“If I get a million dollars, these are the thing that I would do…”
to be honest, I’ve thought about this statement far too many times and there’s a very good chance that you have done it at least once.
So does the majority of people in the world!
But out of that majority, there is a remarkable number of people who are so accustomed to their current lifestyle that they rarely put any effort into building wealth and often brush off the idea that it is very much attainable.
They constantly fantasize about wealth but also have accepted the fact that it is a far-fetched dream. As a result, they don’t educate themselves in terms of financial literacy to make the necessary moves.
Here’s the thing, you don’t have to be extremely lucky or to have money inherited to you in order to be wealthy.
67.7% of all the millionaires in the world are self-made, according to CNBC. While 23.7% had an inherited/ self-created wealth combo, Only 8.5% of all millionaires actually inherited their wealth.
So you can see that, you have a very fair chance of getting that millionaire status.
Whether you’re 16, 18, or 21, you’re never too young to make money. The concept of making money only after a certain age or only after getting that “perfect job” is complete BS.
For example: There’s an 8-year-old who makes over $26 million on YouTube (Ryan’s ToysReview). AN 8-YEAR-OLD!
You just have to get out of the mindset of, “When I’ll be older, I’ll have a big mansion, a few supercars and that 1% wealth status“, because just having that mindset leads you nowhere.
Unless you actually put in the work early on, you’re heading the same destination as the rest of the 99%.
Which is why, in this article, I’ve discussed about the checkboxes you need to cross in order to build wealth, all of which have I’ve followed myself and will be following for a very long time.
This post contains affiliate links, please read Disclaimer for more info.
Here are 6 Money Moves you can make to get rich fast in your 20s:
1. Avoid Instant Gratification
Being in your late teens or in your 20s is both stressful and overwhelming. There is a lot happening in your life at once which you have never dealt with before. Zillions of big life decisions are to be made.
For example, you might be weighing your career options, planning to move out of your parent’s house, trying to score a reliable income stream, buying your own house, or maybe planning to get married.
But in order to get where you want to be in life and achieve the things you wish to have, the only thing you have to give up is “Instant Gratification”.
Let me give you an example understanding this concept better:
In the 1960s, Standford professor Walter Mischel conducted a few psychological experiments (The Marshmallow experiment) on children of ages around 4 to 5 years old.
In this experiment, the researcher put a single marshmallow in front of a child and gave them a choice.
The condition was, the researcher will leave the room for 15 minutes, and in that time if the child resists the temptation to eat the marshmallow, the researcher will offer them a second marshmallow.
But if the child eats it before the researcher arrives, no second marshmallow.
The rules were simple: One delicious treat now or two delicious treats later.
The experiment began and every child was monitored through a camera feed. Some gave in early, some later and a few manage to resist their urge to eat the marshmallow throughout the given time frame.
The interesting part of this experiment came into light years later, when these children grew up!
The children who were willing to delay instant gratification and eventually got their second marshmallow were the only ones in the group who turned out to be more successful than the rest.
They got higher SAT scores, had lower levels of substance abuse tendencies, made more money, and were more prosperous in general.
What does this experiment tell you?
It insinuates that those who are disciplined enough to resist their urge for instant gratification and play the long game, get what they want in life.
This is the power of delayed gratification.
- If you stop streaming Netflix and work on your goals now, you’ll be successful
- If you stop eating junk and start taking care of your body, you’ll be fit and healthy
- If you stop wasting your time and use that time towards your work, you’ll get ahead in life
At this point, I think everyone is aware of the above statements, yet when it comes to action, they press snooze!
So, the next time you’re in the position to make a decision about doing what’s beneficial for the long run or an instant “feel good” activity, always (I mean, ALWAYS) choose that one that DOES NOT PROMOTE INSTANT GRATIFICATION.
2. Your Social Life? Yeah, it can wait!
Look, I get it! Close friends are important, having a social life keeps you happy and sane. It feels good to have those few people you can hang out with all the time.
