I am just like any other Millennial; I’m a dreamer who so badly wants to succeed in life and business. I am just like everyone else, as I am striving to become a Millennial Millionaire one day (and hopefully sooner rather than later).
I have always saved well for retirement and I am lucky to have an employer who offers a great company match, plus a profit sharing plan. In the last few years I have begun partnering my strong retirement savings with frugal budgeting. I am now making more and spending way less than I did just a few years ago. I am trying hard to become a millionaire and be financially independent.
I recently was flipping back through my September issue of Money Magazine, specifically their well-written piece on “How to Reach $1 Million” and “Tap Your Inner Millionaire”. The obvious premise of both pieces is to save, budget, and invest your way to seven-figures.
Tap Your Inner Millionaire
I found a number of very telling statistics in this article that I wanted to share with my millennial readers. All of us Millennial’s have time on our side, so with prudent financial moves, becoming a millionaire is not that far off, nor is it that challenging.
78% of millionaires cite frugality as a reason for their success. So it may be time to reevaluate your spending habits and your budgeting practices.
What accounts for Millionaires’ success? 56% say it was saving early and often. 38% say it was controlling their spending. 38% also say it was smart investment decisions. And 26% attribute their success to earning a lot of money.
Challenging yourself with savings goals helps as well. Set feasible savings goals, like saving $X amount by X date. You can try saving $X more each month or paycheck to continue your savings momentum. You can try increasing your retirement savings by 1-2% each year. Just continue to increase your savings in small chunks and you’ll see a huge difference over time.
Millionaires have a tendency to to be more attentive about savings and financial decisions. Be sure to take this same measured approach to every nook and cranny of your budget.
The list of Millionaires’’ favorite stores to shop at is very telling, in my opinion. I would venture to guess most Millennial’s only shop at half of these stores. 50% shop at Amazon, 34% at Walmart, 32% at Home Depot, 31% at Kohl’s, 31% at Trader Joe’s, and 30% at Target.
One last tip is to drive your car for an extended period of time (the longer the better!). If you do decide to buy a vehicle, make sure you buy another driver’s loss, meaning buy one that is 3-5 years old. You can buy someone’s returned lease for significantly cheaper than a brand new car. A certified pre-owned 2013 Honda Accord LX sells for $15,750, versus $23,840 for the same 2016 model. That’s a huge difference and it will be cheaper to plate and insure. Now try driving it for at least 10 years so you don’t have a car payment for several years. You can use that money to invest instead.