At some point, most people wonder how to become a millionaire. If you’re currently in debt, that doesn’t mean that your dreams of being a millionaire in the future are unattainable.
Pay off your debt, get a grasp on your finances and learn the following tried-and-true methods to becoming a millionaire in 20 years.
There are a few different routes to following when trying to become a millionaire. The most obvious route is to earn one million dollars.
Easier, but equally less attainable, options are to either win the lottery or inherit a huge sum of money when a wealthy relative passes away. Since the last two options are out of your control, focus on the earning potential that you currently have.
Become a Millionaire By Starting Early
Start earning and saving money as soon as you possibly can. If you have a partner and a two-income household, saving money will be half as easy as it is going it alone. By living on one person’s salary, you can invest and save the other’s entire salary. Cut corners and save costs whenever possible to increase your savings.
Keep in mind that investing half of your joint earnings means that you’ll also have to share the profit you earn with the other person. If you’re married or in a life-long, committed relationship, this shouldn’t be a problem.
However, if you and your partner are not completely invested in the relationship, don’t risk your money and future wealth. It’s better to save a smaller amount of money now in order to have a larger sum all for yourself in the future.
Contact a financial advisor to find out the best equities for investing your savings. You’ll also want to invest a smaller portion of your money in more daring investments. While the risks are higher, so are the rewards. Having a balanced investment portfolio is key to racking up major bucks for your future.
Become a Millionaire By Getting Good With Numbers
If you want to learn how to become a millionaire, get familiar with the different interest rates in the financial world. The growth rate, or interest rate, is a barometer of how fast your money will grow once invested.
In order to be a millionaire in 20 years, you’ll have to meet a certain savings goal each year. You’ll want to invest $402 every month at a 7% interest rate in order to have one million dollars in 20 years.
There are a few different ways to find the money to invest. Save up enough money so that you can invest a lump sum all at one time. You can also come into a large amount of money by selling an asset, like a boat or home. Alternatively, you can contribute money either monthly or yearly. If you choose to continually contribute money to your investments, make sure to do so faithfully.
Many people think that the only way to become a millionaire in the future is to sacrifice fun and luxuries now. You don’t have to invest every single penny you earn after paying your bills, though. By creating a schedule and sticking to it you’ll invest the correct amount of money now. As your career grows, it’ll be easier to stash some of your money away for the future.
If you want to know how to become a millionaire, familiarize yourself with stock market trends, different types of investments and growth rates. Cutting back on unnecessary expenses is a great tactic to save more money, but you don’t have to change your entire life in order to make a million dollars in 20 years.
Instead, save and invest your money wisely and commit yourself to putting money away each month. In the future, you’ll be impressed with how small savings grew into a large chunk of money.