Written By: Skylar Allen
Have you ever wondered how many people have been able to become millionaires by such young ages? For some, it may be that they got lucky and got it from their upbringing; it was handed down to them. Very few have won the huge jackpot in the lottery, and others have taken initiative to really work super hard in order to get where they are. Even though it may be
something challenging to build up to, here are some tips and tricks from self made millionaires to start building that up bank account, even if it’s not to millions.
One of the first things that they do is setting up a family budget and setting goals. Addison Jarman, a self made millionaire by 25 who is well known on the social media platform Tik Tok for giving out advice and tips on how to get to where she is, says “Have an intense goal-setting session where you create a strategic plan. Maybe you want to pay off all debt within five years. Maybe it’s owning your first home by the end of 2021. Set that goal and then break that down into a bunch of micro-goals.”. This is really important because you are creating a budget with what you have, and you are also making goals for the long run. When she mentioned breaking your larger and more long term goals into micro-goals, that's really important and it’s something not many people do. Setting micro-goals will allow you to see progress faster and throughout the time in which you wish to complete the big goal. Seeing this progress will give you the impression that you are making consistent progress, which results in you wanting to continue to do what you are doing.
Something many people struggle with isn’t understanding needs vs wants, but resisting to give in and buy those want items. Another quote from Jarman is “Just because you’re making this much, it doesn’t mean that you should be spending that much. I think so many people are just working paycheck to paycheck and just spend too much. You need to look very closely at what’s a need versus a want.”. This shows that people really need to take a look at what they are spending and what they can reduce from it to identify the “wants” that they have the strong desire to have. The sooner you are able to identify wants versus needs and really start to lessen the amount of “wants” you are spending money on, the sooner you will see those smaller results in your account. This could be an example of a micro-goal you could set for yourself.Another interesting fact that many people may not know about self made millionaires is that many of them have more than one source of income. According to Tanza Loudenback’s article 17 habits of self made millionaires, from a man who spent 5 years studying rich people, "three seemed to be the magic number in my study," adding that 65% "had at least three streams of income that they created prior to making their first million dollars.". To expand on that, Jarman made a video on the social media platform, and she stated that she owns three businesses and works a corporate job, which was made before she quit her corporate job. Having a “side hustle” is extremely beneficial because it adds another source of income. These don’t have to be jobs you need to have a set schedule all the time for either, you can do some photography or videography and charge people per session, or become a realtor on the side! There are so many options; it's truly unbelievable.
Lastly, there are many more tips and tricks in order to start building up your bank accounts, but one of the overall most important things to keep in mind is that you need to be a motivated and determined person. All of these tips take time and a lot of effort. The sooner you start the sooner you will have the opportunity to see a difference and possibly set yourself up for success. Even though you may not see millions, seeing any growth is better than nothing.
Works Cited
Loudenback, Tanza. “17 Habits of Self-Made Millionaires, from a Man Who Spent 5 Years StudyingRich People.” Business Insider, Business Insider, 3 Oct. 2019, www.businessinsider.com/good-habits-of-self-made-millionaires.
Parents Staff February 06, and Parents Staff. “How This Mom Became a Millionaire by 25.” PEOPLE.com, 6 Feb. 2020, people.com/human-interest/how-this-mom-became-a-millionaire-by-25/.
I thought it was interesting that 65 percent of self-made millionaires had at least three streams of income, and that these streams of income didn't necessarily have to be side office jobs. People can make money in a variety of ways and, in some cases, with little effort. Do you think social media would help a prospective self-made millionaire expand their financial resources? As mentioned in your article, Addison Jarman is well-known on TikTok. Does social media allow them to sell their product or service more easily?
ReplyDeleteThis is a really important and informative piece. Many times people reach for the stars and want to make millions yet they aren’t determined enough to do it. Not only that they spend their paychecks very unwisely. I think this is something everyone should learn considering its something very important to most people. I think the most important thing is being wise with your paychecks and being very determined. If you’re determined to complete those micro-goals and bigger goals you can easily accomplish them.
ReplyDeleteI thought that there was a pretty important thing that you added in this blog and that was 65% had 3 steams of incomes. Which is a lot if you really think about it. I thought that was a good thing to put in there because it is important to get as much income as you can. Overall, I think that this was a good blog and could give people some helpful tips about setting goals for themselves in the future.
ReplyDeleteI think finding ways to motivate yourself is another large piece of aiming as high as these self-made millionaires did.
ReplyDeleteThis is an interesting topic because it would seem obvious that anyone would want to become rich, but the point that many people can't control their "wants" buys makes it difficult for this to happen. I found it interesting that it was mentioned to have a side job that may be a hobby because a lot of people just take their real job and don't build off of any of their hobbies. I think that would be a good way to make more money and build your bank account because it is something that you probably enjoy doing and are getting payed for it, and it doesn't have to be too much because they have a real job too.
ReplyDeleteInteresting how someone can make micro goals to get to where they need to be I didn't even know micro goals existed
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