Rich People Think,” the rich aren’t afraid to fund their future from other people’s pockets.
“World class believes in using other people’s money,” he writes. “Rich people knows that not being solvent enough to personally afford something is not relevant. The real question is, ‘Is this worth buying, investing in, or pursuing?'”
5. Invest in yourself
“The safest investment I’ve ever made is in my future,” writes Hughes. “Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously. You don’t just need to be a master in your field, you need to be a well-rounded genius capable of talking about any subject whether it is financial, political or sports related. Consume knowledge like air and put your pursuit of learning above all else.”
Many modern-day successful and wealthy people are voracious readers. Take Warren Buffett, the most successful investor in the world, who estimates that 80% of his working day is dedicated to reading.
7. Shoot For More Millions, Not Just 1 Million
“The single biggest financial mistake I’ve made was not thinking big enough,” writes Cardone. “I encourage you to go for more than a million. There is no shortage of money on this planet, only a shortage of people thinking big enough.”
8. Pay Down Your Debt
Before you start regularly saving and investing money, it’s usually a good idea to pay down any debts you may have accumulated. Credit card debt, student debt, and even car loans can carry heavy interest rates that drag you down, demanding monthly installments that chip away at your revenue while racking up additional interest and penalties that take away even more money from your future self. Don’t let this eat away at your potential; make it a first line priority to get rid of your debt as soon as possible.
9. Be Decisive
Tucker Hughes, who became a millionaire at 22 says, “Avoid decision fatigue, conserve your mental power by making easily reversible decisions as quickly as possible and aggressively planning recurring actions so you can execute simple tasks on autopilot. I know what I am wearing to work and eating for breakfast each day next week. Do you?”
10. Be Inventive
This aspect is all about being creative and for that you need to develop a child-like mind that views everything as “possible.” I don’t have the detailed trick on how to be inventive, but if you know how, that’s a bonus and please do share with the rest of us!
There you have it, adhering to these steps will be a smart way to begin your journey toward accumulating wealth no matter where you are in life. Don’t sigh too much! No one says it easy, but perhaps you might need to upgrade on your discipline status first, to join the race. See you there!