There was a time when saving money would have been enough to make more money. However, in this day and age, simply storing money like winter nuts won’t make you a millionaire. For most young adults, saving in itself can seem a lofty task. And becoming a millionaire by the age of thirty seems like a fantasy. In fact, achieving the millionaire status can seem to be a daunting task for people from any age group.
What most people don’t realize is, that this seemingly unachievable feat is within their reach. The key is simply to start early. Whether it is saving, or investing or a balanced combination of both, the earlier you start, the more likely you are make it to the millionaire club. Since digitization is the buzz word today, learning how to invest money online can be a crucial trick to become a millionaire. If you’re one someone who manages their own investment, learning how to achieve a diversified investment portfolio becomes paramount. You can also hire the services of an investment making company to help you through your journey.
Here’s how to become a millionaire by age 30!
Planning has to be your best friend if you want to enter the millionaire’s club. The first thing to do is to list all your recurring expenses – big and small. This way, you have an idea of your cash outflow. Even an investment making company would ask you about your expenses to come up with an investment plan. Clearing your debts and setting up an emergency fund are also essential steps.
• Emergency Fund: Providing for emergencies is one of the most important steps of becoming a millionaire. When you have an emergency fund, you don’t have to touch your savings. A sizeable emergency fund will be sufficient to take of the contingency. Keep aside a certain amount of money depending on your lifestyle and habits.
• Outstanding Bills and Debts: Major outstanding debts or bills may prove to be a drain on your financial resources. If you don’t clear your bills on time, they can pile up and leave you with lesser money to invest. The interest and other charges will also hold you back.
The first step in any of your plans should be saving. Most people with steady jobs tend to spend as soon as the pay cheque comes in. They’re rewarding themselves. After all, you have worked hard and waited for an entire month. However, at the end of your spending spree, most of us end up feeling silly for such impulsive spending. After paying off your bills, you should reward yourself – but by saving some of the money. A penny saved is a penny earned. It is important to stress on this if you dream of becoming a millionaire.
Discipline is the key to saving. It isn’t necessary to save big amounts as soon as you start. Save as much as your income allows. But remember to save frequently.
The common perception is that saving and investing are the same. In truth, saving is the first step towards investing. Most financial advisors recommend that you should save with a goal to invest. Since you’re aiming for your first millions, a diversified investment portfolio will do wonders for you. Moreover, like mentioned above, knowing the tricks of how to invest money online is also important.
• Invest in stock market: When you think of investing, investing in the stock market is the first thing that comes to mind. An investment making company would proceed with assembling a diversified investment portfolio. Your investment making company helps you plan your investment keeping a diversified investment portfolio in mind. Learning how to invest money online is also important since there are tools which help you navigate the choppy stock market waters.
• Invest in real estate: A Diversified Investment Portfolio helps to balance the risks you take while investing. Adding real estate investment to your portfolio can also push you further towards your goal. Purchase a second property and rent it for an additional source of income.
Anyone would love the chance and opportunity to become a millionaire. Doing it before you hit thirty, is just another feather. Even if you hire the services of an investment making company, you need to track and manage your money well. Knowing how to invest money online is not enough. You have to be committed to the goal!