I'm a sixteen year old with big ambitions.

Since it sounds like you won't be inheriting any money, and assuming we don't have any bouts of extremely high inflation over the next 14 years, there are few routes that you can take to accumulate a net worth of $1 million by the time you're 30.

If you're going the 'I actually have to earn it myself' route, there are two ways to increase your net worth: 1) saved income from a job, and 2) capital gains on assets you own.

If you're trying to maximize net worth by 30, and you're primarily going the 'saved income' route, you want to optimize for a few things simultaneously: * earn as high of an income as possible, and as quickly as possible * minimize any amount you have to borrow (preferably none) at any point * keep your living costs as low as possible

From a math perspective, starting with $1000, and having 14 years, assuming a 6% return, you would need to save $3800/month the entire time to hit $1 million. As a high school student, that's unlikely though, so let's talk about the career route.

Becoming a surgeon is a terrible route for this, as you're probably just starting your career (after undergrad, med school, residencies, fellowships, etc.) when you hit 30, and very likely have $100s of thousands of dollars of debt. If you can't go to medical school for free, you're unlikely to have a positive net worth as a surgeon at age 30, let alone be worth a million dollars.

I'm pretty close to an optimal case for going the saved income route. I started working directly out of undergrad at 22 making about 100k/yr, I've been employed the entire time with a steady series of raises, and as I approach 30, my income has roughly doubled from where I started. I also have mostly experienced a steadily rising stock market. If I had tried to minimize my expenses this whole time, and invested aggressively, I might have hit $1 million, but that's basically with everything going perfectly right. One stock-market crash, layoff, etc. and I'm not coming anywhere close to that. Going into finance might get you a higher salary, but you'll have much higher odds of being layed off, your income would be crazy-volatile, and honestly, 6 years from now (or even today), the opportunity to do that might have mostly dried up.

In terms of having slightly-higher-than-pure-gambling odds of making it happen, going the 'capital gains' route and working at a tech startup is probably actually you're best bet. This is pretty much purely making a bet on getting an equity stake in a company that gets acquired by facebook/google/whoever later, and is at least theoretically possible. You could even do this without getting a college degree if you are super self-motivated and extremely good at computer programming. The more traditional route would be to go to a university like stanford, study CS, and network like mad. From the time you would graduate to the time you turn 30, you might have enough time for 2-4 startup efforts, with each one giving you a shot at cashing out. Only slightly better odds than just gambling, but it's probably the best odds if you could start today. You might graduate in the middle of a huge tech recession though, in which case the money dries up and this plan would be useless.

Going any other route that people frequently advocate (buying houses and such), isn't going to get you anywhere close, as your return rate needs to be absurdly high given your short horizon. You can always take your $1000 to las vegas, and keep going all-in until you're a millionaire (or have lost it all).

Now, can you be worth a few hundred thousand dollars by the time you're 30 from just saving and having a pretty good job? Sure, but not $1 million. Get married to someone with a similar earning potential (and no debt), don't have any kids, and live like paupers, and your combined net worth might get there, but I don't know if that's cheating by your definition.

tl;dr - 1) Go to Stanford and study CS, join a startup, hope the universe likes you. 2) Get a great job, marry someone else with a great job, save everything and hope the universe likes you. 3) Go to las vegas, and hope the universe likes you.

/r/personalfinance Thread