How a Teen Plans to Become a Millionaire by 25

This is my plan to become a millionaire by the age of 25. This may seem like a lofty goal, but I have eight years to achieve it.

Right now I am 17 years old. To make money I sell candy at school and save most of it. I will soon get a job to make more money. I am working to save $16,000 to $20,000 by the time I graduated. With this money, I will move to Wyoming, buy a multi-family property, and renovate it.

I would rent out the apartments and live in one of them to hopefully not have to pay anything for housing. Renovating the property would build equity which would later allow me to do a cash-out refinance or get a HELOC. I would do this over and over with larger properties.

After doing this process with the first property, I would either begin working in construction or get my real estate licence and start a real estate agency. I would use social media to grow and promote my business or to build a following that is not for my business. Overall, I would have multiple streams of income.

Although this video is about what I will do to grow my wealth before I am 25 years old, it is also important to consider what I will do after that age. As I said, I would do larger and more expensive multi-family real estate deals. Nevertheless, I would like to eventually get into commercial real estate and development. I would also invest in other things such as companies that would be beneficial to my real estate investment company or invest in the stock market.

Obviously this is my plan to become a millionaire. Your path may be different. It may include selling something, investing, or saving. I believe these ways to make money are not always guaranteed, or they could take a while to amass the desired wealth. But for me, I believe that real estate is the safest investment, especially for someone to start with.

[LosCristeros]

Hands down for the vast majority of people their labor is the largest creator of wealth they have. You can think of labor as the following formula: hours worked per week x skill value x percent remaining after tax = net weekly wage. Ex. 1) a minimum wage employee ($7.25 for federal minimum wage, but your state may be different) working 40 hours a week getting taxed at 15% would be depicted as: 40 x 7.25 x .85= $246.5 Ex. 2) a doctor making $100 an hr working 50 hours a week getting taxed at 35% would look like: 50 x 100 x .65 = $3, 250 A doctor who wants to go from zero to millionaire can do that easily in just a few years of saving most of their income but the minimum wage worker would take about 78 years if they saved everything. Normally, a minimum wage worker might be able to become a millionaire in about 48 years if they invested 20% of their income the entire time. That trims off a lot of time you need to be saving and turns it into a lot more money because of compound interest. I’m sure you know all about it though because your already interested in finance. I just want to make the point that the biggest factor in compound interest is TIME. The other factors are much less significant. The only way i can foresee anyone making a million dollars in less than a decade (without having a valuable skill like being a doctor or winning the lottery/theft/inheritance etc.) is to get a very high commission based job in which you do amazingly and you save/invest heavily in that time period or you create a good or service that does very well (i.e your own business) So to summarize neither “labor” nor compound interest will be the biggest factor on whether or not you meet your timeline. The timeline doesn’t really matter though. Life is like building a castle, you don’t just create the biggest baddest one overnight. You must focus on laying each stone absolutely perfectly. In case you don’t know these two guys yet, I like “Dave Ramsey” when it comes to finances and “Meet Kevin” for real estate. I don’t agree with either one of them necessarily 100% but they are both knowledgeable people that share insight from their perspective which is valuable. Since I mentioned compound interest I think you should look up “Average Return vs. Compound Annual Growth Rate (CAGR)” These are two VERY different things and fool people into thinking they can make waaay more off the stock market than they realistically can over time. The goal is possible but it will be very difficult getting there. Wish you the best of luck!

[tomyshaw]

It is achievable if you truly believe that one can :)