How to get rich before 30

It always seems like an impossible task to become a millionaire at any phase of your life. However, that isn’t true. The earlier you start making smart calculated financial decisions, the more likely you are to being a part of the elite millionaires club in life. Although that may be, we are in an age where simply storing money away doesn’t multiply more in the future. You have to employ a combination of methods that not only set aside money you contribute, but also compounds it with interest. Today, “In a free-market economy, anyone can make as much money as they want,” said by self made millionaire Steve Siebold,  who has also studied over 1,200 of the world’s wealthiest people. That applies to 20-somethings.

we will talk about ways you can grow your net worth for a more stable future.

INCREASE YOUR INCOME

The first step to becoming a millionaire is having the capital to fund your investments that will compound your money. To get this money, legally, you’ll need a stable job. You should work to always make yourself marketable as a way of not only maintaining your current job, but moving up the ladder to a better position or company. If you are in the technology sector, consider to stay on top of tech news and improvements. Even if you are outside of the tech industry, learning a few technical skills can improve your income. Always focus on increasing your income, even if you are currently comfortable.

PLAN TO INVEST

You may feel that your piggy bank of savings is smart saving. However, it truly isn’t. All you are doing is have your money sit there unproductively. It isn’t gaining interest. This is the case even for many standard savings accounts. Simply having a savings account isn’t enough, but it is a good start.

When saving it is important to remember to save to invest, not save to save. Look into ways in which you can get started creating a portfolio of investments for yourself. Etrades is a great start that is easy to navigate. Acorns is also an up-and-coming option that makes diversified investing more approachable for the common individual.

SHED UNPRODUCTIVE DEBT

There is no such thing as good debt. Even “good debt” as some coin it is still money that you don’t have easy access to and doesn’t have the 100% guarantee is materializing into a profit later on (a house, for example). However, there are examples of productive and unproductive debt as I will coin it. Productive debt can be a credit card. Yes, every time you swipe a credit card, you are creating debt because it doesn’t get paid off until you pay your statement.

MANAGE YOUR MONEY

The only way to grow your money is to know where it all is and where it’s going out. Download the Mint application for your smartphone. This will allow you to stay on top of your (almost) total net worth from your bank accounts, credit cards, and investments. While not all financial services and institutions are supported yet, it gives you a detailed look at the financial aspects of your daily life. Set up isn’t very lengthy and once set up, it updates automatically whenever you open the application. Having a holistic look at your finances makes savings easier and even offers an incentive to save.

LIVE FRUGALLY

You may feel that individuals who are millionaires are the ones who drive flashy cars and own the latest gadgets. That isn’t true in most cases, and shouldn’t be in your case if you are looking to work your way to millionaire status. To maintain your income’s growth, this is the time when you have to seek out the clearance rack or sales. Never accept retail price, it simply isn’t worth it. This is the case in grocery stores, shopping malls, the internet, or even club/gym memberships.

FOLLOW THE 50/20/30 BUDGET

Once you get your pay check, every cent of your money should be earmarked or you’ll find yourself spending like crazy. You may feel it’s daunting to have to spend every cent of your pay check each month. However, to spend in this case isn’t to hit the stores. Instead, allocating is a better term. With the 50/20/30 budget created by Elizabeth Warren, 50 percent of your income goes to the essentials (groceries, rent, essential utilities), 20 percent goes to savings (savings account, portfolio additions, Roth IRA contributions etc), and the remaining 30 percent goes to what is considered “lifestyle choices). This includes restaurants, your cell phone, clothing, etc.

SAVE FOR THE RIGHT REASONS

Just as we mentioned before, to save for investments, it is also important to ensure that you saving in multiple departments with a goal in mind. While you savings and investment accounts are multiplying with the goal of becoming a millionaire by 30, you day-to-day savings should have a reason as well. You may remember the multiple times you encounter a sell on shoes and because it is 25 percent off last week’s price, you feel that you are making a good economic decision by buying this sale item.

Not exactly! Those shoes aren’t something you necessarily need, and the X you spend on your shoes is still an outgoing expense that could be saved or utilized elsewhere. While enjoying that 30 percent of your 50/20/30 budget is important, it’s still important to bargain hunt with a purpose. Gain satisfaction through the deals you gain on bills, groceries, and household necessities, not clothing or other expenses that wouldn’t have been in your scope of attention before the sale appeared.

With that being said, it takes the outmost discipline and consistence to achieve what most young people think and believe is unachievable. It will always seem impossible until it is done.

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