How to Get Super Rich Before You’re 30
You want to know how to get super rich before you turn 30? In today’s free market economy where anything is possible it is certainly within your reach. However, as you can likely guess, it will take some outsized efforts, risks and work to get it done. Now, don’t let this scare you away! If you’re in your early to mid-twenties, or even late teens, and you have the time, energy, and enthusiasm – we can monetize these into something incredible. In other words, we’re going to bottle these up and convert them into assets and money – we just need the right approach.
While following the advice in this column is no guarantee to get super rich before a particular deadline, it will undoubtedly increase your odds of achieving your goal.
Here are the 10 things you need to enable to get super rich by 30 years old:
Start as Early as Possible
The most powerful and valuable asset you have for getting super rich is time. Because as you save and invest, your money earns interest and compounds. The sooner you get this working for you the better and the longer your money has to grow.
For example, suppose you land your first career job at age 22 earning $50k a year. Your employer offers a 401(k) match worth 100% of the first 6% of contributions you make. To max out your contribution limit each year putting $18,500 into your plan. With 2% annual raises and an average 6% annual rate of return, you will have $216,000 in your plan by 30.
So far, you’ve accumulated close to a third of a million dollars. If you were to continue saving at the same pace you will easily have $1 million by age 40. By age 65, that would grow to more than $5 million.
Again, saving is just one method that we will use, read on to see how we will get the other 800K or more.
Set Big Ass Goals
If you want to get super rich by 30 you need to have a big ass goal tied to this deadline. You define the number and then you should bump it up a bit more. Because when you stretch for the extra, you increase your odds of landing at or above the original marker. This will also kick you into a higher gear and get you even more motivated. Money won’t just appear — you have to work for it.
Another helpful tip would be to break your bigger goal down into smaller chunks, taking into account the positive effects of compounding. This means your last half of the goal can be accomplished in the last 2-3 years while the first 7-8 years will be required for the first half. As your money and skills grow your capacity to earn and retain money and assets will expand greatly.
Track Your Goal
Achieving millionaire status by age 30 is a huge target to hit and you will need to track your progress. Breaking it down into smaller goals can make the process more manageable. For example, you may set monthly, quarterly, and annual goals as you work to reach $1 million in savings and investments. A trusty excel spreadsheet can help you break this down.
For example here is what your net worth needs to look like each year from 20 to 30. You can see the assumed rate of return and also the annual contribution towards your wealth. These contributions can be straight up investments such as stock purchases, or creation of new businesses and side hustles.
In order to achieve this level of wealth accumulation you need to be acutely aware of the value you bring to your workplace. More importantly, you must understand the ways in which you can uniquely contribute to society.
Negotiating a raise at your job, for example, could yield more income to invest. It also helps to know your skills and talents, as using these you could become a freelancer or sell a product online could yield the same result as a raise at work. The key is to know your true worth and how use it to your advantage.
Lastly, you can flip this entire approach on its head if you can build something of value and grow it faster than this 10%. Think of the growth rates that some business tycoons of today experienced in their early days when they were busy working in their garage!
Work Hard & Earn Big
One of our first steps is to focus on increasing your income earned through employment. While this can go a long way to getting us super rich before 30, we will also likely need some assistance from other income sources and investment performance. More on this later. For this section, we need to really drill down on what value we provide through our employment and seek to maximize this earned income.
Earning more money is often easier said than done, but most people have options. Learn about how to bring in additional income on the side, how you can earn passive income, and the first steps to take before starting any business either online or in person. Regardless of how you approach this, you will need the one-two punch of an earned income and a side or passive income stream.
One truth that will stand tall through the decade is you will need a well-built work ethic and have boundless energy to accomplish this work. This is absolutely required when you’re asking your employer for constant raises or promotions. When you finish your day-job, you will need to continue working for yourself.
Be sure to implement a daily routine that is conducive to this work ethic, and if required, build in some downtime or “me” time to ensure you’re investing in yourself and your health. It can be easy to get lost in this pursuit of this goal, especially when your efforts begin to work.
