6 Secrets to Becoming Wealthy by Your 30’s
Building wealth – it’s the entire purpose of becoming an entrepreneur and running a successful business. Whether you love the idea of being wealthy itself, or you simply appreciate wealth for the ability it provides to live your life on your own terms, the truth is that it is necessary. Amassing wealth isn’t generally considered simple or easy, and some people spend their entire lives trying to build their nest egg.
The good news is that conventional wisdom is wrong. It is surprisingly simple to become wealthy, and you can do so well before your hair turns gray and you’re too old to really enjoy your money. In this guide, we’ll discuss the secrets you need to know in order to become wealthy in your 30’s.
1. Don’t Put It Off
The first secret should actually be common sense. It’s something we’ve discussed before, including in my post on time wasters you need to quit. We’re talking about procrastination – the bane of success. Putting things off to tomorrow that you could do today is a terrible habit, and it is one that can completely derail your path to success. Don’t put things off. Don’t bet your ability to enjoy financial security on tomorrow. Start today – right now, as a matter of fact.
When we’re young, we generally believe there will be time for whatever we want to do. We’ll get to that bucket list item sometime. We’ll travel to that other country at some point. We’ll write that book, build that business, or design that dream home down the road, right? As we get older, we come to realize that those notions are wrong.
Humans are mortal. Time is fleeting. What you want to do in the future may never happen. Continually putting off what you want to do because you just don’t feel like it, or because your life is chaotic right now, or because it is just not the right time, is a huge mistake. If you put it off, chances are good that it will never happen.
So, stop putting it off. Do it now. Commit to building your success and becoming wealthy.
2. Build Your Income-Generating Network
As I explained in my post on how to become a millionaire, you cannot bet your entire financial future on what you can earn from your job. Eventually, you are going to reach a plateau in what you can earn, whether that’s in terms of an hourly wage or an annual salary. It might be a massive amount if you’re one of the very lucky few who become the CEO of a major international conglomerate, but for most of us, that’s not in the cards. However, it does not mean that you cannot become wealthy, even now in your youth. The secret is to build an income-generating network.
What does that mean, you ask? It’s simple. You need to make your money work for you. If you really want to become wealthy by your 30’s, you need to stop spending, and putting the money you earn into avenues that generate additional cash flow. What are those? Here’s a super-brief list:
Multifamily housing properties
Commercial real estate that can be leased out
Royalties on creative works
Royalties on inventions
Profits on a business you no longer manage yourself
Take a look at the list above, which is far from complete, and you’ll notice that while they are very, very different, they all have one thing in common. That is, they generate passive income. They deliver wealth to you in return for you doing nothing at all other than owning the means of revenue generation. Think about it. If you own a rental home, then you can enjoy a constant stream of income from that property from renters in exchange for nothing more than you owning the property in which they live.
Becoming wealthy in your 30’s requires that you be smart with your money. Don’t blow it on meaningless things. Don’t waste it on so-called assets that can just be taken away by a market downturn. Invest it and allow it to grow, further building your wealth and your financial situation.
3. Change Your Mindset
If you read my post on things that rich people do that poor people don’t, you already realize that there is a major difference in the mindsets of rich versus poor. One of the starkest differences between rich thinking and poverty thinking is the realization that cash is not actually scarce. There is plenty of it available. You just need to think about it the right way.
Understand that real wealth does not come from thinking about wealth as scarce. It comes from the realization that abundance is actually the rule. Wealth is available, and it’s available almost everywhere. In order to see that, you need to break out of the mindset that says, “money doesn’t grow on trees.” Money, in point of fact, grows from machines on which it is printed. It’s not a rare mineral wrested from the heart of the earth. It’s a manmade product that we control.
4. Realize That Timing Is not the Most Important Thing in Wealth Building
Ask the average stock market investor what the most important thing is about building wealth through stocks and bonds, and they are likely to say “timing”. It’s that age-old notion that we find embedded in our society’s thinking about wealth. You watch the stock market. You evaluate its movements. You track business performance and market sentiment. You put your money in and then you take it out at just the right moment.
That’s the general way of looking at investments. It’s also wrong.
Contrast this approach with that of those who have actually amassed wealth and you’ll realize that it’s not so much about timing as it is about time. That is, the longer you allow your wealth to build in an investment, the more you’ll benefit from things like compound returns.
Think about it this way. When was the last time you saw a truly wealthy day trader? Probably never. When was the last time you met someone who’d become truly, lastingly wealthy buying and selling investments in rapid-fire fashion? Probably never.
That’s because those who see true, lasting success realize that they need to do more than just ride the wave and sell at the crest. They need to put their money into carefully chosen vehicles and then ride the market no matter what it might be doing. Any downturn can be ridden out, with greater gains to be made on the other side. The truly wealthy also stay away from speculative investments, because they know those are just flash in the pan options that usually don’t play out well.
5. Realize That It Requires Work
Perhaps the single most important secret to becoming wealthy by your 30’s is to realize that it requires real work. Without effort on your part, it’s not going to happen. No one is going to come along and wave a magic wand and *poof* you’re wealthy. This is not a fairytale, but that does not mean you cannot have the fairytale ending.
Put in the work necessary to build your wealth. Make smart decisions. Think around corners. Understand that there is no one single thing that will make you wealthy – it is the sum of all your efforts, smart decisions, and dedication. Use your assets intelligently, including your own brain.
6. Don’t Build Debt
According to CNBC, the average debt burden for Americans hit $38,000 per person in 2018. Double that amount for couples. Increase it threefold for the average family. That’s a massive amount of debt, and most Americans will never get out from under it. They are doing all they can just to carry it from year to year.
Realize that if you carry this sort of debt, you will never become wealthy, much less by your 30’s. In order to really become successful, you need to say no to the mindset that debt is good, that debt is the way the world works. It’s what credit card companies and other lenders want you to think, because that’s how they make their money.
However, if you are able to see through that smokescreen and realize that there is in truth no need to carry an enormous burden of debt just to keep up with the Joneses, you’ll be able to start saving that cash rather than funneling it into credit card payments. It becomes much easier to build wealth by your 30’s if you’re not handing over most of your paycheck each week to your creditors.
Ultimately, becoming wealthy by your 30’s is not just possible, it can be likely if you take the right steps and cultivate the right mindset. It’s vital that you break out of poverty thinking. It’s essential that you realize carrying a crushing debt burden will prevent you from ever becoming wealthy. It’s important that you invest in yourself, and that you build an income-generating network of savvy investments.
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