It became the first town sold on the website in 2002 for $1.77 million. ‘Many of the structures included with the town could be described as fixer-uppers,’ the listing said. ‘Be prepared to do a lot of work to get the town into sparkling condition.’
Folks, don’t confuse simple with easy. The principle of ‘spend less than you earn’ is indeed simple. But, like many other things, it isn’t easy; our current media inundation with advertising which begs, cajoles, pleads, ridicules, and browbeats us to spend, spend, spend makes it especially difficult to exercise the self-discipline required to abide by the principle.
Even though risk-taking is a generally rewarding strategy in your 20s and 30s, it’s also a good idea to diversify your efforts. Don’t build up just one skill set, or one set of professional connections. Don’t rely on one type of investment, and don’t gamble all your savings on one venture. Instead, try to set up multiple income streams, generate several backup plans for your goals and businesses, and hedge your bets by looking for new opportunities everywhere. This will protect you from catastrophic losses, and how to become a millionaire in your 30s your chances of striking it big in one of your ventures.
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Alternately, and for every person thinking of asking a question like this in the future, I’d highly recommend a book like “The Millionaire Fastlane” by MJ DeMarco. With a title like that, I’m surprised you haven’t found it already. In that book MJ (besides mocking his own choice of title) answers a number of questions that you should be asking instead.
Monetize a hobby. While some hobbies actually cost money, others can be transformed into a profitable business venture. Ultimately, it depends on what your hobby is and how talented you are. You could turn your love of photography, for example, into a part-time gig taking family portraits and wedding photos or selling prints on Etsy or at arts fairs.
It is also important to remember that real estate is part of your investment picture, but it shouldn’t be all of it. Too many people stake almost everything they have into a primary residence and expect it to appreciate in value. Just like any investment, generally speaking, over time you will make money. There isn’t much debate about that, but relying heavily on real estate is no different than if you rely on one stock to fund your retirement. So, begin with opening up an investing account and put your money to work. It doesn’t matter if you are investing in stocks, bonds, or index funds, but keeping costs down helps you keep more of your own money. One of the best and cheapest places to start investing is at TradeKing.
Cash Flow. This is the extra income you’ll get to keep each month (or year) that you own the property. Cash flow can be deceptive because it fluctuates when certain repairs are higher or lower in different months, so it’s important to factor in non-monthly costs like vacancy (the amount of time the property sits vacant), repairs, capital expenditures (expensive projects that need to be replaced on a home every so often, like appliances, roofs, windows, plumbing, etc.), along with the regular expenses (utilities, management, etc.).
This is the same weakness exploited by conmen and scam artists (popularly known as ‘419’ in my country – Nigeria). These guys know that people are drawn to opportunities and get-rich-quick schemes and will pay anything to own a million dollars today.
Millionaires educate themselves about investing and seek professional advice, choose high-quality blue chip stocks or mutual funds with good long-term performance records, invest consistently, and hold onto these quality investments over a long period of time.
To push yourself a bit extra means to be prepared to do all the things that are necessary to build your iceberg. Yes, it’s personally taxing on our mental and physical health, but the oh-so-sweet feeling of accomplishment is so worth it in the end!
That’s only one way to measure if someone’s a millionaire, of course. A net worth of $1 million also qualifies; subtract liabilities, including mortgages and car loans, from assets, including home equity and retirement savings, to determine your net worth. Either way, hitting the million-dollar mark is no small feat.