But little by little (without you even realizing), the habit of constantly hanging out with friends is costing you.
The money you’re spending while going out, on movies, clubs or fast food. It can burn a hole in your pocket dramatically.
And that’s not even the most valuable thing you’re losing.
You’re also losing your TIME, which is quite precious at this moment.
As I’ve already mentioned before, this stage in your life is overflowing with big life decisions. And trust me, your time will be a better investment if you put it in things that help you to advance in life.
Have you ever reflected upon the fact that, are you making time out of our busy social life to work on your goals OR you see your friends after you’ve worked on your own dreams?
While both seem like the two sides of the same coin, one can accelerate your wealth and the other can delay it indefinitely.
Won’t this make me lonely?
It might at times, but you have to understand that the value you gaining from this isolation supersedes the thing you losing temporarily.
3. Build One Sustainable Revenue Stream
Preferably a small scale business.
While I was in college pursuing Engineering, I was eager to build at least one revenue stream so that I would have something before graduation, because I no longer wanted to be in the corporate world
I had completely lost interest in engineering IT and coding towards the end. I didn’t want to be in that field anymore.
And the direction I was moving in at that time, that’s exactly where I would have been if I didn’t have my ticket out.
Luckily, I came to know about blogging a while back, and now fast forward two years, I make a full-time income from running the very blog you’re reading. I even made $5266 last month through this blog.
And I am hoping *fingers crossed* to cross the $10k/month threshold by the end of 2020. You can learn about how to start your own blog on this page.
That is the importance of building a side hustle!
Having a job might be great, it might give you income security and some sort of insurance benefits or whatnot. But there’s one thing a job can’t give you, a big fat income opportunity!
Sure there are certain professions that are highly lucrative such as top surgeons, high profile lawyers, etc, but nothing comes without years of hard work and dedication. And it can easily take you 10 to 25 years to reach that standard.
If you have a dream job title that you’re are really passionate about, I say go for it. If passion is being fulfilled doing what you love, income doesn’t need to be crazy high.
But if you have wealth in mind, I would suggest you skip the “getting a job” part. Or if you already have a job, I would advise you to make build a side hustle that you can depend upon.
And yes, that means sacrificing your free/leisure time to build that from ground up.
This way you can afford to leave your job at your own convenience and thus use that time to further grow your business.
And when it comes to starting a side hustle, you might have to keep trying different gigs until something clicks with you. Don’t just stop trying if one business fails to take off.
Blogging wasn’t the first thing that I tried and, first I dipped my toes on YouTube, then Instagram marketing, I even tried eCommerce as well. This website too isn’t the first blog where I poured my time and effort.
Had I just stopped trying after the first fail, maybe I would’ve been sitting in an IT job right now, counting the number of days till the weekend comes again.
Here are a few ideas on building a side hustle:
- How to start a blog (and make money)
- How to build a Dropshipping store that makes crazy money
- How to get started with a YouTube channel
4. Now Increase That Number
Anyone can agree that having multiple sources of income can boost your earnings significantly.
Researchers have even pinpointed a statistic that: Millionaires, on average, have not just one, but seven streams of income.
Sounds like a lot, doesn’t it?
It is, but once you get the hang of building one or two income streams, building the rest will be like falling dominos.
But “Seven” isn’t some set-on-stone magical threshold number you need to hit to get into the one percent status. It just points to the fact that having multiple streams of good income can drastically improve your chances of getting rich.
Which is why, it is kind of a necessity to build multiple sources of income.
The idea here is simple: Increase your likelihood to get rich and make additional income at the same time.
But Disclaimer! Disclaimer! I wouldn’t advise you to start more than one side hustle at once, because chasing two rabbits at once gets you none.
Start with just one, focus only on that until it becomes sustainable enough to financially support you. Then maybe you can shift your focus a little on building new streams while still working on your major income source.
