75,000/10,000/1000/80/20/15/7/1
Before explaining –
6 thoughts
- Play the long game. It’ll make you more successful in the end. Most people get caught up in the short game and don’t invest for the long-term (10-50 years) Trying to be rich in 2-5 years is worthwhile cool, but trying to be rich in 15-30 years is more realistic for most people.
- I’m almost 40 and I’ve seen #1-10 happen to friends and myself. Good article/ideas Chris, thanks very much. #1-10 can happen at any age, and I’ve seen people in their 20s, 30s, 40s, 50s seriously scrambling because of one or combination of issues.
- #7 happened to me. I studied computer science and worked in IT for a few years to become rich. It took me until I was in my late 20s to realize I wasn’t rich from IT yet and I should just do what I love (music and/or soccer) and try to make it. I’m almost 40, and I may be hitting a good stride with music in the next few years. It’s taken me about 10-15 years. I’m still not making much money but I finally understand/have skills so that I might make a decent living in playing and teaching music. My background in computer science may come in handy in the next few years, too, so it’s all good in the end. Most guys that studied music in college hit their stride in their early 30s (non-famous good-quality musicians teaching and playing) and can be making decently good income by their early 40s if they play their cards right. But music is more financially challenging field than most.
- Entrepreneurship, real estate, investing, inherited wealth, high-paying professions, sales– the main ways people get rich in the US. Search “How Most Millionaires Got Rich” and “ways rich people think differently”.
- Most guys don’t need that much money in their 20s, most need enough to be mostly free to do what they want. Trying to be a multimillionaire by 30 is not probably going to happen to most guys without serious sacrifice, overall lowering of lifestyle, and some serious “luck”.
- Given 15-25 years, most people could be financially free if they apply themselves well, while still leading well-rounded lives. That means if you start in your 20s, you can probably be doing what you want and financially very free by the time you’re 35-55.
- In my experience, decent/major money doesn’t start to be major lifestyle factor until about 35-40. You can do a lot of “life hacks” to deal with a “limited” income, but after about 35-40, the “bohemian” lifestyle becomes a niche lifestyle for most. It may start to affect your game with ladies after around 35, too.
- In a lot of ways, if you are healthy and living a debt-free, middle-class life in the US, you are already “rich”. Heck a one 2015 iPhone would be worth a $1,000k in 1995. And being healthy is way more important in the long run than a big stack of cash. So count your blessings!
$75k – The amount most any hardworking guy in the US over about 25 years old can make with 0-4 years of good training/preparation/planning. Also, about the financial number (adjusted for location) that supposedly optimizes the amount of money needed for a happy life in the US.
10,000 hours – An estimate on how long it takes to get “good” at something. 5 years of 9-5. 10 years of practicing guitar 2-3 hours a day. 5 years to get a PhD. 15 years – also about how long until you could probably be making $100k+ if you’ve been working in at least a semi-lucrative career.
1000 days – How long it takes on average for a new business to start working normally and making good money.
80/20 – 80% of the effects come from 20% of the causes. Work hard, and smart. If you do both over an extended period time with a goal of resource accumulation, it will probably work.
15 years – How long it would probably take on average for someone to become financially-free, given that they apply themselves and apply the principals of work hard, work smart, and investing.
Say you spend 5 years working ($75k, 40hrs/ week) to hone your skills, then earn $100k for 10 more years. You also start a part-time business (10-20 hrs/week) on the side. You live well, and invest well (say $25k a year on real estate and stocks), too. By the end of 15 years, you could have a thriving business, easily $250k-1M in the “bank” (top 80-90+% of net worth in the US), be loving life, and be basically financially free.
7% – Historic, average US compound interest in stocks. Learn about investing in stocks, bonds, and real estate, economics, and economic history. But remember – invest in yourself. Invest in your talents, skills, health, relationships, good vibes and you will experience “life’s compound interest”.
1 life – I’m almost 40. I’m happy with a lot of my life. I hope to live well, long and prosper.
And the I wish the same to all you!