I went to school for eight hours a day, but I knew that in the long run, I would make the same amount of money or less than the average person.
Putting in my all for someone else’s company and making the same amount no matter how hard I worked.
When I explain this to people, they tell me I was very observant as a child.
I could see that most people were unhappy, sluggish, and stressed about almost every decision they made. Especially financial decisions.
So my attention went towards the opposite. I spent much of my late teens dissecting what made successful people successful.
But now, as a person who has become one, I can tell you that everything you think about becoming a millionaire is true.
I’m not going to downplay it. When I think back to when I was struggling to pay a measly $300 for my share of rent in a house shared with 7 other roommates, I’m grateful. It’s both a blessing and a curse not to have to worry about how much you spend on 99% of your purchases.
Of course, just because you become a millionaire doesn’t mean your life is perfect all day long. Developing the financial domain of your life doesn’t mean you’ve developed the mental, physical, social, and spiritual domains.
In fact, if you look around, life is pretty terrible for most people who only focus on the money.
And most of your money problems aren’t actually money problems. They’re psychological problems. If you don’t work hard to become the best version of yourself, money won’t help you as much as you think it will.
Are you in your 20s and dreaming of financial freedom? Do you want to build wealth early so you can live life on your own terms? You’re in the right place! I’ve compiled the most effective strategies to help you become rich in your 20s – not through get-rich-quick schemes, but through proven methods that actually work.
Why Your 20s Are the Perfect Time to Build Wealth
Your 20s offer something incredibly valuable that you’ll never have again: time. With decades ahead for compound interest to work its magic, even small amounts invested now can grow into substantial wealth later. Plus, you have the energy, flexibility, and resilience to take calculated risks and bounce back from mistakes.
“I always hated the feeling of doing so much for so little,” says Dan Koe. A lot of us feel the same way, which is why getting rich early is so appealing: it gives you power over your money future.
1. Change Your Mindset About Wealth
Before diving into practical strategies, let’s address the foundation: your mindset.
The traditional advice from parents and teachers often looks like
- “Invest your savings in your 401k and stock market”
- “Real estate is how most people become millionaires”
- “Be frugal and save every penny”
- “Go to school to get a job”
While these aren’t necessarily bad advice, they represent the “get rich slow” approach designed for the old economy. Today’s digital landscape offers unprecedented opportunities for wealth creation.
As Dan Koe puts it, “Ideas are the new oil in a world where anyone can learn and build anything.” The digital space is infinite, while physical space is finite.
Key mindset shifts:
- Understand that wealth isn’t just about making money but having more than enough to cover your wants and needs
- Recognize that the labor theory of value (getting paid for hours worked) doesn’t lead to wealth – solving valuable problems does
- Believe in your ability to create value in the digital economy
2. Create a Solid Financial Foundation
Master Your Budget
Every wealth-building journey begins with knowing where your money goes. Create a budget that works for your lifestyle:
- The 50/30/20 rule: Allocate 50% of your income to needs, 30% to wants, and 20% to savings/debt repayment
- Zero-based budget: Assign every dollar a specific purpose
- Cash system: Use physical cash for discretionary spending to avoid overspending
Remember, the best budget is the one you’ll actually stick to. As Clever Girl Finance advises, “Having too strict of a budget is setting yourself up for failure.”
Build Your Emergency Fund
Before focusing on investments, establish a safety net of 3-6 months of essential expenses. This prevents you from derailing your wealth-building journey when unexpected costs arise.
Store this money in a high-yield savings account that’s easily accessible but separate from your checking account.
Tackle Your Debt Strategically
Debt, especially high-interest debt, is wealth’s biggest enemy. Address it using one of these methods:
- Debt snowball: Pay off smallest debts first for psychological wins
- Debt avalanche: Target highest-interest debts first to minimize interest payments
As Clever Girl Finance notes, “The average interest rate for a credit card is 14.75%, but it’s possible to have rates in the 20 or 30% range.” Prioritize eliminating these high-interest debts while making minimum payments on everything else.
3. Maximize Your Income
Level Up Your Career
Your primary income source is usually the foundation of your wealth-building strategy:
- Continuously develop in-demand skills
- Negotiate salary increases confidently
- Seek promotions and advancement opportunities
- Consider changing companies for significant pay jumps
Create Multiple Income Streams
Dan Koe says, “If you want to make money outside of work, you need to make and sell goods.” Consider these approaches:
- Side hustles: Freelancing, consulting, driving for rideshare apps, etc.
- Digital products: E-books, courses, templates, etc.
- Content creation: Blogging, podcasting, YouTube, etc.
- Passive income: Affiliate marketing, digital assets, etc.
Having multiple sources of income gives you financial security and speeds up the process of getting rich. Start with one additional income stream and expand gradually.
4. Harness the Power of Investing
Start Investing Early
It takes longer for compound interest to work its magic if you start investing early. You have decades to watch your money grow as a 20-something.
