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10 Ways To Become a Millionaire by Age 30

10 Ways To Become a Millionaire by Age 30

It may seem like an impossible goal to be a millionaire at any stage of your life. However, that isn’t true. The earlier you start making smart financial decisions, the more likely you are destined to being a part of the millionaires club later in life. However, we are in an age where simply storing money away doesn’t garner more in the future. You have to employ a combination of methods that not only set aside money you contribute, but also compounds it with interest. Today, we will talk about ten ways you can grow your net worth for a more stable future.

If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake.”

– Bill Gates

Increase Your Income

The first step to becoming a millionaire is having the capital to fund your investments that will compound your money. To get this money, legally, you’ll need a stable job. You should work to always make yourself marketable as a way of not only maintaining your current job, but moving up the ladder to a better position or company. If you are in the technology sector, consider to stay on top of tech news and improvements. Even if you are outside of the tech industry, learning a few technical skills can improve your income. Always focus on increasing your income, even if you are currently comfortable.

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Live Frugally

You may feel that individuals who are millionaires are the ones who drive flashy cars and own the latest gadgets. That isn’t true in most cases, and shouldn’t be in your case if you are looking to work your way to millionaire status. To maintain your income’s growth, this is the time when you have to seek out the clearance rack or sales. Never accept retail price, it simply isn’t worth it. This is the case in grocery stores, shopping malls, the internet, or even club/gym memberships.

Plan to Invest

You may feel that your piggy bank of savings is smart saving. However, it truly isn’t. All you are doing is have your money sit there unproductively. It isn’t gaining interest. This is the case even for many standard savings accounts. Simply having a savings account isn’t enough, but it is a good start.

When saving it is important to remember to save to invest, not save to save. Look into ways in which you can get started creating a portfolio of investments for yourself. Etrade is a great start that is easy to navigate. Acorns is also an up-and-coming option that makes diversified investing more approachable for the common individual.

Shed Unproductive Debt

There is no such thing as good debt. Even “good debt” as some coin it is still money that you don’t have easy access to and doesn’t have the 100% guarantee is materializing into a profit later on (a house, for example). However, there are examples of productive and unproductive debt as I will coin it. Productive debt can be a credit card. Yes, every time you swipe a credit card, you are creating debt because it doesn’t get paid off until you pay your statement.

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However, if you spend within your means or only on certain expenses, many credit cards come with reward dollars or cash-back. This is the credit card (one, not multiple), that you should seek. It’s technically free money ($6 back on $200 of groceries, for example). These reward and cash-back dollars add up and can result in savings. Below is a list of three great cash-back credit cards:

Manage Your Money

The only way to grow your money is to know where it all is and where it’s going out. Download the Mint application for your smartphone. This will allow you to stay on top of your (almost) total net worth from your bank accounts, credit cards, and investments. While not all financial services and institutions are supported yet, it gives you a detailed look at the financial aspects of your daily life. Set up isn’t very lengthy and once set up, it updates automatically whenever you open the application. Having a holistic look at your finances makes savings easier and even offers an incentive to save.

Follow the 50/20/30 Budget

Once you get your pay check, every cent of your money should be earmarked or you’ll find yourself spending like crazy. You may feel it’s daunting to have to spend every cent of your pay check each month. However, to spend in this case isn’t to hit the stores. Instead, allocating is a better term. With the 50/20/30 budget created by Elizabeth Warren, 50 percent of your income goes to the essentials (groceries, rent, essential utilities), 20 percent goes to savings (savings account, portfolio additions, Roth IRA contributions etc), and the remaining 30 percent goes to what is considered “lifestyle choices). This includes restaurants, your cell phone, clothing, etc. Below, we have an example for a individual earning $51,000 a year:

Base Salary – $51,000

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After Taxes (25%) – $38,250

  • Essentials (50%) – $1593.75/month
    • Utilities – $80
    • Groceries – $250
    • Gas – $80
    • Rent – $1000
  • Savings (20%) – $637.50/month
  • Savings Account – $300
  • Loan Repayments – $200
  • IRA/Portfolio Fund – $100
  • Discretionary Spending (30%) – $956.25/month

Grab the Free Money

It is amazing how much free money is ignored by individuals. One of the most common ignored sources of free money are programs offered through your employer. Some can be in the form of student loan payment assistance. For other employers, there is the option of a 401K contribution match.

