The best way to get to a $200k net worth at 30 is to save and invest as much of your 9-5 income as possible. Increase your income by job hopping and lower your expenses as much as possible. It’s just about the most guaranteed way to get there.
I reached a net worth of $500k at 28. However, I went too hard. I sacrificed so much of quality of life to get here. Although I don’t regret giving up so much of my youth to build wealth, for the average person, they’re more likely to give up if they go as hard as I did.
I skipped eating out, living in quality apartments, and drove the same car for 7 years straight. I also maxed out my 401k even though my salary was a measly $52.5k at the start. There is a way to have more money than $200k by 30. However, going too quickly may cause burnout.
Therefore, it’s not a bad idea to pace yourself on to the wealth building journey. $200k net worth at 30 is more than possible now because college graduates are now earning a whopping $80k/year, straight out of college! It used to take a promotion or two to earn that much money.
Starting salaries can only grow higher from $80k/yr. Companies are now paying top dollar for knowledge because they know just how tight the labor market is. With the right knowledge and behavioral characteristics, it’s more than possible to have a $200k net worth at 30.
We don’t have to be the typical American who drives a $50k car on a $50k salary with $50k of student loans.
$200k Net Worth at 30: How to Get There
Below are the ways to get to a $200k net worth at 30. I used these strategies myself and can attest, they work.
1) Don’t Mess Around in School
Although the value of a college education is declining because of how many people are getting college degrees, that doesn’t mean that school provides negative ROI. In 2023, it was all about blue collar workers. White collar workers were dime a dozen but we couldn’t get anyone to fix our ACs!
Customers pay top dollar for any kind of knowledge that fixes their problems.
School provides opportunities that can’t easily be copied. This is one of the ways the rich get richer because only the ones with money can afford school in the first place. However, in any other case, a college education opens doors.
To get to a $200k net worth at 30, you need to do well in school so that employers are willing to pay top dollar for your knowledge. It’s one of the best ways to get ahead and build your net worth. Although I wish I didn’t take school as seriously I did, it was still a good choice.
College is when you can truly separate yourself from your peers and compete against them.
2) $200k Net Worth at 30: Job Hop
Companies dislike when employees job hop because it’s the best way for employees to earn more money. They judge employees by saying, “they’re not loyal enough”. I’ve seen many coworkers job hop to other companies. Some within just six months.
Literally nothing happened to them thereafter. A $200k net worth at 30 is easier when you increase your income. Companies may dislike it but they’re not supposed to like it. Their interests and your interest will always be misaligned. They will always give you advice that goes against your interests.
I increased my income from $52.5k to $86k to $108k and now, I make $200k+. Just in my 20s, alone. Because I job hopped. It’s better to build your net worth while having companies dislike you than it is to be poor while having companies love you.
As long as you can justify the salary you are receiving, everything works out in the end.
3) Take Advantage of Tax Advantaged Accounts
This is where many young people fall apart. I maxed out my tax-advantaged accounts from day 1. No matter what my income was. There was no way that I was going to pay more taxes to the government when I don’t have to.
Not only did I save money on taxes on my income, I saved taxes on the gains I experienced throughout investment time, as well. $200k net worth at 30 means lowering your tax bill as much as possible. The government allows us to take advantage of these tax advantaged accounts.
401k, HSA, and Roth IRA are accounts designed to help save you taxes. Peter Thiel’s Roth IRA account balance is $5B. He won’t pay any taxes on those multi-billions of dollars. The rich shouldn’t be the only ones taking advantage of not paying taxes.
We should take advantage of them, as well. Taxes are the most burdensome to you building wealth.
4) Save and Invest At Least 20% of Gross Income
Young people have a lot of pride and ego. They highly dislike saving, for some reason. They think people should be spending as much money as possible and living it up! While I believe spending makes us feel good and it’s generally a better route than saving, it’s only when we can afford to spend, should we spend.
College graduates go from making $0k to $80k+ straight out of school. That’s almost an infinite percentage increase. With that amount of an increase, they start spending the money they make right away because they think they deserve to.
That’s not right. The way to get to a $200k net worth at 30 means saving and investing as much money as you can. With a 20% savings rate and a good investment return rate, it’s more than possible to build a multi-six figure net worth by 30.
The more savings, the better. However, a minimum of 20% of gross income should go towards the savings and investment accounts.
5) Start Side Hustles
When we are in our 20s, we have the most amount of energy we could ever possibly have. it’s time to harness that energy and use it towards building wealth. Side hustles are great because they have unlimited potential. I regret not starting my side hustles earlier.
