Updated: Nov 18, 2020
I had a great conversation about becoming a millionaire with my good friend Joe this week and how important it is to get people started early. As we talked, I had to stop him in the middle of our conversation to correct some of his thinking about age and becoming a millionaire.
It is common for people in their 40s and 50s to think that it's too late for them to become millionaires. This is flawed thinking, and it doesn't just affect people in their 40s and 50s. This type of thinking affects everyone at any age. It's your mindset, and it's the first thing you need to change if you're going to become a millionaire.
The first thing to shift with someone who builds wealth is their mindset. They change from a "broke, and I'll be broke forever" attitude to a "I'm going to create wealth" mindset. This has been true 100% of the time with the people I talk with who have become millionaires. It doesn't matter what age the person is.
I've met people who decided at age five that they would be rich, and they became millionaires at age 25. I've met others who made their decision at age 13 and became millionaires by age 30. I made my decision at age 25 and reached my goal by age 40. I've met others who made their decision in their 30s and 40s, and as future millionaires, they are still on their journey.
Whether a future millionaire or a millionaire, we all have one thing in common, we changed our mindset when it comes to money. We didn't make excuses on why we were broke or why we couldn't do it. Instead, we proclaimed to change our lives and build wealth. We followed up our proclamation with choices and actions that enabled us to reach our goal.
Now it doesn't matter if you are in your 40s, 50s, or even your 60s. It's not too late to become a millionaire. Let me ask a question.
Who is more equipped to become a millionaire? A broke 25-year old (me) who decided to become a millionaire or a 50-year-old with career experience and some assets?
Who is more equipped to become a millionaire? A 13-year-old teenager who decided to become a millionaire or a 50-year-old with a steady job, house, and some life stability?
In my mind, a 50-year-old starting out their millionaire journey is better equipped than many o the millionaires I've met. Many millionaires start with nothing. No assets. No money. Some are even facing a mountain of debt, but they changed their mindset around their life and money.
As I talk with more and more millionaires, I find that it takes around 15-20 years to become millionaires once they've made their choice and changed their mindset around money. Some can do it faster, while others take a little longer. In every case, it starts by believing you can do it and committing yourself to your goal.
5 Quick Keys for Older Future Millionaires
Check your net worth right now. What is it? How much equity do you have in your house? How much do you have in your retirement accounts and other investments? Subtract the amount of the debt your own. This is your starting point.
Get money smart. Learn how to invest your money. Turn off the TV. Shut down Netflix. Stop any distraction that keeps you from your goal. You need to get focused. Don't think of it as focusing on money. You're focusing on your future. The more you think about and work on this future you want to create, the more likely you will make it.
Boost your income. Becoming a millionaire takes money. If you want to do it quickly, you need more money. Look for new ways to develop other income streams. It seems like every time I turn around, I'm discovering a new way to make $10,000. Look for an opportunity that will work for you, and it doesn't have to be a 2nd job. You want to find something that you enjoy, and that is scalable. Scalable means that you can get more $ for less work. Say, for example, you make $20 per hour on your job. Look for something you can do that can scale to $100, $500, $1,000 per hour of effort you put in. Get more money for the same amount of work. Maybe you'll even replace your day job! Warning: Be careful not to spend too much money figuring out your extra income streams. Sometimes people waste more money looking for a secondary income stream than they actually make from it!
Watch your money. How much money is slipping through your fingers? You need to know where your money is going so that you can get it flowing in the right direction. Without a spending plan, there's a good bet your money is flowing in all of the wrong directions. With a spending plan, you can channel and focus your money into the right places, which means your wealth money bucket. In your 50s, you need to put as much money as you can into your wealth money bucket as possible to hit your millionaire goal. This isn't the time to play around with your money! That comes later!
Lower your expenses. It's easy to waste money at Starbucks, restaurants, and Amazon. Oh, Amazon! There's so much gratification in ordering something on Amazon late at night, and it shows up at your door the next morning. It's almost like Christmas every day except you shopped for yourself, and you got exactly what you wanted! Stop it! All of these things are working against your financial goals!
In my mind, it doesn't matter if you are young or old. You can still become a millionaire! Not get after it!