In a recent video, I show exactly what comes up on Google when you search “How to become a millionaire by age 25”. One result says that you need to earn $305 per day to become a millionaire if you start working at age 16. If you start working at age 18, they say, you will need to earn $391 per day. This would mean working without a single day off, never mind the fact that a 16-year old with no special skills is unlikely to find a job paying $305 per day! But let’s say somehow it was possible, wouldn’t this person need to use some of that money to live on?!
In reality, most of the posts and videos you find about becoming a millionaire by age 25 are probably written by people that have never done it themselves. As someone who did become a millionaire by 25, I thought I should give some actual advice on how it is done. In this article, I am going to lay out 3 steps you need to take to become a millionaire by age 25.
1. Learn about business
The first step is not to find a job paying $305 a day. The first step is getting experience in business. You need to expand your skill set, and at this stage, you should not be worrying about the amount of money you are being paid. You should be willing to work for free as long as this will help you get the skills you need.
Alongside getting skills from hands-on work, you should also be getting training in the areas of business you want to pursue. This doesn’t mean you need a degree, I left school with 3 GCSEs! What you need is training and mentorship from people who have done what you want to do.
2. Understand how to value a business
Now that you have the skills, it is time to get a business started. This could be in the property industry, such as becoming a deal sourcer or starting a rent-to-rent operation, or it could be something totally different. The first thing to understand is that if your business requires you in it, your business will be valued at zero! It is hard to sell a business which requires you to run it. Therefore, make sure to pick a business idea that can eventually be run by someone else on your behalf.
Next look into how businesses are valued in your chosen industry. Normally, this will mean that your business will be valued at 5-10x your annual profit. So if you have a business making £100,000 profit per year, you could have a business worth a million pounds!
3. Systemise your business
Now, you need to systemise your business so it can actually have value. Create a manual for each of the jobs you do in the business. Put your name by each job. As you find people to take over each job replace your name with theirs. Once you have replaced your name completely, you will have a business providing you passive income.
If you would like to start your journey to becoming a millionaire, why not book a free ticket to the Property Millionaire Intensive? This is a free training event where I will teach you how to become a millionaire with property. You can claim your free ticket here.