Get Rich by Thirty

Jun 7th, 2008 | By Career Snob | Category: Sustainable Living

Rating 3.00 out of 5

chairs I am 24 years old, and my net worth isn’t much. In fact, it’s near zero. I just got out of debt, so all I have saved up is a small savings account, a new 401K and a Roth IRA, both of which have not been maxed out. Since I can’t even touch my retirement accounts until I’m 60, I technically have nothing. Your net worth should be your age, multiplied by your current gross annual income, divided by 10. I am FAR from that number– like eons away. I haven’t even saved for long term purposes, just for vacations and splurges.

Lesley Scorgie, the writer of Rich by Thirty, is a millionaire at my age. She started saving money in her teens and hasn’t looked back since. She lived simply and developed her own business with teaching other young adults the power of managing money for financial freedom. She owns a home and is comfortable with where and who she is.

The book discusses our current generation of young adults who are sucked into a world of consumption, and guides us to get out of debt and to start saving for bigger and grander things. Scorgie outlines debt, savings and investments in a simple format and breaks it all down where it is not too overwhelming. She uses language that is easy to understand, but not groundbreaking. A lot of her information is logical, but it was good to read it in such a matter of fact fashion. Here are some tips I got most out of it.

Get organized Start filing your receipts and documents in folders and boxes. Here is a link that tells you what to keep and for how long.

Budget Understand how you need to spend and save the rest. Allow room for some fun, but keep the future in focus so you have the finances ready for when you truly need it, such as fixing your car.

Invest Join your company’s 401K if you haven’t done so already. If you can’t max it out, then contribute up to what your company matches. It’s essentially free money. If there is no 401K, you can do a Traditional IRA, which are pre-tax contributions, or a Roth IRA, which are post-tax contributions. I have both the 401K as well as the Roth IRA.

Emergency fund Contribute a small percentage into an emergency fund that you will not touch. This is for major emergencies, such as losing a job or a medical payment. You should aim for three months’ worth of living expenses for your emergency fund, if not six months, which is more optimum.

The book has a lot of great info and facts that talk about credit cards, types of investments as well as tips to purchase a home. You can purchase a copy here.

I don’t know about you, but I am truly reformed. Now that I am out of debt, I am so focused on saving and learning to invest. I am fascinated by the world of finances and am ready to be rich by thirty.

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