3 Signs You’re on Track To Become a Multimillionaire, According to Humphrey Yang
©Humphrey Yang
Former Merrill Lynch financial advisor Humphrey Yang went from counseling private clients on the finer points of personal finance to advising the masses.
A full-time online influencer, Yang now preaches the virtues of saving, investing, budgeting and eliminating debt to his 3.3 million followers on TikTok, 1.4 million followers on YouTube and 621,000 Instagram followers.
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With that kind of reach, Yang must have a message worth hearing — especially if you want to know whether you’re on pace to be rich one day yourself. In a recent TikTok video, Yang told his followers to look for the following three subtle signs you’re on track to become a multimillionaire.
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You Prioritize a High Savings Rate
Unless you inherit millions of dollars, you’ll have to save them yourself. Standard personal finance advice says to build for your future by socking away 10% of your income. Yang would like to see people save more if they want to become millionaires — but it turns out that most are saving a whole lot less.
“The average American has a personal savings rate of 3.4%,” Yang said in the TikTok video, citing information from Federal Reserve Economic Data. “That’s not going to cut it, so you should target a 15% savings rate or higher, which allows you to invest more money and compound your wealth.”
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You Track Your Net Worth
Tuning out is not a good way to build a fortune, and Yang encouraged his followers to proactively track their net worth, no matter how small or large it might be.
“Doing so gives you perspective and shows you that your hard work and discipline is actually paying off,” Yang said. “It also keeps personal finance in the back of your mind so that you make consistently better decisions.”
There are countless apps that can give you an overview of your financial life. However, Yang offered his followers access to his own proprietary net worth tracking template, which he shared with his viewers in his profile for free, saying he expects it to be “immensely helpful” for those looking for a starting point.
You Avoid Lifestyle Creep
As you progress in your career, raises and promotions might lead to bigger paychecks. That means more disposable income for you to buy all those shiny things you couldn’t afford beforehand.
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Resist the temptation.
You’ll ultimately find yourself unsatisfied and longing for the things you can’t afford on the next price tier up the ladder. It’s called lifestyle creep, and it keeps you broke no matter how high your salary rises.
“You may be tempted to upgrade certain parts of your life when you have more money, such as a fancier car or designer clothing, but true wealth cannot be seen,” Yang said. “So focus on earning, keeping your costs down and investing.”
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