From $150K to $7M: One Investor’s Rapid Rise

Most people say the first $100K is the hardest to save. Since you are starting from $0, compound growth isn’t working very well for you yet, so you have to earn almost all of those dollars yourself. After you get a good nest egg started, though, then your returns earn returns and make it easier to build wealth. 

Of course, how big your nest egg grows — and how quickly it grows — also depends on your investing choices and how much money you continue to put into your accounts. One Reddit user recently shared his journey to wealth, explaining how he went from $150K invested to $7 million invested over year years. 

This was a meteoric rise most people won’t achieve, but the poster explained both how he made it happen as well as the emotional journey that he’s taken along the way. For others hoping to become multi-millionaires, looking at both can be interesting and important. 

Income is your best wealth-building tool

The first thing the Redditor’s post tells us is that growing your nest egg from $150K to $7 million over a short time is going to require a lot more than just your money compounding — although, of course, that does help. The Redditor was able to significantly increase his income, and, ultimately, the more money that you make, the easier it is going to be to invest the large sums you need to end up with millions. 

In this case, the poster saw his income increase from $180K to $3 million per year. The poster was able to increase his income so dramatically because he works remotely in a FAANG job (which stands for Facebook, Apple, Amazon, Netflix, Google). So, although he lives in a very expensive area and has a wife and two kids, he was able to save a lot due to the sheer size of his paycheck. 

Of course, not everyone can get a job as a senior engineer in a FAANG company. But anyone who is serious about getting rich over a short time — or amassing a nest egg close to $7 million — is going to need to take steps to ensure they earn a lot of money. This could be done by starting your own successful business or developing very in-demand job skills. 

Wealth-building can be an emotional roller coaster

The Redditor also shared the emotional journey he took as his wealth grew. He explained that when he first hit a new financial milestone, he was very proud and he became somewhat obsessed with his success, checking his account balance constantly and marveling at his choices. However, he also felt lonely because he didn’t have many people to tell. Since he’s against inequality and making a lot of money was never really his goal, he also felt a bit guilty about amassing so much money. 

Once he has hit each milestone, though, he eventually starts to realize that his new level of wealth still has limitations, and he starts to think about how he could earn more, such as making different investments or career choices like starting his own company. At the same time, he begins to question what he’s doing with his life, why he’s still working at all, and why he isn’t just enjoying his money.

After he gets used to his situation, he settles down and starts spending money on things that improve his life, like au pairs and hired help to eliminate life’s inconveniences. This is the stage where he says money buys happiness, but as he hits each new milestone, the cycle starts over.

This is an interesting insight into what it feels like to get very rich, and it’s likely very common because many people who make so much money are ambitious and constantly striving to build more success. Plus, as you grow wealthier, you’re often exposed to people who have even more, and your spending begins to expand as you see what money can do. So, you may always feel like you don’t have enough.

Getting trapped in this cycle can mean your money doesn’t make you as happy as it should, though — and you don’t want that to happen. The best way to avoid it is to set clear financial goals for what you hope to achieve and make a life plan for when you hit those goals, such as retiring at a certain income level.

A financial advisor can help you to develop this type of strategy so you can keep focused on the big picture and avoid the risk of becoming so consumed with wealth building that you lose site of the purpose of getting rich in the first place — having the funds to do what you truly want with your life.

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