Millennial Millionaires: Lessons from billionaires on how they got rich quick in their 30s Bill Gates (left), Warren Buffett (center), Mark Zuckerberg (right): The early success of billionaires like Zuckerberg and Gates is certainly not the norm. Warren Buffett’s goal as a kid was to become a millionaire by the time he was 30. And he did it. Dubai: Most billionaires had turned millionaires by their 30s, so when they are often asked how they built their wealth and got rich, their responses are largely along the same line – start saving young and in chunks!
If there’s a millionaire trade secret, it’s being relentless. While this article focuses on how to become a millionaire in your 30s, the truth is you can apply the same strategies at any time in your life.
Dubai prides itself of having more than 52,000 millionaires, 2,430 multi-millionaires and 10 billionaires. You can become one of them – and you can do it in just a few years of dedicated effort.
Becoming a young millionaire gives you plenty of time to enjoy the fruits of wealth, while opening up numerous avenues to build your wealth further, while classing up your lifestyle. Becoming a young millionaire gives you plenty of time to enjoy the fruits of wealth. As your wealth begins to grow, multiple new business or investment opportunities are at your disposal, which can eventually equip you to relocate to another country or maybe even enable you to retire early.
The point is, becoming a millionaire converts those possibilities to probabilities. If you become a millionaire in your 30s, you’ll have those options available to you for most of your life.
However, becoming a millionaire in your 30s is a tough ask. Here we take a look at what habits billionaires have practised when they were younger, to help turn this distant dream into a reality.
While it takes focus and discipline when it comes to saving to become a millionaire in your 30s, the reality is those who save limit it to some comfortable percentage of their income, like 10 per cent. A modest household’s income in the UAE is Dh100,000 per year. Tip #1: Save an uncomfortable amount of your income: Veteran investors are of the opinion that if you currently save only a comfortable 10 per cent of your income, aim 30 to 40 per cent higher.
This is the major reason for living well beneath your means. The more successful you are at that strategy, the easier it will be to commit an outsized percentage of your income to savings.
A modest household’s income in the UAE is Dh100,000 per year. If you save 30 per cent of your income, you’ll be putting Dh30,000 into savings each year, leaving you with Dh70,000 to live on.
This means a UAE-based family can set aside nearly Dh6,000 a-month. Even if it means taking more effort with today’s cost of living, there have been several instances where that has still proven possible.
A larger percentage should be allocated to savings with a higher income. If you earn Dh200,000 per year, saving 50 per cent would move Dh100,000 into savings.
If you can save Dh50,000 each year, and invest it at 7 per cent, you’ll cross the million-dirham threshold in 13 years. If you can save Dh50,000 each year, and invest it at 7 per cent, you’ll cross the million-dirham threshold in 13 years. Tip #2: Debt is a detour on the road to becoming a millionaire: Billionaires often recommend against keeping debt when saving to be a millionaire young. However, realistically speaking, that is not the case.
This is a real variable, since people have different levels of debt. For one individual or couple, it may mean paying off a couple of credit cards. For another, it may be a car loan and multiple credit card debt.
So while saving to be a millionaire when you’re young and debt-free is comparatively easier, if multiple loans hold you back, there are still options – even if it may mean pushing back your plan a few years.
In such a circumstance, financial planners suggest that it’s wise to focus on setting aside a large chunk of your income to pay off your loans, and work towards becoming debt-free in the next few years.
While you can keep saving on the side, saving after you’re debt-free will minimise unnecessary money going towards your debts’ interest payments, and keep you focused on amassing savings on zero-debt. Billionaires often recommend against keeping debt when saving to be a millionaire young. One of […]
source UAE: Looking to be a millionaire? 4 tips on how billionaires grew wealth quickly
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