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Getting rich at any age, and particularly a young age, requires hard work, planning, and saving for most people, unless they are lucky enough to inherit their wealth. While it may seem like young and famous entertainers, athletes, and business people got rich by chance or simply because of their given talents, everything they've accomplished is the result of dedication and perseverance. Most people will not be able to achieve this astronomical level of success, but anyone who sets their mind to it can be rich in a few short years by sticking to certain principles and putting in the necessary time and effort.
Becoming Wealthy While You're Young
- Network with successful people whenever you can.
- Budget the money you already have.
- Ask someone to help you make smart investments.
- Avoid going into debt you don't need.
- Establish many different sources of income.
- Develop your skills and education.
Steps
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Set your goals and discover your motivations. Before you do anything else, realize that the road to riches is not easy. You're going to have to stay motivated through the tough times and keep yourself on track when everything tries to pull you off it. Part of this may be simply imagining your goals or, in other words, where you want to be in ten or twenty years or at age 40.
- While it's perfectly acceptable to get rich for yourself, you may also be motivated by what you could do for others. Imagine the better life you could give your future children or spouse.
- Don't be afraid to dream big. If you're working towards earning $1 million in net worth, for example, you may be limiting yourself. Don't be afraid to aim for $20 million, or $100 million. [1] X Research source
- Consider, too, what wealth means to you. Do you want $1 million (or more) in annual earnings, $1 million in assets, or $1 million in net worth? Each of these are different and can be reached by different means.
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Split your goals into short-term goals. It's important to always keep your overarching motivation, but in order to actually get things done, you'll need to organize your life around actionable, short-term goals. You'll never get to $1 million if you don't get to $100,000 first. You'll never get there if you don't start earning more money and saving the money that you do earn. Always be checking off short-term goals and considering your next move to maintain a sense of accomplishment. [2] X Research source
- A good way to make short-term goals more actionable is to attach a number to them. For example, imagine you have a job in sales. "Sell more products" is not a clear short-term goal. Instead, try "sell 20% more products this month than last month." This will allow you to track your progress and be confident that you are actually achieving your goals.
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Study the lives of successful people. People who have achieved great things have done so for a reason. Studying the lives of these people, or meeting them, can provide you with the inspiration you need to pursue your own goals. You'll want to research people like Mark Zuckerberg, founder of Facebook, or Mark Cuban, a very successful investor, to get an idea how these people achieved so much. [3] X Research source
- Additionally, you should seek the advice of a successful person that you know personally. Maybe you have a family member or know a community member who has done well in business. Generally, those people who've made it are open about how they got there and willing to share their experiences and advice with others. Question them extensively and try to replicate their actions. [4] X Research source
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Work towards getting a great job. If you don't have a job with a future , get one. The most essential part of getting rich is having a steady and increasing income stream. To do this, you'll have to get a job , even if that job is working for yourself. Obviously the right job will vary from person to person and depend on your individual talents and educational background. In any case, though, be sure that you're passionate about what you do, you'll never be successful otherwise. [5] X Research source
- Try looking for a job with a large company that offers plenty of room for advancement. You don't want the sort of job that doesn't reward your hard work with increased pay and promotions.
- For more information about finding your dream job, see How to Find Your Dream Career .
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Use your talents. Tailor your search for your main job and any other income streams you plan to earn to your individual talents. People who are extraordinarily successful combine their natural and learned abilities to the highest advantage. That is, you don't want to stay in a job that doesn't challenge you or allow you to show off your abilities. For example, if what you're really good at is writing, you're better off quitting your sales job and focusing on writing full-time.
- One of the biggest advantages of being young is youth itself. Even though older people in the business will question you because of your lack of experience, you are able to work longer hours and can bring a fresh mindset or point of view to the problems of the world. Your adaptability and connection with the present is one of your biggest assets as a young entrepreneur. [6] X Research source
- If you don't have any marketable skills, learn one. For example, one of the most desirable and useful skills in today's job market is knowing how to write computer code. [7] X Research source This is a skill that anyone can learn that could dramatically increase your potential and also earn you a good income. Try searching for free coding classes available online.
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Network with anyone and everyone. Big ideas and successful companies usually don't just spring up from one person. Rather, they're the result of a group of like-minded people coming together and discussing the future. Take advantage of every opportunity to meet and establish relationships with both young people with similar goals and older, successful people. When great opportunities for jobs or entrepreneurial projects come along, you'll have the right support network to take action.
