Steve Siebold said, “In a free-market economy, anyone can make as much money as they want.” The man is a self-made millionaire who studied over a thousand of the wealthiest people in the world. His statement applies to people in their 20s, and it holds true provided you can take the right steps.
While I of course can’t guarantee that these tips will make you a millionaire, I will say that these tips will help your chances of getting wealthy. These tips are based on advice from people who became millionaires at a young age.
I will tell you about the aspects of focusing on earning, saving to invest, and making smart investment decisions.
Focus on earning
In today’s economy, there’s no way anybody can save enough money to achieve millionaire status. Rather, you need to focus on earning money and increasing your income in increments. Take the case of Grant Cardone, who was in debt at the age of 21. The man became a millionaire before he blew out the candles on his cake when he turned 30.
Focus on earning seems like a blanket statement, but there’s more to it. You already know that making more money than you do right now isn’t easy, but that doesn’t mean it is impossible.
In a growing global economy, there are plenty of opportunities out there to bring in additional income. Do your research and look for a job that can provide you with a good income on the side. Build on that and increase the monthly revenue. Increase your income revenue streams to earn more money.
Don’t save for the sake of saving
At this point, the only reason you should save money is so that you can invest the money. A lot of young couples in their 20s feel that investing is a daunting task. You can start in the simplest of ways.
Consider investing in individual retirement accounts with different contribution limits and tax structures. Go for the one that suits your increasing income. Be disciplined and decisive about the decisions you make. Just make sure you use your savings rather than store them under the mattress.
Invest in dividend-paying stocks
One of the best possible ways to become rich is by investing in dividend-paying stocks. The stock market is a proven way to build wealth. The best way to start is through stocks, which will add to your income.
Reliable stocks such as the National Bank of Canada (TSX:NA) allow you to work your way toward becoming rich gradually. Stocks like National Bank are more mature and stable compared to non-dividend paying stocks.
On its most recent earnings call, the company reported a net income increase of 7%. The current dividend yield is 4.15%, and a dividend of $0.68 will be issued on November 1.
While you can’t rely on dividends to make you wealthy immediately, a robust portfolio of dividend stocks can help you create a massive fortune over time.
Following my advice does not guarantee millionaire status, but these three tips can increase your odds.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Adam Othman has no position in any of the stocks mentioned.