Youth has its advantages and one of the biggest rewards is
a powerful force that will almost ensure you become a young
millionaire. There are simple steps you can take, when
your young, that will help you harness the power of this
force; making becoming a millionaire a breeze.
Just by following a consistent investment plan you could be
enjoying the freedom that comes with being a young
millionaire. A simple investment, in the overall stock
market, could help you to retire young. Consider these
examples:
- $149 invested each month starting when your 18 years old
could make you a young millionaire at age 52.
- $687 invested each month starting when your 18 years old
could make you a young millionaire at age 40.
Financially educated youth have tremendous advantages that
average young adults don't have. Just by being aware that
you can retire young with a simple investment strategy is
enough to encourage some to take the necessary steps to
reach young millionaire status.
Becoming a young millionaire is easy when you start young
because you have the power of 'compounding interest' on
your side. Compounding interest is defined as the interest
earned from the initial money you personally invested plus
the interest earned from the amount your investments have
already returned. To clarify, the money that you already
made from your investments starts to earn you money. So,
year after year, you're making money off money you already
made.
By starting to invest young you are able to fully harness
the power of compounding interest. Because you're making
money (earning a return) on what your investments have
already paid you, the younger you start the faster and
larger your investment account may grow. That's why
investing young gives you a huge advantage.
1) Savings. The first step on the road to becoming a young
millionaire is to set up a simple savings plan. Pay
yourself first by setting money aside into an investment
before you start spending your paycheck. Getting in the
habit of paying yourself first will benefit you your entire
life and will help you retire young.
2) Invest young. Don't get caught up in thinking
'investing' is hard; it's actually easy. There are simple
investments, available to the inexperienced, that will get
you started investing young.
The stock market offers some investment vehicles that are
lower-risk while offering the potential for long-term
gains. One type of investment vehicle is known as broad
based market index investments. These are investments in
the overall market like the S&P 500 and NASDQ 100. For
example, you can invest in all 500 stocks of the S&P 500
with one simple investment index investment vehicle. The
S&P 500 index is one way for the non-professional investor,
that doesn't have a lot of knowledge or time, to profit
from the stock market.
3) Consistency. Simplicity equals consistency; and
consistency is a major factor in becoming a young
millionaire. Choosing a simple investment vehicle is the
first step. Next it's simple a matter of modifying your
investment account so your make consistent investments
automatically.
There is a basic investment technique called 'dollar cost
averaging'. You can set up your dollar cost averaging plan
so that it will automatically invest a set amount of money
at a set time each month. The best part is that once this
structure is set up you can sit back and just review your
monthly statements. With a consistent investment plan you
could reap huge profits over a long-term.
4) Multiply your money. The basic stock investment method
mentioned above will get your money working for you
immediately. If your looking to retire young and a become
a young millionaire even faster, there are ways you can
supercharge your returns. Learn about the investment
vehicles discussed below and you will be able to afford the
things you want sooner and achieve wealth at a faster pace.
A. Real estate. Real estate investments can be credited
with making the majority of young millionaires. It gives
you the power of leverage so you are making money of money
the bank loaned you. When done right you could expect to
double your investment each year! Just by purchasing real
estate while you're young could easily make you a young
millionaire.
B. Entrepreneurship. It's never been an easier time in
history to start a business. Plus now day's you can have a
global company with small initial investment. When you
start a business you are not only making money from the
business but more importantly you are building something of
value that can be sold.
You could start a business that earns you an extra few
hundred a month or one that is your entire source of
income. Either way it can help to secure your financial
future plus give you greater cash flow now. What's more,
there are tax benefits available to business owners that
will keep more earned money in your pocket.
Becoming an entrepreneur can help you become a young
millionaire and give you the luxury of being able to retire
young.
The sooner you start investing the sooner you can become a
young millionaire. You will find with a consistent
investment plan retiring young will be easy. You have the
power of compounding interest on your side that will do
most of the work for you. The best part is you will be
able to do what you want when you want, retire young, have
free time and be able to afford the things that you really
like. Start now and the take steps to become a young
millionaire today!
----------------------------------------------------
Vince Shorb, the leading financial literacy advocate and
young America's success coach, guides young adults
step-by-step to become young millionaires. He developed
the first multi-media course, 'Financially Free by 30',
that gives them exact plans to retire young. Go to
http://www.FreeBy30.com now to access exclusive free videos.
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