$200k net worth at 30 means increasing your income as much as you can. There’s an infinite number of possibilities to increase income these days. Especially when it comes to side hustles. All it takes is a little creativity and more effort and anything is possible.
If anything, it diversifies your income source away from your 9-5 and employment income. It’s a dangerous spot to be in when you are 100% dependent on your employer for your livelihood. I don’t know how people are OK with living in such a manner.
Not only does it increase your skillset, you can make more money on top, as well.
6) Start Early
$200k net worth at 30 means starting in your early 20s. The earlier you start investing, the more your money grows because it can take advantage of time. Compound interest is an investor’s best friend. However, it can’t work without time.
I started saving and investing a majority of my income at the age of 21. I’m 28 now and in 7 years, I built my net worth to $500k+. The earlier you start, the better off you are because money compounds over time. It’s never too late to build wealth.
However, starting earlier gives an infinite advantage that provides the greatest returns. Building wealth in your 20s to set yourself up for life feels great. Many people think they don’t have to build wealth because “they’re young and they have time to catch up”.
That’s far from the truth. The earlier you start, the better off you will be down the road.
7) Have the Motivation to Have More Money
You can’t be wealthy if you don’t want to be wealthy in the first place. I had a dying need and desire to become wealthy, especially from a young age. I was motivated and was willing to sacrifice anything and everything possible to get more money.
Personally, I would rather be rich and unhappy than poor and happy. When you are poor, you almost don’t have any choices of your own. You HAVE to associate yourself with people you don’t like or respect just because they provide business opportunities to you.
$200k net worth at 30 requires you to have the desire and motivation to have more money. Without the interest and intrinsic motivation, there isn’t a lot of hope to build wealth. You’re going to dread saving money and sacrifice eating out this week.
Self and intrinsic motivation is an amazing characteristic.
8) $200k Net Worth at 30: Minimize Frivolous Spending
There’s no need to get the latest and brand new car when the one you have already works perfectly fine. Many Americans waste their money, in ways they don’t even know. There’s no need for souvenirs. Every souvenir I got, ended up in the trash eventually.
$200k net worth at 30 means not spending money on goods and services that doesn’t give you any value or joy. I personally only spend $1.250/month. Including rent. I spend like I’m poor today so I can spend like I’m rich tomorrow.
We spend more on frivolous goods and services than we realize. The “small” $25 spending adds up over the years. There’s no need to get a brand new laptop every single year. Most laptops these days are designed to last at least 3 – 5 years, anyway.
The quality of products are increasing. There’s no need to replace them every single year.
9) Have No Debt
Debt is one of the worst things you can have. I had debt before. In 2022, I wanted to start a business and took on ~$50k worth of debt. I lost everything and then some. Not only did I have to come up with the money when the maturity was due, the debt psychologically weighed on me.
Every month, I started thinking how I’m going to pay off the balloon payment. It started to interfere with my day to day life. It was just not good. Many have built great wealth through debt. However, it’s easier to build wealth without debt than it is to build wealth with it.
$200k net worth at 30 means not having any debt. Even mortgage debt. Real estate investing debt is one thing but any other debt isn’t. Even cheap debt becomes expensive when it interferes with the ability for you to make more money. It interferes with mental clarity.
Debt is one of the worst traps to fall into. Not many can play with fire to live the tale.
$200k Net Worth at 30: It’s More than Possible
Americans complain about how hard it is to build wealth while they go out to eat almost every night. $200k net worth at 30 is a grand goal but it’s more than possible. It’s getting easier and easier to get there because salaries are increasing for specialized workers.
We spend more money on goods and services we don’t need more than we realize. There’s always a way to save and invest more money than what we’re doing currently. I’m living proof that it’s more than possible to do so.
It doesn’t feel good to not have money in your 30s. I’ve been rich and I’ve been poor and being rich is better than being poor. Doing everything you can do go from broke to rich is a winning move. It’s not easy and it requires a lot of patience and sacrifice.
However, it’ll have all been worth it. The fifth year of the wealth building journey was the hardest for me. That’s when I was questioning why I was sacrificing so much for so little in return. After going through everything, I can attest that building wealth was the best decision I ever made.
I wouldn’t have it any other way. With the invention of the internet, $200k net worth at 30 is more than possible. There’s endless possibilities to earn more money, get more free education, and invest our way to freedom. Financial freedom is a grueling journey.
But the destination is so worth the journey.
$200k Net Worth at 30: How to Get There Shortlist
- Don’t mess around in school
- $200k net worth at 30: job hop
- Take advatange of tax advantaged accounts
- Save and invest at least 20% of gross income
- Start side hustles
- Start early
- Have the motivation to have more money
- $200k net worth at 30: minimize frivolous spending
- Have no debt
