3 ways to make money in the 21st century

Many of you made a New Year’s resolution to start a business or invest your money better to build wealth. You don’t need a college degree or vast experience to become a millionaire. A lot of young people are finding success online with very little money out of pocket.

Let's look at three methods many people use to make money

Invest in real estate

If you purchase one rental property for $300k every year and have a 15-year mortgage, you will have $1.5 million at the end of year 20. You could live on the monthly annuity revenue or sell them all and be a millionaire. Don’t forget to hire a maintenance company so you are not fixing things every weekend.

Some prefer to “flip” houses for a quick profit. This is a very popular option and can get you over the million-dollar mark faster. It also requires more work and your updates are on a tight schedule. “Flipping” can be fun if one partner does the design, while the other does the construction oversight.

Either of these options will get you to millionaire status and can be done fairly easily.

Start a business

Teens in high school and young adults are finding that starting an online business requires little startup money. They can start an LLC or S-Corporate for less than $300 with Legal Zoom. They can start with social media to get followers, then move to a drop-ship business or sell tee-shirts. You would be surprised to learn how many millionaires are made by selling tee shirts. Teens find websites like Canva, Placeit, and Videezy that can enable their brand and get them a professional look for very little money. Wix and Godaddy offer websites that you can build easily and it simple to set up and design (using excellent templates). Make sure you get a domain name so your email name is professional and branded.

Before doing anything, start with the “why” you want to start a business. The “why” is where the passion comes from and keeps you committed to the journey. You must be clear about what you are selling and what value it brings to your customers.

Using PayPal to handle credit cards, with no upfront money ensures small business owners are not ‘chasing’ their money. A PalPal business account also comes with job quotes and invoices so you can bill for services or consultations. They give you excellent reports so you know where your revenue comes from and can make changes to your offerings as needed. You must open a business bank account so you can keep your business finances separated from your family funds. Many small business startups get in trouble with the IRS because they don’t keep their money separated. You can easily connect your PayPal account to your bank so your funds are moved directly. If you then connect your accounting system to the bank then your accounting is updated seamlessly. I recommend Quickbooks since they are the world’s leader in small business accounting.

Don’t forget that online businesses can have 5 lines of revenue. YouTube ad revenue, company sponsorship on Instagram/Facebook, drop-ship product sales, eBooks/online course sales, and a consulting business are examples of diversification of revenues. All of these 5 revenue streams are done by teens and adults working part-time. Obviously, you want to put 100% into it if you want to make millions and retire early.

This may sound intimidating to some so we help you get your business started and do it with little money to start. We’ll even do a 15-minute free consultation to be clear about what you will get. Then, our prices are really low because we are retired and want to enable others to become financially independent. Learn more at www.tips4living.org/consulting.

Contribute to a Roth IRA or 401k

If you are working for a company and enjoy what you do then success can be yours. You may prefer building a career, leading people and building an organization with the security of a paycheck. Your focus would be to max out your 401K. Children under 18 can start early with a ROTH IRA (no taxes later). The key tool here is compound interest. That’s how wealthy people get richer and working people become “401k millionaires”. If you don’t believe me then use your phone and ask Google, “How many IRA millionaires are there?”.

Many parents may have their young children involved in photo shoots, commercials, lemonade stands or write a children's book. This source of earned income allows any child to start a ROTH IRA.

If you start when the child is 5 years old then you have 63 years to work with. Let’s look at this example in a chart where saving $100 per month over 63 years gets you in the millionaire club.

If you can’t start when a child is young, don’t worry. Many teens get their first job, while they are still in high school. Working at the movie theater, walking the neighbor’s dog, cutting grass, raking leaves and the list goes on as examples. The important thing is to put money into a ROTH IRA and let the magic happen over time. Grandparents can help with making children wealthy by giving them cash for the IRA instead of expensive gifts. They can do half gifts and have IRA cash. The only difference between rich families and ones stuck in poverty is having the information to build wealth. Some grandparents may even put in the $100 per month so the teen can spend their wages on themselves. If the teen also puts in $100 per month then two million is achievable. This is a new way to think about the role of grandparents leaving their offsprings a lot of money. This way, grandparents can live it up and spend their retirement IRA on themselves. Those who can only do $25 or $50 per month could still ensure the child will have hundreds of thousands of dollars to live on in retirement. This could be the end to generational poverty

Act now!

There are 12 million “millionaire households” in the US and growing every day. So, if you want to continue working for a company, then join the club of “IRA Millionaires” when you retire.

In summary, Warren Buffet speaks often about saving for the long term so compound interest can do all the work. The only difference between you and him is the information available, a system for saving and patience. The internet makes getting information easy. You can download free templates for your system and praying is my best way of developing patience. On your journey, don't forget to freeze your credit so others can't steal your identity. You must set up a Living Trust because that the best way to ensure lawyers don't take your money during a lawsuit or family fights in probate court. That single action can prevent issues that are likely over your lifetime.

If you need help with a personalized plan to start a business, learn how to invest in a ROTH IRA then call us for your free consultation.