Looking for some inspiration on work ethic and how this relates to success? Look at the chart below, especially look at the line for Bill Gates!
Avoid Consumer Debt
It’s possible you can become super rich while having outstanding debt. In fact, it’s entirely likely you will need some debt and leverage to accomplish this goal within 10 years. Hence why this section is titled “Avoid Consumer Debt”. For example, a mortgage, or loan against a property, isn’t bad because you’re building equity in a property that could be rising in value. In the case of a rental it could even provide positive cash flow. On top of this, the interest rate is very low and tax deductible.
However, you must, in all cases avoid credit card debt and in most cases consumer loans for disposable items. One of the worst forms of debt is a car loan. Not only is it against a depreciating asset, but there are many complimentary costs associated with the vehicle that bring the total cost of ownership much higher. To put further emphasis on this, consider these costs are paid with after tax dollars. Check out the cost of ownership for the popular SUV the Toyota RAV4. After tax costs are calculated using 24% tax rate which is the average net tax rate of most Americans.
Avoid this debt at all costs and really mind your all-in vehicle costs. To keep things simple, Financial Samurai and CNBC recommend not spending more than 10% of your annual gross income on the up front cost of a vehicle. Not only will this keep your upfront cost lower, but it will bring down all the associated and complimentary costs that come with vehicle ownership. These costs are listed above in the chart.
Debt’s True Cost is Opportunity Lost
The worst insidious cost of debt, loans and consumerism is their opportunity cost. While you’re paying for that nice truck, SUV, RV or boat, your paying for these at the cost of investing. You want to know the #1 rule for how to get super rich by 30? Avoid bad debt. It is #1 because it is a super low risk method to building wealth and it is always guaranteed to work and improve your finances. It gives you a stable foundation on which to build wealth and achieve that big ass goal. You will need to take on other more substantial risks to reach your super rich goal, and bad debt will decrease your capacity to do this.
Multiple Income Streams
In a five-year study of self-made millionaires, everyone of them had multiple streams of income: these additional streams include real-estate rentals, stock market investments, and part-ownership in a side business.
Working at a full-time job can help you generate income to invest, but if you’re wondering how to get super rich, this path requires you to add multiple income streams to the mix.
Freelancing is a popular option for many. An estimated 60 million Americans do some sort of freelance work. Starting a side hustle by offering freelance writing, being a virtual assistant, or providing coding services could lead to more income for your investment plan.
Investing in real estate is something else to consider. Owning a rental property, for example, can generate a steady stream of income monthly. The income is passive, meaning it comes in regularly as long as you maintain consistent tenants.
These are the two quick ones that come to mind. On top of this, I have a more thorough blog-post on 21 passive income stream ideas. Go give it a quick read!
Invest Everything & Don’t Save Anything
Let’s not mix words: achieving super rich status in 10 years or less is a massive goal that requires extreme effort, sacrifice and some risk taking. As we all know, many won’t even achieve this in their lifetime let alone before their 30th birthday. However, if you have the drive, gumption, and mental fortitude to earn this, you can absolutely achieve this goal; it is 100 percent possible.
So while it may not look like you’ve accomplished much after one year, if you can string 10 of these massive years together you will most certainly achieve something monumental after 10. Stick to your plan and do not deviate.
Speaking of young people in their twenties, who have little at risk with no mortgage or kids, Elon Musk said the following:
Go All In
So what’s the take away here in this section? You need to invest every penny you can into either the business you’re starting your straight into the market: no bonds, no gold, no cash, no CD’s. Look, you’re young, you have few obligations, what are you really putting at risk? You’re not going to starve, get sick or die, and you won’t hurt anyone else.
You want risky enough assets that you can bank on them delivering outsized returns over the next 10 years. Even if there is a market correction or crash, keep plowing money into the market as this is a great buying opportunity and lowers your total average cost of the investment.
