How to become wealthy.
My net worth is $1.8M. I’m mid-30s, own two homes, and have accumulated wealth over the last 10 years. Aka…I’m speaking from experience and not talking about random stock picks here. If you are are interested in gaining true wealth and not losing all your money trying to handpick random stocks in 24 hours, please keep reading. Here’s how I did it…
1) Work at a company with a 401k plan and max out your contributions at $19,500 per year, EVERY YEAR. No matter what max it out and put it all in a low vanguard index fund. Let it ride. Or if you can only do $10,000 that’s fine too. Just max out what you can and get company match if possible.
2) Put $6,000 in ROTH IRA every year in a low index fund like VTSAX and let it ride.
3) Take your remaining savings and put as much as possible (e.g. $100, $500, $1000 or whatever a month) in a brokerage account EVERY MONTH. This is where you can also put it in VTSAX, or choose a few companies you like and want to invest in. I like Peloton, Tesla, and Lowe’s. All will grow in the next 10+ years. It’s common sense.
4) Buy real estate and rent, if you have anything left. Here is some quick math. I bought a house at $280k and put down 25%. Mortgage payment is $1400 a month (3.25% rate) and I rent out for $2300. That’s $900 cashflow per month and a great capx rate. Do this and repeat repeat repeat. Real estate rent will be your income during retirement and you won’t have to rely on old school bonds, etc. Just get rent money, or sell the property and live it up.
This is all I’ve done for 10-15 years and it is a winning formula, as long as you don’t get emotional on the dips. Don’t sell if you lose $20K in your IRA or 401k….relax and wait, it’ll bounce back.
And remember spend less than you earn. That’s the magic formula. Fancy watches, fancy cars, fancy materials don’t mean crap. Nobody cares. It’s not what you make, it’s what you do with what you make. And since we all have the goal of getting rich I wanted to share the true formula so there is at least 1 rose in this garden of 5,000 weeds.
I’m 10% Ape, 90% gentleman. If you want to be part ape part gent, lmk and let’s discuss. I’m down to help anyone who wants to be wealthy too.
Family, friends, and health are top priority over everything I just listed btw.
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June 11, 2021 at 10:02AM