Here’s What I Wish I Knew in My 30s

At 62, Josh C. is preparing to retire with a net worth exceeding $4.2 million. It’s a fortune built not through inheritance or lottery winnings, but through disciplined real estate investing and smart financial habits developed over three decades. As a CPA who spent his career helping other people manage their finances, Josh turned his steady accounting salary into a real estate empire that now generates enough passive income to support his retirement lifestyle.

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“I never made six figures as an accountant until my late 40s,” Josh shared. “But I realized early on that it’s not about how much you make — it’s about how much you keep and what you do with what you keep.”

His journey from middle-class professional to multimillionaire offers valuable lessons for anyone in their 30s looking to build long-term wealth. Here’s what Josh wishes he had known (or done differently) during his wealth-building years.

Josh’s wealth-building strategy started with a principle that sounds simple but proves challenging for many: spending significantly less than he earned. While his accounting peers were upgrading their cars and homes with each promotion, Josh maintained his modest lifestyle even as his income grew.

“I drove the same Honda Civic for 12 years,” Josh said. “My colleagues thought I was cheap (which I am!), but I was investing the difference. That $400 monthly car payment they had? I was putting that into my real estate fund every single month.”

This approach allowed Josh to save 40% to 50% of his income throughout his 30s and 40s — far above the typical 10% to 20% savings rate most financial advisors recommend. The key, he explains, was treating his future self as his most important client.

“As an accountant, I helped business owners understand that every dollar they spent was a dollar they couldn’t invest back into their business,” Josh shared. “I applied the same logic to my personal finances. My ‘business’ was building wealth for retirement.”

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While Josh maximized his 401(k) contributions and maintained an emergency fund, real estate became his primary wealth-building vehicle. He purchased his first rental property in 2001 — a modest duplex in a working-class neighborhood — using money he’d saved from his accounting salary.

“I wasn’t looking for the fanciest properties or the highest appreciation rates,” Josh said. “I wanted solid, cash-flowing properties in stable neighborhoods where working families wanted to live.”

His strategy focused on what he calls the “boring but profitable” approach:

• Target working-class neighborhoods with good schools and employment opportunities

• Buy properties that cash flow from day onemeaning rental income exceeded all expenses including mortgage, taxes, insurance and maintenance

• Use conservative financingtypically putting down 20% to 25% to ensure positive cash flow

• Reinvest profits into additional properties rather than lifestyle upgrades

Over 25 years, Josh accumulated 14 rental properties across three markets. Today, these properties generate approximately $8,200 per month in net rental income — more than enough to cover his retirement expenses.

Josh credits his success to understanding the power of compound growth — not just in traditional investments, but in real estate portfolios.

“Every property I bought made it easier to buy the next one,” Josh explained. “The rental income helped me save for the next down payment faster. The equity buildup gave me more borrowing power. And the tax benefits from depreciation kept more money in my pocket to reinvest.”

By his 40s, Josh was acquiring one to two properties annually, using a combination of saved rental income, appreciation from existing properties and strategic refinancing. He estimates that reinvesting his profits rather than upgrading his lifestyle accelerated his wealth building by at least 15 years.

Looking back, Josh identifies several missteps that cost him time and money:

Waiting too long to start: “I spent two years ‘researching’ and ‘planning’ before buying my first property. I wish I’d started with a smaller duplex even sooner. Those two years of paralysis analysis probably cost me $500,000 in today’s wealth.”

Being too conservative with leverage: “In my early years, I was terrified of debt. I put down 30% to 40% on properties when 20% would have been fine. That extra capital could have gone toward additional properties.”

Not systemizing property management early: “I tried to manage everything myself for the first few years. The time I spent dealing with tenant calls and maintenance issues could have been better spent finding my next deal.”

Underestimating the importance of location: “Two of my early properties were in neighborhoods that were going downhill fast. They never appreciated much and had higher vacancy rates. I learned that paying a bit more for a better location usually pays off.”

Q: What’s the most important financial habit to develop in your 30s?

“Automate your savings and investments before you automate your lifestyle,” Josh said. “Set up automatic transfers to your investment accounts the day you get paid, not at the end of the month when there might not be anything left. Then, just plan everything extra around that. Trust me, it’s a game changer.”

Q: How much should someone have saved before investing in real estate?

“This is hard because it’s not one size fits all, obviously, and people should talk to a professional who knows their income and lifestyle, but I think you should have $50,000 to $75,000 saved before buying your first rental property,” Josh shared. “That covers your down payment, closing costs, immediate repairs and leaves you with reserves for unexpected expenses. Don’t go into real estate undercapitalized.”

Q: What’s the biggest mistake people make when building wealth?

“They focus on the wrong metrics,” Josh said. “They worry about beating the stock market or finding the ‘perfect’ investment instead of focusing on consistency and time. I never had a single year where my real estate returned 30%, but over 25 years, my average annual return was about 12% to 14% when you factor in cash flow, appreciation and tax benefits.”

Q: How do you avoid lifestyle inflation as your income grows?

“I created what I called ‘lifestyle boundaries,’” Josh explained. “To be honest, my husband hated it! He loves to spend, spend, spend. But I decided early on what constituted a comfortable but not extravagant lifestyle, and I stuck to those boundaries even as my income doubled and tripled. Every raise or bonus went straight to investments.”

Q: What role did traditional retirement accounts play in your strategy?

“They were the foundation, not the whole strategy,” Josh said. “I maxed out my 401(k) every year (with company matching, of course) and had a Roth IRA. That gave me about $1.2 million in traditional retirement accounts. But the real estate provided the additional $3 million and, more importantly, monthly cash flow I can access before age 65.”

Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.

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This article originally appeared on GOBankingRates.com: I’m Retiring a Multimillionaire: Here’s What I Wish I Knew in My 30s