8 mIllionaire Habits you should know at 20!

8 Millionaire habits you should know at 20

Hey Guys, Ron Parks here and welcome back to the channel. I want to talk about the 8 Millionaire habits that you should know about and follow in your 20’s.

When I was 20, I don’t recall that I ever spent much time thinking about finances, let alone become wealthy. I was in College, spending way too much time working on my degree and planning for the next exam. I wish I knew some of the millionaire habits at that age. If I started earlier, I would have been further ahead at 30 than I was.

None of these habits are difficult to master, and you should incorporate them into your daily routine. When you do things over and over again, they become quite natural and ingrained in your brain, that they become second nature.

Here are the eight best habits of Millionaires to learn and use. If you understand them, not only will they make your life happier and less stressful, they can also lead to more wealth as you age.

1.    Watch the money you spend and live below your means. It’s easy when you don’t have much money to spend. Buying stuff and getting immediate gratification by not waiting for things is a recipe for disaster. It is partly due to youth as well as not understanding the long term consequences of not waiting for stuff until you can afford it. Your 20’s is one of the best times to live below your means. Buy a clunky used car, live with roommates to keep your rent low, don’t eat out much, and save money on vacations and fancy clothes. Do not succumb to the peer pressure to compete. Soon enough, you will find that this type of lifestyle is unacceptable as you earn more money and mesh into your career. Spending more money will come, but now is a great time to save as you have fewer responsibilities, you're not married, you have no one to impress, and you can live comfortably knowing that the future will be brighter.

2.   Watch your student loans:

The largest part of your debt at this age will be student loans. Getting into a great university and student debt go hand in hand. Being in a top university where you accumulate 250,000 in debt over four years is not always the ticket to a successful and happy life.

Be the judge of your aspirations and make a clear decision on how important education and debt will be. Not everyone goes to an ivy league college, and the majority goes to state schools where the tuition is way lower.

3.   Putting money away might be difficult if you go to school all day and need to work a part-time job to help with the tuition and room and board. Not everyone will have parents that can pay your education bills. So, learning how to save money every week, and every month will be an asset when you finally make a substantial income and have more options. Spending money is an individual and a personal endeavor. It is based partly on how you were raised and how you view yourself and your self-esteem. Giving up some things that you do will make you happy requires training. It is not human nature to put off gratification. If you can get in the mindset of small sacrifices for your future, you will be ahead of the majority of people your age.Better not to show off, but show up.. I didn't buy my expensive watch until my businesses and investments were producing multiple secure flows of income. You should become known for you work ethic, not the accessories you buy.

4.   Focus on earnings:

"You cannot save your way to millionaire status," writes Grant Cardone, who went from broke and in debt at 21 to self-made millionaire by 30. "The first step is to focus on increasing your income in increments and repeating that."

"My income was $3,000 a month, and nine years later, it was $20,000 a month. Start following the money, and it will force you to control revenue and see opportunities."

5.    Don't save to save, instead save to invest

There is only one reason to save money and that is to invest it. Put your saved money into secured accounts and Never use these accounts for anything, not even an emergency. You should set up an emergency fund to use for that purpose, possibly 6 months of your expenses. Investing will force you to continue to increase your income.

Investing is not really complicated. All you need to do is to contribute to your 401(k) if your employer offers one, and take full advantage of your company's 401(k) match program — which is free money — if it has one.

Making it automatic is the key to consistently setting aside money. If you do it this way, you'll never even see the money you're contributing, and you'll learn to live without it.

6.   Self-employed is better than working for someone.

Steve Siebold is one of the world’s foremost experts in the field of critical thinking and mental toughness training. He is the author of eight books, two of which are international bestsellers and have been called the gold standard in the field of psychological performance training. He says that in a free-market economy, anyone can make as much money as they want," That applies to 20-somethings. You have a low chance of getting wealthy working for someone else. Of course, you have a good chance of wealth if you work for a technology company that goes big, and your stock is worth a boatload, but those events are few and far between for the masses. It is not unknown that there are world-class executives that work and take a paycheck and make millions. Look at the highest-paid CEOs in the country. Working for someone is the slowest path to prosperity.

While world class people continue starting businesses and building fortunes, ordinary people settle for steady paychecks and miss out on the opportunity to accumulate wealth.

"The masses almost guarantee themselves a life of financial mediocrity by staying in a job with a modest salary and yearly pay raises," Siebold says.

7.   Shoot for $10 million, not $1 million

If you want to shoot for a million, then shoot for 10 million. There is no shortage of opportunities or money on this planet, so think big. Have confidence that you can do it. 

One way for greater earnings is to increase your streams of income. As I notted in a prior video,Thomas C. Corley did a five-year study of self-made millionaires. He found that many of them develop multiple streams of income:

 65% had three streams,

45% had four streams,

and 29% had five or more streams.

These streams include real-estate rentals, stock market investments, and part-ownership in a side business. You can take some risks at 20—everything from a new job or making a new investment. You are young and can recover from your mistakes. Making mistakes will give you great life experiences, and you will learn and modify your behavior. 

8.   Get credit and understand that a credit score is one of the essential tools you can use. Get a credit card as soon as you can to establish credit, even if it is a secured credit card where you can only spend the amount of money you deposit into the account.l You want to build up your credit score slowly over time. Don’t go over your credit limit, pay everything in full at the end of the month, and understand the penalties if you screw up. Credit scores come into play from everything to buying a car, renting an apartment, and eventually buying a home. Whatever credit card you get to start with a low credit limit so you are sure you can pay everything off at the end of the month. Once you are a master of this technique, apply for another card with a larger credit limit. Start using that card and pay off your balance every month. You will be on your way to a perfect credit score. Remember, the higher your credit score, the cheaper it will be to get additional credit and your interest rates on car loans and mortgages will be lower.