How to Earn Your First $1,000.000 As a Student: 5 OBVIOUS Things No One Ever Does

9 months ago

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We often hear stories about students who dropped out of high school to become CEOs of corporations. Previously, the Typical Student team told you about Matt Salsamendi in How Did 19 Y.O. High School Dropout Become Microsoft Mixer Co-Founder? In reality, not everyone is THAT lucky, still there are people who managed to earn their first million. How did they do it? See our tips to find out.

 

Create a roadmap for wealthy future

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It’s never too early to think about your future financial wellbeing. Chances of winning a huge amount of money in a lottery or getting an inheritance are quite slim, so you have to count a few steps ahead. This is why, creating a roadmap could help you set long-term goals regarding your wealth.

 

One of the secrets used by many successful people is visualization of their future achievements.  Basically, you’re aiming to become a wealthy person in your head before actually becoming rich, but don’t forget about saving money on your retirement account.

 

Developing Entrepreneurial Mindset

 

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In this day and age, graduates are free to choose if they want to work full-time or part-time. Having an entrepreneurial mindset is great for creating value and capitalizing on it. Still, working for an employer can have its own benefits if you know how to become indispensable.

 

This way, you will be able to generate a having a surplus of your income and build-up wealth as quickly as possible.

 

The Thrift of It All

 

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Make no mistake, thrifty doesn’t mean stingy. If you try living on less than you can actually afford, as well as making wise investments into your retirement account, chances of accumulating a million dollars are quite high.

 

According to U.S. World News & Report, if your start putting $400/month in your retirement account with a 7% annual return in your mid-20s, you'll save up over one million dollars by the time you reach your mid-60s.

 

Start Investing Early

 

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Making early investments will save you a LOT of money. Just a quick calculation demonstrates the drastic difference between the sums of money you have to put into your account. If you start investing in your mid-40s, the investment amount is going to be $2,000/month (instead of $400, as in the previous example).

  • Invest a minimum of 15% - 20% of your gross income.
  • Participate in a 401(k) or 403(b) retirement plan at work, an individual retirement account (IRA), or a retirement plan for the self-employed.

Eliminate Debts

 

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Being in the red is not good for your financial wellbeing, so you must use debt with caution.

  • Build an “emergency fund” of a few thousand dollars to ensure you’re ready for any unexpected expenses (car repairs, medical bills not covered by insurance).
  • Avoid using a credit card not to get stuck with huge interest charges increasing with a speed of light.
  • Ensure that you fully understand the terms and conditions of your student loan debt.
  • Look into all available repayment options.

Drawing the bottom line, becoming a millionaire before reaching your retirement is quite possible. All you need is a financial roadmap, learning how to create value, being thrifty, starting to invest in your retirement account in mid-20s, and avoid taking on debts after graduation.

 

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