Becoming a millionaire by age 30 requires an enormous amount of incredibly hard work and dedication.
It’s about the financial freedom everyone wants.
We can actually achieve financial freedom easily by just changing our mindset about money.
Remember, money gravitates to those who know how to handle it.
Life is mystery that leads with only two options: you either know how to do it and do it, or you don’t know how to do it, and learn it.
That’s why you’re here reading this: to learn it.
These are 6 credos that will help you become a millionaire by the age of 30.
These credos are used by numerous millionaires.
1. Diversify Income Streams and Let it Compound
From the beginning of the job-working days, you have one stream of income that supports you, but what happens if your income stream is shattered? Of course, you put more effort in to make another stream of income. But that’s normal life and basic human tendency. If you want to be a millionaire, you must diversify your income streams.
Freelancing and stock markets are the most popular options to diversify your income streams in today’s times.
According to the Upwork, an estimated 57 million Americans do some type of freelance work.
Remember, at the primary level, keep focus on the safe areas like real-estate, freelancing work, etc.
There are three basic areas where you can create income streams:
- Real estate
- Your own business
- Freelancing work
2. Be a Statistician About Your Finances
“For the high performer, arithmetic growth is unacceptable. Geometric exponential growth is demanded. “Daniel S. Pena
You don’t need to toil on mathematics to become a statistician. Just knowing some math and its concepts, like exponential growth, helps a lot.
If you have multiple streams of income and your business is growing, you’re ready to see exponential growth.
Buying others businesses and signing big deals are the best sources to achieve exponential growth, but it takes a lot more risk.
Invest money in right way and you’ll win; invest the wrong way and you will perish.
To become a millionaire, start by changing your mindset and your habits to millionaire habits.
Remember, habit makes you.
There is one simple formula that best describes exponential growth:
FV = PV * (1 + r) ^n
- FV:- Future value (Expected value)
- PV:- Present value (Total Investment)
- r:- The project’s rate of return
- n:- Time
Let’s take one example of exponential growth:
Let’s say you invested $1000 in a 5-year project with 10% rate of return, and you would like to know the expected value of that investment:
FV = 1000(1+ 0.1)^5 = 1610.51
1610.51 – 1000 = 610.51 = the “extra” money you are expected to earn from that investment.
Since this is exponential growth, this usually means that the longer the project is and the more money you invest, the higher your expected value will be.
“Exponential growth is everywhere from technology to biology.”Stephen McBride, Forbes
3. Save More; Spend Less
The more income you have, the easier it is to save.
There is a principle in finance known as the “50-20-30 Rule.” It goes like this: 50% of your income should go towards living expenses (e.g., household expenses, including groceries), 20% towards savings for your short, medium, and long-term goals, and 30% towards spending like food, and travel.
The more you save, the more likely your are to become millionaire in the early stages of life.
You can learn to save money on all kinds of things: groceries, clothing, buying a car, auto insurance, healthcare, utilities, weddings, flying, office furniture, moving. Take your pick. You can learn to save money on everything!
As Warren Buffet says:
” Do not save what is left after spending, but spend what is left after saving.”Warren Buffett
4. You Have to Work Really Hard
If you want to be a bigger fish in the ocean of the business world, you’re gonna have to work hard.
You have to work harder than everyone else.
Working hard for 90hrs/week makes every impossible thing possible. If you are in a job, treat yourself as the CEO of the company. Work as hard as the CEO does, intending to achieve the company’s financial goals.
In the hard-work realm, don’t be a fool. You need to keep in mind things like your salary incrementation, your reputation, and your position in the company. Sometimes it’s hard to avoid burnout, so take the time off. But work hard.
If you work in various different firms like freelancing, real estate, and your day job, you’re more likely to become a millionaire quickly by just diversifying your time among all these income avenues.
5. Your Money Attracts Others’ Money
There are no other secrets to build more wealth or get rich quick.
You need to train your money to work for you.
In the common-sense realm, you should invest your money in the stock market and/or real estate, but invest your money with the right training. Right training means you must learn what to invest in and how to invest.
If you eat the right foods, your body will become healthy. The same as if you train your money in right way and invest wisely, then your money will work for you and creates passive income streams.
“Formal education will make you a living; self-education will make you a fortune.”Jim Rohn
First manage your streams, then learn some useful things like stock investing, cryptocurrency, real estate, etc..
6. Pay Yourself First
This is the first rule of finance, but we take it last because it’s the most important to know.
Happiness is the by-product of our hard work, so we should take care of ourselves first.
In simple words, out of your monthly income, a certain percentage has to be saved before it is spent.
You should save 10 to 15% of your income and invest it to achieve your dreams. Hold onto your dreams and act upon them.
Don’t become mad trying to achieve financial freedom. Work hard and take care of yourself — physically, mentally, and financially.
It’s easy to become a millionaire by the age 30, you just need to earn and learn every single day.
You must acquire habits millionaires have and replace your mindset with a millionaire’s mindset.
Your financial goals determine what you have and what you will have and become.
Your dedication determines your fortune.