I’m not one to read many “big box” publications, but I stumbled on an article the other day about becoming a millionaire by 30 in six steps.
The Investopedia article went over the basics you’d see in any article like this, but it came laughably short to revealing…you know, actually how it’s done.
The six points in the article:
- Invest early
- Avoid debt
- Save 15%
- Make more money
- Nix lifestyle inflation
- Get help
While it’s good advice for long-term growth, let’s face it: becoming a millionaire by 30 takes a liiiiiitle more than just doing the basics, ya know?
Take the part about 401(k)s and Roth IRAs. Yes, these retirement accounts are great, but they have nothing to do with becoming a millionaire by 30. For the love of gawd, these are retirement accounts!
401(k)s don’t make 30-year-old millionaires.
They make 65-year-old millionaires.
You’re not going to become a millionaire by 30 by saving 15% of your income and investing in long-term retirement accounts.
If you want to become a millionaire by 30, screw the basics. Let’s tell the truth.
A Million by 30
For the record, while my wife and I did pretty darn well for ourselves, we weren’t millionaires by 30. But there are people who do it.
How? Make making a $hit-ton of money, fast.
Normally, this happens by starting a business in your 20s that just takes off or gets bought by a larger company for 3 to 5x yearly earnings.
This involves a lot of work. Like, a tremendous amount of energy (and probably no kids, too). This is the most common way to accumulate a mil by 30.
But there are other ways.
Like working a high-paying job, living like a poor college student (think: room mate, cheap food, zero debt, etc) and investing money into start-up companies that skyrocket (easier said than done, eh?). But it does happen.
While I’m not a huge believer in luck, I would be kidding myself if I didn’t acknowledge the role that luck (or insider trading!) plays in striking it rich that quickly in the stock market.
A few other millionaire habit tactics that’ll build wealth FAST:
- Living insanely cheap
- Getting a high-paying job
- Switching companies regularly
- Investing 100% of your bonuses
- And: investing at least 50% of salary
So sure – invest in your 401(k). Save 15+% of your income. Yada yada. That’s all great, but it ain’t getting you to $1m by 30.