in Personal Development

How to Make $1 Million in Four Years After University

There’s an amazing answer on Quora in response to a question of how to make $250k/year in income.

Anonymous writes:

2010 (90k/yr):
Graduated from uPenn and went to work for Bloomberg (80k base and 10k bonus). Decided that was not enough at all so I started creating websites on the side. One site I made was called biteads.com, barely made anything out of it but the site introduced me to affiliate marketing.

2011 (105k/yr):
Quit my job in Bloomberg and went to Amazon (85k base and 20k bonus) because I was sick of fortran (30% of bloomberg’s code base). Bought a half completed vacant wreak house for dirt cheap with the intention of finishing it up and selling it.

2012 (200k/yr):
Still at amazon (90k with 20k bonus). Still building the house. Continued making websites, I used my affiliate marketing experience in biteads.com to make another site called mutex.me. Mutex was a small hit generated (5k-8k) a month which added up to around 90k a year.

2013 (215k):
Still at amazon (100k + 25k)
Mutex still making money (90k)
Finishing up the house.
Bought another house to finish and sell.

2014 (1.18MM)
Still at Amazon (110k + 30k)
Mutex still making money (90k)
Selling house with projected profit of 250k.
Nearly completed 2nd house with projected profit of 700k.
Using that money to buy/build 3rd house. Which based on the market should make around the same as the 2nd house.

It’s a great answer because of how frank he is revealing his path to creating wealth. These are relatively clear action steps that others can take themselves to replicate it. Obviously it takes a great deal of time to learn how to actually execute on them, but anyone could theoretically learn how to. Under this light, making $250k/year, which very few people ever do, seems much more attainable.

It’s worth the note that he did this all while maintaining his full-time job, which I think is great. Our society seems to admire the “all or nothing” approach to success. We love hearing stories of college dropouts who went on to achieve great success. We revel in stories of those who laid it all on the line by quitting their full-time job or mortgaging their house to start their entrepreneurial journey.

What’s hardly ever touted, arguably the less sexy route, is holding your full-time job while working on a side hustle. I’d argue that this route, however, is probably better suited for most people. The job provides you with a source of income that you can use to reinvest elsewhere (paying for the down payment of real estate, for example). It gives you much needed time to validate your idea, test the proof of concept, and acquire early leads and pre-sales, all while maintaining your current lifestyle. This mitigates risk early on in the business, which is conceivably when risk is highest.

The problem with working full-time and managing a side-hustle is if holding a safe corporate job inhibits you from taking any further risks or trying new things outside of work. We all know people who continue working jobs they hate while doing nothing about it because they’re complacent with their steady paycheck. I experienced this through a drop in dedication on my side projects immediately after I began work (although I’d like to think I’ve picked it back up now).  All else equal, the person with the job providing a steady income is going to work less hard on his time off than the entrepreneur who has to work just to pay the bills. This increase in risk-aversion can be profoundly  negative to future success. As late billionaire Felix Dennis said, the ability to live with and embrace risks is what sets apart the financial winners and losers in the world.

So the way around this complacency is to view your full-time job as a means to an end, rather than a permanent position. This doesn’t mean you can slack off at work. Ideally you’d work as hard as you can in your job, and then work just as hard at home (I’ve found that laziness has a way of easily seeping into everything you do, so it’s best to be avoided in general). But the idea is to one day have the freedom to quit the job and work full-time on your side-hustle-turned primary business.

This approach will essentially require you to work two jobs, resulting in 60-80+ hour weeks. This is what it’ll take if you want financial freedom though. Nobody ever gets rich working forty hours a week. Nobody ever gets rich complaining they don’t have time or don’t feel like working after a long day. While everyone else heads home from their 9-5 and turns on Netflix, people like Anon spend their nights coding side projects and closing real estate deals.

It’s a great story of hustle and one worth emulating.