The easiest way to get to a $500k net worth at 30 is to save and invest as much money as you can. Too many spend money to impress others that they don’t even like. It’s the best way to control the actions you can control and make the most of them.
I personally reached a $500k net worth at 28. However, what I did isn’t easy by any means whatsoever. It was difficult. Looking back on my journey, it was so difficult that I can’t imagine the average person being able to tolerate what I did.
It was difficult to sacrifice so much and cook food for 2 weeks straight. To live in run-down houses so my rent never went above $1,125/year in seven years. To not feel like I can travel just for fun. It came to the point where spending money became painful.
Therefore, it’s advisable to give another 2-year leeway from 28 so that the goal is to have a $500k net worth at 30. That’s much more reasonable and doable and there won’t be any rush to get there by the end. It’s better to stay in the game over the long haul than to hit it big over just a year or two.
There will be many times when you question what you are sacrificing everything for. As someone with a $500k net worth, I can attest. The journey was absolutely worth the destination. I would do it all over again and I’m glad my younger self refused to give up at any point.
Building generational wealth by 30 feels satisfying.
$500k Net Worth at 30: How to Get There
Below is how to get to a $500k net worth at 30. In America, it’s more than possible. It’s time we stand on our own two feet.
1) Have an Interest in Money
There are people who just can’t get interested in money. When they see someone talk about investing, their mind just shuts off and they refuse to listen to a word they say. That’s not the right mindset to have a $500k net worth at 30.
I personally am passionate about money. Once someone starts throwing numbers around and talk about how to build wealth, I get elated. It gives me goosebumps when I meet like-minded people who wants to talk about these things.
Some people just want to have fun with their lives and enjoy their money while they’re young. There are people with different priorities than about maximizing their wealth building potential. Maybe they want a little bit of a balanced approach. Which is still a good goal.
Whichever the case is, it’s important to at least have a baseline interest in learning about money and finance.
2) $500k Net Worth at 30: Start Early
A dollar in your 20s is worth far more than a dollar in your 50s. The reason is time. When we have time on our side to compound our wealth through investments, everything falls into place. I started learning about money when I was 17. I had ~$5,000 saved from my summer job at Sears.
Then when I was 19, I started learning about investing my money. To have a $500k net worth at 30 requires you to start early or it will feel rushed. You will feel like you have to increase your income exponentially to get to the goal and that’s not a good place to be in.
The best spot is when you can take your time building wealth. When you don’t have to go all-in but take small risks here and there that’ll build up over time. The earlier you start, the better it’ll be because it gets easier over time. The first years are difficult, speaking from experience.
If you can start right after college, that is a great timeframe.
3) Increase Income
Many people stress “cutting expenses” is the way to build wealth. That couldn’t be further from the truth. It’s about increasing income that matters. Yes, when you cut expenses to the bare bones budget, mathematically, it’s very possible to get to a $500k net worth eventually.
However, when there’s a time constraint to get there by 30, then increasing income is a necessity. Too many stress the importance of cutting costs when they should be increasing income. It’s time to look for another job or take on a well-paying side hustle on the weekends.
My best income generating year was $200k. Making that at any age feels great, making that in your 20s feels fantastic. Increasing income is what builds the real wealth. Nothing else. Increasing income through investments is one thing. It’s another to increase income through selling your time.
It’s much more lucrative to sell your time in the beginning than anything else.
4) Cut Expenses
Even though increasing income is important, that doesn’t take anything away from cutting expenses, either. In the first years of your 20s, there’s no one to impress. There’s nothing wrong with getting a roommate to cut down on housing costs.
Anytime you can slash your food, transportation, and housing costs is a huge win because that’s where we spend the most amount of our money. Getting to a $500k net worth at 30 requires sacrifices and while it may not feel like it’s worth it in the short term, I can tell you that it’s worth it.
There’s nothing wrong with using coupons, waiting for sales, and negotiating for the best price. I spend as little money that I possibly can because spending money actually makes me feel pain. Although the frugality disease is a real thing, that doesn’t mean being frugal is.
We spend so much money on things we end up throwing away, anyway. There’s a handy how much should I spend on rent? guideline, as well.
5) $500k Net Worth at 30: Have a Marketable Skill
Even though the goal is to eventually not rely on selling your time, in the first years, selling your skillset and time builds the bulk of your wealth. Getting a $500k net worth at 30 means having a marketable skills that others are willing to pay top dollar for.
We are in the knowledge age where we get paid based on what we know, instead of our effort. Getting into a specialized industry such as computer science, finance, and the like does wonders in building wealth. With the rise of the internet, new jobs are being created all the time.
Nowadays, content creation is all the rage. Any time you can create content that captivates the attention of the masses, people pay top dollar to you. The great part is that it doesn’t require a college degree! Anyone can learn how to be an influencer.
Marketing your skills and getting paid for them will feel great. It shows just how much others value your time.
6) Learn From Others
When I had $5,000 at 17, I thought I was doing great. None of my friends had any money saved whatsoever. When I graduated college with $40k, I thought i was doing great. My friends were graduating with debt. However, I didn’t know how little I knew.
I didn’t know anything meaningful about personal finance, actually. To get to a $500k net worth at 30 means learning from others who already did what you’re trying to do. I learned from others on the best investing strategies to grow my wealth with.
I learned from others on the best savings tips and what they’re doing to build wealth and make more money. Others know more about personal finance because they’ve already been in your shoes. Then all you have to do is take advantage of not repeating their mistakes and everything falls into place.
