How to Hit Millionaire Status Early
Invest in your retirement account early and diligently, and you will surely see the million-dollar mark once you retire. However, what if you want to be a millionaire way before your hair turns gray? Want to be a millionaire by 30, 35, 40? Good news. You can!
Getting to millionaire status young takes a lot of work and dedication, but it can certainly be done. Perhaps you are looking at your current situation right now and feel that you are just too poor to ever see a huge bank account. Let a quote from Bill Gates inspire you. He says, “If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake.” You hear that? It is not your fault you are poor right now, but it will be your fault if you don’t start working hard.
If you think you are going to hit millionaire status early by working the same 9 to 5 desk job, think again. To watch your money grow, you have to grow in your career too. This means you have to constantly set new career goals for yourself and continually move up. If you are only making $3,000 a month right now, then you better start making changes to ensure that you are making $4,500 a month the next year. The goal is to keep moving up.
Brian Tracy advises that if you want to be successful, you have to invest 10% into your skills. Therefore, if you are in sales making $45,000 a year, you should spend $4,500 that year in seminars, training, and courses to make you a better salesman. Tracy says that the small investment each year is a key factor to help grow your income and get promotions.
Once you start bringing in the dough, it can be tempting to reward yourself. However, resist the urge to splurge. Most millionaires do not buy their first luxury suit, watch, or car until their investments are well built up. Even after most millionaires are established in their riches, they still live as frugally as possible. This may mean that they buy a top of the line luxury car that is used rather than brand new off the lot.
It is important to not get in the millionaire mindset before you are actually a millionaire. There are many people out there that go around in their fancy suits and nice cars. They look and smell like millionaires, but the truth is that they are buried in debt. Another fact to consider is that if you live and look like an average earner, family members and friends are less likely to come to you asking for handouts.
On the same note as above, you want to live as frugally as you can so that you can invest the most money possible. If you are young, you have time on your side. Your investments now can earn quite a bit of money just from spending a lot of time accruing interest. Think back to how you were living when you first got a job. Think back to when money was tight and eating out and turning on the heater was not even an option. You have to get into that mindset again. You have to live well below your means so that you put a huge chunk of each paycheck into your investments.
What’s the point of having all of this money if you can’t spend it? Living frugally is not the easiest thing to do – no doubt about it. However, when you finally reach millionaire status and your investments are doing well and earning more, then you can treat yourself. As Dave Ramsey likes to say repeatedly, “If you will live like no one else, later you can live like no one else.” This means that if you will live like a cheapskate now to build your fortune, then you can live the amazing life you want later when you have reached financial freedom.
Majority of people will save money. This means that they will put thousands of dollars away in a safe but reachable account. As soon as they feel that they need the money or have an emergency, they are quick to clean out their savings account. Don’t be like them. Don’t save money. Instead, invest money. Make your investments hard to touch because then you are less likely to spend them.
It is also important to diversify your investments. Don’t put all your eggs in one basket. Instead, put your money in money market accounts, invest in stocks and bonds, fully pad your retirement account, and invest in real estate. This gives you a diverse portfolio that will help you keep making money.
Now that you have the basic layout of how to get to millionaire status, why not think larger? What if you made your goal $5 million or $10 million? Thinking bigger makes you work harder and invest more. It also allows you to keep reaching for a higher financial goal once you hit your first million dollars.
There may be some people out there that get lucky and find themselves millionaires overnight. However, for the rest of us, it is going to take a good plan and a lot of work.
About Ashley Eneriz Ashley Eneriz is a freelance writer based in California. Her love of saving money in her personal life led her to becoming a financial writer. She has a passion for helping individuals get on the right path financially.