I recently posted a video on my YouTube channel about becoming a millionaire by age 25. A lot of the advice I see out there isn’t great in my opinion. As someone that has gone from nothing to a multimillionaire myself, I just don’t agree with the people that say cutting back is the answer. Not buying an expensive coffee or cancelling a streaming service subscription won’t make anyone a millionaire! So I thought I should get my thoughts out there about how I did it and how I have seen others do it (including some of my students).
If you are not a millionaire yet, this guide is for you. Even if you are over 25, the same principles apply. I recommend watching the video in full alongside reading this article. It is only a 4 minute video, but it could have a big impact on your life going forward. In this article, I will summarise the 3 main steps you need to take to become a millionaire.
1. Start a business and understand how it is valued
If you want to be a millionaire, start a business. But make sure it is actually a business and not a job. When you are looking at what sort of business to start, look at something that can scale and eventually not require your direct involvement. Something that requires your direct involvement may well be a high paying job, but when it comes to putting a value on a business you want something that can run without you. You want a business that you could potentially sell and it continue working for the new owner.
I did this with deal sourcing. Deal sourcing is finding property deals and selling that information to investors. This can start small but also can be scaled up , and employees can eventually take over the day-to-day operations.
2. Systematise the business
To move from working in a business to simply owning the business, you need to create systems. You need to find people that can take on the jobs that you are doing. You may need to take on employees, contractors, use automation or contract out work to third-party services. The aim should be that the company can run without you, if necessary.
When you bring in a new employee, you will need to train them and they will run into problems and questions that they will bring to you. Create a document that you can update each time there is a question or issue that you address. Over time, the document will contain the answers to all the possible questions the employee could have. If the employee leaves, all the answers are there ready for their replacement.
3. Get really good at your craft
Don’t be a jack of all trades, master of none. Focus on a business and become an expert at it. Don’t think about making as much money as you can today but rather build something sustainable for the future. Choose what you want to do and build upon that, one step at a time. As long as you stay on the right track, continue to increase your knowledge and don’t get distracted, you will be on a path to success!