• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • Best Student Loans And Rates In January 2023
        • 10 Best Private Student Loans Of January 2023
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Student Loan Refinance Companies In January 2023
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers Of January 2023
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers Of 2023
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2023
        • M1 Finance Review
        • TD Ameritrade Review 2023
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review 2023
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 20 Best Side Hustles You Can Start Earning With In 2023
        • 53 Side Hustle Ideas To Make Money Fast
        • 100 Ways To Make Money In College
        • 80 Ways To Make Money From Home In 2023
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 40 Passive Income Ideas You Can Use To Build Wealth In 2023
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • 10 Best High Yield Savings Accounts Of January 2023
        • 10 Best Money Market Accounts Of January 2023
        • 10 Best Free Checking Accounts In January 2023
        • Best Bank CD Rates Of January 2023
        • 10 Best Business Checking Accounts In January 2023
        • Best Online Banks Of January 2023
        • Best Credit Unions Nationwide Of January 2023
        • Best College Student Checking Accounts Of January 2023
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • Best Credit Monitoring Services For 2023
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Investing » How To Become A Millionaire At Any Age

How To Become A Millionaire At Any Age

Updated: October 23, 2021 By Robert Farrington

Tweet69
Share8
Share3
Pin5K
Email
Print

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Any investing information provided on this page is for educational purposes only. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

How To Become A Millionaire

Who wants to be a millionaire? Everyone! (Maybe?) May 20th is Be a Millionaire Day, and what better way to celebrate than by working towards joining the Millionaires Club.

I'm a huge believer in building wealth, especially when starting young. But it's possible to become a millionaire at almost any age, so let's break it down.

Here are some helpful tips to get you a little closer to becoming a millionaire:

Table of Contents
Quick Millionaire Facts
Payoff Your Debt
Review Your Investments To Identify Ways to Improve Them
Review and Refresh Your Budget to Incorporate Ways to Spend Less and Save More
Make a Plan to Earn More Money
Review Your Financial Goals Often
Create Millionaire Habits

Quick Millionaire Facts

First, let's look at some quick millionaire facts before we dive in. Too many people are discouraged about becoming a millionaire, while the math of becoming one is more achievable than most think.

  • There are 20,270,000 millionaire households in the United States (Source: Credit Suisse)
  • There are 51,882,000 millionaire households worldwide (Source: Credit Suisse)
  • 80% of millionaires are self-made (only 20% inherited their wealth) according to the The Millionaire Next Door by Thomas J Stanley.
  • The average age of a millionaire in the United States is 62 years old (Source: Spectrem)
  • There are 618,000 millennial millionaires in the United States (Source: Coldwell Banker)

And remember, getting to a million is just about your savings rate:

Here's the amount you need to invest per year to reach $1,000,000 by age 62:

Starting Age

Amount To Invest Per Year

22

$3,600

25

$4,600

30

$6,900

35

$10,700

That means if you start investing at age 25, you only need to invest $383 per month and you'll hit your goal! That's less than your annual IRA contribution!

Related: 5 Things Your Millionaire Neighbor Isn't Telling You

Payoff Your Debt

First, you simply have to pay off your debt. You've got to get from a negative net worth to a positive net worth. The wrong kind of debt can hold you back from making progress on your financial goals. If you have any type of consumer debt you should make a plan to pay it back as soon as possible.

Once your debt is paid off you can then funnel that money toward your investments.

Here are some great resources on paying off debt:

  • How to Ditch Student Loan Debt
  • Snowball vs. Avalanche Debt Pay Off Methods

It's important to note that most millionaires have debt. Debt itself isn't a bad thing. When it's used to grow your wealth, it can be a positive. However, when it's used poorly (such as to simply buy stuff for your house), it can hurt you. 

Review Your Investments To Identify Ways to Improve Them

As time goes by your investment strategy needs will change. Make it a habit to review your investments and look for ways to improve them.

Here are a few things you might want to review:

Start or Increase Your 401K Contribution

Maxing out your retirement account each and every year is one sure-fire way to enter retirement as a millionaire.

If you don’t already have a 401k open meet with the HR department at your workplace and have one set up. You should contribute as much as you can (up to the maximum contribution amounts) or at least enough to receive an employer match if applicable.

If you already have a 401k make a plan to increase your contributions as much as possible each year until you’re maxing it out.

What if your employer doesn’t offer a 401k?

No problem! You can still open a Roth IRA, Traditional IRA, or if you’re self-employed an SEP IRA. Not having an employer sponsored 401k is no excuse to skip investing for retirement. You should continually increase your contributions to these accounts as well.

Related: Best Order Of Operations To Save For Retirement

Rebalance Your Portfolio if Needed

While you may have started out with the perfect asset allocation it will change overtime as your assets increase or decrease in value.

Review your current portfolio to make sure that your investments are currently correctly weighted based on your strategy and risk tolerance. Make adjustments if needed. You should do this at least once a year to stay on target with your investment goals.

Check out our guide on how to rebalance your portfolio across multiple accounts.

