From having many streams of income, to investing the majority of your savings, there are many ways to increase your wealth. Achieving seven figures by thirty is achievable, under the condition that you are not tempted to spend your money on butt implants or designer watches. You must focus on spending only on what you need. With elements of luck, a lot of effort, and acknowledging risk, the first million might be the easiest. The earlier you start making smart financial decisions, the more likely you are to become part of the millionaire’s club at a young age.
One of the most powerful secrets to saving $1 million before the age of 30, is time. The sooner you begin saving and investing, the longer your money spends accumulating. It is important to focus on learning and earning. The first step is to focus on increasing your income in stages and setting appropriate goals to assist you in staying on track. When you save and invest your money, that interest compounds, which means your interest is earning interest. Generating significant wealth is a lot harder if you’re earning a low rate of return on what you save. Saving to invest in things like stocks, mutual funds, or real estate, increases risk, but rewards you with the trade-off to earn much higher returns. Selling land for property development is also something to consider. While it is smart to have some sort of cash tucked away in an emergency savings fund, you need to invest if you want to reach $1 million by the age of 30.
By diversifying your income streams, you are fast-tracking your goal. Working a full-time day job can help generate basic income to invest, however you may need to add other income streams to the mix. Freelancing and starting a side hustle business could lead you to more income, which can funnel into your investment plan. Investing in real estate is something to consider as owning a rental property will generate a steady stream of monthly income without having to do anything. This could include residential property or commercial, such as office leasing to businesses. As the property market is quite stable in comparison to other markets, investment properties generate fixed returns to the investors. Any tax associated with the expenses paid on the investment property, such as maintenance, council rates, or fees by managing agencies, can be claimed back at the end of the financial year. If you have an investment property you will also be using the existing equity in the property to get another loan or to purchase another investment property. On top of this, if you are smart with your purchase, and if the property is in a good location, the value will increase which will mean even more profit is made. This all may sound great, however, there can be hidden problems associated with a property. No matter how much homework you do, or whether you get a building and pest inspection to ensure your property is kept to high standards, there is always going to be some bumps in the road. Preparing for any unexpected bills or rent payments that aren’t made is something you need to consider. You need to be excellent at managing your risk and protecting yourself against the problems which may arise.
Keeping track of your goals and breaking it down into a timeline can make the progress more manageable and less scary. This can be done by setting monthly, quarterly, or even annual goals as you work to reach $1 million in equity. It is also very important to be conscious of your value and how this relates to your ability to build wealth. Discussing a raise at your job, for example, could help you generate that extra little bit of income for you to save. By having confidence in your skills and abilities to become a freelancer, or to even sell products online, could do the same. The key is to know what you are truly worth and how to leverage it to reach your goal. If you are business savvy or want to be your own boss, this is the perfect opportunity to make some extra money. This, however, requires massive upfront costs and returns low revenue in the beginning. Being an entrepreneur is not a quick way to get rich and it can present a huge shift in lifestyle. It has many special rewards and in most cases will pay off. Although, understandably not always the desired outcome is achieved and therefore, the decision to start your own business shouldn’t be taken lightly. Upgrading your skills and knowledge through reading, podcasts, and seeking out mentors will allow you to consume knowledge. It is the key to educating yourself and staying up to date with news across all of the markets.
Making the appropriate sacrifices to avoid debt is important. For some people, this may mean paying off a couple of credit cards and for others, it may be a car loan. One of the additional obstacles for a young person includes a student loan debt. The average student debt now exceeds $35,000. Making a conscious effort to reduce the debt you have will mean less pressure on paying it off in the future. Not spending excessively on luxury items like designer handbags, or paying for cosmetic surgery such as breast implants is vital. Only purchasing what you need, over what you want can serve a lot of benefits. Something as simple as only carrying around as much cash as you need will help you manage your spending a lot easier.
Exposure to people who are more successful than you means there is the potential to expand your thinking and learn from them. This is why winners are attracted to winners. It is important to have the right influences. Your close circle should motivate you to succeed and meet your goals. There is a lot of psychology behind becoming successful and maintaining wealth. Eliminating fear and operating at a level where you can leave your comfort zone is exactly what the richest people on the planet do. If you have this mindset, anything is possible to achieve.