Millionaire net worth by age 30?
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
Best recommendation is on the personal as opposed to investment side...
Do not get married. When you choose a "girl friend" select one with a high income job and a drive to increase wealth. Preferably one that views their employment as a job, exchange of time for money, rather than a career. You do not want a partner that allows their job to interfere with their life. Think of them as a potential business partner. Associate with like minded individuals, especially those with money.
Distance yourself from all your old friends that think money is earned to be spent.
Is that a joke? I'm rather new here so I might not get the subtle humor of some and/or inside jokes.
LOL. I don't think this was meant to be a joke, and that is what makes it so funny!
I do agree with Greg in one sense, though, that the decision to get married will either be the best or the worst financial decision of your life, and there is not much in between. I was fortunate enough for it to be the best decision for me (and no I did not just marry into a wealthy family), but many others don't fare nearly as well...
Eventually a bigger why will probably develop, but I applaud your goal. A million ain't what it used to be LOL.
Don't get doc-itus! Porsche payments, fancy boats, toys and houses will keep you broke. I think you know that, but had to say.
I'd be working on my student loans as well. Those things can linger forever. I only had $7500 left when I paid mine off and it was 9 pages worth on my credit report. My lenders were like, 'Holy crud. How much in student loans do you have???' Each quarter/semester for each individual loan was showing up.
Welcome to BP! Looking forward to following your progress!
Great goal to reach millionaire net worth by age 30. My recommendations for turning that goal into reality are to break down that goal into sub-goals, working backwards. What assets will make up the $1M? Stocks, real estate, other? How much? What will be your debt vs. equity position?
Maybe you own 4 4-plexes, each worth $250K, with the debt completely paid off, by age 30. Or maybe you own 20 single family homes, each worth $100K, with an average mortgage balance of $50K on each one.
Once you figure that out, keep working backwards. Let's say you landed on 20 single family homes. By age 29, maybe you want 15. By age 28, maybe you want 12. Work back to your current age, until you can answer the question "How many properties do I need to buy THIS YEAR?" Then you can break that up even further...ex. close on one property by June 2017, close 2nd property by October, etc.
Finally, add some criteria to your acquisition goals. For example, maybe your goal will be to "buy one property worth around $100K, cash flowing $250/month, by June 2017".
Now you have your short term goal...then figure out what you need to do to make it a reality! Start looking for properties, meet with lenders, RE agents, insurance agents, property managers etc.
@Bill Goodland , I think that is a great goal. Especially with real estate. Know that we are at the top or nearing the top of this cycle. Be judicious in your initial purchases and ensure you don't over-leverage. Lots of cash deals to come after we retract.
My 2 cents on the personal side. If you are self centered, don't get married. If you feel you need a pre-nupt, don't get married. If your choosing a mate based on what you want them to be, don't get married. Give others what they want, It will come back 10-fold. Good luck and God Bless!
The same way you accomplish anything. Getting rich is a skill and a game just like most things, its no different than getting anything you want. Assuming you don't get just lucky and fall into something (listen to the podcast a lot of ppl fall into this category but luck also requires preparation and openness) this is how I would tell you to assure your sucess:
1) Identify your path - This is normally a function of both what you have going for you and what you like. There are a lot of paths to wealth including within RE. Find one you like or are good at or pref both. Outside of RE that could also be stocks, your job etc. By the way there can be two or three paths (few people can do more than 2 or 3 things really well) and they can complement each other. I do banking and that has helped me in my RE path or for other investing
2) Practice - Get in the game. You might not make money today or tomorrow but eventually if you get good enough an opportunity will arise. Practice as much as you can, that could mean books, it could mean doing a flip even though it might not make a bunch of money, it could mean picking the brain of others. This takes passion though to go day and day out which si why step 1 was important
3) Stay in the game - time is your friend, prob your best friend. Yes there is compounding but also luck. Luck only helps you if you are in the game. Keep playing. Doesn't mean do the same thing over and over again but stay involved no matter what, the more the better. You can only make money, get lucky and be prepared for big moments (like the crash) if you are in the game.
4) Avoid big mistakes and learn from little ones - mistakes can be good, they teach and if you are in the game you are bound to make a lot of them. However, big mistakes can be fatal to your finances. Mistakes like divorce (or multiple), making a huge financial error, going to jail or anything like that make it very hard to come back and knock you out of the game maybe at exactly the wrong time. For instance, there were a ton of very knowledge people and skilled people who couldn't take part in the huge run-up after the crash because of their actions before the crash.
5) Have perspective - Frankly I think this is the hardest one. I get discouraged a lot and I focused on things that didn't matter to my great detriment both personal and professional. Its unlikely $1K or spending another $200 a month matters at all in the long-run. What matters is habits, mindset and ability to bounce back. The fact that you messed up and spend $200 here or there or lost $1K is doubtful to be a big deal in 10 years. The fact that you beat yourself up about it is. The worst thing I ever did was let pennies deter me from making dollars.
