How To Be Rich At EVERY AGE (hit these targets)

if you aren't where you want to be in life don't worry because you really shouldn't be comparing yourself to other people that's downright delusional but it's probably the kind of thing you thought I'd say this kind of thinking has led to schools giving out awards for just taking part but I've got news for you in life you only get rewarded if you put in the hard work and whether you like it or not we're all in a massive competition so if you aren't interested in playing go and watch a Mr Beast video instead age 18

to 24 years old according to the survey of Consumer Finance conducted by the Federal Reserve the average net worth of 18 to 24 year olds is approximately 28 707 however this figure is heavily skewed upwards as the top 10 holds 70 of the wealth and the top 50 percent hold 98 in fact the median net worth of 18 to 24 year olds is only about eight thousand two hundred and sixteen dollars for the purpose of this video we'll Define rich as having a net worth 20 higher than the average therefore if you want to be

considered rich in this age bracket you need a net worth of thirty four thousand four hundred and forty eight dollars or more this doesn't mean that you need to have this amount of money sitting in your bank account instead it comes from adding up all of your assets and taking away your liabilities so here are some targets I think you should hear if you're serious about reaching this figure first you should create an emergency fund life is full of unexpected surprises I know in my late teens my car engine exploded which was a nightmare that's

why it's important to have three to six months worth of spending saved up in an emergency fund this will give you a bit of peace of mind and a financial Safety Net in case you ever need it second try to avoid bad debt of course I understand student loans can sometimes be necessary if the job you're pursuing requires a degree so this all depends on your individual circumstances third get a credit card a credit card can be a great tool for building your credit score and avoiding High interest rates but it can also be a

dangerous trap use it responsibly by paying off the balance in full each month fourth invest in yourself your human capital is your greatest asset invest in yourself by developing your skills and knowledge this will increase your earning potential make you far more desirable in the workforce and give you a better chance of success if you decide to start your own business and fifth learn about the stock market the stock market can seem intimidating but it's actually a great way to build wealth over time open a brokerage account and start learning about investing many brokerage firms

offer free stocks to new customers the best I've found is Mumu who are giving away 15 free stocks each worth between three and two thousand dollars so take advantage of these offers to start building your portfolio I'll leave some links down below where you can pick some up depending on where you are in the world so overall I'd rate this a three out of five on the difficulty scale at this point it's all about setting a great foundation for your life I honestly feel that great financial habits are made during this age bracket if you

haven't done these things yet then it's not too late but it can be harder to get back on track 25 to 29 year olds if we go back to the same study by the Federal Reserve the average net worth of a 25 to 29 year old is 49 388 and the median is even further behind at 7 512 this median net worth is actually lower than in the last age bracket this could be due to many early 20 year olds not understanding their finances and managing them correctly caught in the gap between the rich and

the poor to grow if you want to be considered rich between 25 and 29 years old then you need to have a net worth of 59 265 or over by hitting the following Milestones first save up one year's worth of your spending this should be easy to access in the case of an emergency but it doesn't have to all be in cash my son Curtis loves to put some of his money into watches as he can wear them when he wishes these can easily be sold in he ever needs the cash second if you have

any student loans pay them off in fact if you ended up getting into any bad debt then make sure this is all paid off this will be a huge weight off your shoulders as these loans just bleed you dry third you should have a credit score of 750 or higher a good credit score is important for getting approved for loans and credit cards with favorable terms this is very easy to do over the course of about three years if you use your credit card correctly by paying your bills on time and keeping your credit utilization

low fourth you need to start making good money I don't mind how you do it it could be from a high paid job a side hustle or a business I mean nowadays it's so easy to set up a simple website and start making passive income online hosting are a great and give you everything you need for under three dollars per month you can even get a free domain with their annual plans I'll leave a link below with a 10 discount fifth you should be investing 10 to 15 percent of your income this could be an

absolutely anything such as stocks real estate watches businesses or dare I say it crypto you just have to pick the area you understand the most and run with it early on don't try to be too Diversified while you're young you can afford to take more risk so find your specific area of interest and learn as much as you can about it sixth you should be completely financially independent from your parents I'm a big believer in staying at home for as long as you can but you can only do this for so long so overall our

