How to get ahead of 99% of others by age 30

Understand and apply these 10 lessons

February 08, 2023

PRESENTED BY:

While I believe it's never too late to start investing, I'm not oblivious to the significance of starting early.

After all...

Time, not money, will be the single greatest contributor to your wealth.

And the more time you take advantage of the higher the chances you'll create more wealth.

But here's the thing...

It's in your best interests to get started at least before you're 30 years old.

I mean think about it, 30 years old is around halfway to retirement.

If you're not investing by then...you'll have a lot of catching up to do.

So I'm going to talk about 10 money lessons everyone should understand by age 30:

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Now back to today's email 🤝

10 money lessons everyone should understand by age 30

1. Real estate can help you hit financial freedom and early retirement faster than dividend stocks and this is coming from a stock guy.

2. The most underrated asset to invest in isn’t stocks, real estate, or crypto. It’s yourself.

3. By age 30 you should have *at least* an equivalent of your salary saved.

If you make $50,000 a year, you should have $50,000 saved.

If you don’t, you need to catch up.

4. Save for your retirement first, then your child’s education.

There are scholarships and loans for college, but none of that exists for retirement.

5. You CAN save too much money.

If you have multiple streams of income save 3 months of expenses.

If you have 1 stream of income save 6 months.

If you’re self-employed save 12 months.

6. The types of assets in your investment accounts matters.

Assets for taxable accounts:

  • ETFs

  • Long term holds

  • Qualified dividends

  • Municipal Bonds/I-bonds

Assets for tax-advantaged:

  • REITs

  • Divdiends

  • Long term holds

  • Taxable bonds (TPS)

  • Actively managed funds

7. In general, if you multiply every $1 you want to spend in retirement by 25 that’s how much you need to save.

If you want to spend $60,000 a year in retirement you need to save around $1.5 million.

8. Your car loan should be counted against your net worth but the car itself shouldn’t be counted towards your net worth.

In other words, count the debt, but not the “asset.”

9. Credit cards get a bad rep because most people can’t control their spending

Credit cards are a tool.

They can be used to create something beautiful (free vacations)

Or they can be used to destroy (compounding high-interest debt)

10. Every time you spend your pay raise you’re making it more expensive to retire

It’s okay to spend more as you make more, but keep it to a minimum.

Spend 25% of your pay increase, and save or invest the other 75%.

That's it for today's email! I hope you enjoyed it.

Wolf