Steps to Take to Earn Your First Million in Your 20s
There are a few people in the world who have earned their first million in their teenage years. Many of these inspiring entrepreneurs thought of a visionary idea and worked as hard as possible to bring that idea to fruition. As inspiring as these stories may be, they are also one in a million, which is why it’s okay to lower the bar a little.
If you are in your 20s, there are plenty of steps you can take to try to earn your first million before you even turn 30. It will take a lot of hard work and employing the right strategies, but it’s not impossible. If you are an aspiring businessman who dreams of making it big, here are some pointers and steps you can take to earn your first million in your 20s, even if you don’t have generational wealth.
Prioritize earning by having multiple streams of income
This may seem like an obvious piece of advice, but you would be surprised at the number of people who think they can earn their way through millions just by having one job.You may be able to earn your way through that kind of money, but the only way it can happen is by increasing your salary in increments and repeating that process. Here are some ideas for having multiple streams of income:
- Leverage your core competencies and skills. Aside from your main job, find additional side hustles like writing, graphic design, or selling insurance.
- Once you’ve earned enough capital, consider starting a franchise business, and one that people need for, like home service businesses like a lawn maintenance franchise or something handy and practical like a dry cleaning service. Many franchising businesses require less overhead than starting a business from scratch, so they are a good option for young entrepreneurs who want to explore the business world but don’t want to take too big of a risk. When choosing a franchise business, make sure a pandemic or economic lockdown won’t derail it.
- Save as much as you can, and if you must purchase assets, make sure they areincome-producing.
- According to astudy, three income streams are the most usual magic number for most self-made millionaires. Look into being a part-owner of a side business, stock market investments, and real estate rentals. These are the three most side incomes the respondents took on.
Invest, invest, invest
One thing to remember about saving is that its purpose is to be invested one day. Make sure to keep all your savings in one account that you’re not allowed to touch-not even for an emergency or a rainy day (make sure you have a separate account for that). Having a separate account for savings that you intend to invest would compel you to follow your strategy to increase your income. Whatever surplus you have should be invested into ventures that you cannot access for now.
Warren Buffett advises investors to look into low-cost index funds. The goal is to constantly set aside a certain amount of money to make it automatic. Diversify your income portfolio and believe that there are more than a few ways to make your wealth grow.
Be decisive and disciplined if you want your first million
According to a study by psychologist Rafael Badziag, there is one quality that 500 millionaires share: they are decisive. They have the habit of reaching decisions as promptly as they could and make clear-cut decisions based on the information they have at the moment. These millionaires knew what theywanted, andthey went after it.
Another quality that Badziag found in millionaires is discipline. They place a high standard on themselves and ensure that they would live up to those standards. They never let themselves slack and slip, and they face whatever struggle or opposition to fight for their bottom line. Set clear and detailed goals, realistic ones that can help motivate you further every time you achieve them.
Patience, persistence, and consistency are key
Unfortunately, we cannot earn a first million overnight. We need to have the right mindset and manage our expectations. We need to Expect that there will be some setbacks on our way-some investments will return empty, some businesses will fail. But as long as the market remains free, there are always opportunities and open doors to explore.
Unlearn some harmful mindsets, practice delayed gratification, and invest in yourself first and foremost. Keep your eyes open to various opportunities, be smart, relentless, and strategic-and you will have the building blocks to a bright future.