Yeah, you heard me right… it is possible to be a millionaire before you hit 35, but it will take a little time and work to make it happen. Here are some strategies you can follow at any age to build a sweet nest egg.
Get the Tools
You’ve got to start somewhere, so start out with tools that can help you save and track your money. This can be something as simple as busting out the old Excel spreadsheet and creating a personal budget. There are also websites and apps, like undebt.it, that help you figure out how best to get out of debt. Other sites help you get a handle on what you’re spending your money on, such as eating out a lot or repetitive spending on little things that can be avoided. Tip: Check out the Mint website to track and manage your funds and see what’s eating up most of your extra money.
Invest in Real Estate
As you know, I’m a big believer in real estate, but what I love most about it is the long-term aspect of it. Investing in real estate can take many forms, two of which are purchasing a property to rent and earning the rental income, or purchasing a property to later sell after it has had time to appreciate. Tip: If your living situation changes, such as moving out of the area or moving in with a significant other, price out rental value versus comparable selling prices – you might be better off keeping your home and renting it for a while instead of selling right away.
Interest rates are hugely important, whether on credit cards, mortgages, car loans, or anywhere. You need to keep track of these rates and try to get them down whenever you have a chance. Tip: If you have a high interest credit card, call and ask to have your interest rate dropped, or transfer the balance to a zero interest card. Double tip: Refinance your mortgage if you can drop your rate, but only if the costs to do so don’t set you back more than sticking with your current rate.
Glass ceilings were meant to be broken. If someone or something is holding you back in the workplace, maybe it’s time to strike it out on your own. If you’re the boss, no one can hold you back. Tip: If you’re not quite ready to quit your 9 to 5, try launching your business part time as a side-hustle to start.
(Side) Hustle Hard
These days, it’s all about the side hustle. Maybe you want an opportunity to try a new line of work out, or just make extra cash. Anything you can do on your own time or work in to your schedule outside of your day job is a great option. Whether you’re an uber driver, an adjunct professor or a dog walker, you can stash that extra cash and put it toward building your empire. Tip: Find something you love to do as a side hustle, because if you’re working full time and working the side gig, you’ll need to be passionate about it.
All of these tools put together can help you improve your financial situation greatly. If you start early and hustle hard, you’ll hit that millionaire milestone relatively quickly – and it will be time to go after that first billion!