Editor’s note: This article was first published in March 2016. It says ‘despite being 84’ of Warren Buffett, but he was born in August 1930 and was actually 85 at the time; the claim that he spends more than 80% of his working day reading is unsourced.
Becoming a millionaire by the age of 30 is possible. Very difficult, but possible. And I suppose cases like Facebook, Snapchat and so on will come to mind. It doesn’t matter how certain people managed it. They all have something in common: they were doing something, creating something. They were busy.
Some people will now be thinking that luck played an important part, but the truth is that luck, whether or not it exists, only comes to those who are calling for it.
To build wealth at an early age, we’ll draw on the advice of Grant Cardone, author of the bestseller Sell or Be Sold: How to Get Your Way in Business and in Life. After leaving university at 21, he managed to become a millionaire by 30, and that led him to study what people who become wealthy at a young age have in common.
Following this advice, which was compiled by Business Insider, won’t guarantee that you’ll become a millionaire within 10 years, but it will at least improve your chances of doing so.
What should you know in your 20s to be rich by 30?
1. Focus on earning more
The first step, whatever you do for a living, is to earn more money. Cardone says that most ordinary people have plenty of options for generating more income.
And the search for more income expands your mind, makes you look for opportunities and create new ones. We’ve shared 38 ideas for earning extra income, as well as some business ideas that may be interesting if this is your first venture.
(See: 5 questions to work out how you can earn some extra money)
2. Save money to invest, not just to save
(See: Saving money alone won’t lead you to financial success)
As we’ve said before, if we’re given the choice between saving and earning more money, let’s always choose to make more money, because people don’t get rich by saving but by making more money and, of course, saving it and investing it.
Once we’ve found ways to make more money, try to automate your savings and invest them, so you can be sure you won’t touch that money and that it will be generating a return for you.
3. Ask for help
Daniel Ally became a millionaire at 24, and he says: “At a certain point in my business, I couldn’t grow any more, so I hired some key people. Asking for help wasn’t my strong point, but I had to do something about it. Within months I had a lawyer, an editor, a coach, a part-time chef… It cost me a fortune at first, but it helped me break through the million-dollar barrier. Most people don’t ask for help because of their own ego.”
Steve Siebold, author of How Rich People Think, said the same thing. Asking for help goes beyond hiring key people. The rich aren’t afraid to fund their future using other people’s money. This is what Francisco Alcaide, author of Aprendiendo de los mejores (Learning from the best), called leverage.
4. Be decisive
You need to avoid decision fatigue, as well as analysis paralysis. Remember that a decision is measured by whether an action has been carried out. If there’s no action, it’s because you haven’t decided yet.
See also: 10 thoughts and quotes from Napoleon Hill, author of Think and Grow Rich
One of the habits that set the rich apart from everyone else is that they talk less and do more. They don’t say they’re going to do something. They simply do it. And they do it promptly, because sometimes the opportunity is now, and only now. People are afraid of failing, when not trying something is already a failure in itself.
5. Don’t try to show off
It can be tempting to try to show how well your business is doing or simply to pretend to be something you’re not: an expensive car, a luxury watch. Cardone says that even as a millionaire he kept driving a Toyota. He wanted to be known and admired for his work ethic, not for the things he bought.
Remember that keeping up appearances is usually expensive, and sometimes we use money we don’t have to try to look like something, when by using that money properly we could stop “appearing” and simply “be”.
6. Know when to take the right risks
Before you become rich, you’ll have to take many risks. And taking risks requires a lot of self-confidence. It’s something you have to do.
Of course, many people might take risk-taking to mean “acting crazy” and acting on impulse. And the truth is that even if we don’t know where taking a risk will lead us, we should at least draw up a plan. You can’t get rich without taking risks or with low expectations. Successful people think big and play to win.
In this sense, we need to become comfortable with uncertainty. And getting used to that uncertainty is what can make the difference between an ordinary life and a life full of success. This comfort with uncertainty was a recurring theme in the book Secrets of the Millionaire Mind.
7. Invest in yourself
Warren Buffett called this by far the most profitable investment, because the best asset you can invest in is yourself.
Read for at least 30 minutes a day, try to watch much less junk on TV and listen to more relevant podcasts, find mentors, and surround yourself with people who bring something positive to your life.
You don’t have to be a master or a guru in your field. Sometimes it’s enough to surround yourself with people who are masters in theirs. As Henry Ford put it (roughly): “I don’t have answers for everything and I don’t know everything, but in my company I have a button to call someone who can give me the answer I don’t know.”
Despite being 84, Warren Buffett says he spends more than 80% of his working day reading.
8. Learn soft skills
Many people train in certain complex areas, but some skills are badly neglected, such as people skills or how to deal with others, and controlling your emotions. It’s easier to be nice, yet many people choose to behave like jerks. As billionaire Mark Cuban says, “people would rather deal with people who are nice than with jerks. Don’t be a jerk.”
Learn to cooperate with others. For Daniel Ally, the most important attribute for succeeding in business is dealing with people. And the truth is that you’d be surprised at what you can get from people if you treat them well. You also need to be prepared to handle situations such as an employee betraying you or a friend turning into an enemy. Sometimes this happens at the most unpredictable moments, and we can’t fall apart when it does.
Further reading
- The world’s most successful people have these 7 things in common
- 24 things you can do in your 20s and 30s that will improve your life in your 40s and 50s
Featured image: Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 4.0, via Wikimedia Commons.
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