A great strategy for Gen Z and millennials.After 20 years at a corporate job, I had a life reset by starting a new role that offered remote work; I moved countries and started investing a major portion of my income. This article sheds light on what I have learned about fast-tracking wealth generation.“The first $100,000 is a bi***, but you gotta do it. If it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000”said Charlie Munger, one of the world’s wealthiest people and vice chairman of Berkshire Hathaway.Charlie Munger was right. The first 100K is the toughest but getting the next 100K and beyond becomes exponentially easier once that threshold is crossed.The post-Covid world is offering Gen Z and millennials a greater opportunity to accelerate wealth than what the previous generations ever had. With remote work becoming more accessible and acceptable along with an array of AI software and remote management platforms, it is getting easier for the average person to achieve monetary success while experiencing true levels of freedom far from the clutches of modern-day corporate slavery.So, how do you get to the first 100K reasonably quickly (4-5 years is a good benchmark)……by adopting 3 key steps which I will list below.A caveat- the strategy works best for people who: are independent i.e., do not have financial dependants and have no big debts such as mortgages, business or student loans etc. So the plan is ideal for Gen Z just starting on their life journey and for independent, free-spirited millennials wanting to break free from the mundane.Let’s get into the details of the 3-Step strategy:STEP1: Remote! Remote! Remote!Photo by Microsoft Edge on UnsplashRemote work is key to getting your first 100K target within 5 years or less. That said, remote work is just one piece (a big piece) of the plan.The key is to find a contract, a gig or a job that allows you to work across geographical boundaries. This is very important.Below are some viable remote roles:AccountantWealth ManagerProject ManagerSocial Media ManagerUX/UI DesignerWeb DesignerMedical WriterCopy WriterContent CreatorTranslator and transcriptionistIf you are a content creator YouTube is a great place to start from. YouTube can also be a fantastic tool to boost your presence and help create your brand if you provide any form of service. Platforms such as Medium help writers build their portfolios and if you are already an experienced service provider sign up on Fiverr and Upwork to start offering your skills for dollars.If you are looking to remotely work for employers there are websites that connect job seekers to companies that offer exclusively remote jobs. Some examples of such sites are:STEP2: Move CountriesPhoto by Jailam Rashad on UnsplashBecome an expat. Find a country where the cost of living is much lower than your own and which allows your passport to be eligible for extended stay and work. Some examples of such destinations are Bali, Costa Rica, Mauritius and Mexico. This is not such an outrageous thought in the post-COVID world. In fact this step is not only doable but is one of the most rewarding perks on your way to achieving the 100K!This move will allow you to save on ongoing major expenses such as rent, food and commute (which should be minimal anyway with working remotely). Such expenses will be significantly lower in these destinations compared to the home country.STEP 3: Don’t Save, Invest!Photo by Precondo CA on UnsplashYou cannot save your way to great wealth with a 9–5 office job.This statement says much. Savings generally have a very low Return on Investment rate (ROI). Factor in high inflation and low interest rates, and these returns could turn negative. For instance, your current savings of $100, in 2025 might be worth $92, taking into account an average 7% inflation and a 3% interest rate per annum. Although investing is considered “riskier” than savings; it is a far better option than the guaranteed loss of value that money in a savings account offers.A best practice on the 3SP journey is to invest 90% of your income keeping 5% for ongoing expenses and 5% as liquid cash for quick emergencies. This is where Charlie Munger’s above advice about being frugal until you hit the target of 100K comes into play.While looking for an investment vehicle it is important to keep in mind the ROI or Return on Investment that it offers. Aim for returns greater than inflation. A rate of return anywhere above 10% (at a minimum) is ideal. As a general rule of thumb is — the lower the Rate of Return an investment offers the lower the risk profile it carries.ConclusionSome key points to keep in mind on this journeyCreate your brand: The key is to begin. Take that first step. Write that first article, make that first YouTube video. Once the first step is done focus on building your brand with consistencyMonetise your knowledge: It is much easier and natural for you to monetise your skill or knowledge. It doesn’t matter if you are a salesman, a project manager, an artist, an astrologer or a math teacher, there is demand and/or an audience for your specific set of skillsDo not invest in property: You do not want to go into debt or have your money stuck in an immovable assetTaxation laws: Research the taxation laws of the country you intend to move to. Some have tax waivers on foreign income to attract remote workers into their countryBe frugal: Say no to unnecessary spending such as purchasing expensive and branded items. Do not spend money on a depreciating asset such as a car, or other vehicles. Use public transport, Uber where necessary or just walk it!Photo by Ian Schneider on UnsplashFinally, understand why you are doing this: You might have your specific reasons but for the majority, the purpose of this journey is financial freedom; to be able to live life on one’s terms.Godspeed!Disclaimer: The information contained in this article is generic and not a substitute for professional financial advice. Please ensure you consult a financial advisor who is aware of the facts and circumstances of your situation before making any financial investment decisions.
https://medium.datadriveninvestor.com/a-3-step-guide-to-quickly-building-your-first-100-000-3055bc2997e2
A 3-Step Guide to Quickly Building Your First $100,000 | by Renny J. | Nov, 2023
