In order to have your first million dollars by 30, you must learn to save money, manage it, invest and track your process.
Probably, almost every person on earth dreams of getting rich, but most people continue to live from paycheck to paycheck, because they do not know where to start. However, things may not be as hard as it seems! Of course, not everyone can become a millionaire, since this goal requires a set of certain qualities, such as self-discipline, responsibility, prudence, reliability, and so on. Moreover, in order to get a million dollars by 30, it is important to study financial literacy and know how money works, as well as how you can manage it and increase your savings. The basic steps and tips outlined in this article will help you take the first step towards your goal.
10 Basic steps for future millionaires
As already mentioned, in order to become a millionaire, you must have a certain set of qualities that can be developed, but this is not enough. You also need to have a plan to follow, and these tips will help you create one and succeed in your desire to become a millionaire.
- Pay attention to your income
Before taking any steps, you must know exactly how much you are earning and want to earn more. A person who wants to make their first million dollars by age 30 should never stop. At the moment, income is your only source of receiving money, so if you have a small salary, something should be changed. Also, do not neglect part-time work, since even a small amount can help you increase your money if you can invest it skillfully.
- Become an indispensable expert
Most people have low income, as they work in places where high qualifications are not needed. If you, as an employee, are easy to replace, then you are not of high value to your boss and you will never be able to earn much. In order to remedy this situation, you must become irreplaceable, or at least difficult to replace. For example, a good option for you is to take refresher courses and establish yourself as an employee who wants to develop and climb the career ladder. If your job does not imply career growth, then there are two ways out – quit and find a new job, or start your own business. Constantly develop in the area that you have chosen. Look for courses and connect with people who have already excelled at what you do.
- Change your social circle
Most people don’t even think about it, but the people with whom we communicate have a very strong influence on us. If you want to be a millionaire, but everyone you hang out with is barely making ends meet, you won’t succeed. If you always see the failures of those close to you and hear ridicule from them, you will not be able to succeed. Surround yourself with people who have already walked the path you are becoming. Look for internships in large companies, go to business meetings, read books of those people whom you want to look up to and follow their example. As soon as you change your social circle, you will want to match it.
- Live frugally
Despite the fact that most people want to become millionaires in order not to deny themselves anything, first you have to do the opposite. Success without hardship is impossible. You will never make a million dollars if you spend all your money and live paycheck to paycheck. You will never succeed if you cannot learn to deny yourself. Always ask yourself the question: “What is more important – momentary weakness or my future?”
- Save money
Any wealthy person will tell you that in order to get rich, you must first learn to save money. It may not be easy at first, but after a couple of months you will be able to see what results you have achieved and how much you have been able to save. It is recommended that you save at least 20% of your income on a monthly basis.
- Make a budget and avoid unnecessary expenses
Budgeting is another important rule of the future millionaire that should not be neglected. Most people chip off what they have left at the end of the month, but at this rate you can only save up for grocery shopping. If you are determined to seriously change your life, you must learn how to budget and control your expenses. Start planning with the exact amount you earn per month, and then write down the main expenses, such as rent, utility bills, and more. The next item on your budget is savings. Only after these items are covered, you can spend the remaining money on clothes, going to cafes, and more.
Most people don’t invest for the reason that they simply have nothing to invest. However, if you learn to save money and find an additional source of income, then in a year you will have a fairly impressive amount for investment. You also need to learn how to create a portfolio of investments for yourself. You can contact a financial advisor or figure it out on your own, since now there are a huge number of books, courses, or educational videos for those who are starting to invest.
- Get rid of debt
Since debt is something that constantly pulls us down, make sure you pay off all the small loans and debts to your friends. If this has not happened yet – hurry up to do it in order to enter into a new life as a free person.
- Track your progress
In addition to budgeting, you should also study, write down, and track your progress. This practice will help you see that you are truly on the right track. Just imagine what you can achieve if you spend the next year trying to save 20% of your salary every month and invest it!
- Be sociable and welcoming
Rich people always have a large number of friends or acquaintances, as sometimes it can be very difficult to achieve something alone. Moreover, you never know whose advice or help will come in handy in the future, so try to always stay on good terms with every person you meet along the way.