Here is how to become a millionaire by age 30 step by step guide. This even works as a teenager! Who wants to learn how to become a millionaire by age 30? Most of us actually. Becoming a millionaire is largely based on discipline and restraint, not what kind of car you drive or the square footage of your house.
Applying 3 critical steps to become a millionaire by age 30:
1. Follow the Money: get around players who are in businesses experiencing rapid growth. If you are in an organization figure out where the money is. What departments are bringing in money? How can you get involved? Make yourself a valuable resource.
2. Don’t Show Off, Show Up: Focus on effort and productivity not cars and bottles in the VIP, watches and clothes. The biggest money makers know showing off is expensive and cuts into the bigger bottom line, wealth and true freedom.
3. The Only Reason to Save is to Invest: The desire for material possessions and a lavished life will prevent you from accumulating significant wealth. I am going to outline the ten things you need to do if you want to learn how to become a millionaire.
How to Become a Millionaire by age 30, Step by Step:
1. Plan A plan forces you to take action, not just talk about your dreams. Figure out how much money you are spending and how much money you are saving. Focus on the expenses you can control and minimize them. Forget about what happened in the past and run your life like a business. No business succeeds without a plan and nobody becomes a millionaire without a plan.
2. Income It is incredibly hard to save your way to millionaire status. You need to increase your income without upgrading your standard of living. Start a side gig. Start a business. Educate yourself to earn more money. Invest your money to work for you. Acquire assets, not liabilities.
3. Investment Costs and Taxes Maximize contributions to your 401K because the money grows tax deferred resulting in faster compounding. You also want to maximize contributions to a Roth IRA separate from your 401K. Put away as much as you can tax free. When trading, trade as cheap as possible and less frequently. Take advantage of tax deductions. Millionaires are smart about their money, and give as little to the government as possible.
4. Income Streams The majority of millionaires have multiple streams of income. Start building other income streams. Start a side business. Get a part time job. Invest. Rent out real estate. Build online income streams. Create passive income.
5. Automate Automate contributions to your 401K and to your savings account. Automate your bill payments to save time, time is money!
6. Invest in Yourself Read every single day. Write. Keep a journal. Listen to podcasts. Learn new things. Become a well rounded genius. Millionaires consume knowledge like it is food keeping them alive.
7. Lifestyle and Credit Be frugal with your lifestyle. Avoid luxury and only buy what you need. Sacrifice today for a better tomorrow. You also want to avoid credit and credit cards like the plague. If you can’t afford it right now, don’t buy it.
8. Exposure You become what you surround yourself with. Surround yourself with people who are above you, and ask a lot of questions. Millionaires think differently.
9. Experiment Don’t be afraid to take a risk as long as it is well thought out. Treat your life like a science experiment and try new things. When testing things out, do so as fast as possible.
10. Assets and Liabilities Millionaires understand the difference between assets and liabilities. You need to increase your assets and decrease your liabilities.