- Keep in mind that you should use both in-person and social networking interactions to support and nurture your professional relationships. Be sure to also stay in touch with classmates from high school or college that are successful or on their way to being successful. [8] X Research source
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Increase your income streams . In addition to increasing your primary income stream (by moving up the ladder your current job or by finding a new one), you'll want to multiply your earnings by seeking additional sources of income. These can be investments , part-time jobs , or any sort of informal selling or consulting that you have time to do. Overall, see where and how you can increase your income and then repeat that process over and over again. [9] X Research source For example, if you own an online store and have success, open another one, and then another one.
- The internet is a goldmine of earning potential. There is a multitude of work you can find or create online to earn a stream of income on the side. Everything from writing and selling an ebook to writing a blog can earn you additional income each month. [10] X Research source For more information, see how to make money online .
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Work really hard. With all of your working, networking, and side-income projects, you'll be overwhelmed at times. In order to reach your goals though, you'll have to work harder and later than everyone else around you. You'll have to follow through with any potential opportunities to advance, even if they don't end up working out. Success comes from constantly working towards your goals and persevering through the hard times.
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Be an entrepreneur. This is the dream, the holy grail, for all young, aspiring millionaires and billionaires. Owning and then subsequently growing and selling a successful business is without a doubt the fastest way to earn spectacular wealth at a young age. This is how almost all the world's wealthiest young people made their money (excluding inherited wealth). [11] X Research source However, actually becoming an entrepreneur requires balancing your massive earning potential with a huge amount of risk, lots of hard work, and the chance that even if you do it all right, you might still fail.
- Some of the pros of becoming an entrepreneur at a young age include unlimited earning potential, being your own boss, and, quite literally, the ability to change the world (think about how Zuckerberg's founding Facebook has changed your world). Also, as a young person, you bring new ways of thinking and tremendous energy that can give you an edge over older professionals. [12] X Research source
- On the flip side, when becoming an entrepreneur you have to realize that 9 out of 10 businesses fail within five years. You're also likely too young to have any knowledge of the "little things" involved in running a business, like bookkeeping and taxation, leaving you to learn them quickly or sink trying. And, more than any other path, starting your own company will be incredibly hard work, combining a lack of direction with long hours and doubtful paychecks. [13] X Research source
- For more, see how to become an entrepreneur .
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Become an investment banker. If you have a college degree in economics, finance, business, math, or a related field, or you will soon, and want to make as much money possible right now, work to become an investment banker. Investment banking salaries typically start at around $80,000 to $120,000 per year, with the average worker earning $112,000 right out of college. [14] X Research source Investment banking jobs consistently top the rankings of highest-paying jobs for young people.
- One of the biggest pros of becoming an investment banker, in addition to the huge salary, is the massive amount of opportunities for advancement. Investment bankers can double or triple their salaries quickly by advancing within the company or outside to private equity and venture capital firms.
- Investment banking also comes with high competition among coworkers and very long hours. Don't jump into this career if you're not ready to work all night and weekends and fight for advancement every day.
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Become a software developer. If working with computers is more your thing, software developer jobs also boast a high starting salary. Like with investment banking, you'll need a college degree to get into this career, specifically in computer science, engineering, or math. As an entry-level developer, though, you stand to make $84,000 per year, on average, designing anything from business software to video games.
- Being a software developer will require a knack for coding and math, and may also require long hours and high expectations. You'll also have to stay up to date on the newest computer systems and coding languages. However, if you're good enough, earning potential just goes up and up at higher-end companies like Google and Facebook.
- For more, see how to become a software engineer .
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Become an engineer. Engineering in this case is a blanket term that covers all sorts of engineering, from chemicals to aerospace. However, on average, an engineer with a relevant college degree can expect a salary of $72,000. Specifically, petroleum engineers can expect to make the most, with an average salary of $88,700.
- While engineering can be a great and well-paying career, it is very difficult to pass the rigorous training received in undergraduate and graduate school. This career is only for those with strong math and science abilities.
- For more, see how to become an engineer
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Don't spend all of your money. If you are not saving at least 25% of what you earn, start today. Take your income and expenses and find out where you can start to cut back, sell something, downsize or make a crack in your expenses. If you make at least $50,000 a year, you should be saving $12,500 a year. If you are spending a lot of money on an automobile, sell it. Some high-earning people end up essentially poor because they still manage to live beyond their means.
- The younger generations of today have been born into a very commercialized world that constantly pushes the newest gadgets and clothes on us. In order to save and build wealth, you'll have to ignore the urge to indulge in these trinkets, even when you start making good money. Keep this in mind: poor people buy things from rich people and rich people buy investments to make themselves richer. Which side do you want to be on? [15] X Research source
- For more ways to cut expenses, see how to save money .
