Setting a goal of having your first million before you reach the age of 40 may sound preposterous but it is highly achievable. If you get your first job or put up your first business at the age of 25, you will have 15 years to save up for your million dollars. That means saving around 70,000 per year. Does it still seem impossible? Here is a financial management guide that will help you achieve your first million by the age of 40.
Increase Your Profit
You do not just earn profit from your business; you can also make a profit from your salary. If you work for a large company where salaries are high, you will have more profit. How? By spending less and saving more. If you normally save 5% of your salary, make it 15% or higher. Learn to live on what is left of your salary. Avoid dining out and watching movies every weekend. You can eat and watch movies at home anyway.
Do your workout at home instead of going to the gym. You do not have to buy any equipment either. There are lots of effective exercises that you can easily perform at home. Minimize shopping for clothes that you might only wear once. This way, you can still live comfortably using the 85% of your salary that is left after setting aside 15% of it for savings.
Have a Sound Investment Plan
You do not need to have a lot of money to invest. Some people think that you must start investing millions. You can make a small investment for a start. In making an investment, you avoid going with the crowd. Have a sound investment plan and avoid buying and selling frequently. People who do this seldom become a success. Those who get the most from their investment are those who hold on to their investment until the time is ripe to sell.
Do not be in a hurry to get rich. Remember that the path to your journey will not be always smooth. The road can get bumpy sometimes but just hold on. Remember that earning your first 1 million will be hard. Your resources are limited in the first place. Be prepared for failures and promise yourself to always get up and move on. Once you have your first million, earning your second and third and fourth will be very easy.
Adjust Your Lifestyle
If you want to get your first million before you reach the age of 40, make some adjustments in your lifestyle. Driving a luxury car, jetting around the world, and dining in expensive restaurants will never get you rich. You will only look rich. Many rich people in the world live a frugal and simple lifestyle. This is why they grow richer and richer. By widening the gap between your expenses and your savings, you will be able to attain your goal of becoming a millionaire while still young.
For those who dream of becoming rich by the age of forty, start saving and investing now. It will take several years but see to it that each passing day, you get closer to your goal than yesterday.