For example, if you contribute X amount each month, your employer will match the contribution either by 100 percent or even at least 50 percent. While usually to a certain limit, around $6000, that’s six thousand dollars you didn’t have before and wouldn’t have had if you didn’t ask. Make sure you stay informed on these options, not just before getting hired, but also periodically. Many times, such programs can be added later on.

Keep Accounts Manageable

As we mentioned before, managing your accounts through services like Mint is smart. However, having a ton of multiple accounts and cards can not only be confusing, it could hinder you from becoming a millionaire sooner. While diversifying income streams is great, outgoing streams should be kept as simple as possible. Multiple credit cards can mean having to keep up with multiple due dates, and in many cases, multiple credit pulls. Along with possible monthly or yearly fees, these multiple outgoing streams can even encourage you to spend more than you intend.

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Save for the Right Reasons

Just as we mentioned before, to save for investments, it is also important to ensure that you saving in multiple departments with a goal in mind. While you savings and investment accounts are multiplying with the goal of becoming a millionaire by 30, you day-to-day savings should have a reason as well. You may remember the multiple times you encounter a sell on shoes and because it is 25 percent off last week’s price, you feel that you are making a good economic decision by buying this sale item.

Not exactly! Those shoes aren’t something you necessarily need, and the $X you spend on your shoes is still an outgoing expense that could be saved or utilized elsewhere. While enjoying that 30 percent of your 50/20/30 budget is important, it’s still important to bargain hunt with a purpose. Gain satisfaction through the deals you gain on bills, groceries, and household necessities, not clothing or other expenses that wouldn’t have been in your scope of attention before the sale appeared.

Be Committed

In the end, you have to be committed to this goal. It is a long-term goal that will continue to go on well after you make your first $1 Million. It’s important to not live with the hope of dying with $1 Million net worth, but to have a $10 Million or even $15 Million net worth.

Aiming high ($10 Million) makes still exceptional goals ($1 Million) more possible. Having an individual (a family member or friend) who you can attest is doing well financially can be a great way to ensure you are on the right track. Everything they say can’t be taken word-for-word, everyone’s economic situation is subjective. But having them as a role model will ensure that you aren’t in this alone.

Let us know in the comments below which way to $1,000,000 by 30 is easy for you to take on today.

Featured photo credit: Wallpapers AX via wallpapersax.com

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Published on January 17, 2020

How to Eat Healthy on a Budget (The Definitive Guide)

How to Eat Healthy on a Budget (The Definitive Guide)

Have you ever looked at health gurus and wondered how on earth they can afford all that health food? Or maybe you’ve tried multiple times to start eating healthy only to find the $600 monthly budget overwhelming?

If you’re anything like me, you know exactly what I’m talking about! I absolutely understand the sinking feeling of looking back over a grocery budget and finding you went way over what you intended. And besides that, it can be hard to justify buying a tiny $5 bag of carrot chips while a $1 mound of potato chips is sitting right next door.

My husband and I recently ran into that struggle. We got married this past year and soon found ourselves trying to balance 12 hour work-days with keeping our relationship strong and trying to keep our personal businesses afloat. Granted, our budget was the one thing that took a hit! After we started tracking our spending, we were shocked to see we were spending over $1000 a month just on food! A little planning cleared that right up.

So, how to eat healthy on a budget?

Here’re the top tips I learned that helped us shave over $600 monthly off of our food budget so we could reinvest that in the areas that really mattered to us![1]

1. Meal Plan

You’ve probably heard the saying “Fail to Plan, Plan to Fail” right? Well, this saying couldn’t be any more true than in the area of healthy budgeting! The fact is, most healthy foods don’t actually cost that much… the pre-made time saving ones do!

If you go about creating a healthy meal plan within your budget, you could easily cut costs down to around the same price you are paying for junk food.

Meal planning is as simple as working in foods you already have in your fridge/freezer, adding in several meals with simple ingredients and seasonal veggies, and breaking it down into a shopping list.

Often, finding a few meals to make in big batches will save you the most money in the long run, which leads me to my next point.

2. Cook in Bulk

Not only will cooking in bulk save you a whole lot of time, it will save you a whole lot of money too! Believe it or not, if you find meals to make with similar ingredients, you can easily save more money than when you were eating unhealthy.

