Some may say it’s impossible. Some may call you crazy. But once you show it’s possible, everybody will want to be like you. Wondering what we’re talking about? We’re talking about how a youngster who has just started earning can become a millionaire before they hit 40! Curious? Read on to find out how you can achieve the seemingly impossible.
What you need to do to become a millionaire by 40
Work on increasing your income
This is the first and foremost step you need to work on. Work on increasing your current income; if you don’t have a stable job yet, get one. If you have one, work hard to move up the ladder and grow your income. It’s always wise to identify an alternate source of income. It could be an awesome investment that gives you steady returns, your passion or hobby that helps you make some money or a small business that you run on the side. Relying on a single source of income can be pretty foolish because you’ll be stuck if the markets go south or you lose your job.
Also read: Habits Of Successful People
Practice frugal living
There is a world of difference between your wants and needs. Anything that is essential to your living is a need and anything beyond that is just a want. Every time you are tempted to splurge on frivolity, stop to think if you can live without it. And if the answer is Yes, you know what to do! Make clearance sales and end of season sales your best friend! A frugal living, not only helps you save money but also frees up clutter from one’s life and mind. It is said to give you better clarity and helps focus on the important things in life. It’s better to be known for your work than for your materialistic possessions.
Don’t just save, invest your savings
A common mistake most people make is to save money and do absolutely nothing with it. Liquid cash lying idle is just not going to do much. Don’t just work hard to get money, you need to make your money work hard for you too. Use that money to grow your money! Rather than leaving money lying in your savings account earning paltry interest, invest it in investment avenues that will give you good returns based on your risk appetite.
Reduce your debt
No debt is ever “good”. Live within your means and limit your debt to reduce your financial burden. Think if you really need to take a loan for that SUV or sedan when all you really need is a hatchback. Very often, people unnecessarily spend money or take loans to match up to society’s expectations of success. But what they don’t realise is that this doesn’t add any value and just increases their financial liability. Why run a race that won’t give you what you desire at the finishing line?
Keep a track of money
It is important to know every penny that comes into your account and where you spend your money. A holistic view of your financial health is vital to managing your expenses and growing your funds. There are several smartphone applications in the market that can help you keep track of your money or you could even resort to using good ol’ Excel spreadsheet to maintain a record (if you are disciplined enough).
Hang out with people you admire
Surround yourself with talented people you look up to. In case you’ve noticed, the rich hang out with the rich. It is common knowledge that we become like the people we associate ourselves with. Think BIG. Learn from those you admire by being a part of their circle and learning their ways. Not only will it expand your thinking, but it will also help you learn from the who’s who of your field.
To make it simpler, we’ve also put together a handy infographic to help you get rich by 40!
A little hard work and discipline today can go a long way in ensuring your financial health tomorrow. But most importantly, do not expect to get rich overnight. Work on it slowly and stay away from get-rich-quickly schemes that are nothing but scams. Grow your money responsibly, ethically and legally, and live the life of your dreams tomorrow!