Consider these investments:
- Retirement accounts: 401(k), especially with employer matching (free money!)
- Roth IRA: Contribute up to $7,500 annually (2025 limit)
- Index funds: Low-cost, diversified investments that track market performance
- ETFs: Similar to index funds but trade like stocks
Automate Your Investments
Make investing automatic by setting up recurring transfers on payday. This “pay yourself first” approach ensures you’re consistently building wealth before spending on other things.
Learn About Different Investment Vehicles
Expand your knowledge about:
- Stocks: Ownership in companies
- Real estate: Property ownership or REITs
- Digital assets: Websites, apps, etc.
- Business investments: Starting or investing in businesses
“Mathematics is a simple understanding of the system itself and what you need to do,” explains Dan Koe. “If you want to make $1 million in 1 year, break it down.”
5. Build Distribution (Audience)
One particularly powerful wealth-building strategy in today’s digital economy is building an audience. As Jack Butcher says, “Build distribution, then build whatever you want.”
Distribution means your potential to get what you build in front of people who care. There are three types:
- Built distribution: Growing an audience through content creation
- Borrowed distribution: Leveraging other people’s audiences
- Bought distribution: Paying for visibility through ads or sponsorships
Building an audience creates exponential opportunities for wealth creation through selling products, services, or monetizing attention itself.
6. Develop Valuable Skills
The most valuable skills for wealth creation include:
- Sales and marketing: The ability to persuade others
- Communication: Clear writing, speaking, and presentation
- Technical skills: Programming, data analysis, etc.
- Creative skills: Design, writing, video production, etc.
These skills can be applied across multiple income streams and businesses.
7. Focus on Personal Growth
Self-improvement directly impacts your earning potential. As Clever Girl Finance points out, “Self-improvement involves following the opportunities that come your way. It’s also about acquiring as many skills and knowledge as you can.”
Invest in:
- Books and courses
- Mentorship from successful people
- Networking with ambitious peers
- Health and wellness (physical and mental)
8. Avoid Lifestyle Inflation
As your income increases, resist the urge to proportionally increase your spending. Instead:
- Keep fixed expenses low
- Save and invest a higher percentage as your income grows
- Prioritize experiences over material possessions
- Make intentional decisions about bigger purchases
9. Find a Financial Mentor
A mentor who’s achieved the financial success you desire can provide invaluable guidance. They can help you:
- Avoid common mistakes
- Identify blind spots in your strategy
- Connect you with opportunities
- Provide accountability and encouragement
10. Stay Passionate and Driven
Building wealth in your 20s requires consistency and perseverance. As Clever Girl Finance advises, “Stay on track with your goals – it may help to surround yourself with friends in the same mindset.”
Regularly remind yourself why financial independence matters to you. Visualize your future successful self to stay motivated during challenges.
A Real-World Wealth Building Example
Let’s break down what getting rich in your 20s might actually look like:
- Age 22: Graduate college, start entry-level job at $50,000
- Age 23-24: Max out 401(k) match, eliminate student loans, build emergency fund
- Age 24-25: Start side hustle generating $1,000/month, increase income to $60,000
- Age 25-27: Grow side hustle to $2,500/month, increase day job to $75,000
- Age 27-29: Invest 40% of total income, build audience online, launch digital product
- Age 30: Net worth of $250,000+ and multiple income streams
This example isn’t unrealistic – I’ve seen many people achieve similar or better results by following these principles consistently.
Getting rich in your 20s isn’t about overnight success – it’s about laying a foundation and building systematically. The most important step? Starting today.
Remember Dan Koe’s advice: “The internet made business and education accessible to anyone with a wifi connection.” You have unprecedented opportunities that previous generations couldn’t imagine.
Whether you choose to climb the corporate ladder, build a business, create content online, or some combination of these, the principles remain the same: maximize income, minimize expenses, invest consistently, and focus on creating value for others.
Your 20s are the perfect time to start building wealth. The decisions you make now will compound over decades, potentially leading to financial freedom far earlier than most people ever achieve it.
What step will you take today to begin your wealth-building journey?
Product: The Only Way To Make An Independent Income
To avoid confusion, I use the word product to define anything that you sell. That can be a service as well.
The other day in the Kortex community, someone asked a great question:
“I’m not confident in my abilities to sell a product. I have results, but I didn’t use a framework or specific steps, I kinda just did it, so I’m not sure how I could help someone else. ”.
This could apply to fitness, mental health, programming, anything.
Many people think they can’t sell a product because they’ve gotten results, but they didn’t use a specific process, program, or framework to do that thing.
What you don’t realize is that’s the perfect place to start with a product.
How does anyone create a product?
You don’t just plagiarize someone else’s framework.
You create your own. Creating your own requires real world feedback from customers after you experiment for yourself.
