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 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 money down the drain every month. Of course, there are numerous advantages to renting, but by this point, you should be more settled both financially and in terms of where you want to live long-term.
Why keep giving your hard-earned money to a landlord when you could put that money toward buying 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’s value), it’s time to start house hunting!
What are the advantages of purchasing a home?
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’ll actually have a place of your very own at the end of it.
Property prices have historically followed a strong upward trend, so you are truly 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 that’s less than the rental income, you’re on the fast track to being rather rich.
Again, you’re likely to benefit from an increase in overall property prices, which means you can make a lot of money 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 easy to understand and, more importantly, outperform 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). 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. Pensions have the same wealth-building benefits as 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 work, you may be eligible for 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