Check For Fees

Investment fees can keep you from becoming a millionaire. They can seriously erode your ability to make a decent return investing.

Check out the free tool FeeX, which will analyze your portfolio and make recommendations about funds and ETFs that may be costing you too much in fees. Oh, and the best part? It's free.

Invest in Yourself

All millionaires invest in themselves. While it is crucial for you to develop a smart retirement plan that includes a mixture of assets such as CDs, stocks, and bonds, it’s just as important to invest in yourself.

After all, YOU are your most valuable asset.

Review and Refresh Your Budget to Incorporate Ways to Spend Less and Save More

One of the quickest ways to immediately have more money to save and invest is to lower your expenses.

Review your budget and make cuts where appropriate. I would caution you to take budget cuts slowly so the habit will stick. If you try to make too many changes at once you’ll end up quitting too soon.

Here are some areas of your budget to look at:

Food – Saving money on food is by far one the easiest ways to cut your budget. You can do this by eliminating take-out, creating a menu plan, preparing meals ahead of time (freezer cooking,) and shopping sales.

Cell Phones – Cell Phones are another one of those guilty pleasures that people normally spend way too much on. The fact of the matter is you can get a pay as you go phone with same features as your contract smartphone for about a third of the price. There is a significant amount of savings to be gained just by switching out your phone.

Housing – Housing is one of the hardest budget cuts to make but it’s also one that can have the most impact. By downgrading your housing situation and saving hundreds to thousands of dollars per month you’ll be able to quickly accelerate your millionaire status.

Transportation – How much money do you spend on a car payment and insurance each year? If you’re not already financially stable, selling an expensive, gas guzzling, high insurance car and swapping it out for an older model that you can pay for upfront can save thousands of dollars per year.

Insurance – You can normally save money on car insurance every 2-3 years just by switching companies. Don’t be afraid to call your agent to get quotes from multiple insurance carriers.

Clothing – Thrift shops and consignment shops are great places to get clothes. There are even high end consignment shops online now making it extremely convenient to get nice, name brand clothes for a fraction of the retail price.

When cutting your expenses do the best you can do. We’re all in different situations so there’s no one-size-fits-all situation. Remember, we've put together a list of ways to save over $500 per month. It's possible - I've done it.

Make a Plan to Earn More Money

While cutting your expenses is the quickest way to free up extra money in your budget it’s also a very limited route. If you really want to fast track your way to millionaire status you need to work on both sides of the equation. That means you need a plan to increase your earnings.

Here are a few ideas:

Ask for a Raise – This is a simple yet effective solution. If you’ve been with your company for at least a couple of years and have proven your value a pay raise might be in your future. Meet with your boss explain the value you provide and why you feel like you deserve a raise. The worst you’ll be told is no.

Switch Jobs – Another option is to switch jobs altogether. If you’re underpaid for your position and aren’t happy with your employer you can start looking at alternatives.

Offer Freelance Services – Everyone is knowledgeable in a certain area. Why not take that knowledge and offer it as a freelance service?

Start a Side Business – Starting a side business is personally my favorite way to increase income. Your options are limitless and you get to pick something you enjoy. Here are fifty side hustle ideas to get you started.

Review Your Financial Goals Often

Behind every good goal is a strong reason. Figure out why becoming a millionaire is so important to you.

Do you want to be financially free? Retire early? Or just have some peace of mind?

The reason behind your goal needs to be strong so that you see everything through. Make a practice of writing down your goals every day. This will help prevent you from backsliding.

Create Millionaire Habits

If you want to become a millionaire you need to create millionaire habits. This means living below your means, increasing your earnings, ridding yourself of debt, and most of all, making smart investments.

Start mapping out and working your millionaire plan while you’re young and you’ll be able to meet or exceed the millionaire mark down the line.

What tips and tricks do you have to become a millionaire at any age?

Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

How To Become A Millionaire At Any Age
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of

I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree

0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

Investing Resources

Featured Broker Reviews

>  Vanguard (recommended)
>  Fidelity
>  Robinhood
>  TD Ameritrade
>  M1 Finance
>  Schwab

Featured Robo-Advisors

>  Wealthfront (recommended)
>  Betterment
>  WealthSimple
>  Vanguard Digital Advisor

Annual Contribution Limits

  • 401k Contribution And Income Limits
  • IRA Contribution and Income Limits
  • HSA Contribution and Income Limits
  • 529 Plan Contribution Limits

More On Investing

  • Best Online Stock Brokers In 2023
  • Best Brokerage and Investing Bonus Offers In January 2023
  • Best HSA (Health Savings Account) Providers Of 2023
  • 5 Best Investing Apps Of 2023
  • How To Buy Stocks Online For Free
  • The Best Robo-Advisors Of 2023
  • The Best Self-Directed IRA Providers Of 2023
  • The Best Traditional And Roth IRA Accounts Of 2023
  • Comparing The Most Popular Solo 401k Options
  • Top 3 Automatic Investment Apps Of 2023

Footer

Who We Are

The College Investor is an independent, advertising-supported financial media publisher, focusing on news, product reviews, and comparisons.

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2023 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz