George Kamel - How To Become a Millionaire ASAP

Starting point is 00:00:05 Recently, a 19-year-old called into the Ramsey show and asked me how to get a million bucks by the age of 25. What would you do if you had 100K and you wanted to invest that in 10 minutes to a million? By when? 25. And while I love his hunger and his industrious spirit, Uncle George had to play bad cop and crush that spirit just a little bit. Because making that much money that quickly usually involves way more risk than I would recommend taking. But listen, I know he's not allowing this goal. A lot of people out there want to become a millionaire,

Starting point is 00:00:35 soon as possible and they're willing to put in some work to get there. And while I am all over that ambition like White on a Rice Cake, I want to give you guys a more realistic picture of what it takes to become a millionaire ASAP. So that's what we're talking about in today's video. But first, there's one super easy thing you can also accomplish ASAP, and that's hitting those like and subscribe buttons. And while you're at it, share this video with the 19 year olds in your life,

Starting point is 00:00:57 just making their way downtown walking fast faces passing their homebound. Now, I want to start things off by pointing out what a lot of people don't have the patience to internalize, which is that most millionaires built their wealth slowly over time, regardless of what you saw on TikTok. And that's not like my opinion, man. That's cold, hard data from the national study of millionaires. In fact, the average millionaire worked, saved, and invested for 28 years before hitting the million dollar mark. with most of them reaching that milestone around the ripe age of 49 years old. And by ripe, I'm talking juicy peach, not sweaty Jim Sog.

Starting point is 00:01:41 Respect to the elders. But there's more. The research also notes that there's a unique group of people who found a way to a million-dollar net worth in 20 years or less. And no, it wasn't through spider goat farming, which is legit in Utah, by the way. Google at your own peril. Okay, that sounds absolutely terrifying. No, the people who reached a million-dollar net worth in 20 years or less are what I call Baby Steps Millionaires. meaning they followed Ramsey's Seven Baby Steps to A.T.,

Starting point is 00:02:05 which is a proven money management plan that helps you get out of debt and build wealth. In fact, it's the same method I use to get out of debt and reach a household net worth of a million dollars in 10 years and way before the ripe age of 49. If you can't tell. Moisturizer, that's what it's all about. Age gracefully, my friends. Hey, everyone!

Starting point is 00:02:24 Come and see how good I look. So even though building sizable wealth is typically a slower burn, a crock pot rather than a microwave, if you will, There are some key factors that help babysat millionaires boost their net worth faster than normal without taking on a bunch of risk or taking a bunch of shortcuts. Basically, there's some simple ways to turn that crockpot from low to high to speed up the process with wisdom and peace. But before we take a look at these, let's talk about something else that involves a lot of risk. And that is trusting your personal information on the internet.

Starting point is 00:02:53 Seriously, if a data broker gets a hold of your info, they can sell it to scammers and Chugwater, Wyoming, who don't give a rip about screwing up your life, while they write off into the sunset with your social security number. Trust me, I got my identity stolen when I was in my 20s, and I know firsthand it can take a lot of time to get things straightened out. And that's why I now use and recommend Delete Me. They remove your info from hundreds of data broker websites.

Starting point is 00:03:16 In fact, delete me found and remove data about me from across the web, and they send me a scannable report, which makes my type A heart very happy. And right now with my super special link, you can join Delete Me on a one-year plan for less than $9 a month. So go protect yourself from the risks of identity theft and online scams. Go to join deleteme.com slash george today and sleep easier tonight. Okay, I'm just going to be real. One of the things that made a huge impact for me reaching millionaire status early was getting married.

Starting point is 00:03:44 Thanks, babe, love you so much. Seriously, though, after I got married, my wife and I were dual income, no kids with a dog for a while, aka dinkwads, not to be confused with other things. And because we were young with dual incomes, no kids, we were on the same page about money, we were able to attack our financial goals as intensely as Guy Fietti attacks a sandwich. And when you get married, you have a built-in accountability partner, or as I like to call them, Accountabilbodies. Guys, remind me to trademark that, that is patent worthy. Accountability buddies, TM. This man is a genius. A genius. Now hear me

Starting point is 00:04:19 loud and clear that you don't have to get married to become a millionaire. I know plenty of single people who are kicking butt and taking names financially. Unless the cable reruns of the notebook in the early 2000s teach us nothing, we all know to never marry for the money. I'm just trying to be honest here and tell you that getting married helps speed up my net worth timeline. And two people can get more done than one. And two incomes with one focus vision is a magical thing. Right, next thing you've got to do is find ways to increase your income. The average entry-level salary in the U.S. is around $35,000. In fact, that's about how much I was making when I graduated from college with a crap ton of student loans. And while that

Starting point is 00:04:53 35K can get you started, reaching a million-dollar net worth with that income level, could It could take longer than a month of sunbase, as the mammas out there like to say. Don't say that. In fact, if you never got a raise and made $35 grand your whole career, it would take about 30 years of investing 15% of your income to reach a million in investments. Now, that doesn't factor in other assets that contribute to your net worth like your home or cars, but you get the idea, it would take a while. So you've got to keep tabs on your income, and you've got to work on increasing it over time.

Starting point is 00:05:22 So maybe you need to talk to your boss about what a growth plan looks like for you and your role. And if you feel like you're not making enough of your current job, it might be time to get some more education or even go for a full-on career shift. And don't turn your nose up at working side hustles either. Working side hustles was huge for me and my financial journey, from building websites to selling stuff on Facebook and eBay, to driving people around with Uber and Lyft, to licensing my original music. I got creative and it added to my income in a big way. And if you think you don't have enough time or skill, I call BS. You're watching this video. So how busy are you really?

