Against the backdrop of a pandemic, the future may seem bleak, and the prospects of becoming a millionaire may sound like a fairy tale. However, anything is possible! These 10 practical rules will help you make your first million before you turn 30.
1. Set priorities in life as early as possible
You know, only in movies, you cane once wake up on the day of your 29th birthday and solemnly announce that you will become a millionaire within the next year. Actually, doing so requires a lot of discipline, sacrifices, and long-term planning.
And of course, start generating income as early as possible. The sooner you define and decide what your life will be like by age 30 (where you live, whether you get married and have children, go to college or start a business), the better. Based on this, you will outline a goal you will aim for, begin to correctly plan your budget, and even plan with which women you will start a relationship.
2. Start keeping track of your money
Your main goal is to increase your income incrementally. Keep track of your money because this will help you control your income and see new opportunities. You can even start your first business this way. There are lots of new opportunities emerging right now. For example: inexpensive chatbots for online trading, available to everyone.
3. Cultivate a growth mindset
The human brain is flexible and adaptable, so don't stop pumping up your skills. If, for instance, you haven't been promoted, think about why a coworker got the promotion instead and use your findings to move up the career ladder through hard work. You're only limited by how hard you are willing to work.
4. Diversify your sources of income
All millionaires have several sources of income (on average, about three). We live in a gig economy, so having multiple sources of income is easier than ever. You can connect to Uber, list a room on Airbnb, or freelance in your spare time.
5. Use the 50/20/30 budgeting rule
Budgeting is an integral part of your financial literacy and becoming a millionaire. There is no one-size-fits-all budgeting scheme because everyone has different income and expenses, but it is worth trying the 50/20/30 rule first.
- Leave 50% of your income for essential expenses such as housing, food, transportation, and utilities.
- Leave 20% for savings, payment of debts, rainy day fund, and retirement.
- Spend no more than 30% of the money on personal expenses, such as phone bills, dinners with friends, a gym, morning coffee, and entertainment at the weekend.
6. Save money wisely
Save money in untouchable accounts. Whatever happens, don't touch it – even if it's an emergency. It may seem to you that you are tapped out, and you need to break the piggy bank, but as mentioned above, in order to become a millionaire, you have to make sacrifices.
7. Being bored is good for you
Everybody gets bored sometimes. Try to keep yourself occupied by reading useful literature, learning a new skill, or at least doing some exercises. This will keep you physically and mentally fit while staying healthy and productive, which means it will be easier for you to see new opportunities.
8. Be frugal
You may be amazed by this, but all rich people are very frugal. They live more modestly than they can afford, do not feel shy to use discount cards, and limit themselves in their idleness. This does not mean that you cannot enjoy life. But keep a close eye on spending.
9. Manage your debts
Before you start saving money, get rid of debt. The money you spend on paying loan interest can be spent much more productively. If you still have a credit card, try to spend only the amount that you can pay off every month without any problems. When used correctly, credit cards do offer some benefits, such as bonuses and cashback.
10. Expand your social circle
Often, your capital reflects the level of your closest friends. There are tons of networking events and sites like Meetup that help you meet interesting people. Also, do not miss the webinars and follow successful people on social media platforms. In short, you don't have to communicate with successful people only in person.
Anyone can become a millionaire by the age of 30. You need to set yourself this goal as early as possible, stay on the right course, be prepared for sacrifices, and, most importantly, maintain discipline.