Becoming wealthy at a young age has become a highly sought-after topic for many people worldwide.
Many people have dreams and ambitions to achieve financial success, but not everyone knows how to attain it.
Some may believe that becoming wealthy is solely achieved through luck or by having a high-paying job.
However, there are actually several ways to become wealthy that anyone can pursue, as long as the right strategies and tactics are used.
Here are 7 ways to become wealthy before the age of 30 and be a “crazy rich” individual, proven to be effective.
Wise Investments
The key to building wealth is to start understanding different types of investments, such as stocks, bonds, real estate, and mutual funds. Understand the risks and potential returns of each, aligning them with financial goals such as retirement, children’s education, or short-term needs.
Build Relationships
Good relationships can open up more business opportunities and provide valuable insights. Make time to network professionally by engaging in business communities and using social media to form relationships that can support career growth.
Discipline in Financial Management
To achieve the goal of becoming wealthy, you need to earn and save money. Therefore, financial management must be done properly. It’s not just about saving; you also need to be disciplined in tracking every expenditure. This helps identify important needs.
Smartly Spotting Opportunities
With the advancement of technology, new opportunities arise that can boost your savings account balance. Therefore, you must be smart in spotting new opportunities, such as uploading videos on YouTube, starting a business as a reseller, or playing money-making games.
Live Simply
Even though you are diligent in earning money, it will all be in vain if you are still extravagant. Remember, you should not follow a high lifestyle if you still feel your income is modest. Rather than spending money on mere pleasures, it’s better to allocate it to more beneficial purposes, such as investing and saving.
Be Wise with Debt
There’s nothing wrong with borrowing money to get by. What’s wrong is borrowing without a well-thought-out plan and just to fulfill something that is actually not necessary. Temptations often arise to go into debt for things that are not essential. If you are a credit card user and spend recklessly, be wary of this. When bills pile up and finances become unstable, all efforts to become wealthy will be in vain. So, being wise with debt can be one of the ways to become rich.
Allocate Funds for the Future
In addition to donating, another important aspect of becoming wealthy is allocating funds for the future. This can be done by saving and buying future assets, such as purchasing land or property. The money you earn will not go to waste if it’s allocated for future needs.
Start the New Year with Smart Financial Resolutions Through the “No Buy Challenge 2025”
Entering the new year often comes with resolutions, including financial goals. One of the popular trends this year is the “No Buy Challenge 2025”, which encourages people to manage their money more wisely.
Although the concept may sound simple, successfully implementing it requires proper strategies.
To make the “No Buy Challenge 2025” impactful for your financial situation, Cynthia Suci Lestari, Founder of the minimalist lifestyle community “Lyfe with Less,” shares two effective saving tips:
1. Separate Your Budget
One effective way to save money is to allocate funds into different categories or accounts, rather than keeping everything in one place.
“After receiving your income, don’t let it sit in one account,” Cynthia explained in an interview with Kompas.com on Tuesday (31/12/2024).
She suggests dividing the budget according to specific needs, such as saving for accommodation, meals, or other necessities.
By separating funds into distinct categories:
You can better understand how much is needed for each area.
Avoid overspending in one category at the expense of another.
“Allocating funds immediately helps you maintain control, ensuring that each need is adequately covered without overlap,” she added.
2. Save First, Not What’s Left
Cynthia emphasizes the importance of saving money as soon as you receive your paycheck, rather than relying on leftover funds at the end of the month.
For example, many people aim to save a set amount but end up reducing their savings due to unplanned spending.
“Sometimes, you save Rp 1 million in the first month, but only Rp 500,000 in the second month because that’s all that’s left,” she said.
By prioritizing savings immediately after receiving your income:
You ensure consistent savings every month.
You’re not tempted to spend money meant for saving.
By applying these two strategies, you can maximize the benefits of the “No Buy Challenge 2025” and create healthier financial habits for the long term.
Remember, it’s all about commitment and being proactive in managing your finances!
Lately, more people have become aware of the importance of investing.
There are numerous investment instruments to choose from, tailored to your preferences and needs, including your initial budget.
However, many people still lean towards gold investment, whether in the form of jewelry or bullion.
This preference isn’t without reason. Gold investment is considered to carry lower risks compared to other investment instruments.
The initial capital required is relatively small, yet it offers the potential for substantial returns.
So, how can you profit from investing in gold bullion?
Here are some tips to guide you.
Gold Bullion Investment Tips
Set Your Investment Goals Before starting your investment, establish clear goals. For example, you might choose gold investment to save for a wedding or retirement.
