Fri May 24 2024, by Tyler Gardner

Become a Millionaire in Your Twenties: 3 Essential Steps for Women

If you are a woman in your twenties and you want to be a millionaire before that guy you met at the bar who works in finances, then you need to do the following three things right now.

Step 1: Tackle High-Interest Debt

Number one, commit $25 to $50 a week to paying down that high-interest debt. I know, it's boring; how will that make me a millionaire? But before you even think about getting rich from cash inflow, you need to get control of your single biggest cash outflow. For the majority of us, that's credit card debt—18 to 20% guaranteed outflow that is guaranteed not going to you.

Step 2: Open a Roth IRA

Number two, open a Roth IRA today. Once you have finished paying down that high-interest debt, redirect the $25 to $50 a week into that Roth IRA. This is a dream account because you fund it with money that has already been taxed, and you can take back the contributions at any time. Additionally, you can invest within this account to take advantage of decades of compound growth. The best part? You will not ever need to pay a dime again of taxes on that compound growth.

Step 3: Invest What You Save

Finally, number three, remember that you still have to invest that $25 to $50 a week once it is in the Roth IRA. I will never tell you what to invest in because I do not know you. However, I will recommend to go research target date retirement funds and the three-stock portfolio. The only thing holding you back from success is what you decide to do right now.

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