Millennials want to become a millionaire at the earliest age possible. A lot of baby boomers wish they had lived the life of a millionaire, too.
Names like Mark Zuckerberg, Facebook founder; Ashley Qualls, the youngest millionaire at 14; Andrew Mason, Groupon founder; Matthew Mullenweg, WordPress founding developer have made it all to the list of young millionaires, or even billionaires, below the age of 30.
Many of us may not be that “geek” next door who could develop a multi-billion worth of software or social networking site that will overtake Facebook. And not every woman got Gigi Hadid’s or Kylie Jenner’s charm to be a top-paid supermodel.
But wait here’s good news! Someone like you, with the usual 9 – 5 job, can be a millionaire before or by the time you’re 50. How? Do these 15 steps or techniques to become a millionaire:
Save as early as possible
Being young doesn’t equate to being complacent with money.
Imagine if you’re 23 and you start saving at least $300 per month, then you’ll have a whopping million when you’re 50-something.
Besides saving money, you must also be aware of investing.
Cut your energy costs
If this does surprise you, then you should be asking how much you’re paying for your electricity bills every month. It hit you, right?
This is no-brainer, but probably you’re wasting a lot of money because you don’t know how to save on your electricity. Make sure you turn off any electronic device that’s not being used. It’s also best to invest on energy efficient or environment friendly appliances or equipment. Going green lets you trim your monthly expenses.
Here are some other ways to cut your electric bill
Stay away from credit card debt
Are you getting overwhelmed with the amount you owe with your credit card provider? The interests you’re being charged with could have been spent for more important things or saved for your children’s college fund.
If you don’t really need that latest iPhone, then don’t buy the item with your credit card. Check these tips on how to avoid credit card debt
Be wary of leftovers
Did this shock you?
In fact, a study reveals that US households consume a lot on food waste. Imagine throwing away rotten fruits and veggies that cost around $100 per week! You’re not just throwing away food, you’re also dumping money – a lot of it!
Always stock your pantry and freezer just enough for a week, making sure nothing will be thrown away.
Ditch any service(s) you don’t need
You’re paying hefty monthly gym fee. But when was the last time you hit the gym? Maybe you’re subscribed to Netflix, but you can’t even turn on your TV on weekdays.
That”s a lot of money to spoil! Before subscribing to any services that will require a monthly charge, make sure you’ve done a lot of auditing so you won’t end up with wasted money. Do this and you’ll be surprised how much money you’ll be able to keep every month.
Watch out for “free money”
Don’t get this wrong. You’re not going to find $1000 when you rummage the streets of San Francisco. Mitchell Tuchman, in his article published on Forbes, shares how you can get that free money:
- Maximize your 401(k) contribution
- Open a spousal IRA
- Analyze the cost of converting past IRA savings to a Roth IRA
- Consider getting health savings account (HSA) if you have high-deductible health plan
- Cut back your investment costs – especially on mutual finds
Don’t buy a fancy house that you won’t live in for years
Many people want to have an elegant house. But they want not just one, but 2, 3 or more.
A house is a huge investment, so make sure you’re going to live here with your family or loved ones for years. It’s wise to keep the materials sturdy so you won’t spend too much on repair; and also, plan out carefully on the design for you to save on constant renovations.
Never show off!
A lot of millionaires claimed that they did not buy a luxury car when they hit the threshold. You don’t have to buy overly expensive items to validate your status. You don’t have to go fine dining with your friends or colleagues to show off your seven-figure salary.
Skimp on your shopping
Using coupons or group buys can save you a great deal on items, instead of paying the regular price.
You don’t have to shop at luxury malls and opt to buy at cheaper of middle-priced malls or groceries.
Get a side gig
There are lots of websites giving opportunities to freelancers.
Side gigs don’t just give you extra income. They allow you to expand your skills. And instead of binge eating or drinking with friends, you’ll spend half or a quarter of your time doing side gigs; therefore, you will save a lot of money.
Stick to a healthy lifestyle
In 2013, an average of $9,086 per person was spent on health care. This amount is equivalent to more than 27 percent of gross domestic product.
Workers have out of pocket expenditures of $1,318 in an average paid before their health insurance coverage kicks in.
It’s always costly to be sick! Earning millions won’t be fulfilling if you find yourself lying on that hospital bed.
Look around and compare insurance companies
Invest in yourself
Accept the reality that life happens
You will never know the time a tornado will hit your home or when a loved one will become incapacitated.
Life happens as they say. It’s a wise move to save money which will be allotted for emergency situations or for any unexpected events in your life. Ignoring this reality will make you an easy prey to life’s uncertainties.
Take Automatic Paycheck Deductions to your advantage
Have an automatic payroll deduction set up with your bank to help you save money every month.
If you’ve reached the end of this article, then you probably realize these are not simple steps or techniques or even secrets to becoming a millionaire.
You have to make financial planning and wealth management a commitment. Your daily activities and financial decisions all determine your road to becoming a millionaire.