In addition to setting goals, determine when you’ll need the funds.
Calculate how much gold you need to invest in and consider the potential price increases.
This helps ensure your financial target is met through the gold investment you’ve chosen.
Monitor Gold Price Trends The next step is to monitor gold price trends.
Nowadays, keeping track of gold prices is easier, with numerous websites and apps providing daily price updates.
Monitoring price fluctuations is crucial because gold prices can rise and fall. For instance, when the price peaks, you can sell your gold to maximize profits.
However, gold investment is typically a long-term strategy, often requiring 5 to 10 years to yield significant returns.
Buy gold bullion from trusted sources, such as PT ANTAM, to ensure authenticity and security.
Store Gold in a Safe Place After purchasing gold bullion, store it securely.
If keeping it at home, ensure you have a high-quality, secure safe.
Alternatively, consider using a Safety Deposit Box provided by banks to guarantee the safety of your gold investment.
By following these tips, you can maximize the potential returns from your gold bullion investments while minimizing risks. Start your journey toward financial growth today!
Saving is one of the key elements to achieving financial stability in the future.
Saving serves as the foundation of healthy financial planning.
By saving, one can prepare an emergency fund, plan for major future purchases, and ensure there is a reserve for unexpected needs.
Tips for Saving with a Small Budget
Saving also provides a sense of security and reduces stress related to financial issues.
The first step to saving with a small budget is to create a clear plan.
Determine your saving goals—whether for an emergency fund, education, vacation, or other purposes.
After that, create a monthly budget that accounts for both income and expenses.
However, for many people, especially those with low incomes, saving often feels like a big challenge.
In fact, with the right strategies, saving with a small budget can be an effective starting point.
Apart from proper strategies, the “place” to save should also be adjusted to your needs.
This article will discuss several saving options that are suitable for those just starting out with limited funds.
1. Conventional Savings Bank
A conventional savings bank is the most common place to save.
Many banks offer savings accounts with very low initial deposit requirements, and some even require no deposit at all.
Advantages of saving in a conventional savings bank include:
Security: Funds deposited in banks are insured by the Deposit Insurance Corporation (LPS) up to a certain amount.
Easy Access: ATMs, mobile banking, and internet banking make it easy to access your funds anytime and anywhere.
Interest Rates: Although conventional savings interest rates are relatively low, they still add value to your savings.
2. Credit Unions
Credit unions are another alternative for those with a small budget to save.
Advantages of saving in a credit union include:
Competitive Interest Rates: Credit unions often offer more competitive interest rates compared to banks.
Dividends: Credit union members can receive a share of the union’s profits in the form of dividends.
Community Support: Saving in a credit union also supports the local community’s economic development.
3. Financial Apps and Digital Wallets
In the digital era, many financial apps and digital wallets offer small-budget saving features.
Popular apps in Indonesia include OVO, GoPay, and DANA.
Features typically offered include:
Fixed Savings Plans: Users can set aside a certain amount of money monthly for a fixed period.
Micro Investments: Some apps offer micro-investment options with very small amounts.
Transaction Ease: Money saved in these apps can easily be used for daily transactions.
4. Mutual Funds
Mutual funds are investment instruments that pool funds from multiple investors to be invested in a portfolio of securities managed by an investment manager.
Advantages of mutual funds include:
Diversification: Risks are spread as the funds are invested in various assets.
Small Capital: Many mutual funds can be started with a minimum investment of IDR 100,000.
Professional Management: Managed by experienced investment managers.
5. Gold Savings Programs
Institutions such as Pegadaian and some digital platforms offer this service.
Advantages of gold savings include:
Value Protection: Gold is known as an asset resistant to inflation.
Low Initial Capital: You can start saving in gold with a small amount, even starting from 0.01 grams.
High Liquidity: Gold is easy to liquidate or sell back.
Conclusion: Saving with a small budget is entirely possible with the right strategy and tools. Choose a savings option that fits your financial goals and start building your financial foundation today!
Youth, especially in your 20s, is one of the most dynamic phases of life.
Some people are still busy embracing the YOLO (You Only Live Once) lifestyle, while others begin to realize the harsh realities of working life.
At this stage, we are often faced with various choices, from careers and relationships to managing finances. All these decisions will shape who we become in the future.
One quote worth reflecting on is:
“Youth is the best investment. What you sow in your 20s shapes your future.”
This means that what we do during our youth will significantly determine our lives in our 30s, 40s, and beyond.
