What should your net worth be at 30? 2x your annual income. For someone making $100k at 30, they should at least have a $200k net worth by 30. Saving money and investing 25% of annual earnings can get someone a 2x income net worth by 30.
The basic savings rate to get to 2x annual income by 30 net worth is a 25% savings rate. If you start out your career making $50k at 22 and get to $100k by 30 at an average salary of $75k/year, then a 25% savings rate get you $150k worth of savings.
The additional $50k over 8 years comes from either side hustles or from investing. A 33% investment return rate over 8 years is more than possible. Too many people don’t know what to do with their money that they squander the biggest opportunity they have in their lives.
Which is time. That’s the biggest advantage young folks have over older folks yet they don’t know how to use it to their advantage. What should your net worth be at 30? It should be at minimum 2x your income because not only is it achievable, that’s far ahead of anyone in that age bracket.
The average net worth for a 30 year old is $8,000 in 2022. A 2x income net worth goal puts you so far ahead of others and only sets you up for further success as time passes. There’s no reason to be the broke 30 year old when you have the power to be a rich 30 year old.
The personal profile of the above average 30 year old is as follows.
What Should Your Net Worth be at 30? The Personal Profile
Rich 30 year olds are not your typical 30 year olds. Their personal characteristics is what set them apart and they are as follows:
1) You Believe in Hard Work
No one ever hands money to you on a silver platter. After college, you should be on your own without your parents paying for anything. What should your net worth be at 30 is completely possible if you believe in putting in the work, effort, and hours.
I personally toiled hours on end in my early to mid 20s. After putting in my dues, I no longer have the same amount of hunger. I still want to increase my income, but I would rather increase my income working less hours than more.
Hard work is a necessary component to success. When you make hard work a hobby, then it doesn’t become work anymore. I get an obscene amount of dopamine from working hard and it’s what makes me feel human. It’s what makes me feel like I’m getting ahead.
Life is a game of competition and the harder you work, the luckier you get.
2) You Believe No One Owes You Anything
Not your parents, not your significant others, and certainly not the government. No one owes you anything. Your life is completely up to you and it’s your choices that make the difference in the end. The 2x income goal to reach what your net worth should be at 30 is only possible if you take responsibility.
That’s what’s great about it. Your failures are a result of your undoing but your successes are as well. You get to claim credit for all the good and bad things that’s going on in your life. The great part is that opportunities are unlimited.
There’s more chances of you affecting positive change in your life than negative changes. If you didn’t get that job you wanted, it’s time to look for another one. You are not dependent on any one employer. It’s possible to find success on your own, even.
You capture the opportunities and value yourself instead of looking for someone else to give it to you.
3) You Don’t Frivolously Spend
You can’t increase your net worth without having money to invest with. What should your net worth be at 30? 2x your income and as long as you cut frivolous spending out of your life, everything is possible. I once met someone in their 20s who couldn’t stop traveling.
Not even for any particular special occasion but frequently travel. The thousands of dollars he wastes traveling was insane, especially knowing that could turn into millions down the road. When you cut out frivolous spending, you can get to the net worth goal.
There’s too many young people who think just because they’re making more money than $0, they should be spending their entire salary. That’s not the case. A high income doesn’t mean high net worth. Some high income earners are downright terrible at saving money.
It’s no wonder why their net worth is in the negatives.
What’s The Savings Rate to Reach the Net Worth Goal by 30?
The minimum savings rate to reach the what should your net worth be at 30 goal is 25%. Anything less and you are depending too heavily on market returns. Past results don’t always guarantee future results and something like the lost decade can happen.
As a general rule, you should be saving until it hurts. I personally aim to save 50% plus of my income. I mostly succeed and I can attest that it is highly difficult to save over half my income. However, it’s completely worth it because I have a $400k net worth in my 20s.
The more your savings rate, the better your financial life. People spend money because it “increases the quality of their life”. Life quality isn’t determined by how much you spend. The ones who spend money today face a harder tomorrow.
There’s no reason to learn from the spenders because their financial goals are nowhere near what your financial goals are. They’re obsessed with building their material collections, you’re obsessed with building your net worth. Two different goals.
What should your net worth be at 30? The higher your savings rate the better off you are. You can’t strike when the good opportunities come up if you don’t even have the money in the first place. The bear market of 2022 was a generational buying opportunity.
Only few could take advantage of it. The biggest bargains happen during bear markets.
What Should Your Net Worth be at 30? How to Increase Net Worth
What can you do to get to the what should your net worth be at 30 guideline? The good news is that you can implement the below steps today.
1) Take Advantage of Compound Interest
Few understand the power of compound interest. It’s why it’s the eighth wonder of the world. Only the few actually see and experienced the magic firsthand. Compound interest is when your money earns you money without you lifting another finger.
That’s where your leverage is when you are young. Time. I leveraged compound interest to my full advantage throughout my life. What should your net worth be at 30? You should be taking advantage of compound interest.
Too many people just let time pass without knowing just how much it’s hurting them. It doesn’t affect you until the 10th year. Then you really see who’s been making the right choices and who hasn’t been. The stock market generated obscene wealth for good reason.
