Loading...

Start at 20, Retire by 30 (Guide to Personal Finance)

  • 🎬 Video
  • ℹ️ Description
Start at 20 years old, and retire by 30. Here’s how I was able to do it with this guide to personal finance - step by step.


Today we’re taking a look at how to start at 20 with $0 and retire by 30 years old by following this income flow chart. This Is the exact steps I followed between the ages of 19 to 28 to be able to achieve financial freedom. This is investing for beginners, a 101 guide on getting started with money management.

The first step is the essentials phase where the priority is paying for things that allow us to exist. First we start with rent and/or the mortgage, followed by groceries. It’s imperative to learn how to cook and aim for meals that cost anywhere between $1-$2 to save as much of our incomes as possible.

Then we pay for essential utilities such as water, electric, and gas/heating along with essential hygiene items. The following step is paying for income earning expenses such as internet, phone, and anything that is required to help earn an income.

Health Care is the next one. In order to avoid paying the mandate, I used to donate to a church which exempted me from needing “real” health insurance to avoid being penalized. The president has since done away with the mandate so you will not be penalized on the federal level, but each state has unique rules about this so double check with your state. At this point in time, consider making minimum payments on all debts and loans (student loans, credit cards, etc.)

Phase 1 - This is an optional step that will vary for everyone and it’s not necessary but build an emergency fund of $1,000 or one months’ worth of expenses. If you have liquid assets that can cover these expenses (such as my Robinhood Dividend Stock Portfolio), then this is not necessary. Pay any “non essential” bills here as well (cable, internet, phone, etc.)

Phase 2 - Contribute to your company’s 401K and make sure to get the full company match but do not exceed it at this point.

Phase 3 - Make payments on mid to high interest rate debts of 10% or higher with either the “avalanche” or “snowball” methods, whichever one fits you best.

Phase 4 - Invest and contribute to an IRA, your individual retirement account (I have a Roth IRA with the M1 Finance app). If you have any expenses to pay that may increase your income such as certifications (for me it was my youtube equipment) , consider saving that money in a high yield savings account, if you need it immediately, use a checking account.

Phase 5 - Aim to save at least 15% of your pre taxable income for retirement. This number is based on a research that showed people will need anywhere between 55% to 80% of their pre retirement income to support them in retirement.


Download — Start at 20, Retire by 30 (Guide to Personal Finance)

Download video
💬 Comments on the video
Author

Tl;dr: The only way to have money is to stop spending it.

Author — wildfood

Author

Graham Stephan please take off the mask, we know it's you

Author — Kian Kasler

Author

"healtcare cost"

Sorry is this some kind of american joke I'm too european to understand?

Author — GermanTopGameTV

Author

Capitalism: Work your whole life and die unhappy
Andrei: Nah I don't think I will

Author — Luka Jeremic

Author

“I don’t use the latest iPhone” pulls out iphone11pro max

Author — KokK MagiC

Author

Mostly good information, but very stupid not to have health insurance. Definitely do not go without health insurance, one bad accident or health problem and you will be in serious debt.

Author — Fire_CPA_98

Author

only making $50k a year...

*cries in $20k annual income*

Author — Reagan Harder

Author

I recommend everyone to read the book "The Millionaire Fastlane", it's insanely good and realistic about being rich fast (up to 10 years), using mostly entrepreneurship.

Author — patrick ROTMG

Author

Start at 5, retire by 15. Start at womb, and retire by 10. I need to get a Han Swolo 401k 😂

Author — Andrei Jikh

Author

No course. Nothing at all to sell. Free advice. Great investing tips. And just a good vibe. Thanks for always keeping it real Andrei. You are THE man!

Author — Stephon Hughley

Author

"go from zero dollars att 20
to being *tired* by 30"

Author — PotatoJam

Author

'escort' - Me: ah so that's why this dudes hotel bills were flagged at 7x budget

Author — Apollo

Author

Instructions unclear, the toaster is now in the microwave.

Author — ExoTic 225

Author

Bro, you don't have health insurance? That's not good.You're one event away from bankrupt my friend.

Author — Mike

Author

I turned 20 years old 2 weeks ago. I'm ready to start this journey, lol.

Author — Living Like Jalen

Author

Now I just have to figure out how to save 50% of my $15, 000 income😢

Author — Max 93 films

Author

8:40 min = some information. Before that, just words and more words.

Author — Marco Andrés Mora

Author

Everyone, don’t get caught in the trap of pinching every single penny. Just make more money! Don’t think small.

Author — Jesse Lane

Author

"Try to avoid organics. They don't do anything. Please don't hurt me." hahahaha

Author — Ben Christensen

Author

I would recommend the health insurance tho, one bad day and your entire net worth can be gone 🤷‍♂️

Author — AllPogo