Taylor B., a makeup artist at Glow Artistry, says she’s on track to make millions as an entrepreneur. She’s just 21 years old, and while she’s majoring in political science at Louisiana State University, she also has a lucrative side hustle.
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It’s simply impressive that someone so young is already on her way to being a self-made millionaire. What’s Taylor’s secret? What steps is she taking to ensure a financially free future?
Wealthy people know the best financial secrets. Learn how to replicate them.
Use your credit card wisely
Credit cards tend to get a bad rap in the financial world, and for good reason: they usually have high interest rates and can easily trap you in a cycle of debt. But at least when you’re starting out in adult life, credit cards are important because they’re how you build credit, and you’ll need them in many situations.
Taylor uses credit cards wisely to get ahead and build a high credit score while she’s still young.
“I’m trying to build up my credit,” Taylor told GOBankingRates. “Right now, my bills are pretty normal – car insurance, gas, cell phone. It won’t be like this when I’m in my 30s! So I use credit cards for small things like gas and pay them off quickly. My credit score is almost 700 and I’m only 21, so this has been a big help.”
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Pursuing entrepreneurship
When Taylor started her side hustle while in college, it wasn’t just for the money or passion — it was because she didn’t want to be tied down to a 9-to-5 job that could get her fired.
“Even if you love your 9-to-5 job, the possibility of being fired or laid off is out of your control,” Taylor said. “I would advise anyone, especially adults of Gen Z, to start a side hustle that can grow into a lucrative business.”
Have big-picture goals and a vision for a prosperous future
Taylor started doing makeup on campus because she wanted the flexibility to work without neglecting her studies, and makeup is important to her, but she has bigger goals in mind.
“My goal is to get a political science degree and get into some kind of legislation and open a beauty bar where women can get their makeup done and enjoy cocktails and massages,” Taylor said.
Applying for Business Credit
“I’ve recently learned that many sole proprietors have become millionaires thanks to establishing business credit,” Taylor says. “Once your company is legally incorporated, open a business checking account and apply for business credit. This is my goal to achieve by the end of the year.”
Budgeting and Expense Tracking
This is especially important if you are aspiring to be a millionaire, because even millionaires need to create a budget and track their spending.
“Whether it’s a spiral notebook, a Google spreadsheet, or an actual budget planner, it’s important to keep track of what your money is going on,” Taylor says. “You’d be surprised at how much money you waste on fast food and other non-essential items.”
Repaying debt
Rather than letting bills pile up, Taylor frequently continues to take care of her debts.
“Deal with them one at a time until you resolve them,” says Taylor. “I know a lot of people who ignore old student loan debt or furniture rental debt, and this will only wreak havoc on their credit score.”
Get your parents to buy life insurance
This is a little creepy, but it’s a key element on Taylor’s path to becoming a millionaire: making sure his elderly relatives have life insurance that will benefit them financially after they pass away.
“If your parents and grandparents are still alive, insure them,” Taylor says. “This is a predictable income that will provide financial security for the future.”
Save, save, save
Saving money is hard for anyone, but it can be even harder for Gen Z, who are just starting out in the workforce and generally earn less than previous generations. Still, if you want to become a self-made millionaire, it’s important to save as aggressively as possible.
“It’s hard if you’re not very disciplined, but it can be done if you focus on saving a little bit from each paycheck,” Taylor says. “For example, many people do a 52-week challenge at the beginning of the year to ensure they have saved some money by the end of the year.”
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This article originally appeared on GOBankingRates.com: I’m a Gen Z Entrepreneur: How I’m On Track to Make Millions