I wouldn’t have $500k in my bank account if I didn’t listen to others.
7) Invest Consistently and Without Fail
Investing is a non-negotiable. There’s no one who got wealthy by not investing money. It gives the extra boost in income that helps just a little every year until it eventually replaces your full time income. I personally invest in the S&P 500.
It’s simple and does the job. Having a $500k net worth at 30 is no easy feat. Therefore, investing money in high quality assets that generate additional money is crucial to building that kind of wealth. Whether it’s stocks or real estate, high quality assets will always be there.
Opportunities are endless in this world. I’m lucky to have started investing at such a young age of 21 that my money had the time it needed to grow from a seed to a forest. No matter what happens, investments should come first before any other expenses.
I automatically invest my money every paycheck to my 401k.
8) Pick Your Battles
I wanted to sue my first employer because I know they committed illegal business practices against me. The very least of which was they told me to never tell my salary to anyone else because it’s so much higher than the others in my class. A labor code violation.
However, I thought through the risk/reward of taking the action and I just let it go. It’s better to live to tell another day than it is to go after every claim that you have the right to claim. There were also questionable hiring practices done by companies who interviewed me.
Such as asking inappropriate questions whether I had a girlfriend or whether I was married.
Although it pained me to do so, I let those go. Throughout your career, you will meet interesting personalities that can be considered borderline illegal. However, when the reward isn’t there, it’s best to just let it go. Live to fight another day.
When you’re at the top with resources to seek justice, then it’s fine. But to get to a $500k net worth at 30 requires some kind of restraint and allocating your capital where it’s the most lucrative.
9) $500k Net Worth at 30: Haggle for the Best Price
Only fools pay full retail price. When I look at prospective apartments, I always negotiate. I don’t always get what I want but I at least try to get the admin fee and the application fee taken off from the rent. If that doesn’t work, I try to get the rent off.
Whatever the case is, it’s time to haggle for the best price out there. You don’t want to overdo this because it depends on supply and demand. In Austin, there was little supply available to prospective tenants. Although I asked many prospective landlords to take the price off, all refused.
I still had to say yes anyway because I had no other choice. It still doesn’t hurt to try. Getting to a $500k net worth at 30 means putting your pride aside and try to get the best deal imaginable. If Carlos Slim didn’t mind haggling for $10 off for a tie, you shouldn’t either.
Every transaction is a business deal by buyers and sellers trying to get the best deal for each other.
10) Avoid Consumer Debt
It’s tempting to take on cheap debt. Some banks were offering debt at 4.99% interest rates. I was surprised that they would offer such a low interest rate. So I was hooked! I took advantage of the cheap debt and took on $50k worth of debt just to have it on my balance sheet.
it was a mistake and I regret ever thinking about taking on debt. Consumer debt is the worst debt that you can ever have and it can only hurt you, especially if the debt is high interest. $500k net worth at 30 means not being chained by financial products that chain you.
Debt is one of the biggest money traps people fall into because everyone else does it. It’s so common to get into debt to buy things we don’t need. Because it makes us feel good. I am now completely debt free and I can attest that it feels better than anything else in the world.
The real pandemic is consumerism. Pure and simple.
11) Keep Going
There will be years when you want to give up. The destination is so much worth the effort. As someone with $500k, I can personally attest that all the struggles were worth it. I would do it all over again, if I could. And that was after working 2.5 years at a job that made me miserable.
$500k net worth at 30 is NOT an easy task. There’s more people who doesn’t get to $500k at 30 than there are people who do. Because it’s a grueling road and journey. After 7 years of going through it, I lost the energy, optimism, and hope that I had of building wealth.
However, my numb emotions are helping me meticulously invest my money every 2 weeks without fail. Some years, you progress at a slower pace than you would like. That’s OK. Some years may even be backwards. Life happens.
The wealth building destination is always worth the journey.
$500k Net Worth at 30: It’s More than Possible
With the right mindset, actions, choices, and luck, $500k net worth at 30 is more than possible. Is it easy? No. Earning money is difficult in general. It’s even harder to be at the top 1 – 5% net worth for your age group. If I can do it with the many mistakes I made along the way, anyone else can do it too.
I lost six figures+ gambling, day trading, and the like over the years. And I still made it. As long as no one repeats my mistakes, they can even get to a $500k net worth even earlier than 30. It’s even easier when you have a working spouse, as well. I was also just a single guy.
With the rising costs of living and consolidation of power of companies, it’s harder and harder for employees to build meaningful wealth. However, that doesn’t mean that it’s impossible. The college grads of today will have it tougher than when I first started the wealth building journey.
It’s still an effort that’s worth putting in. The feeling of security that comes from having $500k is worth more than the money itself. I voluntarily wake up to go to work every single day. I voluntarily put in the time to help my company get richer in the process.
When working feels like a choice, it actually becomes fun. Then the paycheck just becomes the extra icing on the cake. A $500k net worth at 30 is a goal that I don’t regret reaching for a second. Although the million dollar is on my sights next, I took time to celebrate the $500k win first.
Your family and future depends on it.
$500k Net Worth at 30: How to Get There Shortlist
- Have an interest in money
- $500k net worth at 30: start early
- Increase income
- Cut expenses
- $500k net worth at 30: have a marketable skill
- Learn from others
- Invest consistently and without fail
- Pick your battles
- $500k net worth at 30: haggle for the best price
- Avoid consumer debt
- Keep going
