How to Get Rich
(For Real, Not the TikTok Version)

Key Details

• •Roth IRA: $7,000/year grows tax-free forever. At 10% returns, that's $1.2M tax-free by 65 if you start at 25.
• •401(k): $23,500/year pre-tax (2026). If your employer matches, that's an instant 50-100% return on your contribution.
• •HSA: Triple tax-advantaged — tax-deductible contributions, tax-free growth, tax-free withdrawals for medical expenses. The stealth retirement account.
• •The math: maxing Roth IRA + 401(k) with match from age 25 to 65 at 10% returns = $4-6 million depending on match.

Key Details

• •VTI or VOO: Own every publicly traded company in America for 0.03% in annual fees. That's $3 per year on a $10,000 investment.
• •Dollar-cost averaging: Invest the same amount every month regardless of what the market does. Removes emotion from the equation entirely.
• •$1,000/month at 10% for 30 years = $2,171,321. For 40 years = $6,324,080. Time is the variable that matters most.
• •Historically, the S&P 500 has been positive in 73% of calendar years. Every 20-year rolling period in history has been positive.

Key Details

• •Negotiate your salary: The average person who negotiates earns $7,500 more per year. Over a 40-year career at 10% returns, that's $3.7 million more in lifetime wealth.
• •Develop high-value skills: Software engineering, data science, sales, and specialized trades command premium salaries. A $20K skills investment can yield $50K+ in annual salary increases.
• •Switch jobs strategically: Workers who change jobs every 2-3 years earn 20-30% more over their careers than those who stay put.
• •Build multiple income streams: Freelancing, consulting, content creation, or a side business. Even $1,000/month extra invested at 10% = $2.2M over 30 years.

Key Details

• •88% of the Forbes 400 are self-made. Most built or grew businesses rather than investing their way to billions.
• •The median small business owner has 4x the net worth of the median employee ($1.2M vs $300K).
• •Start with a 'boring' business: lawn care, HVAC, software consulting, e-commerce. Boring businesses have lower failure rates and less competition.
• •Risk mitigation: Start as a side hustle. Don't quit your day job until the business covers your expenses. Keep 6-12 months of runway in cash.

Key Details

• •A $50K down payment on a $250K property appreciating at 3%/year = $7,500 annual appreciation on a $50K investment (15% ROI before rental income).
• •Rental income can cover the mortgage, creating a self-paying asset. Positive cash flow properties generate income from day one.
• •Tax benefits: mortgage interest deduction, depreciation write-offs, 1031 exchanges to defer capital gains indefinitely.
• •Risks are real: vacancy, bad tenants, repairs, market downturns, illiquidity. A broken furnace at 2am is not passive income.

Key Details

• •The average American household earning $100K saves less than 5%. At that rate, financial independence takes 60+ years.
• •At a 50% savings rate, financial independence takes roughly 17 years regardless of income level (assuming market returns).
• •The 'Big Three' expenses (housing, transportation, food) account for 60-70% of spending. Optimize these and the rest barely matters.
• •Housing rule: Keep housing costs under 25% of take-home pay. The single biggest wealth-killer is an oversized mortgage or luxury apartment.

Key Details

• •Married couples have 4x the median net worth of single individuals ($266K vs $66K). Shared expenses, dual income, aligned goals.
• •The average divorce costs $15,000-$30,000 in legal fees alone. Asset division, alimony, and lifestyle disruption can set you back a decade.
• •Financial compatibility matters more than income: shared values on spending, saving, risk tolerance, and life goals.
• •The 'spouse return': Two people earning $75K with a 40% savings rate will accumulate $5M+ in 25 years. A supportive partner is the ultimate force multiplier.

Key Details

• •Never invest money you can't afford to lose. No margin trading, no YOLO options, no putting rent money into meme stocks.
• •Carry proper insurance: health, auto, homeowner/renter, umbrella liability. One uninsured medical event can bankrupt an otherwise wealthy family.
• •Don't co-sign loans for anyone. Don't lend money you can't afford to lose. Don't invest in your friend's 'sure thing' startup.
• •Avoid lifestyle debt: credit card balances, car loans on depreciating assets, HELOCs for vacations. Consumer debt at 20%+ interest is the anti-compound-interest.

Key Details

• •$10,000 invested at 10% becomes: $67,275 in 20 years, $174,494 in 30 years, $452,593 in 40 years, $1,173,909 in 50 years.
• •Warren Buffett's net worth at age 50: ~$250 million. At 93: ~$130 billion. 99.7% of his wealth came after age 50.
• •The 'doubling rule': At 10% returns, your money doubles every 7.2 years. $100K becomes $200K, then $400K, then $800K, then $1.6M.
• •The biggest enemy of compounding: interrupting it. Pulling money out during crashes, switching strategies, or spending gains resets the clock.

Key Details

• •Lifestyle inflation: when your spending rises to match your income. A $20K raise becomes a nicer apartment, a newer car, and fancier dinners — net savings increase: $0.
• •The '50% rule': Invest at least 50% of every raise. Get a $10K raise? Your lifestyle budget goes up $5K and $5K goes to investments automatically.
• •Automate savings: set up automatic transfers to investment accounts on payday. Money you never see is money you never spend.
• •Social pressure is the #1 driver: keeping up with peers, Instagram lifestyles, 'treating yourself.' The wealthy don't care what their neighbors drive.