3 Wealth-Building Strategies for Women in Their 20s

If you are a woman in your 20s and want to become a millionaire before that guy sitting next to you, you need to do the following three things right now.

1. Decrease Your Taxable Income

Make it your ultimate priority to decrease your taxable income by 15% to 20% per pay period. You can achieve this by maxing out your contributions to 401(k)s, 403(b)s, and traditional IRAs. On average, women earn less than men, making it even more crucial to protect what you do make. I know, it might seem tough.

2. Invest Consistently

Invest $25 to $50 a week into a taxable brokerage account. You can do this through platforms like Fidelity, Schwab, or Vanguard. While it might not seem like a tax-advantaged account, it actually is. When you invest in the stock market and sell those stocks for a profit, those gains are taxed at a lower rate than your normal income tax rate. This is a common tactic used by millionaires.

3. Create an LLC for Your Side Hustle

If you haven’t already created an LLC for your side hustle, it’s time to hustle over to your Secretary of State's website and make that happen. This opens up a world of tax write-offs. The more you invest in your business, the more you can take advantage of these write-offs, allowing your business and your net worth to grow and grow.

Taking these steps will set you on the path to financial empowerment and millionaire status!

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