How to be a Millionaire Before You Turn 40

John Rodrigues has a goal: to become a millionaire by the time he reaches the age of forty. Nothing unusual about it, right? Besides, everybody wants to be a millionaire before or after they turn forty. Unlike other millionaire-wannabes, however, John is actually on his way to reaching his goal. With only 13 years away from his deadline, John is right on schedule with more than half a million savings. Here are some money saving tips that helped John Rodrigues on his way to millionaire status.

Decline student loans

Right before his sophomore year, John faced a tough challenge that could either make or break his education: paying for his own tuition. Instead of taking out a student loan like most college kids, John just decided to get a good job and live a frugal life. John’s sacrifices eventually paid off: he graduated not only without debts, but he did it with honors. So by the time his classmates were still struggling to pay off their student loans, John already has nearly a hundred thousand in savings and a couple more in home equity.

Avoid sale taxes

John lives in California, the American state having a sales tax of 7.25%. To avoid the costly taxes that are imposed on retail items, John decided to drive all the way to Oregon just to buy an engagement ring for his future wife Gina. Although he had to drive 12 hours just to do so, John did manage to save around US$1,500 in California sales tax.