In this episode I go over 6 tips on how to become a millionaire by 30. Though the title says by 30, everyone is on their own journeys, with their own situations and circumstances, so there’s no need to compare or rush your own financial journey. Personal finance is personal – everyone has different goals and different ideas of what they want in life and I respect it. But I just wanted to put this episode out for informational purposes only! Enjoy :).
✅ If you want the step-by-step guide on investing out-of-state to buy rental properties, check out our course Remote Rental Riches! https://courses.digitalnomadquest.com/p/remote-rental-riches
How to Become a Millionaire By 30 (6 TIPS)
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design their best lives.
Hey guys, is Sharon from digital nomad quest and today we’re gonna go over six tips on how to become a millionaire. Now in previous videos, I talked about why I didn’t really want to reveal my net worth publicly. But an opportunity came by and Business Insider actually wanted to interview me and I couldn’t pass this up. Now in the articles, they wanted to reveal my net worth and talk about my income and things like that. So I basically had to verify a bunch of documents with them, I had to spend like over eight hours or so just gathering a bunch of documents, sending screenshots sending files over so that they can make sure they verified those numbers. So whatever you guys see in those articles are legit. So as you can see here, multiple articles have been published on Business Insider, and with those releases, a bunch of people did ask me like, how do I get started? How do I start building my net worth, which is why I wanted to get into this topic today, I think it is doable to build a seven figure net worth, it takes a lot of consistency, a lot of hard work, a lot of doing things that most people wouldn’t do in order to start making money and start saving that money. Everyone’s timeline is going to be different. It really depends on your different situations. But I really hope that these tips help. So without further ado, let’s just get right into it. So tip number one is build high income skills. So with my story, I didn’t really think too much about what I wanted to do in college. My degrees were actually really random. I was double majoring in psychology and music. So because I thought I had creative and analytical skills, the career marketing just seemed to make sense to me. So I ended up taking some internships in marketing and was able to find a marketing coordinator job upon graduation, now is only a $30,000 per year job, but I just knew that the field had potential for me to grow in income. So I continue to build my skills in marketing through studying taking new projects at work, finding new roles that allowed me to learn and grow and just creating my own online businesses. And then I each new role, I would negotiate to increase my salary. And this really helped me continuously increase my income at each job I took. And it helped me land that six figure role. So in my opinion, there’s a cap on how much you can save, but there’s really no limits to how much you can earn. And basically the wealth equation is income minus expenses, times investing, and that equals wealth creation. So by building high income skills, you can boost the amount of money coming in, which will really help jumpstart your financial freedom journey. Number two, my tip is that when you change your mentality to time is money, it really helps you stop spending as much so I never really had an issue when it came to saving money. As I began working at a full time job, I really started equating my time for money, especially before I made passive income. With passive income, you can make money in your sleep. But with my full time work, I had to actively work for money. So I had a $30,000 per year job, my hourly wage was about $15. So when I looked at a $300 bag, I would see myself trading like 20 hours of my life for that bag if I purchased it. So those calculations really deterred me from wanting to spend money. Now instead, I felt more happiness just watching my bank accounts, and my investments grow. And we start equating your purchases to the amount of time it takes to buy those things, it really makes it easier to save money. It was especially easy for me to feel that way when I was spending most of my days just staring at four walls at an office working. And I just knew that if I never saved or invested, I would be stuck working for the rest of my life. Now tip number three is reduced your biggest expenses, I would say one of the biggest expenses is your housing costs. So if you can reduce those costs, you’re going to be able to save a larger portion of your income for me I decided to live at home while helping around the house until my mid 20s. So even though it was uncool and others are having fun living in the city, I had my eye on the prize right I decided to made a lot more financial sense to stay at home. And then I decided to leave and become a digital nomad for two years traveling the world while building my online businesses. And because of geographic arbitrage, I actually ended up spending only $1,400 a month on everything including accommodations, travel costs, entertainment, etc. And I figured if I moved to a one bedroom apartment in San Francisco, I’d probably spend $2,600 to $3,000 a month average in rents and traveling the world on a budget actually made more financial sense, in my opinion, then at 28 actually came back and rented a place with roommates, and one of the roommates lived in the living room with a divider so really reduced all of our rents and now I actually share expenses with my partner. So the point is ever since I started working, I was