No one becomes a millionaire by accident. It takes research, work, and strategic calculation to become a millionaire. If you want to learn how to become a millionaire in your 20s, here are 10 steps to help you get started today. These tips will also help those who are older and in need of such guidance.
1. Live Below Your Means
The primary way to learn how to become a millionaire in your 20s is to start out with the right mindset about money. Non-flamboyant billionaires like Bill Gates and Warren Buffett look like average men who save every penny. Bill Gates is no fashion icon – if people didn’t know what he looked like, they might not believe his image matches his status. Wealth is a mindset where money is used to retain options in life. Treat money as a tool and always live below your means.
2. Eliminate Debt
There is no such thing as a debt-ridden millionaire. Work out a debt repayment plan now if you have crippling debt. Acquire a secured credit card and pay off small purchases often to slowly repair bad credit. It may take years to accomplish but you must eradicate debt and bad credit first before you learn how to become a millionaire in your 20s.
3. Save Like A Crazy Person
About 21% of millionaires were born into wealth. The vast majority of self-made millionaires started life poor, working class, or middle class and then acquired their wealth. No one becomes rich without investments or money, so start saving now. Save 10% to 20% of every paycheck and try not to touch it. Make saving money as often as possible your permanent mindset as you learn how to become a millionaire in your 20s.
4. Invest In Your Education
People used to have to seek out gurus, attend lectures, or research piles of newspapers and books to learn how to become rich in the past. You live in a digital age where people have more data available to them via the internet than most people had access to in a lifetime decades ago. Finish high school or college in a study that will aid you in becoming rich. Or focus on becoming an apprentice via strategic connections and networking. Use every educational advantage possible to learn how to become a millionaire in your 20s.
5. Research Unknown and Unappreciated Business Trends
The best way to learn how to become a millionaire in your 20s is to research unknown, unappreciated, and emerging business trends. Research what unorthodox and emerging business trends might resonate with existing or future demographics. For example, there is an e-waste collection company in Germany that retrieves the precious metals in discarded electronics that make $3.4 billion annually. A former cop named Spaulding Decon became a crime scene cleanup specialist, a job many won’t do. It’s now a franchise business earning $6 million annually. It’s hard to get rich quickly traditionally now, so think outside of the box.
6. Find a Mentor
It’s OK to not know everything, especially if you’re in your 20s. Most businesspeople learned the skills of their trade from a mentor. Find a mentor, ask questions, and learn from them. The quickest way to learn how to become a millionaire in your 20s is to admit you could use the advice of skilled elders. The local dentist, restauranteur, or laundromat owner could all be low-key millionaires. The average millionaire is in their 50s and has a net worth of $1 million. Learn some lessons from them now to help you in your millionaire quest in your 20s.
7. Raise Startup Capital
Over 4.5 million people and entities filed paperwork to launch businesses in 2020. The average cost to launch a business varies and can range from tens of thousands to millions of dollars. Work side hustles alongside your main job to raise money and be your own first investor. The reality however, is that most angel investors aren’t going to give you money, so you’ll have to figure out how to bootstrap your new idea yourself. This is usually your own personal savings, friends and family money, or business loans/personal loans.
8. Identify Diverse Investing Opportunities
This idea is more pertinent towards those who want to become wealthy by investing in securities markets. It takes a long time to become rich from one traditional business startup. Research viable investment opportunities with the aid of mentors and connections. Commit time to do research, and analyze business trends, and modern consumer habits. Find investment opportunities that others overlook but will work for you. Create a diversified investment portfolio with the help of a financial expert to learn how to become a millionaire in your 20s.
9. Start a Business That Matches Your Skills
You should start a business that optimizes pre-existing skill sets, and talents. What inherent skill do you possess that can be used to launch a business? Focus on starting a business that is tailored to your talents and will create income alongside your strategically diversified investments.
10. Get Educated – Read The Millionaire Next Door
A good place to start when it comes to learning about actual millionaires is to read a book called The Millionaire Next Door to help get hints on how to start a business. The book has some useful ways to think about wealth in America. For example, the authors note that the wealthy typically own boring businesses – like asphalt repair. And they also observed that most business owners don’t spend their money on expensive luxury items – instead they typically hold financial assets like stocks and bonds. The book is, quite frankly, a classic and is worth reading even if you’re not that serious about building wealth.
How To Become a Millionaire in Your 20s
It’s possible to learn how to become a millionaire in your 20s; many successful entrepreneurs and stars have done it. However, those people started their ambitions early, had luck, and a lot of help – they didn’t do it on their own.
While it is commendable to aspire to become a millionaire in your 20s, the best advice is not to rush it. The average millionaire gets there in their 40s. This because it simply takes time to accumulate the experience you need to learn how to invest and run a business. So, don’t focus so much on achieving the goal in your 20s, focus on achieving the goal.
Read More
What It Really Takes To Become A Millionaire
The Math To Becoming A Millionaire In Three Years Or Less
How To Become an Online Millionaire (Updated for 2024)
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