Become A Millionaire By 30? Why 30?
Once you’re out of your teenage years and step into adulthood, you realise how it feels to make ends meet. Your journey to become financially independent and your desire to lead a luxurious life with a balance of time and money and energy has one thing in common and that is a need for a significant amount of money.
You start exploring wealth making opportunities when you realise that, as your wealth starts to grow, all the possibilities of a luxurious and flexible lifestyle turn into probabilities. You might want to invest in technology that you think will take over the world a decade from now or you might want to live in the Himalayas in complete isolation. Whatever you choose for yourself, being in a position to choose what you wish to do with your life is liberating.
The decade of 2010 marked the era of industry growth and was also a time when each one of us realised that becoming a millionaire is not a far fetched dream. The number of millionaires worldwide has seen a gradual increase since the year 2013 as we can see in the graphs below:
Source: The Wealth Report, 2019
MGM Research has predicted a growth in the number of people who become millionaires by 30 across the world till 2023. The population that was born between 1998 and 2000 presently have a complete decade at their disposal, which if used wisely can help them turn themselves into millionaires by the age of 30.
Tips To Become A Millionaire By 30
Here is how your dream of becoming a millionaire is very much achievable if you adhere to some of the following tips.
Savings + Investments = Source of Earning
Instead of working for money, make your money work for you. This means going beyond your 9 to 5 job and making arrangements to save money. Simply saving money will not help you gain any profits. It’s only when you invest your saved money, it starts to earn interest. This interest eventually becomes your additional source of income. Saving and investing money from an early age will help you reach the 7 digit figure sooner than you had planned.
For example, if you contribute $5000 to your account each year till you are 30 with a 6% annual interest, you are likely to earn somewhere around $120,500. The amount of interest is subject to change based on how your home economy is doing. Additionally, you can always increase the amount you choose to invest.
Multiple Income Streams = Earn In Multiple Currencies
One thing that is common among all millionaires, be it below the age of 30 or above, is that they have multiple income streams. Often sticking to a single high paying job is enough to help you start investing. However, it is often suggested by financial experts that if you wish to become a millionaire by 30, you need to think of the various sources of income you will rely on. It is advised to have at least 4 to 5 income streams on average.
A popular way to increase your earnings is by taking up freelance projects. The USA has the world’s largest number of freelancers in the world forming a majority of 86.5 million followed by India with a majority of 15 million according to the Freelancer’s Union and Upwork. Freelancers are nothing but people who are self-employed and use their developed or in-born skill set such as graphic designing, writing, video editing, event planning or singing to help organisations or individuals achieve their objectives. The beauty of freelancing is that the opportunities for work are not limited by geographical boundaries. This means that you can earn in multiple currencies if you take up projects in different parts of the world.
You may also want to consider helping others by providing them online tutoring courses, study materials or career advice for free. However, this is purely an entrepreneurial skill as you will be the face of your brand and will hold responsibility and credibility for it. Offering online services for free is beneficial because it helps individuals to gain recognition through affiliate marketing which is often beneficial while seeking collaborations, endorsements and sponsorships.
Learn To Make Budgets And Stick To Them
When you have a proper income stream but do not follow a proper channel for spending, you might lose track of where all your money goes. This is a common problem among many who earn fairly well but do not know the techniques of budgeting. A budget or the process of budgeting plays a pivotal role when it comes to tracking your incoming and outgoing streams of money. Budgeting includes a process of organising your income and channelling them into specific categories of spending or costs such as rent, expenses, fees, contingent etc. The process involves removing any bottlenecks from your money network such as unproductive debts and determining where you can curb your spendings.
The path to becoming a millionaire by 30 is a narrow one where you might have to survive hand to mouth on some days. Think about how you can save on food, extra expenses and if you are eligible for any exempts or subsidies from local authorities or governments.
Get A Partner On Board
While you can easily become a millionaire by 30 even if you do not have a partner to share the benefits of the lifestyle with, it is different when you talk about a spouse or a significant other. If you have a partner or are married, the journey to becoming a millionaire should not be yours alone. This is because the journey from being broke to having money to float on comes with a lot of hard work and becomes twice more achievable when two people are involved.
Often couples who become millionaires together are separate individuals working towards the same goals. If both of you have a goal to become a millionaire by 30, the journey may seem more hopeful and memorable. Secondly, you both can cover up each other’s weaknesses and harness each other’s strengths.
Focus On Building A Strong Network
Having a strong network will open up new opportunities and avenues for you. When you have a strong network you will be able to keep a pulse on the market and will know the right people to contact in order to capitalize on those opportunities. Say you are a part of a trading community that’s also got some members who work with a pharmaceutical company. Knowing the right people will give you insights into predicting the value of your shares in the trade market. Knowing the right people goes beyond having internal knowledge, knowing the right people means that these people know you as well. In order to network with correct people, you must be confident in your skills and be ready to offer your knowledge or help wherever necessary and possible.
Thanks for reading our blog on Is It Possible To Become a Millionaire By 30? if you are curious about scholarships from around the world, the following may be of interest to you: