I have seen a few people online, genuine people, who have retired at around age 30. They mostly worked at a big tech company, invested their money, and now live off of their passive income which I think is amazing. These guys make around $300,000 - $400,000 in the Bay Area which is pretty common depending on their skill level.
I just turned 20 and finished reading The Richest Man in Babylon and I think it might be my favorite book when it comes to finance. However, when I think about investing my money into let's say the S&P500, I use a calculator that shows me that I will only make around $65,000 in 10 years if I start with $100,000 and continue to invest $10,000 yearly for the next 10 years. (Assuming a 7% annual return).
This is basically following the rules in the book I read where 10% of my earnings are going to myself first and I am investing that money. However, the return doesn't look that great. It's just a little above half.
I understand some people have invested in things like rental properties/airbnb's but what else? What do these guys invest in that allows them to retire at age 30? Personally, I would not want to invest my money in rental properties because it lessens someone's chance to own a home but I am thinking about renovating houses. Other than that, what is left?
I want to know so that I can start working on this now. I'm majoring in Computer Science and I should be able to graduate debt-free (or will very little debt that I will pay off immediately) in about two years. I think I should start planning what to do next.
Edit: Thanks to everyone who commented on the post, I greatly appreciate it! It really helped me learn a lot and I am feeling much more confident after everything has been explained and cleared up to me. I am fairly new to this so all of these replies are very helpful.
Submitted April 05, 2022 at 02:23AM by MoveZneedle https://ift.tt/4iDUJjv
