6 Things No One Tells You About Getting Rich

This is the second episode of our special 6-part capsule series, The Grown Woman’s Guide To Life. Hosted by TFD founder Chelsea Fagan, this series is all about navigating your 30s with style and grace -- financially and otherwise. In this episode, Chelsea breaks down the secrets of wealth building that change your financial life, no matter where you’re starting from.

[antillie]

I like how you talk about generational wealth. Most people seem to think the term means inheriting a house, a pile of money, or both. And for the super rich this is probably the case. Well that and trust funds.

But for those of us in the top 10%, as opposed to the top 1%, its not passing down a house, or passing down anything. For us "normal millionaires" generational wealth is not inherited. Its having your parents pay for your college so you never take out student loans. Its having your Roth IRA fully funded each year for you once you start working. Its having a custodial account opened when you are 2 and then using that money to put 35% down on a house when you are 26. Its being taught from a young age what interest is and that outside of a mortgage, debt is to be avoided when possible. Its being given a bunch of EE bonds when you are a kid so that when it comes time to buy your first car you can buy a new one with cash that lasts long enough that the next one can be bought with cash too. Its being taught to only buy reliable cars (Honda/Toyota/etc...) and to always keep them for at least ten years. Its just as much about mindset and education as it is about actual money.

Generational wealth at the everyday millionaire level happens long before the parents pass. If you want to make your kid rich you need to do things early in their life. 50k won't make much difference when they are 55+, but at 18 it can be game changing. By the time someone who has benefited from "normal rich folk" generational wealth inherits their parent's assets, they are already wealthy.

[sarahappy]

I love the casual „saving for me nieces education“ we love the cool rich auntie vibe

[sandstorm]

As someone who just turned 30 and feels like everything im doing isn't "enough" this video really helped. Been a fan for years, thank you so much for all your work on this channel, its changed my life ❤

[MBP-zi]

I like how you spent time talking about the importance of moving to growth industries or ones that will help you meet financial goals faster. Many of us millennials grew up in the "dream job" era but it's not practical. Find a 9-5 job that pays well that you're good at so you can fund your passions 5-9. I switched industries, doubled my income, and made smart investments. If I stayed in my last industry I'd be plagued by more job uncertainty and mediocre compensation.

[RichardGeorge-pzwm]

40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

[atmamaonline]

I'm stealing 'slaydies and gentlethems' thanks chelsea

[avgholson]

Lifestyle creep is certainty a culprit.

[me]

Beware of lifestyle creep, and don't major in the minors

Having money makes it easier to make more money

Increasing income is more important than cutting expenses

Certain industries make money easier

Be patient and emotionally detached

Buying a home is not always a good decision

[LucasBenjamin-hvsk]

I wish i learnt most of these principles about seven years ago. A lot of people have been trapped strongly in the matrix-- Go to school, get a job, and then slave your whole life. Many miss out on life-changing information that could have great effect on their finances. Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.

[carolynbest]

Always a joy to see you pop up on my feed!

[whatchis]

I love the generational wealth aspect from someone who comes from a low low middle class family and poor area. I'll never inherit any money or land from my parents maybe something from my grandparents but not much I'm sure. I have been shoving as much as I can to my 401k and trying to start building up my emergency fund while also investing some into a Roth, since I wasn't being smart with my money in my 20's and covid decimated me that first year. I will be buying a home within the next 2 years since it's finally leveling out here and the cost leans better to buy here. Just all about balance.

[crybebebunny]

3:45 Are constant bill but they are changing the insurance has gone up a minimum of 20 % this year; both vehicles and homes.

[patrickjohnson]

I agree to a large degree about trying to earn more than cutting expenses. But the best thing isto cut expenses first. That just means removing anything not helping your goal. If you are out spending a couple hundred dollars a week at the bar, getting a second job is or otherwise attempting to make money is utter ridiculous. Why? Because the income you might make is going to be wasted on dealing with the extra costs to get to that second job, and wasted in the bar. Cut the extra expenses first then seek to better your fulltime job before attempting to get second jobs.

[kimjellen]

The 3:13 stat about the average income rising between 2020 and 2024 — does that average include Bezos, Musk, and other 1%? If so, bad stat, the stat is junk for average 30 somethings. Talk to average people: wages are not rising.

[LoraMinadan-erfe]

I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9, 000 in an IRA and $40, 000 in my portfolio with CFA, Evelyn Infurna. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150, 000. If I can do this in a year, anyone can.

[sarawilliam]

Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as the EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE

[teenindustry]

It’s true more Australian parents are giving “early inheritance” money to their kids to get a mortgage deposit and it’s causing a big schism between those with help and those without

[teenindustry]

It’s important to also consider if giving up benefits that the amount you get is enough that you can cover time off with your existing salary

[MarimoMare]

Abstracting away from all the valuable recommendations... that "cat in the box" piggy bank on the 15th minute is a keeper

[ceecollette]

I just wish we didn't have to all shift into high-paying fields just to make it...I'm not trying to waste anymore time/money on another degree, and my attention span is too burnt out to pursue a field I'm not 100% interested in at this point. I know it's kind of inevitable at this point but ugh I wish there was another way. 😭