Everyone in their 20s wants to be rich (note: we’re defining “rich” as $1M+, Felix Dennis will disagree). Ask any male who is in the 20-29 year old age bracket and you’ll find becoming rich is the number one goal in their life 9/10 times. The reason why they won’t get rich is simply because they lack patience and believe they are smart. Here is the trick to becoming a millionaire by 30 (+/- a couple years for safety).
“Spend 12-16 hours of every single day making money and dollar cost average into VOO (ticker)”
1) Make Money 12+hrs a Day: If you really spend 12-14 hours a day making money you’re going to be hard pressed to burn it aren’t you? Your savings rate will increase dramatically by default.We don’t do many posts on becoming frugal because it is a scarcity mindset where you are thinking in terms of cutting costs (saving $100 a month, really?) rather than making money (if you make $100 you didn’t spend $100 during that time frame). In short, even with the demographic that reads this blog, 99% of people will not be able to earn money for 12 hours a day for 5-7 years. This is not a knock on anyone reading the post, it is simply the truth. They will get “tired” they will “need to blow off some steam”, in short, they will need to spend their money to maintain their happiness levels. They’ve already lost.
2) Don’t Predict the Market: Everyone thinks they are smart. Once you realize this, you stop trying to predict the entire global economy and simply dollar cost average. You will *generally* see 5-9% returns over the long run (nothing is guaranteed), but in simple terms “are things going to become more expensive?” if you answer yes (you should answer yes based on 100+ years of history) then all you need to do is buy inflating assets (stocks).
Until you no longer have to work for a living, you cannot break either of these two rules. If you are Financially Independent (FI as the nerds like to call it) then you can dabble in higher risk items. The end.