24 year old: $500k networth

Hey friend, 

I watched an instagram reel last night, of a 24 year old Aussie kid (same age as me) who has a finance / investing / property instagram account. 

He’s got mortgages on 3 properties and saving for his 4th.

And he says his net worth is $500kaud based on the equity VS debt in these property 

And in the video I watched, he breaks down his fortnightly budget which was something like this…

- Works 2 jobs 7 days a week and makes $2000 aud for the fortnight. (1200usd)

- Lives at home and pays $60 a fortnight for rent to his parents. 

- Puts aside $200 a week for “fun”

- $75 for food and going out.

- $15 for his Aldi phone bill

-And then the rest goes to servicing the debt on his properties and saving for the next one. 

Here’s my thoughts…

Now firstly, good on him for having a crack, a lot of discipline there to submit yourself to that type of existence. $500k “net worth” by 24 is something to be proud of.

But this is exactly the sort of uncreative thinking that the mainstream education system indoctrinates people to think like. Very linear, very un-entrepreneurial, and essentially slavery. 

Here’s why this is the worst way to go about building wealth. 

1. You are your best investment. 

So this kid is working 2 jobs 7 days a week to make $1000 aud a week. 

So like $600 usd a week. 

And then is lucky enough to be able to live for essentially free with his parents and give all of this money to the banks to service his debt, and hope that the property market in Australia continues to grow, which is definitely not guaranteed- only have to look at Japan. 

Instead he could spend 2-3 months of that time and money and learn how to make more money. 

Consider that every month you don’t know how to make $10k a month- its costs you the difference. 

Every month you don’t know how to make $30k a month- its costs you the difference. 

So by funnelling all his money into property, he has neglected the 1 investment that could actually make him wealth, which is him. 

He is his best investment and if he invested in his income producing skills he could speed up his journey a lot. And he wouldn’t have to live like a 24 year old virgin at his parents house. 

He could actually live a life worth living. 

2. These are the most expansive years of your life. 

If the cost of getting to be wealthy is doing shit you hate and living the most meagre and frugal existence at the cost of all dreams and the infinite potential that lies inside of you- its not fucking worth it.

You don’t have to sacrifice the dreams in your heart for money. The dreams in your heart, are your biggest assets and the keys to unlocking your highest income potential. 

3. Cashflow is king.

Now say this kid put his head down for the next 15 years- until his 40.

And say the property “gravy train” in Australia continues its infinite upward trajectory, which is a huge “if”.

And say through out this his able to get his “net-worth” to say $3M aud. (2Musd)

His still fucked and not free. 

He will still have no cashflow, but his 2 shitty jobs that pay him $600usd a week. 

And his supposed $2mUSD is in equity in this properties that he needs to continue servicing- which is costing him 7 days a week because he doesn’t know how to make money. 

And so by 40, he’s still a slave if not more than when he started, because he can’t stop now- unless he sells the properties.

Where his going to have to pay a huge chuck of that $3m in taxes, agent fees, and all the rest of it. Probably losing close to 35% of it. If not more. 

And then with the 1.3MUSD left over- he could put it in the S&P500 and get say 6% a year. 

Which is barely covering inflation. 

And its only like $80k a year. 

Which might sound good for a 24 year old- but we are talking about a 40 year old now. 

And that’s not enough to support a family, or do anything interesting. 

And thats with the value of todays dollar, let alone how much that will be devalued over the next 15 years with current government printing. 

So what should he do?

He should invest his money into his ability to make more money. 

He should start an online business that leverages the value that he can provide, not his time. 

If he focuses on cashflow instead of equity in these properties, he doesn’t have to live a meagre existence like a virgin in his parents basement, and can actually live a life worth living. 

If figures out how to actually make real money, in a leveraged way, he could hit those property goals much quicker, and that equity can pile up, and you’ll never have to touch it, because his got epic cashflow coming in every month. 

What does it mean for you?

Investing in yourself to learn how to make more money in a leveraged way, is the best use of your resources as a young person (or any person). 

Don’t get sucked into common thought (especially australians) which leads to debt slavery and no real freedom. 

You don’t have to sacrifice your youth for money. Your hearts dreams are the key to your financial abundance. 

——

This is why I wrote “drop out & travel” - so you don’t have to wait till you’re 50 years old to realise you fucked it up- like this guy probably will. 

And thats why I have just launched a monthly call to help help young people implement the ideas out of my book. 

It’s the absolute greatest investment you could make into increasing your income as a young person. 

The essence of Drop Out & Travel isn’t business or money. However, your skills in business and making money, will dictate what you are able to create with your life. So thats focus at the start. 

You can sign up for the community here. It’s $97 a month. You only need to get 1 client (which I’ll help you do straight away) and it pays for itself for life. 

Sign up here. 

-Jay

Jay Topp is a 24 year old writer, marketer, film maker & self-led educator originally from Australia, now based in Buenos Aires, Argentina. You can see his films here. Instagram here. And his business website here.

PS. if you refer a friend to this newsletter, you’ll be put on a short list that will receive early access to the films i make, the book i’m writing, in person meet-ups and other cool stuff coming. use the link below to invite (the person needs to confirm their subscription via email).

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