Topics: Money, US News, World News, Education
A financial advisor has spoken out about a 'simple' step to becoming a self-made millionaire as soon as when you leave university.
Oh to be a millionaire in the cost of living crisis and not having to worry about skyrocketing house prices.
Well, apparently us youngsters have no excuse to whinge anymore, because there's a 'simple' step even recent graduates can take to become self-made millionaires - and no, you don't have to do it like Kylie Jenner apparently did.
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It's a daunting prospect finishing your years of education and being thrust into the real world and, let's be honest, neither school nor university properly prepare you for it - not teaching you how to do taxes or navigate insurance.
And one particular hot topic which is taking social media by storm, but feels uneasy to navigate especially when young, is the world of investing.
But financial advisor and host of podcast I Will Teach You To Be Rich Ramit Sethi says this is the key to becoming not just a millionaire, but a multi-millionaire - and it's best if you launch straight into it as soon as you graduate. But how does it all work?
Well, the financial advisor tells CNBC Make It as soon as you get working once you've graduated - no matter what job you end up doing - you've 'got to invest 10 percent of your salary every year'.
"And at the end of the year, increase that by one percent," he continues. "Do this for as long as you can and you will be a multimillionaire."
When it comes to what you should be investing your money in, Sethi explains a 'simple' way to start is through low-cost index funds.
Low-cost index funds are considered a passive investing strategy due to keeping costs low.
They can 'be a great way for both beginning and advanced investors to invest in the stock market,' money management website Bankrate explains, as your money is spread across a wide range of companies opposed to you investing in individual stocks.
"They’re a great choice if you want to minimize the time and money you spend investing, too. On top of that, index funds can offer attractive returns, in part by reducing the fees you pay."
Through this, your funds will be going towards companies included in the S&P 100 Index - a stock market index of United States stocks maintained by Standard & Poor's - which includes big brands such as Apple and Microsoft.
You'll need to open a new bank account - either an investment account, brokerage account, standard individual retirement account, or a special individual retirement account - and put money in your account and decide where it goes.
And the sooner you start investing the better as you'll accumulate more and more interest, Sethi adding: "By starting at your college graduation with your first job, you will set yourself up for a lifetime of living a rich life."
However, be warned, don't get too eager and think of this as a quick-fix.
Sethi notes it takes time for the investments to build and for you to reach millionaire status - CNBC adding if you start investing at 21, you may even be in your sixties before you hit six figures i.e. if you put $100 into your account each week from when you graduate, your seven percent annual rate of return will see you hit over $1 million by the time you turn 65.
But a nice million or two to retire with? Well, it's already impossible in this day in age for young people to save for a house, so what's a few more years, eh?