Don’t believe me? Just look at a $4 frozen pasta dinner. Now, sub that with a veggie pasta dinner. 5 zuchinni ($3), Pasta sauce ($2.50), and chicken ($5) could last you a full 5 meals which adds up to a whopping total of just over $1 per meal!

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That’s not even digging in to all the money you will save from fast-food. Trust me, a little $10 spent here and there add up! You’ll be saving a whopping amount from all the meal prep you will do!

3. Cook all Your Meals in One Day

The science behind this is 2-fold.

Number one, if you have lots of meals to grab and go, you will be far less likely to binge on pricier food when you get hungry. Let’s be real, you’re not going to spend 1 hour cooking when hub-n’-grub is at your bekon-call!

Number 2, meal prepping ahead of time will help you stick to your meal plan better when you’re not in the mood. Let’s face it, we’re all going to have days when protein and veggies doesn’t exactly sound appealing. But, if you have a full meal that’s quick to grab in the fridge, it will be easier for you to fill up on the good stuff rather than spending money on what you don’t really need.

4. Cut Back on Snacks and Specialty Items

I can almost hear you from across the screen. “But, I thought snacks were good for me!” Here’s the deal: Snacks are expensive! And healthy snacks, oh my goodness, say goodbye to your paycheck!

Look, I’m definitely not saying that healthy snacks are bad. Quite frankly, I would much rather you chow down on Halo Top than a triple-butterfinger-fudge sundae. It’s just that… healthy snacks are why eating healthy gets a bad rap for being expensive.

Look at it this way: You could either buy a week’s worth of groceries full of chicken, fish, beans, veggies, and fruits for $30. Or, you can spend that $30 on six snacks that will leave you hungry for more.

What’s more, the ingredients for gluten-free baked goods, sugar free substitutes, or protein powders alone will add up to you eating a full week’s budget in one sitting. By all means, if you want to work some yummy items into your budget, do it! But don’t confuse that extra monthly $300 of delicacies as a necessity. Your body and budget will thank you!

5. Satisfy Yourself with Your Favorite Subs

We all have an emotional tie to food. Maybe pasta reminds you of home! Or maybe a fresh-baked pizza is what gives you a feeling of comfort. Whatever you favorite food, find a way to work it into your budget in the best way.

We’re only human, and depriving ourselves of what we love will never end well. More often than not actually, it ends in take-out or a pricey-premade substitute.

Instead of finding yourself in this situation, find a way to make your favorite foods fit your budget. Zuchinni noodle pasta might just give you that feeling of home without breaking the bank. Or maybe you could google a healthy pizza alternative you would like that you could make at home. Often, something similar to your craving will be enough to give you a sense of satisfaction.

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Or, just buy your cheat meal and save it for a special day. That’s okay too!

6. Stick to the Cheaper Proteins

Okay, I know we all love steak. Unfortunately, buying pre-cooked or expensive cuts of meat are one of the easiest ways to drain a budget.

Instead of purchasing those, try buying frozen chicken or eggs. A 5 lb bag of frozen chicken can be as cheap as $5, and you can buy a whole weeks worth of eggs for just over $1. You could even try going vegetarian for a few meals if you really want to cut down on costs!

7. Buy Frozen Fruits and Veggies

I know, we all love our fresh fruits and veggies! However, sometimes frozen might be the way to go if you’re looking to cut costs!

Fruits and veggies are easiest to ship when frozen, making them a much cheaper option. Contrary to popular belief, scientists have actually found that frozen might be better for you too![2]

The reason is, frozen produce is picked at its prime and shipped immediately. Fresh fruit tends to be picked much earlier so it will ripen while being shipped. Not only does this make it less nutrient dense, but sometimes the fruits are actually pumped with artificial flavors to make up for the lack of real nutrients.

While I’m all for fresh fruits and veggies, don’t feel guilty if you opt for frozen foods due to a budget.

8. Bump up the Calories with Rice and Beans

The problem some people find when trying to eat healthy is that it can be hard to get the amount of calories you need without relying on expensive “specialty” items. Instead of stocking up on pricey gluten-free breads and pasta, I say stick to simple rice and beans as the bulk of your meals.

Brown Rice is very cheap and easy to use as a base for bowls and dishes. Likewise, beans can add a bit of fiber making you feel full and satisfied without having to spend a lot of money.

If you are trying to cut on body fat, use extra veggies as the bulk of your meal and add in rice and beans as a filler.

9. Try Acai Bowls

Acai Bowls can be a really cheap and satisfying meal as long as you do it right.