Personally, this is what should be the focus. I know very few people here will agree with me but I am not big on major goals like $1MM net worth. The $1MM net worth is an outcome. The outcome seldom has anything has anything to do with anything. True it might keep you motivated (if you need that type of thing, I don't) but most successful people I know were much more focused on the game and the process than a specific outcome. If you focus on doing well and not making too many (esp very large) mistakes you verty often obtain a very favorable outcome.
Bill,
Glad to hear you and I have a lot in common, (other than location) in our aspirations for long term wealth appreciation and accumulation. I am working towards my CPA as a job, and in the areas I am looking to move to after college both have low Cost of Living. But because of a low cost of living I am looking to use the rest, (pushing for 30%) of my after tax income into investments in Real Estate and stock markets. Look forward to following your progression towards your goal.
I agree with @Nik S., there are lots of ways to add value in REI. Find your niche and be excellent at it, then be willing to pay other excellent people (CPA, realtor, wholesalers, etc) to add their value when needed (rather than trying to do everything yourself and being mediocre at all of it). You don't need it to be a great deal for just you, so be excited when other folks are able to make money off you when it is a great deal for you AND them.
Also, look into a specialty and try to get into a private practice. You'll make 30%+ more and you'll be significantly less frustrated with regulations than, say, a family practice PA.
You obviously already have the frugal idea. Set your budget and stick to it. Househacking falls into this category. That's where I'd start if I were you.
Finally, since it's been commented on so much: love is a choice you make, not a feeling. Feelings change - with stress levels, with the time of day, with the weather. Infatuation and lust (what some would say are parts of "chemistry") aren't great foundations for a relationship. Having patience with the other person, looking out for her best interests, forgiving her when she wrongs you and not keeping track of it - those are all part of love and you should commit to those no matter how you are 'feeling' at the moment. If you do, your relationship will be awesome.
I started with $90k when 25 and now at 30 I'm 'worth' (net ~1.9m, gross ~3.5m). To get that sort of acceleration it is all about timing, but slow and steady will eventually win the race. I moved back to the US (Washington State) in Sep, 2011. The stars aligned for me. This was at the bottom of the market, interest rates at historic lows and at the beginning of my State's largest property boom. I have my primary and one buy and hold (locked in for 30yrs at 3.125! - originally classified as a primary). I currently have 2 flips in progress and have traded on 6 properties (sfr). I've been super aggressive and my wife and are good earners, it is highly doubtful I would be fortunate to be in this position so soon if the stars didn't align. Hopefully, your market may be in the beginnings of such a wave for you to ride. Only advice I can give you... being young, you have time on your side - be as aggressive as you can tolerate, fortune always favours the brave! In a rising market trade on as many properties as you can muster-up the financing, it isn't too hard to find. Hard money is fantastic for flips!
I may differ from most here but having achieved financial independence a bit early (at 34 years old) from real estate - I'll tell you being a millionaire by a certain age is not only unnecessary, but I feel it takes you in the wrong direction to live a happy life. Being motivated is still a good thing - just focus on the stuff that makes you happy now, not just stuff that may make you happier in the future. Google the story of "The Mexican Fisherman". It has redefined my entire life. Good luck.
I would reccomend break down your 5 3 and 1 year goals. Break down your 1 year goal into 4 12 week periods. Then make sure you complete tasks daily to to align with your 12 week goal (which will help reach your 1 year, goal)
Consistent, daily action is what will get you there.
Are you looking for your first purchase? How many offers have you put out in the last 3 weeks?
Set a goal of looking at/ analyzing a set number of deals a day... for example if you look at 2 leads a day that would be 60 a month and at least one offer a week so 12 offers in your 12 weeks .. if you get one offer accepted you are in good shape.
I'm surprised no one has mentioned a net worth spreadsheet yet. I created one about 20 months ago that I update monthly. It is awesome watching how your net worth can grow and has encouraged me to accelerate it.
Another thing I might add is write down your goals. Literally, write them down somewhere you will see them multiple times per week. Only 3% of people in the world write down their goals. It keeps you committed.
Man!!! this is such an inspiring thread. Sure hope you reach your goal @Bill Goodland keep us updated.
Thanks again everyone for the input. I'm not money hungry by any means, in fact I've always been more than satisfied financially while still saving the vast majority of my income since I was a teen. I'm really more in competition with myself and want to generate the systems to build wealth before starting a family and really focusing on what matters most once I have achieved my medium long term goal.
@Peter Tverdov I have been writing down my goals and it has been very helpful thus far!
@Rafael Diaz Thats awesome to hear man congrats. I'd love to be where you are some day and will surely be working for it. Would you mind sharing your strategies, or what has been most effective for you? Yes I understand the basics of all aspects of REI, but I know some people have really systematized like direct mail for leads, have 3 flips at a time, wholesale the rest of the deals, and use the proceeds to fund one buy and hold and repeat for example. I personally consider flipping a very well paying but rather risky job, rather than a snowballing method to generate wealth but what has seemed to work for you the best?