always mindful of how much I spent on my living costs. So if you’re able to find ways to reduce your housing costs, it will greatly help with your financial journey. Now if you can house hack that’s even better. All right, house hacking is a real estate investing strategy in which you purchase a property and then rent out units or rooms. Homes to make up for your expenses and possibly even cash flow. If you live in the property for a year or more, you can even get something called an FHA loan which allows for you to put as little as 3.5% for a down payment. Now cars are another large expense. And what many people don’t realize is that when you drive a new car out the dealer’s lot, it loses value. So I decided to purchase an affordable but safe $6,700 used car with all cash, so I didn’t have to get a loan on a depreciating asset. I love this car because it allowed me to save more money to invest and I don’t worry about getting scratches on my car. The more you save, the more you can put that back into your investments to generate wealth faster. Alright, tip number four invest in ETFs. When I started working, I began putting money into a brokerage account and contributing to my Roth IRA I learned to invest my income in ETFs and ETFs are exchange traded funds, basically a basket of stocks. And rather than investing one stock, you can invest in a portfolio of stocks through an ETF which already helps you diversify your holdings, essentially making it less risky than investing in just one stock. And a popular ETF I invest in is QQ Q that passively tracks the NASDAQ 100 index. And by investing in this ETF, I invest in 100 of the largest companies on the NASDAQ Stock Exchange, many people think that investing is too challenging or requires a lot of money to start. But in reality investing doesn’t have to be sexy or intricate, long term investing can be quite simple. So around 75% of my stock portfolio is actually in ETS, and then the rest is in stocks with a long term outlook. Every year I just put most of my income into the same investments like QQ number five is one of my favorites is to build passive income side hustles So in 2016, I traveled the world as a digital nomad for two years while building passive income streams. And a month long solo year trip in 2014 actually sparked this realization that in order for me to live a life true to myself, without financial restriction, I had to create financial freedom for myself. So I began studying over 20 books and blogs about financial freedom and how to generate wealth through passive income streams like real estate and online businesses. Passive income is income that might take some time to build up and work to build up but it really doesn’t take much effort to maintain I was trading time for money for so many years. So I was really shocked when I realized that you could build all these passive income streams. It was really like a pivotal moment for me in my life that changed the way I viewed money. So after books like four hour workweek and Rich Dad Poor Dad it made it so that I wanted to make money work for me instead of the other way around. Now for example, you can sell digital products that don’t need to be fulfilled when sold like courses, Kindle books or Photoshop templates on Etsy or you can do affiliate marketing where you’re promoting products you recommend and or use that can provide value so whenever people purchase products through your unique affiliate link, you receive a commission so now I cash flowed through many different ways like Photoshop templates and Microsoft templates on Etsy affiliate marketing, course sales, Kindle sales, ad revenue, selling custom apparel on merch, my Amazon, selling products through Fulfillment by Amazon, investing in rental properties and receiving dividends from some of my stocks and ETFs. So I know that’s a lot, but I have attempted a lot of different income streams along the way. So creating multiple income streams, especially these passive ones make it so you don’t have to worry as much about getting laid off or being able to pay rent. And it really allows you to spend more time with your loved ones and time to work on projects that you care about. Alright, my last tip is to invest in real estate. So for me, as I built up capital, I began investing in real estate. My first investment was in 2013, actually, in real estate is my favorite type of investment because of its benefits, including leverage appreciation, cash flow and tax benefits, it’s really the only asset type that allows you to borrow as much as 80 to 90% of the asset value, sometimes even more to grow your wealth. So for example, if you buy a property that appreciates from $100,000 to $200,000, that’d be a 20% increase if you put in $100,000 all cash, but if you put in a 20% down payment of $20,000, your investment would have actually doubled and overall I just find real estate investing particularly fun, you get to be your own boss and own tangible assets around the world real estate now makes up more than half my net worth as I now have actually 13 units. Me and my boyfriend together have 20 units combined. So it’s really awesome and all of these different assets cash flow me to the day and to illustrate even more how powerful real estate is basically my first investment in 2013 appreciate over $300,000 that has increased my net worth dramatically. So basically if I sold this property I would make a huge profit when investing in rental properties. Make sure you’re finding properties that cash flow and appreciate now everything I brought up in here all this stuff around investing I want Make sure you guys understand that none of this is financial advice. This is all for informational purposes only. So make sure you are doing your due diligence.
