You’re graduating from university and decide that you want to be rich – at least a millionaire. Is it something you even want? Is it possible? Young millionaires – people who attain that financial level just a few years after graduation – do actually happen in the real world. Not only are you coming out of school with all kinds of fresh knowledge, but you’re also starting with a clean slate. You’re not jaded by years of experience and a deep reservoir of cynicism. It may actually be the perfect combination for someone to become a millionaire.
How can you become a millionaire not too long after graduation?
Be Your Company’s Rising Superstar
But if you’re different – if you want to be an impact player in your company, this could be one of the most efficient ways to become a millionaire.
You’ll have to become a “go to person”, an innovator, a leader. If you are, you can rise up quickly in the ranks of the company. This can create options – not only the salary increases and bonuses, but it can also produce lucrative stock option arrangements that could be worth hundreds of thousands of dollars, or even millions.
If you collect bonuses and options on that scale for just a few years, you’ll be a millionaire several times over. And yes, it actually does happen in the real world.
Start Your Own Business
For the most part, university students tend to be trained for life in the organizational world. If you think that you won’t be able to achieve the kind of financial success you’re looking for in an organization, consider starting your own business.
As an entrepreneur, not only are you getting in on the ground floor – where future profits are usually the richest – but you’ll also be able to control the flow of your ride up. If you’re the kind of person who thinks independently, can overcome problems, and can set and achieve goals, self-employment may be the best path to millionaire status you will find.
You can of course achieve millionaire status as an entrepreneur by making progressively more money each year in your business. But often the biggest payoff of self-employment is the day that comes when you can sell your business to a competitor. A business that provides an income of several hundred thousand dollars per year can be sold for over $1 million.
Related: Not Every Student Can Become an Entrepreneur
Build a Better Mousetrap
Do you have an idea for a product or service that you think could really take off in the market? Though this is probably the most unstable way to millionaire status, it can also be the most lucrative.
Though we might often think of building a better mousetrap as being something along the lines of coming up with the next Hula Hoop, the real path is usually much closer to the ground. For example, you might come up with a computer program or application that adds real value to individuals or businesses. You can build a business around such a product, or you could even sell the product line to another entrepreneur who may pay seven-figures for it.
This is a hit-or-miss approach to achieving financial wealth. But while the payoff can be quite lucrative if you succeed, the likelihood of achieving that success is fairly low.
Save and Invest Your Way to Wealth
If the idea of being the top gun in an organization or a high-powered entrepreneur doesn’t appeal to you, you can always use the tried and true stair step approach to building wealth. That means saving and investing your money – relentlessly – until you reach your financial goals. It is possible to become a millionaire using the strategy, though it will likely take longer than any of the methods above.
Let’s say that you decide you will save and invest your way to $1 million. Using a “how long until you‘re a millionaire calculator”, you can determine exactly how much money you need to save in order to reach your goal.
Using the calculator above, you find that if you invest $10,000 in a mutual fund paying 8% per year on average, and add another $833 per month ($10,000 per year), you can become a millionaire in 27 years.
Related: ETF Investing For Beginners
If you increase the amount of your initial investment to $20,000, and up your monthly contributions to $1,667 per month ($20,000 per year), you cut the time down to 20 years.
Investing larger amounts of money may result in a less comfortable life while you’re doing it. But if you’re really committed to becoming a millionaire, it’s very doable through savings and investment. You just have to decide what your time horizon is, and what you’re prepared to do in order to get there.
Have you ever thought about becoming a millionaire after graduation? Do you think it’s possible?
Great points to consider. I’ve always been drawn to the idea of starting my own business. Being able to control the direction of something you truly care about, and seeing it grow from the ground up has always seemed so worthwhile to me. I think those who start their own business, and start to make serious money with it ought to look to some of those investing strategies as well.