Get a Good Paying Job
A good paying job is a key to maximizing your time as a full-time employee. You don’t want to be stuck in dead-end day job earning minimum wage. Of course, the transition is easier said than done when you factor in personal circumstances and obligations. A good way to secure a better paying job is to pursue continuing education. If you are a college degree earner, seek a Master’s degree or specialized training/certification to make yourself more marketable. Some careers to pursue that pay a high salary and are currently in great demand include software engineer, mechanical engineer, anesthesiologist, and dentist. These careers can pay more than $100,000 for those with the right credentials and ample experience.
Invest Your Money
The power of compounding can yield phenomenal gains in a relatively short period of time. While it’s much safer to put your cash on a savings account and collect the one percent APR, it probably won’t sum up to a million dollars even after a decade. A more active but defensive approach to investing your cash can realize higher returns without necessarily increasing the risks involved. Consult financial advisers and fund managers, like Michael Loeb, to figure out where best to allocate your money. While these financial services do cost a fee, it allows you to grow your money without needing to go through the learning curve that comes with smart investing.
Start a Business
Unless you’re making six figures per year, you’re unlikely to make a million dollars in the next five to ten years just by slaving off at work. Starting a business can put you on a much faster track to this financial feat. Though it won’t be an overnight phenomenon, you can make more money spearheading a business. Identify your key interests and strengths and focus on a business idea that aligns with these identified qualities. Figure out a product that you can sell for at least $1 each. This way, you only need a million people to buy your product before you can reach your goal. The more you increase your price, the less you need to sell to reach a million dollars in profits.
Delay Having a Family
Having a family and children in your early 20s can severely restrict you from taking risks and making money. Having children means you need to provide a roof over their heads and of course pay for the monthly bills including healthcare, food, and utilities. That being said, even those who already have a spouse and kids can still achieve their million dollar mark.
Live a Frugal Life
Whether you’re single or with a family, practicing a frugal lifestyle can make all the difference between getting by in life and making a huge sum of money this 2018. Frugality isn’t linear, however, and can mean different things to different people. In essence, a frugal lifestyle is one that limits expenses to only bare essentials. Change costly habits including unplanned trips to groceries and shopping malls. Another key factor in the cost of living is housing. However much you are paying for rent right now, see if you can find a place a smaller space that costs cheaper. If you wish to join the ranks of successful millionaires living in the Hamptons, Caribbean, or any place else characterizing wealth, you’ll need to make some sacrifices first.
Avoid Debt
Debt is another deterrent to financial success. Avoid putting anything on your credit cards that you cannot repay in the next month or two. While a credit card is important nowadays to establish a credit score and history, you only really need one. Avoid applying or keeping multiple cards as this only leads to more temptations of buying things you cannot afford to pay back. Aside from these plastic cards, steer clear of other forms of debt, such as title loans and the second mortgage on your house.
Final Thoughts
By living below your means, investing your petty cash, pursuing a better paying job, starting your own business, and making some small sacrifices, you can be one of the newest additions to join the ranks of millionaires, like Michael Loeb and Edward Mule.
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