So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai
Hey guys, is Sharon from digital nomad quest and today we’re gonna go over six tips on how to become a millionaire. Now in previous videos, I talked about why I didn’t really want to reveal my net worth publicly. But an opportunity came by and Business Insider actually wanted to interview me and I couldn’t pass this up. Now in the articles, they wanted to reveal my net worth and talk about my income and things like that. So I basically had to verify a bunch of documents with them, I had to spend like over eight hours or so just gathering a bunch of documents, sending screenshots sending files over so that they can make sure they verified those numbers. So whatever you guys see in those articles are legit. So as you can see here, multiple articles have been published on Business Insider, and with those releases, a bunch of people did ask me like, how do I get started? How do I start building my net worth, which is why I wanted to get into this topic today, I think it is doable to build a seven figure net worth, it takes a lot of consistency, a lot of hard work, a lot of doing things that most people wouldn’t do in order to start making money and start saving that money. Everyone’s timeline is going to be different. It really depends on your different situations. But I really hope that these tips help. So without further ado, let’s just get right into it. So tip number one is build high income skills. So with my story, I didn’t really think too much about what I wanted to do in college. My degrees were actually really random. I was double majoring in psychology and music. So because I thought I had creative and analytical skills, the career marketing just seemed to make sense to me. So I ended up taking some internships in marketing and was able to find a marketing coordinator job upon graduation, now is only a $30,000 per year job, but I just knew that the field had potential for me to grow in income. So I continue to build my skills in marketing through studying taking new projects at work, finding new roles that allowed me to learn and grow and just creating my own online businesses. And then I each new role, I would negotiate to increase my salary. And this really helped me continuously increase my income at each job I took. And it helped me land that six figure role. So in my opinion, there’s a cap on how much you can save, but there’s really no limits to how much you can earn. And basically the wealth equation is income minus expenses, times investing, and that equals wealth creation. So by building high income skills, you can boost the amount of money coming in, which will really help jumpstart your financial freedom journey. Number two, my tip is that when you change your mentality to time is money, it really helps you stop spending as much so I never really had an issue when it came to saving money. As I began working at a full time job, I really started equating my time for money, especially before I made passive income. With passive income, you can make money in your sleep. But with my full time work, I had to actively work for money. So I had a $30,000 per year job, my hourly wage was about $15. So when I looked at a $300 bag, I would see myself trading like 20 hours of my life for that bag if I purchased it. So those calculations really deterred me from wanting to spend money. Now instead, I felt more happiness just watching my bank accounts, and my investments grow. And we start equating your purchases to the amount of time it takes to buy those things, it really makes it easier to save money. It was especially easy for me to feel that way when I was spending most of my days just staring at four walls at an office working. And I just knew that if I never saved or invested, I would be stuck working for the rest of my life. Now tip number three is reduced your biggest expenses, I would say one of the biggest expenses is your housing costs. So if you can reduce those costs, you’re going to be able to save a larger portion of your income for me I decided to live at home while helping around the house until my mid 20s. So even though it was uncool and others are having fun living in the city, I had my eye on the prize right I decided to made a lot more financial sense to stay at home. And then I decided to leave and become a digital nomad for two years traveling the world while building my online businesses. And because of geographic arbitrage, I actually ended up spending only $1,400 a month on everything including accommodations, travel costs, entertainment, etc. And I figured if I moved to a one bedroom apartment in San Francisco, I’d probably spend $2,600 to $3,000 a month average in rents and traveling the world on a budget actually made more financial sense, in my opinion, then at 28 actually came back and rented a place with roommates, and one of the roommates lived in the living room with a divider so really reduced all of our rents and now I actually share expenses with my partner. So the point is ever since I started working, I was always mindful of how much I spent on my living costs. So if you’re able to find ways to reduce your housing costs, it will greatly help with your financial journey. Now if you can house hack that’s even better. All right, house hacking is a real estate investing strategy in which you purchase a property and then rent out units or rooms. Homes to make up for your expenses and