Money does buy happiness. In case you're on the fence, research says it's a fact.
The chances of becoming a millionaire are slim. Several factors come into play, and more than a few are completely out of a person’s control.
Still, it’s the American Dream to put a million in the bank and work for yourself and everyone is looking for the magic pill to make it all happen. Since a magic pill doesn’t exist, yet, the key to becoming a millionaire includes mastering many different facets of life. Luckily, all of those are controllable, like personality for example.
Quora is a crowd-sourced platform where people can ask questions. The answers come from absolutely anywhere and the best responses usually voted to the top. A user posted this question to the Wealth section of the website.
"I'm 22 years old and I want to become a millionaire by 35. How do I do this?"
The best advice voted to the top by other Quora users comes from Alberto Favaretto. Before starting his own company, Favaretto worked in finance and investment banking as a lawyer focusing his practice in derivatives and white collar crimes. In 2013, Favaretto gave up the lawyer life to start a company that sells personalized travel bags and leisurewear.
Favaretto’s answer is extensive and full of helpful tips for drastically increasing income, significantly reducing debt along with little life hacks to save money like never food shop when hungry, don’t upgrade your smartphone every year and no-brainer stuff like exercising to stay healthy and out of the doctor’s office.
While almost all of Favaretto’s advice is spot-on, we’ve highlighted the five most important tips that might not help a person become a millionaire, but will absolutely pay dividends in life.
Tip #1: Learn how to problem-solve at work
Favaretto explains “While everybody at work just does barely “enough” (and limit themselves to complain when things don’t work), you will quickly become essential as one of the very few who solves problems. This works even if you are fat, ugly, inexperienced, old, young, whatever. Problem-solvers are golden nuggets in any business environment and rewarded accordingly.”
Tip #2: Start a side business
“Work at night, on weekends and holiday to kickstart your side business,” Favaretto stresses. “Focus on getting the first 3 customers for your new side business (friends and family do not count). Once you make 3 customers (amazing achievement!), focus on how to make 30. If in 3 months you are not able to reach the $1,000 a month threshold, you must focus on finding better cash-flow generating business ideas.”
The business itself doesn't matter, just make sure it's something you can see yourself doing during the hours when you don't particularly feel like working so it doesn't really feel like work.
Tip #3: Stop Accumulating Debt
To quote Frankenstein, or maybe it was Dave Ramsey, “DEBT BAD! DEBT BAD!”
“Always pay your credit card in full at the end of every month. Avoid loans and credit (i.e. paying interest to fuel expenses) like the plague. If something is out of the budget, you must come to terms with the fact that you cannot afford it: move on. We do not need 90% of the things for sale out there, anyway.
Tip #4: Stop Wasting Time
We’re all guilty of wasting time, some of the time spent can be to our benefit, but no great business was built by screwing around on Twitter for 8 hours. (Except for maybe Twitter itself).
The entrepreneur explains “Remove the Facebook, Instagram, Twitter, Pinterest apps from your iPhone so that you can only access them via your desktop computer (you will automatically reduce your wasted time by at least 90%)."
Tip #5: Eliminate Excess Baggage
This final suggestion might be the toughest because it involves other people, people you’ve known for an incredibly long time. Unfortunately, some of those people suck.
“Ditch fake friends, high maintenance girlfriends/boyfriends, and all other people that actively undermine your efforts,” says Favaretto. “A positive, resilient & optimistic attitude from the people you surround yourself with is essential.”
This includes parents and siblings who’re also dragging you down to their loser status.
We highly suggest reading all of Favaretto’s suggestions and implementing as many as possible in your life. Even if these don’t make you a millionaire by age 35, amending your life in these ways is a smart idea for long-term success.