By Stefanie O'Connell GOBankingRates.com.
With record student loan balances and rampant underemployment among their ranks, millennials have become widely known as the recession generation. Despite this, a 2014 report from The Shullman Research Center shows a surprising 23 percent of today's millionaires are millennials, proving the opportunity to succeed is still very much available to members of Generation Y.
Here are five tried and true strategies for making the transition from stereotypically broke millennial to millionaire.
UNCOVER OPPORTUNITY The real estate market downturn was painful for many American homeowners, but for Brenton Hayden it was the start of a multimillion-dollar opportunity. In an article for Entrepreneur, Hayden wrote about how he helped people rent and manage their properties and founded the residential property management company Renters Warehouse, which profited $966,803 in its first year. By age 27, Hayden was able to retire a multimillionaire.
Rather than running from real estate during the housing crisis, Hayden looked at how the industry was changing and how he could capitalize on the shift. Uncovering new opportunities and developing better approaches can be monetized into millions if you have a taste for industry-altering innovation.
DELIVER TOP VALUE Named a top consultant by Forbes, millennial Ali Maadelat became a millionaire by tangibly proving his value to his clients and improving their bottom line. In an interview with The College Investor, Maadelat said, "If you are the best at something, the money will follow ... I've met hair stylists that pull six, almost seven, figures a year. I've met lawyers who struggle to make the monthly payments on their Hyundai."
You should work to become the best at what you do by harnessing and leveraging your unique value and delivering that value to clients in a way that reflects in the bottom line, meriting top-dollar remuneration.
BOOTSTRAP YOUR WAY TO SUCCESS Before earning the title of millennial millionaire with her wildly successful makeup subscription company Ipsy, Michelle Phan was a waitress with a YouTube channel. Phan posted free makeup tutorials online, building a following and a presence that got the attention of major makeup brands, including L'Oreal. She leveraged her online success to become a spokeswoman for Lancome and later used those brand relationships to launch her own company.
TURN YOUR HOBBY INTO A BUSINESS Susan Gregg Koger is a lover of vintage fashion. She turned her hobby of scouring vintage thrift stores into a business, growing and expanding her online platform into popular Web-based retailer ModCloth. Her net worth is $15 million, according CelebrityNetWorth.
Turning a passion into a business is not without its challenges. But Kroger shows it's not only possible, it's profitable if you're entrepreneurial-minded and are motivated by a love of what you do.
LIVE THE FRUGAL LIFE In his book, "A Million Bucks by 30," Alan Corey details his journey from broke millennial to millionaire. His strategy? Saving half of his earnings from his $40,000-a-year job, limiting ATM use and eventually investing in real estate. By staying on a strict budget and investing, Corey was able to become a millionaire.
Living frugally frees up funds for you to put toward larger financial goals, such as investing, real estate, entrepreneurship and other millionaire-making tools beyond the limitations of salary and income. See how you can cut back on spending and save money to start accumulating wealth. ___ Stefanie O'Connell writes for GOBankingRates.com, a leading portal for personal finance news and features, offering visitors the latest information on everything from interest rates to strategies on saving money, managing a budget and getting out of debt.