You create an MVP (minimum viable product).
You get a first round of customers or free users.
You listen to feedback and gauge results.
You implement feedback and attempt to make your product better.
Then, once you have solid results, you can market harder and be confident you are able to do this.
It’s the same as a beginner freelancer landing clients. They do it for relatively cheap until they are very confident in their abilities. They gain real-world experience as opposed to just theory they’ve learned about and personal projects they’ve built.
My entire product philosophy is:
- Build a product you’ve used before, but better.
- Solve your own problems and sell the solution.
- Build a product you want but doesn’t exist.
Most people should start with the first one, advance to the second, and once they have cash flow, move onto the third.
But you have to realize that you can create any product you want.
How many planners can you find on Amazon? A billion.
You can create one too by:
- Purchasing 3-5 planners
- Using them and noticing what doesn’t flow
- Mapping out your own planner
- Using it and improving it over a week or two
Then, package it up and sell it.
Listen to customer feedback, make it better.
Simple. Now you have the ability to make money, but you need one more thing:
What They Don’t Teach You In School
If you’re reading this, you were raised by people who lived and were conditioned by the old economy.
“Invest your savings in your 401k and the stock market,” said Mom.
“Real estate is how 99% of people become millionaires,” said the random wealthy old guy in Scottsdale.
“Be frugal. Save every last penny. Collect coupons. Don’t make impulsive decisions. ” said the person with a boring life that nobody wants to live.
“Go to school and study something you don’t care about to get a job,” said almost everyone who doesn’t understand the model of our public school system was adopted from a Prussian military state – reflecting the education given to slaves – and was created to keep people narrow-minded and dependent on the dominant social system while discouraging generalism, exploration, and building toward a unique vision.
We are living through the second renaissance for heaven’s sake.
Anyone can learn and build anything these days; if you follow indie hacking, you know that non-coders are making MVP apps over the weekend with new AI tools. This is what the new rich know: ideas are the new oil. ).
They understand that new generations are building wealth in the idea space, not the physical space (the physical space still matters, but it exists at a premium now reserved for those who have already built cash flow).
Digital space is infinite. Physical space is finite.
People become millionaires by posting memes and facts. Here are three things you need to know about this time:
How To Actually Get Rich In Your 20s
FAQ
How to become rich in your 20’s?
Save Early and Often: One of the most important things you can do to build wealth is to start saving early. This means earning interest on both the initial amount of money and the interest that accumulates over time. The earlier you start saving, the more time your money has to grow exponentially.
What creates 90% of millionaires?
The statement that “90% of millionaires are made in real estate” is a widely circulated claim but is considered a myth by financial experts like those at Nasdaq.
Is 25 too late to become rich?
From age 25 to 65, put $100 a month into an average S 1 million. Too late to start at 25? Nope. Start at 40, invest $1,000 a month, and you can still hit $1 million by 60.
How rich is the average 20-year-old?
| Age by decade | Average net worth | Median net worth |
|---|---|---|
| 20s | $121,004 | $6,609 |
| 30s | $307,343 | $24,247 |
| 40s | $743,456 | $75,719 |
| 50s | $1,330,746 | $191,857 |
How can I make the most of my 20s and build wealth?
“The best way to make the most of your 20s and build wealth is to focus on developing a strong financial foundation,” said Saini. This means making a budget and sticking to it, getting rid of any debt you have, and putting money into things that will make money for you without you having to do anything. Additionally, it’s important to start saving early and often.
Can you become rich in your 20s?
Luckily, she managed to turn her life around! If you want to become rich in your 20s, the key is to get a solid grasp on saving money and not living too extravagantly. Let’s paint a picture: suppose you’re pocketing over $100,000 per year, but you’re splurging the same amount. Essentially, you’re living beyond your financial means.
How can I make money in my 20s?
You can create various income streams in a few ways: One popular method is to start a side hustle. It’s a way to earn additional income while working a day job. Some examples are freelance writing or driving for Uber. If you work hard, the earning potential here can be incredible and help you to build wealth in your 20s.
Can free money help you build wealth in your 20s?
Building wealth isn’t all about saving money in your 20s. In fact, one of the most effective ways to build wealth is by finding ways to maximize your income. That means getting your hands on free money. Free money? There’s no such thing! I know you’re wondering where free money could even come from.
Is owning a business the best path to wealth in your 20s?
Davis believes that owning a business is the best path to wealth in your 20s. “The single best way to build wealth in your 20s is to launch your own business,” he said. “A well-structured business has the potential to offer exponential returns compared to a salaried job.
How can I earn free money in my 20s?
Another way to earn free money to help you build wealth in your 20s is through government programs and benefits. Even though you can earn money by yourself, there’s nothing wrong with seeking out assistance that is available to you. So, a note to everyone: be sure to claim tax credits and refunds! You’re entitled to that money.