There’s not a student alive who hasn’t dreamed about having a bottomless bank account. Here’s how you can increase your chances of becoming a millionaire!
While we’ve all dreamt of countless jaunts to far-away destinations and splashing the cash on the luxuries we’ve always wanted, chances are you’re resigned to this never becoming more than a daydream.
But becoming a millionaire isn’t really as difficult and unachievable as you might think. Lots of people prove each and every year that you don’t have to be a banker, lottery winner or be born with a silver spoon in your mouth to build up your wealth to seven figures.
So, here’s our ultimate guide to getting your hands on that million by 30. Let’s get rich!
####Get on the property ladder:—
When renting a property, it’s easy to feel like you’re throwing cash down the drain every month. Of course, there are lots of benefits to renting – but by this point, you should be a little more settled both financially and in terms of where you want to live long-term.
Why continue filling a landlord’s pockets with your hard-earned cash when you could be paying monthly towards your own place?
You may be quite happy living with your parents for a few years after you graduate (even if they’re not over the moon about it!) and building up your cash reserves, but once you’ve gathered enough to foot a deposit (the minimum is usually 5% of a property value), it’s time to start house hunting!
***What are the benefits of buying a property?
Once you’ve bought your own house or flat, you’ll probably be paying much less every month in mortgage repayments than you had been forking out on rent, and you actually have a place of your very own at the end of it.
Historically, property prices follow a strong upward trend so you really are investing in your future. If you’re in a good financial position, then considering a buy-to-let investment is the next step to financial freedom.
So long as you can get the initial deposit down, and get a good mortgage deal which is less than the rental income, you’re on the fast track to being rather rich.
Again, you’re also likely to benefit from a rise in overall property prices meaning you can bring in big bucks by selling at the peak of the market and buying at the bottom. Of course, there is the whole issue of getting a deposit together, and that’s a lot easier said than done.
But going back to those budgeting skills you honed as a student, you can put a plan in place to save up the necessary amount. You’d typically be looking at needing 10% of the property value.
###Invest in stock markets using index-trackers:—
If you’re not familiar with the stock market, it can all seem a little bit daunting. Index-tracker funds are really straightforward and, more to the point, consistently beat the vast majority of actively-managed hedge funds over the long term.
In simple terms, these funds are a collective investment that follows the movements of a whole financial market (e.g. the FTSE 100).
***6 advantages of index-tracker investments:-
• Very low-cost (automated trading does away with expensive traders)
• Require little market knowledge
• Removes emotion and need to pick the right stocks
• Easy to manage online
• Can be held in a Stocks and Shares ISA for tax-free returns
• Maximises the magic of compound interest (where interest is made on interest)
This sort of investment works best when it’s given several years to appreciate and mature, so think of it as a long-term venture rather than a get-rich-quick scheme.
###Get to grips with your pension:—
Retirement might seem like a long way off yet, but sorting out a pension fund before you hit 30 is a very wise move.
The benefits of pensions in growing your wealth are on a par with index-tracker investments. Even a modest amount put into a pension fund now can make a big difference in the future.
As with many of the other tips on this page, the key thing is to grow your knowledge of these major types of investment products available to you. If you’re employed you may receive a workplace pension. If so, ask for details about the provider, as you’re free to opt for a better or cheaper plan elsewhere.
Courtesy:—- Save The Student