How to Get Rich in Your 20s: Understanding Value & Leverage

I never asked my parents for money after I turned 18. I started making my own cash, spent like a spendthrift, went broke, started a company, and ended up with more money than I ever thought possible.

Why? Because I understood a career “secret” that I’m about to share with you. I believe every self-made person knows this well.

This is going to be a fairly deep read, so if you’re not patient enough to understand or implement what’s written, you’re not gonna make it.

Okay, so to understand how to get rich, we need to grasp the concepts of Value and Leverage.

Understanding Value

At its core, making money is about providing value. The more value you offer to others, the more wealth you can accumulate. But here’s the thing—not all value is equal.

When I first started, I thought working hard was the key. I took on jobs, hustled day and night doing freelancing. But no matter how hard I worked, my income had a ceiling or I was too tired even to use them. I was trading time for money, and there’s only so many hours in a day.

That’s when it hit me: to break through that ceiling, I needed leverage.

The Power of Leverage

Leverage is like a force multiplier for your efforts. It’s what allows you to achieve outsized results compared to the input you put in. There are four main types of leverage:

  1. Time
  2. Money
  3. Skill
  4. Distribution

But in today’s rapidly changing world, there’s another form of leverage reshaping industries: Technology, especially Artificial Intelligence (AI).

Let’s dive into each one.

1. Time – The Ultimate Leverage

Time is the most democratic resource—we all get the same 24 hours. But how you use that time makes all the difference.

In my early days, I wasted time on low-impact activities. It wasn’t until I started prioritizing tasks that generated the most value that things changed. I began automating routines, delegating tasks, and focusing on activities that had the highest return on investment.

Tip: Audit your daily activities. Cut out the fluff. Focus on what moves the needle.

2. Money – Making Money Work for You

Once you have some capital, money becomes a powerful leverage tool. It’s easier to make money when you already have some.

I remember the first time I invested a small sum into a stock. Watching that money grow without additional effort on my part was a game-changer. Investing wisely can amplify your wealth exponentially. But now that you’re young spend it on experiance, because every single $ you spend on yourself will compound over the years.

Tip: Don’t just save money—invest it. Let your money generate more money.

3. Skill – Your First Form of Leverage

Skills are your gateway to providing value. The right skill set can set you apart and open doors you didn’t know existed.

But here’s the twist: AI is new, and we’re at a stage where we’re seeing skills get replaced one by one. It might sound alarming, but there’s a silver lining. As the status quo is restructuring, you’re getting a chance to make it big during this period.

Most people running companies are in their 40s. It’s not as easy for them to understand and use technology the way you can. Just keeping up with what’s going on gives you more leverage than 95% of people your age.

Tip: Leverage AI and emerging tech. By staying ahead, you position yourself as invaluable in a world that’s rapidly evolving.

4. Distribution – The New Age Leverage

In the past, distribution channels were controlled by gatekeepers. Today, the internet has leveled the playing field.

I’m starting to share my knowledge online, building an audience, creating networks. This not only expanded my reach but also multiplied the impact of my efforts. You see, anything you create once will be there in the internet forever, so essentially creating more will give you edge over those who don’t create anything.

Tip: Utilize social media, youtube, blogs, podcasts—any platform that allows you to reach more people with less effort.

Invest in Experiences

While you’re leveraging these tools to build wealth, don’t forget to invest in experiences. You’ve got one life. Experiences enrich you in ways money can’t quantify. They broaden your perspective, fuel creativity, and bring joy.

Tip: Spend on experiences that contribute to your growth and happiness. They’re priceless and irreplaceable.

Connecting the Dots

Each form of leverage plays a role at different stages of your journey.

Navigating these leverages intelligently is what propels you toward wealth.

Closing Thoughts

But here’s something I’ve come to realize: being “rich” isn’t what you truly try to be. It’s a label people mark you with. No one is inherently rich. After a while, I understood that it’s pointless—we’re all living in someone else’s story. The more people believe in the story, the more real it gets.

Rich doesn’t mean having millions of dollars. Rich means being able to experience something without constraint.

So, invest in yourself, embark on the journey, and make the most out of the opportunities in front of you. You’re in a unique position to seize chances that others might overlook. Technology is your ally, and time is on your side.

In the end, wealth isn’t just about money; it’s about freedom, experiences, and living life on your own terms. Don’t chase riches for the sake of a label. Live fully, learn continuously, and leverage wisely.

Because that’s what truly makes you rich.