Therefore, having clear principles, especially in financial matters, is very important. Below are five financial principles that can help you build a more secure future.
1. Live Below Your Means This principle may sound simple, but it is often difficult to implement in practice.
Living below your means means managing expenses so they don’t exceed your income. For instance, if you earn IDR 5 million per month, your expenses should ideally not exceed IDR 4 million. The remaining IDR 1 million can be allocated for savings or investments.
However, reality shows that many people live beyond their financial capacity. Data reveals that over 50% of online loan users in Indonesia are millennials and Gen Z. Another survey indicates that many Indonesian workers exhaust their salaries within the first week after payday. This underscores the prevalence of consumerist habits.
Tips for Living Frugally:
Make an Expense List: Start by recording all your needs, such as food, transportation, housing, and utilities. Prioritize based on importance.
Cut Unnecessary Expenses: Limit café visits, cancel subscriptions you rarely use, or reduce impulsive shopping.
Use Budgeting Methods: A popular method is the 50/30/20 rule, where 50% of income goes to essentials, 30% to entertainment or desires, and 20% to savings and investments.
If, even after living frugally, expenses still exceed income, it may be time to consider the next principle.
2. Grow Your Income with a Side Hustle In your 20s, energy and time are your greatest assets. One way to maximize these assets is by earning additional income through a side hustle.
Not only does this increase your income, but it can also help you explore your passions and skills.
Examples of Side Hustles:
Freelance: If you have skills like graphic design, writing, or photography, seek freelance projects on platforms like Sribulancer or Fiverr.
Online Selling: Start by selling food, clothing, or handmade products. Use social media or marketplaces to market your products.
Content Creation: If you enjoy sharing stories or information, try becoming a content creator on platforms like YouTube, TikTok, or Instagram.
Running a side hustle isn’t easy and requires extra effort. However, ask yourself this: would you rather work hard now while young or struggle financially into your 50s? By utilizing your time effectively, a side hustle can be a path to financial stability.
3. Invest in Your Skills This principle is critical but often overlooked. In the workplace or business, your value is determined by your skills.
If you want to earn more, you need to continually enhance your skills.
Ways to Invest in Yourself:
Take Courses or Training: Many affordable or even free online courses are available, such as on Coursera, Udemy, or YouTube. Choose courses relevant to your job or passion.
Develop Soft Skills: Besides technical skills, soft skills like communication, personal branding, and negotiation are equally important. These can help you build networks and advance your career.
Explore Your Passion: If your current job doesn’t align with your interests, explore new fields. For example, if you enjoy cooking, create recipe content or start a small food business.
Investing in yourself is a long-term investment. With better skills, you can increase your value in the job market and open up greater opportunities.
4. Invest Early and Stay Consistent The sooner you start investing, the greater the potential returns you can achieve. This is due to the power of compound interest, where your gains grow exponentially over time.
Steps to Start Investing:
Set Financial Goals: Are you saving for a house, marriage, or early retirement? Your goals will help determine the right investment instruments.
Choose Suitable Instruments: If you’re a beginner, start with low-risk options like money market mutual funds. As you gain more knowledge, you can try stocks or bonds.
Be Consistent: Allocate a portion of your income regularly for investment. For instance, set aside 10% of your salary every month for investment.
Remember, it’s never too late to start investing, but the earlier you begin, the greater the benefits you’ll reap in the future.
5. Avoid Get-Rich-Quick Schemes This final principle is equally important. In today’s digital era, get-rich-quick schemes are easy to find, especially on social media. From fraudulent investments to online gambling, these schemes promise significant profits in a short time.
How to Avoid Get-Rich-Quick Schemes:
Research Before Investing: Ensure the company or investment product is officially licensed by the Financial Services Authority (OJK).
Don’t Be Easily Tempted: If something sounds too good to be true, it likely isn’t.
Understand the Risks: Before investing, ensure you understand the potential risks. Never invest money you aren’t prepared to lose.
Money earned easily often disappears just as quickly. On the other hand, building consistent saving and investing habits yields safer and more sustainable results.
Conclusion The five financial principles above are not easy to apply but can significantly impact your future.
Living frugally, earning additional income, investing in yourself, starting investments early, and avoiding get-rich-quick schemes are practical steps to achieving financial stability.
Remember, youth is the best time to invest, both financially and in personal development. By following these principles, you can build a brighter and more secure future.
Start now, as every small step you take today will have a significant impact on your life in the future.