Change Your Mindset About Money
Most millionaires insist that getting rich is all about having the right mindset. Put another way, it’s not enough to just have the desire to become rich. You need to see money and wealth in a whole new light. You must believe 100% that you deserve this goal and money and that you belong in the club.
At the end of the day, if you don’t believe that you deserve it or that its too risky, you won’t be able to pull it off. Others will not do it for you. So, repeat to yourself that getting rich is in your control, you deserve it, and that you can manage the risks and problems you will face going forward.
Remember always that others have done it before you, and others will do it after you. It is all within the realm of possibility and there is no reason why you can’t achieve this as well.
Asset Oriented Mindset
Back in October of 2020, I introduced the Asset Oriented Mindset in my article “How the Rich Spend Their Money” The crux of the article centers around their daily focus on their assets and continually building up that asset column. They invest first, not last and always protect those valuable assets, especially the ones that generate income for them.
Exposure to the Probability of Success
- Cultivate a winning and wealthy mindset
- Nobody beats your work ethic
- Gain exposure to the odds of success
- Failure is just feedback to be incorporated into your attempt
- Repeat until you achieve your goal
Lifestyle Choices
Within your social circles, you want to be known for your work ethic and financial smarts. What you don’t want to be known for, are the trinkets you buy and always getting your hands on the latest gadgets. One simple way to put this into practice is to set the goal now of what vehicle will you be driving when you achieve millionaire status. If you think about it, this will be a great story to tell your friends, family and children.
I was driving a used Toyota Camry when I became a millionaire
~Future You
We hold a collective view in society where we believe the millionaires and wealthy are all about expensive cars, mansions, vacations and eating caviar. However, the reality is they are actually very careful with their money. This doesn’t mean that they won’t drive good cars or eat great food, this means that they will always put quality over quantity and will never overspend. Always ensure you get good value for you money and avoid debt financing. Being rich and acting rich are often two different things.
Avoid unnecessary expenses until you become a millionaire. That being said, sacrificing your social life doesn’t have to be part of the experience either. While you don’t want to be hitting the club every weekend, you should be able to have fun every once in a while while keeping the costs down.
Always remember that when you’re young and in your twenties your opportunity cost is at its highest. While this is true, it also stands that you have the chance to really make a positive difference in your life going forward. Put another way, the assets and work you put in now will pay off everyday for the rest of your life. Leverage your twenties.
Invest in Yourself
You may have the best investment portfolio, have all the money, and everything set. However, how would you react if I told you that your best investment in actually investing in yourself? Ask any millionaire, billionaire, business owner what’s their best investment, and they will tell you this.
Further, they will tell you that the best thing about investing in yourself is that you can always get revenue from this investment. Therefore, your knowledge, technical skills, and people skills are your ultimate weapon for wealth. All in, this will help you reach that millionaire status. So keep learning all the time and increasing your capacity to earn.
Learn new technical skills, do more public speaking, master finance management, learn stock analysis, read up on blockchain technology, listen to TED talks, the list goes on.
Lastly, don’t neglect the importance of physical health and exercise. As this will ensure you live a long healthy life so you can enjoy all the assets and wealth you build up.
Real Life Example
My good friend over at Bella Wanana has a detailed article about Pokimane. An internet sensation who has gone from nothing to being worth upwards of $3M. What’s more – she is still only just 26 years old. It is a fantastic article with lots we can all learn from.
Conclusion
Your twenties are your golden age and literally the opportunity of your lifetime. If you put these years to good work, you can live off these results for the rest of your life. Understanding that the points and ideas in this article are extreme, but they need to be so you can achieve this incredible monumental goal. Getting super rich before your 30 is a big, massive, wild ass goal.
Now, one thing you might do, if you think this is too extreme, is to dial it back a bit on each and settle for a goal more realistic like $500K. Nothing wrong with getting super rich by the time your 40 either.
However, if you’re set on early retirement, getting super rich, or want true financial freedom, you will need to put in some extreme work to get these extreme results!
Please, reach out to me on Twitter or email me from here (contact details below) and let me know how you progress in your journey to super richness!
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