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Take your saved income and allocate it for investing. Set up an automatic draft (payment) from your household account to your investment account. One of the biggest parts of becoming rich is making your money work for you. Therefore, try to allocate as much money as possible to an account that you can use to invest in the stock market. You can either set up an account with a local money manager or through one of the online trading websites to get started.
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Read up on investing strategies and techniques. There are three books everyone should read before you put a dollar into any investment. Read "Become Your Own Banker," "Rich Dad, Poor Dad" and "LEAP" - in that order. If you don't have the motivation to read and educate yourself then you are not motivated to be rich . These books are the cornerstone of becoming rich, wealthy and in control of your own destiny.
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Invest in the stock market. You can go about this one of two ways: either have an advisor do it for you or try to do it yourself. Because of the complicated nature of the financial markets, it is generally a good idea to leave investing, especially risky investing, to professionals. However, if you have the time and aptitude, you can avoid paying fees to an investment manager by doing it yourself. This will require a deep understanding of financial markets and the time required to follow them, however. [16] X Research source
- A good place to start is with "small-cap" stocks (shares of small companies) and shares of companies in foreign markets. These markets come with a large amount of risk and therefore also carry the potential for large returns. Always remember that large potential returns also come with the chance of massive losses. Mutual Funds can help reduce the risk involved.
- For more information on investing in stocks, see how to invest in the stock market .
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Invest in more valuable assets. Once you've saved enough money in your stock-market account, you can invest in larger, income-producing assets like properties and small businesses. While risky, these investments may allow you earn a steady income that eventually will pay back your original investment and provide additional income streams. Eventually, these income streams may replace your primary income and allow you to either switch to a less-demanding job or retire young. [17] X Research source
- Decide where you want to focus your energy. Rental property investing, for example, is a slow process but with safe returns on your money. Your principal is paid by the renters over a number of years and eventually becomes entirely profit. Learn from other people's mistakes and consider the risks extensively before you make any investments.
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How Do You Get Rich?
Expert Q&A
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QuestionI'm in my final year of school, and I am getting a Bachelor's of Commerce. What should I do to become an investment banker?Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.Review WikiHow's How to Become an Investment Banker for advice.
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QuestionDo you have any suggestions for what to do after getting an MBA?Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.Determine what field or industry most appeals to you, then check the Occupational Outlook Handbook on the Bureau of Labor Statistics website to determine the top paying jobs for people with a MBA.
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Warnings
- Don't try "get rich quick" schemes.Thanks
- Any investment advice provided in this article is a guide only and is not intended to replace professional investment advice. Take time to consider the risks of any investment before buying.Thanks
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References
- ↑ https://www.entrepreneur.com/money-finance/how-to-become-a-millionaire-by-age-30/299322
- ↑ http://www.lifehack.org/articles/money/this-how-young-people-can-get-rich.html
- ↑ http://www.lifehack.org/articles/money/this-how-young-people-can-get-rich.html
- ↑ https://www.entrepreneur.com/money-finance/how-to-become-a-millionaire-by-age-30/299322
- ↑ http://www.lifehack.org/articles/money/this-how-young-people-can-get-rich.html
- ↑ https://www.entrepreneur.com/money-finance/how-to-become-a-millionaire-by-age-30/299322
- ↑ http://www.entrepreneur.com/article/231845
- ↑ http://www.lifehack.org/articles/money/this-how-young-people-can-get-rich.html
- ↑ https://www.entrepreneur.com/money-finance/how-to-become-a-millionaire-by-age-30/299322
- ↑ http://www.lifehack.org/articles/money/this-how-young-people-can-get-rich.html
- ↑ http://www.therichest.com/rich-list/world/top-10-richest-people-in-the-world-under-30/
- ↑ http://www.entrepreneur.com/article/220673
- ↑ http://www.entrepreneur.com/article/220673
- ↑ http://www.careercast.com/career-news/11-top-paying-jobs-straight-out-college
- ↑ http://www.lifehack.org/articles/money/this-how-young-people-can-get-rich.html
- ↑ http://www.bloomberg.com/news/articles/2015-07-15/how-young-adults-can-help-themselves-get-rich-according-to-the-fed
- ↑ https://www.entrepreneur.com/money-finance/how-to-become-a-millionaire-by-age-30/299322
About This Article
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To be rich at a young age, try to find a job that offers a lot of room for growth and advancement so that your income is regularly growing, even if that means working for yourself. In addition to your main job, try to find other streams of income, like an investment, a part-time job, or a small side business. To keep yourself on track, set long-term and short-term financial goals for yourself. If you're interested in pursuing a job where you're guaranteed to have a high income, look into engineering, investment banking, or becoming an entrepreneur. To learn how to save money and invest what you earn, scroll down!
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