Do you want to be a millionaire by 30? Of course you do, that was a stupid question. In fact, I don’t think I can think of a single scenario where £1M in the bank won’t at least make you feel a bit better.
Now I myself am by no means a millionaire – I’m young, I’ve just left school and I’m only just now starting up a business, so the advice I’m giving will not be advice I have created, but that does not mean it won’t be incredibly valuable. The knowledge I’m sharing with you today is wisdom written by people who are millionaires; people who have already completed their own journeys to success.
Recently I’ve become a bit of a bookworm, and so I read books very regularly. However, two which have stayed fresh in my mind for a long time are ‘The Richest Man in Babylon’ by George Samuel Clason, and ‘The Millionaire Booklet’, written by one of my biggest idols, Grant Cardone. With todays technology, you can easily access a lot of financial advice from successful people, but one thing that always frustrates me is that a lot of this information is contradictory. For example, lots of entrepreneurs argue that you should never rely on one stream of income, but others argue that ‘if you chase two rabbits, you won’t catch either one’, so you should focus on one goal, and one way of making money. This always leaves me thinking, what the hell am I supposed to do then?
Which leads me to why these books stuck with me for such a long time – they both offered the same advice. The Richest Man in Babylon taught me about the 3 foundations of wealth:
- A part of all you earn is yours to keep.
- Make your money work for you.
- Only take advice from people who have experience.
‘A part of all you earn is yours to keep’ – what does this mean?
It means that whenever you earn any sort of money, you should keep a small percentage separate, and not touch it (apart from investing), and eventually this will build over time. Grant Cardone suggests that you leave 10% of your earnings per month, whether you earn £1,000 a month or £100,000 a month. Adjust the way you spend to live off 90% of your earnings, and keep that 10% in a completely separate bank account, so that you don’t spend it carelessly. Even if you’re only earning £30,000 a year, you’ll have at least £3,000 left at the end of the year, and that’s before you start making your money work for you, which brings me to foundation number 2.
‘Make your money work for you’ – again, what does this actually mean?
This is the process in which you invest this saved money into assets which will make money for you, without you actually having to do anything. Sounds good, right? A fantastic asset to invest in currently is cryptocurrency (if you don’t know what it is, google it!). You can literally download apps within minutes and invest money into cryptocurrencies, which only seem to be increasing in value at the moment. Grant Cardone saved money for years, investing in assets until eventually he made one huge investment in real estate. It was risky, but it paid off, and he made millions of dollars. It’s simple – if you earn smaller amounts of money, invest in smaller assets (like cryptocurrency) and if you earn more, invest in larger assets (like real estate).
The final foundation is ‘Only take advice from people with experience.’ This is as simple as it sounds.
If I had read these foundations from an underachiever earning minimum wage, I wouldn’t have shared them with you. But I read this advice from successful entrepreneurs, which quite simply means these processes work. If you are learning how to become a successful writer, don’t take advice from a chef, and if you want to be an athlete, don’t listen to a professional musician… it really is this simple. In future, when listening to advice, just stop for a second and think has this person succeeded in this field? If not, perhaps you should look elsewhere…
And that is it. It sounds simple, right? Well the truth is, it is simple. The steps that will carry you to your first million are not actually that complicated – the hard part is being disciplined and sticking to them.
If you want to pick up either of these books, and learn in more depth about how to make your first million, the links are below:
Thanks for reading! If you gained any sort of knowledge from this blog feel free to dm me on instagram, @dailybusinessthoughts, because I reply to everyone. Check back next Thursday for my next blog post: How To Grow Your Instagram Page.
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