- Wanna become a millionaire?
It is possible.
If you can balance the art of saving money
with smart and scalable ways of making money
you can become a millionaire.
According to Entrepreneur,
there are nearly 22 million millionaires in the US,
so come on, it's not that hard.
If 22 million people can do it, so can you,
it's a piece of cake.
So in this video, I'm gonna share seven tips
to help you reach that millionaire status.
So let's do it.
(upbeat music)
Hey guys, what's going on?
My name is Michelle Bali and if you are new to this channel,
welcome to Learn with Shopify.
This is an official Shopify channel
that's designed to help you with all aspects of business.
So if you haven't already subscribed
make sure that you are doing that right now.
But without further ado, let's hop into it.
Tip number one, set financial goals.
It is almost a guarantee that creating financial goals
early on in life will bring you to monetary abundance
in the future.
Financial planning is key to making sure that you live
and retire comfortably.
Your early twenties is a good time to start thinking
about financial planning, even if you feel
like you're not making enough to even have a plan
in the first place.
But you do wanna create a financial plan as soon as possible
because your older self will thank you for it later.
And if you're watching this and you're well beyond
your twenties, it is never too late to start
because the sooner the better.
There's no better time than now.
So how do you set financial goals?
You can create goals around how much you'd like to save,
how much you'd like to earn,
or how much you would like to invest.
Now, whatever the goal is,
make sure that you give yourself a deadline.
This can be something like,
I wanna pay off my student debt by February 2027.
Giving yourself goals that are measurable and attainable
with a hard deadline is a deadly combination
to reaching that financial freedom.
These goals should also have milestones.
Milestones will keep you on track.
So for example, if you were hoping to pay off
your student loan by February 2027,
one of your milestones could be to pay half
by February 2023.
Once you reach those milestones, if you're behind,
you can reassess and see if there are any adjustments
that need to be made.
But if you're ahead of schedule then you can enjoy life
a little bit more and loosen up a little bit.
Now I'll link a worksheet for you guys
in the description box if you are needing some help
with setting those financial goals.
Tip number two, create a budget.
Next, and one of the most important tips
to reaching financial freedom is to create a budget
that is realistic.
To do this, write down how much you make first,
then look back on your bank statements
to see how much you're actually spending.
And at this point you can find areas
that you can cut back on like subscriptions
you're no longer using, for example.
Then you're gonna wanna section out how much money
is going to different categories per month.
So some common categories are housing, food,
entertainment, shopping, utilities, and internet.
After you've written out your expenses,
you're gonna see how much money you have left over
and then you can set up automatic transfers
from your checking account to your savings account.
Some should go into your top funnel savings,
and then some should go into your long-term savings.
This long term savings should be set aside
for those longer term investments.
Now, the nice thing about automatic transfers
is that you're not even gonna realize that
that money is gone, you're just gonna adapt
to this lifestyle.
An app that I love that helps keep me on track
is called Daily Budget.
It helps because it tracks how much you spend in a day
and then how much money you have left over from your budget.
And if you do want more information
on how to create a budget, I would say check out
The Financial Diet, this book really helped me
because it gives you a very friendly and easy way
to understanding budgeting, especially for beginners.
Tip number three, invest in broadly diversified index funds.
When asking people over the age of 50
what they wish they knew about finances
when they were young, many of them said that they wish
they knew about investing and that they had
started investing sooner.
So, consider investing in broadly diversified index funds.
When you put money in an index fund, that cash is then used
to invest in all the companies that make up
that particular index.
So it's a lot less risky than buying individual stocks
because you are diversifying,
you're not putting all your eggs in one basket.
Investing in index funds that are broadly diversified
means you are investing in stocks from a broad range
of industries which also helps hedging your risks.
Bank rates Senior Reporter James F. Royal says,
if you know little about investing and have no desire
to learn any more, you can still be a successful investor.
The reason? Index funds.
So essentially this is a beginner friendly way
to start investing.
So how do you do it?
You can get started in two steps.
So first, you're gonna wanna research
and analyze index funds.
An S&P 500 index fund is the most popular index fund
and they exist for different industries
and different countries.
So that's a really great place to start.
You're gonna wanna look into what the fund
is investing in as well.
So you're gonna have some idea of what it is
that you actually own.
Check the index holding to see exactly what's in the fund
and you're gonna wanna make sure
that you're digging into the funds expenses.
Expenses could make you or cost you tens
of thousands of dollars over time.
As well, look into the investment minimums.
You may have to reach a certain threshold
in order to invest on your first purchase
and it can often be several thousands of dollars.
After you do your research
the next step is to actually purchase your index fund.
You can either buy directly from a mutual fund company
or through a broker like Wealthsimple, or your bank,
or Questrade.
I would say it's usually easier to go
through a broker though.
When it comes to increasing your net worth,
there is nothing more important than increasing your income.
And a really good way to do that
is by selling products online
which is why we created a free online course
designed to help you find your winning product idea,
build your online store, and then start making those sales.
