Getting rich isn’t too far out of reach.
Sure, millennials and young people are riddled with bills. According to a survey from Wells Fargo, 42 percent of millennials are "overwhelmed" with their financial debt. And 47 percent of millennials are sending half of their paychecks to different forms of debt, such as medical, student loans, credit card or auto debt. So, yeah, there’s a lot of dark clouds looming.
But getting rich isn’t too far away, either. In fact, there are multiple practices that millennials and youngsters can get involved with in order to save up.
Here are 10 things young people can do to get rich now.
Invest young
Want to be a millionaire over time? Then William Bernstein’s plan that he outlined for Business Insider might be the right way to go about things.
The plan calls for young people to put 15 percent of their salary into a savings account — whether it be an IRA, 401(k) or taxable account — starting at 25 years old, he wrote for Business Insider. By spreading that money to three different kinds of funds, over time the money will accumulate and turn a milliennial into a millionaire.
“That's it; if you can follow this simple recipe throughout your working career, you will almost certainly beat out most professional investors,” Bernstein said to Business Insider. “More importantly, you'll likely accumulate enough savings to retire comfortably.”
Plan for retirement now
OK, you’ve heard the gloom and doom about how Americans will have to work longer and longer because of Social Security running out.
But this can give young people a certain advantage.
As Barbara Mlotek Whelehan of bankrate.com explained in a recent article, young people can start planning for retirement now and benefits will pop up in the long run. Whelehan explained a specific story where two young people decided to both plan for retirement on their own.
Once they met and started a relationship, they started planning together for retirement, which allowed their shared amount to grow, Whelehan wrote.
Focus on making that money
Aaron Pitman, an angel investor and a self-made millionaire, offered his thoughts on how to get rich in a Mashable article.
What was the secret to his success?
He wrote for Mashable that he spent many hours working and perfecting business plans. He didn’t go out partying or socializing. Rather, Pitman accepted he was young and inexperienced and worked hard to find his way towards greener pastures.
“I know it’s possible to become wealthy early in life if you have the drive, determination and ambition to succeed.”
Learn about money management
Learning about money can actually help you get more money.
Author Lesley Anne Scorgie from Calgary wrote the book “Well-Heeled The Smart Girl’s Guide to Getting Rich,” which is specifically for teaching women more about money and feeling more confident with their finances, according to The Star. By doing so, they can sidestep spending on impulse buys and save money for expenses later on down the road.
“Building richness isn’t about amassing a fortune,” Scorgie told The Star. “It’s about having the freedom and financial means to achieve your goals and dreams.”
Follow those who have come before
There are plenty of examples of youngsters who rose to the top of their industry and are now rolling in the dough.
MSN News published a list of millionaires now who were once just everyday Americans. People like Mark Zuckerberg, Michael Dell and Catherine Cook were all in their 20s when they started up projects that eventually led them to piles of cash.
“Each year, some Americans make their first million dollars before turning 25, including a few who are still in high school,” MSN News reported. “Among the traits they have in common are vision, smarts and determination. A little luck never hurts.”
Take some risks
No one got anywhere without taking a risk.
Jim Cramer of “Mad Money” fame told CNBC that risks are a big part of getting rich — especially when it comes to the stock market and deciding what to invest in.
But there’s more to taking risks than just putting a few dollars down on some shares of stock.
The Huffington Post’s Julie Zeilinger wrote about how risk-taking can lead to success in life. She wrote that some of the best opportunities come to those who take a risk. And people also learn from risks. If the risk fails, then people will have at least learned their lesson and will do better next time around, Zeilinger wrote.
Inspire interest
We hear a lot about successful startups in Silicon Valley that are raking in the dollars for simple ideas and concepts.
According to The New Republic, this is actually a way to find success really easily.
Many young people who create startups aren’t necessarily geniuses who are pitching fantastic ideas that will revolutionize the world. Rather, young people are creating enough interest from investors, who will then gamble on the startups.
“Every successful startup is in some sense a confidence game. Any founder who told the literal truth about the frenzied ad-hockery of launching a company would scare away customers and investors and quickly be out of business,” wrote Noam Scheiber for The New Republic.
Follow the wikiHow plan
OK, so wikiHow published a plan for how young people can get rich.
The first step is to find a dream or career goal, get a job and save 25 percent of your income. Then, calculate your economic value by multiplying your income by 30, or basically how many years you have left in life on average, and throw your savings into a money market account.
See how Corey Wadden’s plan works out
Corey Wadden has a simple plan — earn $1 million in two years, retire and spend the rest of his life not worrying about finances.
Wadden is doing a number of things to try to earn the cash, including earning income from different businesses and then reinvesting it. He's also keeping track of his financial spending and earnings, which can help people understand their finances and help save a little more, according to Money Management.
If it works out, Wadden might be a good source for understanding how to get rich.
Find treasure in your basement
When was the last time you swept through your basement?
You might want to give it a try soon, since finding some buried treasure down there can get you some serious dough. Bloomberg Businessweek listed finding treasure in your business as one of the easiest ways to get rich. One family apparently discovered a copy of Action Comics No. 1 in their basement. It had an estimated worth of $250,000.
Now that’s money.
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