rate is a five out of five on a difficulty scale at this point it's all about increasing your income and taking a few risks this can be hard for a lot of people to do they're either too shy to ask for a raise or start their own business but this is the time to do it the fatal error people make is they're focusing too much on saving and not enough on earning I mean you can save your way to being rich on a low wage but you won't get there very fast 30 year olds according

to the study the average net worth of 30 year olds is a hundred and ninety eight thousand four hundred and six dollars and the median is forty five thousand three hundred and fifteen dollars this is when things really start ramping up so if we use the 20 rule then if you want to be rich you should be aiming for a net worth of 238 087 or more I know this sounds like quite a lot however if you can just focus on hitting these Milestones then it should take care of itself first save up four years

worth of your spending as I said before this doesn't have to be all held in cash to be honest this would be a bit silly you want it invested in liquid assets second consider buying a house for yourself I'm quite against buying a personal property in the early days but there is something to have in your own house and not having to pay rent every month it'll also hopefully go up in value which will add to your net worth over time third maximize your tax free size savings take advantage of tax-free savings accounts such as

401ks Roth IRAs and Isis in the UK these accounts allow you to save money on taxes which trust me really start to sting when you get into the higher earner brackets so make sure you save as much as you can from the tax man fourth invest 20 of your income now might be the time to become a little bit more Diversified it all depends on your risk tolerance I know during my 30s I was happy to accept a smaller return on my money as I had a family and I didn't want to risk their good

standard of living I could happily sleep on my mate's couches but I couldn't expect my wife and kid to do that I'd rate this a three out of five on the difficulty scale at this point everything is in place and it's just down to how you manage it the biggest risk here is letting changes in your life like getting married and having kids affect your progress 40 to 49 year olds looking at the data the average net worth of 40 year olds is 692 597 and the median is a hundred and forty five thousand seven

hundred and seventy one dollars these years should be some of your highest earning your value is at its highest it's ever been and your investment should be starting to pay off nicely if you want to be rich then you should aim to have a net worth of over 831 116 and hit these Milestones first you should have at least 10 years worth of spending saved in liquid Investments the 25 x rule is a common weight figure out exactly how much you'll need to retire and maintain the same standard of living so it's definitely worth hitting

this target otherwise when it comes to retire you might have to downgrade your lifestyle second get your mortgage fully paid off on your home now I'm all for leverage in debt but when it comes to your personal residence it's well worth getting it paid off and always knowing you won't have to worry about making payments during your retirement third start investing 30 of your income as I mentioned you're now in the golden years of making money so you can afford to put a little bit more away this will help accelerate you towards your retirement goal

fourth if you own a business it's a good idea to plan for an exit towards the end of your fall tease this will provide you with a substantial amount of money to invest if you wait too long that money may not have enough time to grow before you retire another option is to bring on a new CEO to run your business and guide it with your help as you get older you may not have the same level of energy so this can be a wise decision for both you and the business I'd rate this up

two out of five on the difficulty scale by this point you could be married with kids so I can't see there being too many lifestyle changes that will impact your financial goals 50 years old Plus fed found that the average net worth of people in their 50s is one million Thirty one thousand five hundred and seventy dollars the median is 182 454 this is where you can start to really relax because if you've hit all the Milestones I've discussed at this point your money will be doing most of the work for you in this age

bracket you should be aiming for a net worth of one million two hundred and thirty seven thousand eight hundred and eighty four dollars or more if you want to be considered rich when you're this age you should have at least 25 years worth of spending saved in liquid assets if you have this then retirement should be a breeze second aim to clear all debt and I do mean all that even though good debt such as low interest mortgages can help you build wealth earlier in life it can become a burden in later years when you

have a fixed income paying off debt reduces your monthly expenses and it frees up cash flow for other priorities such as travel and hobbies it also provides peace of mind knowing that you don't have to worry about making monthly payments during retirement third make sure to have a will you legally don't need to have one but if you've watched this far then I'm willing to bet you'll want some control over what happens to the money and property you've worked so hard to achieve fourth get life insurance this is especially true if you're the main earner

it's worth getting some kind of life insurance to carry your family through if you die look I know we don't like to talk about these things but that's exactly why we should consider it I'd rate this up one out of five on a difficulty scale you've done all the hard work at this stage and now it's down to your Investments to do the heavy lifting if you want to know the seven things you shouldn't buy if you want to be rich then I'm going to leave that video right up there but don't click on it

just yet make sure to subscribe if you want to grow your wealth okay I'll see you over there