Make your first million in your 20s: ‘I will be a millionaire in my before 30’, that’s the common phrase from every university graduates or perhaps their dream of living large.
I hate to burst their bubble but truth be told, It doesn’t come that easy. While there are numerous ways to make a million nowadays including investing in stocks, real estate, an online business venture or good old-fashioned savings, it takes certain steps to really ensure success.
No matter the path you choose to take, these steps are key to making sure that you stay on track with your goal in making that first million. Make your first million in your 20s:
- Have the right mindset
Before anything else, you must have the right mindset. You have to remember that making money requires hard work, and it is only through luck and chance that some people achieve millions without really breaking a sweat.
In most cases, be it in employment or business, earning a million will require some hard work on your part. This means getting good grades in school as much as possible, getting additional training, studying up on your specific niche, and offering up more hours at work.
Fred Akuno: How I made my first million after starting kitchen business
Some may argue that becoming a millionaire has nothing to do with grades or hard work, but you must remember that fortune favors those who are prepared.
You can’t depend on luck at all times, most of the time you will have to make your own luck through hard work. Aside from working hard, having the right mindset also means not making excuses for laziness or lousy financial decisions and staying focused on your goal.
2. Set your goals
In order to achieve millionaire status in your twenties, you need to set firm goals for yourself. Otherwise, you might end up in your forties or fifties still unable to reach your first million. Make your goals specific, ambitious yet achievable.
For instance, you could aim to gain 5% to 10% of your first million within your first year and gradually increase this percentage as your assets grow. You also need to specify the means by which you intend to achieve this goal, whether it be through investments, business, savings or a combination of resources.
3. Save as much as you can
You may be earning more money than you ever have in your life, but it will never amount to a million if you’re always out there spending it. So another thing you have to keep in mind at this stage is that you will have to make sacrifices in order to save as much as you can. You have to keep living below your means and save aggressively.
Try to consistently save at least 20% of your net income each year, and place it somewhere secure where it can accumulate interest over time.
4. Make your first million in your 20s.: Spend wisely
Don’t borrow money in order to spend it, save for it. Eliminate what is unnecessary. By focusing on what you need instead of what you want chances are, you will end up spending less than what you originally planned and the extra savings can go a long way to bringing you closer to your one million goal.
5. Diversify
Don’t put all your eggs in one basket and try to be diverse. Make calculated risks, but do the research to make sure you can afford those risks. This applies not only in stocks but with different types of assets. Venture into real estate or start a pure income portfolio.
You could also diversify in terms of income generation. Take a sideline job or establish an online business. There’s always more than one way to make money and make it grow.
6. Make your first million in your 20s.: Be persistent and patient
Becoming a millionaire doesn’t happen overnight. It takes dedication and time for most, so you need to be persistent and patient at the same time. Don’t worry if some investments fall short or businesses fail; there are always more opportunities coming. Your experiences whether good or bad will also teach you how to do things better next time, and enable you to better achieve your goals.
Earning your first million is no walk in the park, but it is definitely possible. With the right mindset and the right steps in place, you can achieve your goal of becoming a millionaire before you reach the age of 30.