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You can find cheap fruits at most stores or just freeze your fresh fruits before it goes bad.

Making your own granola can save you a lot of money as well. The total cost for this delicious meal should only add up to a few dollars compared to triple that price if you were to buy one pre-made.

10. Make Your Own Meal Kits

Do you like your meals freshly cooked? Sending meal kits to your doorstep is an easy way to drain your budget. Instead, try making your meal kit at home! Not only is it fun, you will easily get a delicious taste.

Simply find a few simple meal cards or print some out and fill a ziplock with the ingredients for each specific day. Don’t know what recipe to make? Another option is to order one month of meal kits and recycle the recipe into ingredients for the upcoming months with ingredients you picked up from the store.

11. Don’t Drink Your Calories

A few dollars spent here and there can really add up! Just as with specialty items, healthy drinks can be a blackhole for you. An energy drink and kombucha and coffee each day could easily have you spending and extra $300 each month!

I you really need a special drink fix, try making your favorites at home. Bring a coffee in, make kombucha, or even try making lemonade with stevia or a healthy soda. You’ll be surprised w hat a big difference such a small change can make on your budget!

12. Buy Cheap Online

Just like anything else, it pays to be prepared. Buying foods from online retailers can be a really affordable way to save money as long as you’re prepared.

Plan ahead for those more expensive specialty items you can’t live without. It will save you tons of money compared to having to buy food from a specialty store.

13. Don’t Fret about the Clean Fifteen

One of the huge things that can mess with a person’s budget is eating organic. For the record, I am 110% all for eating organic whenever you can. However, for some people, it can be hard to make organic food fit into a budget.

Instead of scratching healthy eating for a smaller budget, try to buy meat and the dirty dozen organic, and don’t go crazy about the rest. The clean fifteen are the fifteen safest foods to buy that aren’t organic! Meanwhile, the dirty dozen is the most worthwhile avoiding. According to Produce Retailer, these are the dirty dozens:[3]

  1. Strawberries
  2. Spinach
  3. Kale
  4. Nectarines
  5. Apples
  6. Grapes
  7. Peaches
  8. Cherries
  9. Pears
  10. Tomatoes
  11. Celery
  12. Potatoes

14. Pay Attention to Storage

Keeping the food you have is just as important as how much food is in the first place. Try to stay on top of how much produce you can actually use before it goes bad. It might not be a bad idea to pencil an extra shopping trip in the middle of the week to keep food fresh.

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Investing in good food storage containers could go a long way in saving you in the long run as well.

15. Freeze Food Before it Goes Bad

Instead of getting mad at yourself at the end of the week for all the wilted produce you need to throw out, try freezing it before you get to that point.

Most frozen veggies will taste delicious in stir fries and soups. You can freeze fruits to make sorbet or smoothies. Frozen greens can be chopped up and tossed into just about anything for a nutrient boost!

16. Consider Ditching Most Supplements and Powders

I have nothing against superfood powders and supplements. However, if your budget is tight, it can be hard to fit supplements and powders in.

Instead of adding in powders, add extra nutrients to you food. Add lots of greens and veggies to all your meals to meet your nutrient needs. If you need a specific supplement, you can find great deals online as well!

17. Use Budget App

There are so many great apps you can download for free. One of my current favorite is HoneyDue because you can track your budget easily with your spouse. There are many options available, just find the one that you’re most likely to use. The ones that download your spendings automatically are often the easiest and will give you a more accurate number.

My husband and I use the same app, but have a separate budget for each of our weekly food plan and for our additional snacks. Keeping things separate can often be helpful to know exactly where your money is going. Plus, it can help hold you accountable if you have a significant other you are sharing money with.

18. Use What you Have

Most people have unused protein powders lying around in their cabinets. Instead of letting that go to waste, work them into your meal plan. Protein powders can make amazing doughnuts, pastries, or pancakes!

19. Enjoy the Process!

Finding ways to enjoy your new lifestyle will be helpful in sticking to it long term. Find fun in seeing how much you can save each month. Make a competition with someone to see who can stick to the lowest budget and create something fun to do for the winner with some of the money saved! Blast some music in the kitchen while cooking your new recipes.

Budgeting and health doesn’t have to be a drag. Make it fun and you’ll enjoy your new lifestyle long-term!

Featured photo credit: kevin laminto via unsplash.com

Reference

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