And then in this course, as a bonus
you're even gonna receive some free checklists
and worksheets to make launching and growing
your e-commerce business as quick and easy as possible.
So, in this course, you're gonna learn how to go
from first day all the way to first sale, and it's free.
So you can click the link in the description box below
if you do wanna register.
All right, next tip, contribute to your 401(k)
or your RRSP.
In the United States, a 401(k) plan is a retirement account
where employees contribute income and employers
match those contributions.
In Canada, a similar equivalent exists
and it's called RRSP.
So all that being said when your company offers
a 401(k) retirement plan, it is an absolute no brainer,
you are going to wanna take a part of this.
Now, if you're not sure the way that this actually works
is money is taken directly out of your paycheck before taxes
and then put into this account.
This means that you may be put in a lower tax bracket
and on top of that, you're not gonna pay any taxes
on those earnings until you actually withdraw that money.
So if you withdraw this money when you're retired,
then this is the only money that you're gonna be taxed on
at that time, which will put you in a lower tax bracket
which means less taxes to be paid.
So essentially the premise is that, you know,
you wanna contribute money early, withdraw money later,
save money on taxes now and save money on taxes later.
So this can save you tens of thousands
if not hundreds of thousands of dollars in taxes,
and that is one way to get rich.
Tip number five is to diversify your income.
Having multiple streams of income can not only
help protect you if your day job goes, you know, awry
but it can also be a really great way to earn some passive
or active cash on the side.
So here are some ideas that you can start implementing
literally right after you are done watching this video.
Sell your skills and start freelancing on the side.
So you can do this from literally the comfort
of your own home, and you can do this by setting up
a shop online.
Maybe you can do this by finding clients
through your network or Upwork or by cold pitching
you know, some services to relevant businesses.
Next thing you can do is you can resell your items.
So today there is a huge industry for resale.
You should check out Craigslist,
you can check out Facebook Marketplace,
all those places, you can start selling your items
at a marked up cost.
You can take it back to analog as well
and you can start selling in person at a yard sale.
I did this last week, it was great,
I made tens of dollars.
Next tip is to rent your space.
If you have an unused basement or an extra room
you should just take to Airbnb to start making some cash
on the side.
And this is a pretty great passive way to generate income
which can help you with paying your rent
and help you with paying your mortgage.
Also, guys, photographers and videographers
often look to Peerspace to find a photo studio,
so if you have a space that is particularly attractive
you can rent your space by the hour
for some pretty insane prices, I have seen it myself.
And then the last tip here is to start a business
by selling some products online.
So whether you are looking to do dropshipping,
or you are looking to create your own products,
you can use Shopify, you can use an online e-commerce tool
to help you start getting in front of customers
and start selling some things online.
And that can be a really great way
to make some passive income.
Next tip is to change the way that you think about money.
There is enough to go around.
So I was about 21 when I first heard that
one of my 29 year old friends was already a millionaire
and he was a self-made one at that.
And I also remember being so shocked.
At the time it just didn't occur to me
that this was even a possibility.
And I think after that time I started
to see things very differently.
I realized it's not really out of the realm of possibility.
And I used to ask myself questions like, is it reasonable
to expect X amount of dollars for my salary next year?
But honestly, the answer to those kinds of questions
is always like, yeah, it is, it's always reasonable.
Why not?
There is an abundant amount of money out there floating,
just floating around, and everyone and anyone
is entitled to it, and that could be you.
So if you are working a job that is not willing
to pay you what you want,
there will be another one around the corner.
It's just important to have that mindset
that what you want is possible.
Whether that is becoming a millionaire
or finding fulfillment in your job
whatever it is, it's possible.
Tip number seven is to surround yourself
with like-minded folks.
So along that same vein of what I was just talking about
with my friend earlier,
I think it's important to surround yourself
with people that are also money motivated
especially if you yourself are money motivated.
In my early twenties, I had the type of friend group
that talked about TFSAs on vacation
and were actually kind enough to like sit me down
and draw me a map of how I should be investing my money.
So, surrounding yourself with people
who are financially smart is gonna help you
absorb that information and really adopt good habits.
So, you know, that's one thing, but if you're like,
okay, I don't have friends that are like that,
you don't need to find yourself a new friend group
it's all good.
You could just throw on some YouTube videos.
You know, you come home, hang up your coat,
you throw on a YouTube video in the background
so that you can unconsciously absorb,
it's gonna have that same effect.
So yeah, those are all the tips that I have
for you guys today.
Those are seven money tips to help get you
to that millionaire mark, what do you guys think?
Do you think it's attainable?
Do you think that we're being realistic here?
I think you can do it.
As always guys, if you have any questions,
make sure that you're leaving them in the comments section
I will do my very best to make sure that I am getting back
to each and every single one of you.
Thank you guys so much for tuning in,
my name is Michelle Bali, this channel is called
Learn with Shopify, and I will catch you guys
in the next one, bye.
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