Entrepreneur's Corner

Dear Entrepreneur, Here Are Six Steps To Become A Millionaire By 30

BY Getrude Mathayo · June 12, 2023 04:06 pm

KEY POINTS

You don't need a six-figure job or family money to become a millionaire. Instead, you need to start saving early and be mindful of every shilling you spend.

Wondering how to become a millionaire? It may sound impossible to some people, but it doesn’t have to be an out-of-reach pipe dream. With careful planning, patience, and smart savings, you can easily make a million dollars by the time you retire.

You don’t need a six-figure job or family money to become a millionaire. Instead, you need to start saving early and be mindful of every shilling you spend.

Becoming a millionaire isn’t as difficult as you might think. Lots of people prove each year that you don’t have to be a banker, lottery winner, or be born with a silver spoon in your mouth to build up your wealth to seven figures.

If there were a foolproof formula, everyone would be rich. There isn’t. But the following is a general list of steps to guide you to untold riches while you’re still young enough to enjoy them.

It may seem like an impossible goal to be a millionaire at any stage of your life. However, that isn’t true. The earlier you start making smart financial decisions, the more likely you are destined to be a part of the millionaire’s club later in life.

However, we are in an age where simply storing money away doesn’t garner more in the future. You have to employ a combination of methods that not only set aside money you contribute but also compound it with interest.

Set goals

The money game is a long slog, cash doesn’t grow on trees. Before you embark on your millionaire challenge, it’s vital that you have a clear life plan. If you’re serious about this then you need to know how to achieve it, not just dream it!

You need to work out a feasible and realistic route to making your millions. When doing so, draw on your skills, experience, and ambitions.

Increase Your Income

The first step to becoming a millionaire is having the capital to fund your investments that will compound your money. To get this money, legally, you’ll need a stable job. You should work to always make yourself marketable as a way of not only maintaining your current job but moving up the ladder to a better position or company.

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Budget every month

Practicing some basic budgeting and money-saving skills as soon as possible will stand you in good stead for the rest of your life. Don’t just write it off as ‘something you’ll do another day’! If you haven’t already got it, download our free Student Money Cheat Sheet. There are loads of great tips in there to get you started.

Start as soon as possible

Time is a valuable asset, especially when it comes to saving and investing money. So the sooner you start, the better chances you have of becoming a millionaire.

Create a Network of Winning People

There’s almost no scenario where you can pull it off alone. You’re much more likely to get rich if you’re surrounded by talented, ambitious, and inspiring people.

“As the saying goes, your network is your net worth,” said Shirshikov. “Build strong relationships with people who can offer you opportunities, guidance, and partnerships.”

House-Hack Your Way Out of Rent or Mortgage Payments

Another benefit of multifamily homes is that they can eliminate housing costs while delivering returns if you’re willing to live there. The rent you collect can cover your cost of living or drastically reduce it, while also building an asset

Risk It All on the Ultimate Investment

In most cases, the money you’ve saved from house hacking, the capital you’ve gained from investing, and the knowledge you’ve picked up along the way still won’t be enough, unless you pour it all into an entrepreneurial endeavor.

Invest in yourself

One of the most profitable investments you’ll ever make is investing in yourself. And we don’t mean getting the most expensive haircuts and designer outfits. We mean investing in your skills, mindset, and knowledge.

Work in an industry that you love and pays well

In order to maximize your income, you should try to secure a well-paid graduate job. Having said that, think carefully about the career you want to embark on: one you will enjoy and can progress quickly in.

Start your own business

The fast-track method of becoming rich in your twenties is to start a high-growth, high-return business with a plan to exit within five years or so. But, of course, there’s absolutely no guarantee you’ll even make a penny, and the risk can often outweigh your other options for building a long-term income.