Here are 10 steps to become a millionaire by 30. Reaching the seven-figure mark at such a young age can seem daunting, but it is possible with hard work and a solid plan. Read on to learn more.
Start Early
When you are young time is on your side. More specifically, compound interest is on your side. Letting your money make more money can grow your wealth exponentially. The earlier you start the more the power of compounding can take hold.
Choose a Career Wisely
You will need an above average salary to hit millionaire status by 30. Search out marketable careers and companies before choosing an educational path. Look for fields that are in demand and command a high salary. Working for companies that offer upward mobility are also a plus.
Invest
Simply saving money in a traditional bank account won’t do. You will need to take on some level of risk if you hope to make a return on your money and allow compound interest to work. You’re going to want to learn about investing and different types of investments. You can always hire a professional if this seems overwhelming, but you should have at least a basic understanding of how markets work.
Multiple Income Streams
Unless you are highly compensated, you may need to seek out other income streams in order to hit your million-dollar goal. Working side jobs, starting a side business, and investing in real estate are all viable options to create and manage multiple income streams.
Sacrifice
Hitting a million-dollar net worth by 30 will require at least some level of sacrifice. This will look different for everyone and will depend on your income. Some examples might be not eating out, not going on expensive vacations, driving an older car, and shopping at discount outlets or thrift stores.
Set a Goal
Having a goal and working towards it with laser focus is necessary to reach any goal, but especially necessary to hit the lofty goal of becoming a millionaire by 30. All your energy will need to be put towards your goal, and you will need to regularly check in on your progress and make changes if necessary.
Avoid Debt
Carrying excessive debt can cripple your ability to save and invest money. Stay out of credit card debt, keep your car for the long term, pay off your student loans and mortgage debt early, and generally try to live on cash.
Not all debt is bad, and debt can be a powerful tool in the world of real estate or when starting a business, but having too much of it can expose you to risk. Generally, you will need to understand the difference between good debt and bad debt and manage it accordingly.
Stick to a Budget
Having a budget and sticking to it will greatly increase your chances of becoming a millionaire by 30 and making you successful financially overall. If you track every dollar, and give each dollar a purpose, then you will know exactly where everything is going. This can help you plan for known expenses, save for emergencies, and make adjustments to investments.
Build a Network
There is an old saying that says that your network is your net worth. Building relationships with like-minded people with similar goals and mindsets can open up opportunities that may not have been available otherwise. This could take the form of investment opportunities, or career opportunities.
Have a Partner
Having a partner in your wealth building journey can accelerate your net worth. Having two incomes can pay down debt faster, invest more, and save more aggressively than most people can going solo. Just be sure to choose wisely. Two people on the same page can yield great results, but people at odds can destroy any hopes of building wealth.
Wrapping up
There are 10 steps to become a millionaire by 30. The journey won’t be easy, but it can and has been done. While nothing is guaranteed, following these steps and pointers can greatly increase your odds of success.
Read More:
4 Main Ways to Reach Millionaire Status
The Math To Becoming A Millionaire In Three Years Or Less
Writer and Investor. Based in the Pittsburgh, PA area, Brian Lesko holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth-building, investing, gardening, and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.