possibly even cash flow. If you live in the property for a year or more, you can even get something called an FHA loan which allows for you to put as little as 3.5% for a down payment. Now cars are another large expense. And what many people don’t realize is that when you drive a new car out the dealer’s lot, it loses value. So I decided to purchase an affordable but safe $6,700 used car with all cash, so I didn’t have to get a loan on a depreciating asset. I love this car because it allowed me to save more money to invest and I don’t worry about getting scratches on my car. The more you save, the more you can put that back into your investments to generate wealth faster. Alright, tip number four invest in ETFs. When I started working, I began putting money into a brokerage account and contributing to my Roth IRA I learned to invest my income in ETFs and ETFs are exchange traded funds, basically a basket of stocks. And rather than investing one stock, you can invest in a portfolio of stocks through an ETF which already helps you diversify your holdings, essentially making it less risky than investing in just one stock. And a popular ETF I invest in is QQ Q that passively tracks the NASDAQ 100 index. And by investing in this ETF, I invest in 100 of the largest companies on the NASDAQ Stock Exchange, many people think that investing is too challenging or requires a lot of money to start. But in reality investing doesn’t have to be sexy or intricate, long term investing can be quite simple. So around 75% of my stock portfolio is actually in ETS, and then the rest is in stocks with a long term outlook. Every year I just put most of my income into the same investments like QQ number five is one of my favorites is to build passive income side hustles So in 2016, I traveled the world as a digital nomad for two years while building passive income streams. And a month long solo year trip in 2014 actually sparked this realization that in order for me to live a life true to myself, without financial restriction, I had to create financial freedom for myself. So I began studying over 20 books and blogs about financial freedom and how to generate wealth through passive income streams like real estate and online businesses. Passive income is income that might take some time to build up and work to build up but it really doesn’t take much effort to maintain I was trading time for money for so many years. So I was really shocked when I realized that you could build all these passive income streams. It was really like a pivotal moment for me in my life that changed the way I viewed money. So after books like four hour workweek and Rich Dad Poor Dad it made it so that I wanted to make money work for me instead of the other way around. Now for example, you can sell digital products that don’t need to be fulfilled when sold like courses, Kindle books or Photoshop templates on Etsy or you can do affiliate marketing where you’re promoting products you recommend and or use that can provide value so whenever people purchase products through your unique affiliate link, you receive a commission so now I cash flowed through many different ways like Photoshop templates and Microsoft templates on Etsy affiliate marketing, course sales, Kindle sales, ad revenue, selling custom apparel on merch, my Amazon, selling products through Fulfillment by Amazon, investing in rental properties and receiving dividends from some of my stocks and ETFs. So I know that’s a lot, but I have attempted a lot of different income streams along the way. So creating multiple income streams, especially these passive ones make it so you don’t have to worry as much about getting laid off or being able to pay rent. And it really allows you to spend more time with your loved ones and time to work on projects that you care about. Alright, my last tip is to invest in real estate. So for me, as I built up capital, I began investing in real estate. My first investment was in 2013, actually, in real estate is my favorite type of investment because of its benefits, including leverage appreciation, cash flow and tax benefits, it’s really the only asset type that allows you to borrow as much as 80 to 90% of the asset value, sometimes even more to grow your wealth. So for example, if you buy a property that appreciates from $100,000 to $200,000, that’d be a 20% increase if you put in $100,000 all cash, but if you put in a 20% down payment of $20,000, your investment would have actually doubled and overall I just find real estate investing particularly fun, you get to be your own boss and own tangible assets around the world real estate now makes up more than half my net worth as I now have actually 13 units. Me and my boyfriend together have 20 units combined. So it’s really awesome and all of these different assets cash flow me to the day and to illustrate even more how powerful real estate is basically my first investment in 2013 appreciate over $300,000 that has increased my net worth dramatically. So basically if I sold this property I would make a huge profit when investing in rental properties. Make sure you’re finding properties that cash flow and appreciate now everything I brought up in here all this stuff around investing I want Make sure you guys understand that none of this is financial advice. This is all for informational purposes only. So make sure you are doing your due diligence.
So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai
