Among those interested in wealth building, one major goal is millionaire status. This goal, though, usually takes a long time to obtain. For many, subtle habits they have picked up from the culture around them can make the process even slower. While there really is no fool-proof way of guaranteeing millionaire status in 5 years, there are ways to pick up the pace. It is hard to become a millionaire in 5 years, but here are the best ways to get it done.
Increase Your Income
Seems obvious, but seriously, your income is your primary vehicle for building wealth. Everybody is trying to make more money, but the purpose of adding it to this list is to expose you to more ways to get that done. If you’re stuck in a job that isn’t providing growth, look for a new job. If you are at the start of a career path that will eventually make you a lot of money, take an extra job or side-gig in the meantime.
While getting another job seems like a huge obstacle, just remember: Becoming a millionaire in 5 years is a pretty huge goal. In order to get there faster than everyone else, you have to work harder and smarter than everyone else. If you don’t have any market-ready skills quite yet, work somewhere that relies on tips. If you have people skills and no degree, take a job that pays on commission. The idea here is to make sure that you monetize your time as effectively as possible. Your income isn’t your only tool, but it is the main one.
Invest in Property
“Millionaire” doesn’t just refer to the money in your bank account, it refers to your entire net worth. One of the most reliable long-term investments you can maintain is a home. It is also extremely versatile; you can live in it, rent it, or sell it when the value rises. One of the faster ways to become a millionaire is to rent out your properties. this way, every dime that the renter pays you is added to your net worth. It either goes into the equity you have in your home, or to your bank account if there is some rent money left over after mortgage and insurance payments. This is more of a long-term play, but it is a great place to start in your first 5 years.
Avoid Debt
Easily the most popular trap that bogs down the average American’s income is debt. Buying a new (or even new-to-you) car can leave you with a 5-year debt contract. Getting your education can often lead to six-figure debts that take decades to pay off. Spending on credit cards is another easy way to end up in debt, and the really fun high-interest kind.
Don’t buy cars you can’t pay cash for, don’t spend on credit cards if you don’t have the cash to cover the expenses, and do everything you can to earn scholarships and money during your education. All of these are difficult tasks, and the culture around you is going to tell you the complete opposite. Another thing the culture around you does is keep people payment-rich and cash-poor their entire lives. Don’t listen to the culture, listen to the numbers. the less money you have being taken out of your paycheck each month, the more you can invest.
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