Who wants to be a millionaire by the age of 40?
No, we’re not talking about the popular TV game show, but the strategies that you can begin to implement in your twenties to reach a net worth of $1 million by the time you turn “over the hill.” It takes work, discipline, diversification of assets and, of course, a little bit of good fortune as well. Inspired by the stories of many Millennials on the verge of hitting that $1 million net worth mark by age 40, we’ve compiled some of the top money habits that they’ve administered in this space. Even if you’re over 40, these tips are still good to know and establish. Here’s a look:
1. Save and Invest Together
Even in times of economic uncertainty, it makes sense to both save and invest. Unfortunately, many young professionals opt for either one or the other – and usually it’s saving for things like a home, car or certain lifestyle amenities. Financial experts advise taking advantage of 401K savings plans the instant that you’re able to, especially if there’s an employer match associated with them. Don’t sacrifice investing for savings – try to do both. Additionally, make sure to increase what you allocate to each as you earn more money throughout your career.
2. Don’t Be Afraid to Chase Higher Paying Jobs that Can Help Realize Financial Goals
Early in your career, you should be more apt to exploring opportunities that make sense for you both personally and professionally. In other words, if your current position isn’t allowing you to meet your financial goals and you don’t foresee a promotion any time soon, begin searching for one that will. Budgeting alone won’t likely be enough to meet financial goals. And with seemingly every industry in need of workers amid a labor shortage, now could be the ideal time to look for a new, better opportunity.
3. Check Your Report
Your credit report, that is. It’s estimated that up to a quarter of all credit reports have some sort of error in them, and depending on that error, it could impact your score to the point that you’re not able to secure a good interest rate on a loan or be approved for the loan altogether. Check your report at least on an annual basis and immediately file a dispute report with the three major credit bureaus if you see any inconsistencies.
4. Don’t Be Afraid to Ask for Help
If you’re serious about meeting your financial goals, consider hiring a financial advisor to help you. Financial advisors can do more than just help you build wealth, but also play a key role in money management during life milestones. While many people may not want to pay someone else to help them with wealth management, the investment can pay for itself in the long run.