If you’re like me, doomscrolling at night, you’ve likely come across more than one person claiming to be a millennial millionaire. These are millennials who claim they’ve already achieved millionaire status, and you can too!
But here’s the thing: it is possible to become a millennial millionaire — that is, if you’re willing to make some major cuts, stay consistent, and stay focused. So, if there are three secrets I would suggest to get you started, we’ll cover them here.
1. Cut whatever you can
It’s one of the first things we suggest in general if you’re looking to save and invest for long-term income. That’s creating a stellar budget. That budget needs to cover all the essentials and non-essentials while still leaving a bit of extra room for spending in most cases.
Yet that will not be the case if you hope to become a millennial millionaire. Instead, you need to cut whatever you can, wherever you can. That means living small and eating cheap. It means biking and walking instead of driving. It means getting that high-income job and putting as much as you can towards investing and saving.
This is likely the hardest step for many who are looking to become a millennial millionaire. But if you live on your own and are hoping to achieve it, why not? A few years of consistent saving could mean you’ll have plenty of cash on hand to create even more savings.
2. Start early, stay consistent
As soon as you’re able to invest, you should be investing. By doing this, it means you don’t have to put a lot aside to save for your future. That is, if you’re looking to retire at around 65. You could put just a few hundred bucks away and be well on your way.
However, if you want to be a millennial millionaire, you’ll want to start early, save a lot, and keep consistent with your strategy. That strategy should include a diversified portfolio that includes various asset classes, stocks, bonds, real estate, and other investments like currencies. This will help spread risk and increase gains.
Speaking of gains, you’ll also want to educate yourself on high-growth sectors. This might include areas like technology, renewable energy, healthcare and more. These are areas where investors can see significant growth and create huge returns — especially if they include dividends.
Furthermore, make sure those investments are kept in both your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). These both have tax advantages to help you save and create more money and take it out whenever you need it.
3. Don’t do the heavy lifting
Do you want to know the best secret of millennial millionaires? First, they have a financial advisor who is helping them achieve their goals. They’ll be able to help identify how to save more money and invest it properly without gaining a lot of risk.
Next, they’ll likely focus on exchange-traded funds (ETF). Instead of doing the leg work in identifying each and every potential high-growth stock, let portfolio managers do it for you! You can find several high-growth ETFs that provide strong returns and income through dividends. And it will be rebalanced for you!
A great option to consider is Vanguard Growth ETF Portfolio (TSX: VGRO). It holds a solid stretch of growth stocks, while also holding some bonds for fixed income. This comes through a 2.15% dividend yield as of writing. Shares are up 10% in the last year, so you can likely look forward to even stronger performance as we continue to see a market rally.
But don’t let this be your only ETF! Do your research and see what’s performed well. Even if you don’t want to become a millennial millionaire, this can create stellar growth in any portfolio.
