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10 Things to do at a Young Age to be Wealthy Later

What you can get today ... this saying is as relevant today as ever and also applies to financial issues. These are the ten things to do when you are young if you want to reap the rewards of your labor later.

Things to do at a Young Age to be Wealthy Later

10 Things to do at a Young Age to be Wealthy Later

1. Look for role models

On the way to wealth, it can be helpful to look for role models early on who have managed to become wealthy on their own. Having a role model does not mean trying to copy that person exactly. But it can help with orientation when it comes to finding your own way. A role model helps to concretise one's own wishes and to formulate one's own goals - especially the financial ones.

2. Set goals and write them down

One reason why many do not realize the dream of wealth is that they lack concrete, written goals. If you don't have a goal, you won't get there. However, if you have goals and write them down, you increase your probability of being successful.
 
A study from the 1970s supports this tip. At that time, Harvard University graduates were analyzed according to the nature of their professional goals and their professional success as measured by remuneration. 83 percent of the graduates did not set any specific goals, 14 percent had specific goals but did not set them down in writing, and three percent of the graduates even wrote down their goals. After ten years the salaries of the three groups were compared. 
 
It turned out that the graduates who had specific goals but had not set them down in writing earned three times as much as the first group on average. The small group of graduates, who had even set their goals in writing, even earned an average ten times higher than the group without goals.

3. Invest early and let the money work for you

A young age can pay off if you already have a basic stock of capital and let the money work for you in the following years. Over the past few decades, the DAX has generated an average return of eight percent. Assuming that this will not change in the future, in 40 years an investment of 20,000 euros in the DAX, for example with an ETF, could have turned into around 435,000 euros.

4. Pay attention to the expenses

Even those who do not have "start-up capital" at a young age can do a lot to create a good starting position. So it is important to watch your expenses. You should be aware that all the money that you spend unnecessarily can no longer work for you and thus cannot multiply. For example, you can ask yourself whether you really need the latest smartphone or a stylish new car. A waiver at a young age - combined with clever investment - can pay off many times over later.

5. Networking

Even at a young age you can build up a large network of people who could be very helpful on your way to wealth in the future. Mitt Romney boasted in the US election campaign in 2012 that he had built a fortune (estimated at around 300 million dollars) from around one million dollars he received as a young man in the form of a block of shares from his father. 
 
It was not mentioned that his family had excellent relationships with rich and influential people who supported him on this path. But even those who do not have such an extensive address book by default can make new connections quickly and easily through electronic media and social networks.

6. Rely on a good education

The path to success and wealth often leads through a good education. If you don't start your own company, this can enable you to get a well-paid job with lucrative opportunities for advancement. Almost all DAX managers have a university degree, mostly in law or business administration. The tip of networking can also be implemented well at a university. Fellow students can become valuable contacts in later professional life.

7. Become an entrepreneur

If you don't want to work as an employee, you can take a different route. Every year the American business magazine Forbes publishes a list of the 500 richest people in the world. Most of these people made their fortunes with their own businesses. Well-known representatives of this list include Bill Gates, who founded Microsoft, and Ingvar Kamprad, the founder of IKEA. 
 
If you are now toying with the idea of founding a company yourself, the path begins with finding a suitable and economically promising business idea. However, you shouldn't jump into the deep end, but first work out your idea and the corresponding business model intensively and subject it to tests. This can avoid unnecessarily burning money, especially in the start-up phase.

8. Follow interests

Regardless of whether you are aiming for a salaried job or rather see yourself in self-employment, one thing should always be considered: You should follow your own interests. All doors are open to you, especially at a young age. If you want to be successful in the long term, it is advisable to choose a profession that really interests you. In the long term, you are more successful with things that are important to you and that you can really get excited about. You are more motivated at work, which will pay off financially in the long run.

9. Benefit from the experience of others

If you are striving for financial independence, you should start learning about finance and career matters early on. There are numerous books on the market that shed light on various aspects that could be helpful on the path to wealth. Classics include the book "The Richest Man of Babylon" by George S. Clason from 1926, which shows in the form of parables from the ancient and wealthy city of Babylon, how to handle money skillfully and how to achieve the success that one can achieve dreamed up. Another book is "Think and Get Rich" by Napoleon Hill from 1937.
 
For over twenty years, Napoleon Hill has been researching the commonalities that successful people have in common. In his book he bundles the findings from conversations with 500 millionaires and describes methods that lead to success.

10. Do more than is expected of one

In most cases, wealth does not come easily to you. Most of the people who have made a considerable fortune on their own have worked hard for it and not based on the average. Those who start early to achieve more than the others stand out positively from the crowd. This can lead to you climbing the career ladder faster and thus earning more or, if you start your own company at a young age, you can quickly build up a larger and more loyal customer base than the competition, which should ultimately also be reflected in higher income.