Starting point is 00:05:54 Hmm? Okay, you got me there. But hey, if you're coming up dry trying to think of side hustle ideas that don't involve joining a monetized cult, sorry, MLM, be sure to check out my brand-new side hustle quiz to find one that fits you. It's totally free, and you can take the side hustle quiz at georgecamel.com slash side hustle, or just tap the link in the description of this video. Next thing that will help you reach millionaire status faster is to cut unnecessary expenses and avoid lifestyle creep. Now, I know you may be wondering if cutting back on small things and T.J. Max Chochis will really

Starting point is 00:06:25 make a dent, but the stuff adds up. I mean, you could live without another bless-dismessed throw pillow in one of those signs that says kitchen to let people know that they're in the kitchen. They'll figure it out. Trust me. Now, the tricky part with lifestyle creep is that when your income goes up, too often your spending creeps right up to meet it. You might not even notice the shift, but after a while, getting your lavender, oat milk, latte is an occasional treat, turns into a very expensive habit. That tiny $6 indulgence adds up over the course of a month, and especially over the course of a year. Then there's a little. your fancy gym membership, your unquenchable need to have every streaming service known to

Starting point is 00:06:59 man, and the cost to take care of your ridiculously high-maintenance French Bulldogs. That one felt personal. Bottom line, there's nothing wrong with spending extra on things every now and then, but you can't have your cake and millions too. You gotta make some sacrifices, you gotta separate the wants from the needs, and then you'll find the margin to accelerate your money goals. All right, next thing you gotta do is something you hear me say all the time, but if you want to be a millionaire, you've got to stay allergic to debt. Just like I stay allergic to gluten. At this point, it's an easy choice for both. Don't tempt me with debt or gluten. I am above the influence, kids. And this isn't just because I work for Dave Ramsey.

Starting point is 00:07:38 This is like data and stuff. The National Study of Millionaires found that most millionaires never carried a credit card balance in their entire lives. And compared to the average person, they're far less likely to take out car loans, student loans, or any other form of consumer debt. And it's because they know that debt is quicksand, which every 90s kid who watch too much TV knows is a very dangerous thing that we've never had to deal with. So if you want to be a millionaire, get debt out of your life ASAP. It is a must. Speaking of investing, that's the next thing you've got to do if you want to go all in on building

Starting point is 00:08:08 wealth as fast as possible. And when I say investing, I don't mean buying into your aunt Donna's unique once-in-a-lifetime opportunity to buy into her candle business. We get it. It's soy. You've got the wooden wick. It's been done, Donna. It's been done.

Starting point is 00:08:22 You don't get it. You see, most millionaires said that consistently putting money into retirement accounts was the key factor in their success. It's that boring. How about that? So start by investing 15% of your income into tax-advantage retirement accounts like a 401k and a Roth IRA. But when I say 15%, here's why that's a magic number. If you save less than 15%, you risk coming up short in retirement. And if you go well above 15%, it could keep you from devoting enough toward other money goals like saving for your kids' college and paying off your mortgage early.

Starting point is 00:08:52 More on that in a minute. When you reach this point in your wealth-building journey, I highly recommend using an investing pro to help you make the most of your options. and I personally found my investing pro through the smart vestor program, and if you want more info on that, I'll drop a link in the show notes. Okay, last one. And this one was the very thing that tipped my net worth over the edge into the millionaire's promised land flowing with oat milk, local honey, and paid off mortgages. You've got to buy a house the right way and be intentional about paying it off early.

Starting point is 00:09:18 Because remember, a millionaire is someone with a net worth of $1 million or more. And guess what? A paid-for house is a huge part of that equation. But it starts with buying a house that you can actually afford with that. a 15-year fixed-rate mortgage. And by actually afford, I mean that your mortgage, your PMI, your HOA fees, and taxes shouldn't account for more than 25% of your after-tax income. I know that sounds impossible in 2024, but this is what it takes to build wealth with peace and margin. And once you become a homeowner, commit to paying off that mortgage in 15 years

Starting point is 00:09:49 or less. In fact, people that follow the Ramsey Baby Steps actually ended up paying off their home in about seven years. It's amazing. So between making extra house payments and exploring options to refinance or downsize, make a plan to knock that ish out. And if you want a simple payoff strategy, here's the one my wife and I used. We made it a goal to throw extra money at the principal balance every month. Our initial goal was to double our payment. So if your mortgage payment is $1,500, figure out what it would take to throw $3,000 at it instead. Now, obviously, this will vary depending on your situation. And the important part is that you set a goal that challenges you a little bit, and you do your best to stick to it every month. And here's what paying off that

Starting point is 00:10:26 mortgage in our early 30s did for us. gave us freedom and options when it came to our personal and professional lives. If my wife wanted to be a stay-at-home mom one day, we could handle it financially with no stress. If we wanted to save up for an incredible vacation or a car upgrade, we could do it with cash without worrying about payments. And if we wanted to give more generously, we could do that with an open hand and without hesitation. So listen, I'm living proof that you can beat the odds and become a millionaire before you're 40, even before you're 35, with or without babies, or fur babies, if you're dinkwads. And I was able to do that starting from broke with $40,000 in debt on an entry-level salary.

Starting point is 00:11:01 Now, if you want to learn more about the specifics of how I reached a million-dollar net worth, be sure to check out this video on how I went from broke to millionaire in 10 years. I'll also drop a link below. As always, thanks for watching. We'll see you next time.

George Kamel - How To Become a Millionaire ASAP

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