Many do not understand how powerful time adds to the equation of financial independence.
2) Start Early
I graduated college at 21. That’s when I started the wealth building journey. What should your net worth be at 30? As long as you start from the ground running, everything falls into place. It’s even better if you start even earlier. And there’s ample opportunities to start earlier.
You don’t have to focus solely on school. Quite frankly, high school led to many hours of downtime during the weekends. While many of your classmates are focused on traveling and looking “cool” to their friends, you are working on building income streams.
Multiple income streams is the ultimate self care. There’s no need to wait like everyone else. If anything, you can start making money as soon as freshman year of college. Not looking for paid employment but looking to leverage earning income passively.
It’s when your creativity is at its highest peak. That’s when you can take the most advantage.
3) What Should Your Net Worth be at 30? Track Your Net Worth
I personally track my net worth religiously and check back at least monthly. Whenever my company pays me, I get excited when I see the numbers update. When you track your net worth, it becomes that much easier to get to the what should your net worth be at 30 goal.
Net worth is assets minus liabilities. When you track and review your net worth often, then you see areas of improvement. You see how much you spent and on which category to scale back on. You can pay down bad debt so you are no longer beholden to anyone else.
I personally track my net worth not just to see net worth but to see my liquid net worth. How much cash on hand I have to deploy at any moment is very important to me. It’s how I’m going to take advantage of opportunities that come up down the road.
Bear markets are very salivating to me. Many people will make millions as a result of the 2022 bear market.
4) Increase Income
This is the most crucial part of building wealth. It’s not possible to out-save low earnings. It’s time to increase income in whatever way possible such as changing jobs, starting a side hustle, getting a raise or a promotion, and anything of the kind.
Saving $50k on a $100k income is easier than on a $50k income. What should your net worth be at 30? If you increase your income every year, you’re on target to meet your goals. Too many people think it’s about saving money when it’s really about increasing income.
I almost quadrupled my income in just seven years because I constantly looked for opportunities. Anytime I could put in the hours to increase income, I took it. I’m still looking for opportunities to increase my income, but just beyond my 9-5 income.
There’s plenty of money out there for the taking. You just have to use your greatest asset, your mind, to acquire more income.
5) Avoid Bad Debt
Too many consumers are riddled with debt. The record high credit card balance in 2022 demonstrates just how bad consumers are with their personal finances. Yes, consumers were navigating the record high inflation. However, people were still traveling and going out like there’s no tomorrow!
That’s not right. It’s time to pay down bad debt because that’s what’s keeping you down. I personally took on $15k worth of 0% debt in 2022. Even though it was 0% debt, it’s still not worth it. I paid it off in February 2023 and it felt like I could finally breathe again.
Debt is what keeps you from moving forward. Even low interest rate debt is bad because of the damage it does to your psyche. Mortgage debt in which your tenants pay down the debt is another. But debt that you just keep because it’s cheap is just not right.
What should your net worth be at 30? If you take on debt, your net worth will be the least of your worries.
6) Surround Yourself With Other Wealthy People
If you hang out with other broke 30 year olds, you will be the next one in line. What should your net worth be at 30? Find others who are also interested in building wealth and increasing income. When you surround yourself with like-minded people and you share ideas, that’s when you flourish.
My friend circle wants to build wealth. They want to achieve upward mobility and they want to increase income. So we talk negotiation strategies and ways to increase income. One of my friends, we go to the park often and we talk current events, market strategies, and so forth.
I love talking about business and my friend circle does as well. it’s no wonder we are doing so well in our careers just in our 20s. We earn more than some 40 year old counterparts. Money is an important subject you can’t afford to ignore.
Winners focus on winning. When you surround yourself with winners, you’ll be the next one in your friend circle.
What Should Your Net Worth be at 30? This is How You Get Ahead
Being focused on what should your net worth be at 30 is how you get ahead. Whether we admit it or not, money is how we measure success. When you constantly look for ways to increase income and achieve upward mobility is when you take action towards it.
Everything is about focus. What do you focus and spend your time on on a daily basis? You are the product of your choices and your choices come from your mind. The mind is what controls your decisions, choices, and actions.
I’m personally focused heavily on building net worth. If there’s a strategy to increase my net worth, I always try it out before throwing in the towel. I’m working and contributing my weekends toward building wealth. It’s a huge passion of mine.
My parents didn’t bring me to the United States for nothing. There’s a huge need, want, and motivation for me to be as wealthy as I possibly can be. I personally want to be a millionaire by 30 but not everyone else has to share in the goal.
Some will be worth more and some will be worth less. What should your net worth be at 30? As long as you are happy with your progress, you are doing just fine. A great guideline is to be at 2x your income by 30. That will put you so far ahead that it will springboard you to greatness.
Net worth is a very important number you can’t afford to not know about.
What Should Your Net Worth be at 30? 6 Shortlist Ways
- Take advantage of compound interest
- Start early
- What should your net worth be at 30? Track your net worth
- Increase income
- Avoid bad debt
- Surround yourself with other wealthy people