Moreover, the money you’ll be making from your first stream can fund your next income ventures or investments.
5. Save to Invest
As a part of the youngest generation in the context of “those who are making money”, you still might have an impressionable mind and hence you might be influenced by certain high-end brands, people, or celebrities into buying things that might seem new, cool or trendy.
“Holy Sh*t, the new iPhone has just released, I have to get it even if my current one is working perfectly fine.”
Never fall for such temptations which will only burn a hole in your pocket. Moreover, all this constant and unnecessary spending will only fuel your impulse spending habits.
Instead, cultivate a habit to save that money and carefully invest it!
The money that you’ll be saving will be worth more in the future if you just invest it instead of spending it. This way, you’ll be able to fast-track your way to wealth.
But Investing? So soon? Aren’t I a little young for this?
Maybe, but get this…
If you saved $250 every month with an 8% annual investment return from age 35 till 65, in the end, you’ll have almost $375,073 in your account.
Years it took = 30
Now if you’ve started this whole thing 10 years earlier, at age 25, you would have ended up with around $878,570
Years it took = 40
You can see that increasing the time by just a factor of 1/4, the final amount increased by more than a double.
This indicates to the point that, the longer you wait to start saving and investing, the more you’ll miss out on compound interest, and the lesser money you’ll end up with.
This is why you need to save and invest as soon as possible!
To give you a little example, I’ve invested over $10,000 in stocks such as Tesla, Apple, and few other ones which, according to the ongoing trend, may increase (hopefully) 4x to 5x in the next 5 to 6 years.
I am investigating through a trading app “Webull“, which you sign up now and after depositing $100 for trading, you may get a free stock worth up to $1600.
P.S.- That $100 you just deposited, it is still yours to buy more stocks
So was is an example of how you can save and invest your money (that’ll make you more money in the future) instead of buying useless, trendy, and overhyped stuff!
$1000 invested in Apple stocks is always smart move than getting a new iPhone just because it has just released!
6. Be in a “Growth mindset ” Environment
Have you heard of the statement that goes “You become the average of people you hang out with the most“.
Regardless how ridiculous that might sound, it has some truth to it.
You subconsciously pick up personality traits and characteristics of the people you interact with or look up to.
If the people you spend most of your time with are the ones who are always complaining about everything, are lazy, who put little to no effort into advancing their own life or who have pretty much a negative perspective towards life, etc.
Chances are, you’re heading the same direction, my friend, whether you like it or not.
And whether it’s 5 years from now or 25, you WILL NOT be able to achieve the thing you want in life, whether it is high income, premium cars, or any financial freedom for that matter.
Unless you put yourself in a growth environment, it’ll be very veeeeery hard for you to get started on your journey to better yourself and increase the chance of you being rich.
In order to handle the above situation, all you have to do is put up a FILTER.
Filter out everything that isn’t helping you towards your goals. Filter out the people who do not have a Growth mentality and engage more with people who do. It’s that simple.
Hang out with people who are driven to achieve their goals, people who are not complaining, and people who are actually putting the effort. That’s the kind of people you need to hang with.
What if I do not have people with “growth mindset” in my life?
You have access to the internet right? Follow, save, subscribe to the profiles and accounts on Instagram, YouTube who preach about growth, and are thriving in what they do.
Listen to what they have to say, read their caption, leave insightful comments, watch videos about the top dogs of your field of interest, learn from them, get inspired to work towards your goal.
Just following the right people on a daily basis can benefit you in ways unimaginable. Here are some of the golden-grade YouTube channels where you can find motivational and knowledge-packed content to watch:
Few final words…
Getting rich will not seem a far-fetched fantasy if you just somehow start seeing significant results, and the only way to ensure results is by putting in the consistent effort. “Consistent” being the keyword here!
So start putting the *consistent* work and effort needed and make the best use of your time, energy, and money into building something that your future self will be grateful for. Good luck!