The procedure for becoming wealthy is simpler than you think. This time, I will explain the process in 5 steps.
STEP 1: Understand the Structure
First, as a major premise, money is made of "credit." When a bank lends 3 million yen to someone, they don't take cash out of a vault; they simply write the number "3,000,000" in a passbook. With just that, 3 million yen is born into the world.
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Quoted from Sanctuary Publishing
Based on this mechanism, we can see that people who own assets can draw more credit from banks and move money under more favorable conditions. Conversely, those who have nothing cannot enter this circle.
In fact, while interest rates for general consumer loans are around 15% per year, those who can provide assets as collateral can borrow at rates in the 1% range. The reason for a difference of more than 10 times in conditions for the same "borrowing money" is this difference in the "amount of credit."
That is why the first thing you should do is not investing or saving, but creating "seed money" to enter this circle.
STEP 2: Create Seed Money (Choose How to Earn)
For those in their 20s and 30s, there aren't that many patterns. It mostly boils down to these five:
① Hit it big with YouTube or content
② Start a school or consulting business
③ Create a specialized education business
④ Hit it big with trading
⑤ Earn through SNS affiliate marketing
Looking at people around me in their 20s and 30s who actually became millionaires, they mostly fit into one of these five patterns.
In the case of ①, I know an acquaintance who was 24 and operating multiple channels without showing their face. After outsourcing scriptwriting and editing, they created a state where ad revenue accumulated even while they slept, and their assets exceeded 100 million yen in about three years.
In the case of ②, I know an acquaintance who started selling their expertise as a consultant at age 28. Starting with consultations for a few tens of thousands of yen per case, they raised their unit price as they accumulated a track record, and their annual turnover reached tens of millions of yen in about two years.
In the case of ③, I know an acquaintance who started an online school specialized in a specific qualification exam at age 26. By narrowing down the theme, the influx from searches and referrals stabilized, and I heard their annual turnover exceeded 100 million yen as the number of students grew.
For ④, while I've seen people earn tens of millions of yen in a short period in their 20s, I've also seen people lose the same amount in a short period due to low reproducibility. If you hit it, it's fast, but it's not a means that can be targeted and reproduced, so I don't recommend it as a way to make your first seed money.
Example ⑤ is the most familiar, including myself. This is the pattern of starting X (Twitter) operations in your early 20s, accumulating affiliate results as followers grow, and finishing creating seed money while still in your 20s. Since no inventory or product development is required, the necessary initial investment is the lowest, and the cost of retrying if you fail is low, I feel this is the most reproducible method for those in their 20s and 30s.
Working 8 hours x 5 days as a company employee rarely creates the seeds of assets, so the realistic order is to start a business or side hustle to earn intensively and then move that into investments. Whichever method you choose, the common goal is to escape from the "hourly wage employed by someone." Hourly wages have a ceiling, but there is no ceiling for a way of working where you can control the unit price and reproducibility yourself.
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STEP 3: Exhaust Tax-Free Systems
Once you have seed money, first fill the tax-free slots provided by the government. The new NISA investment slot has a higher priority than any other investment method because no tax is charged on profits. It is inefficient to touch other investments while leaving unfilled tax-free slots.
For living gifts, there is also a slot where no tax is charged up to 1.1 million yen per year. The amount of money left in hand eventually differs by millions of yen between families who know this and use it systematically and families who do nothing without knowing. There is no reason not to use systems with income deductions like iDeCo.
Quoted from Asahi Shimbun
The common point of these systems is that the results change just by "whether you know them or not." Rather than investment sense or market observation, the administrative task of exhausting the systems without omission provides overwhelmingly larger returns in the initial stages.
STEP 4: Decide Asset Allocation and Keep Contributing Mechanically
There is no absolute correct answer for allocation, but the basic idea is to separate "defensive assets" and "offensive assets." An orthodox allocation is to use index investing that follows the market average as the foundation, combine it with high-dividend ETFs that generate cash flow through dividends, and allocate only a portion of the remainder to assets aimed at capital gains by taking risks.
The important thing is not the allocation ratio itself, but "whether you continued to put money in mechanically every month." Continuing steadily without changing the amount you put in, whether the market is good or bad, maximizes the effect of compound interest.
Quoted from Financial Planning
Dividing the number 72 by the annual interest rate gives the approximate number of years it takes for assets to double. At 7% annual interest, it doubles in about 10 years; at 10% annual interest, it doubles in about 7 years. Keeping this number in mind helps you understand how large the opportunity cost of quitting halfway is.
STEP 5: Increase Means as Asset Scale Grows
Once a certain scale is reached, the wealthy increase their means further.
① Borrow at low interest rates using held assets as collateral, and use those funds to buy more assets.
② Create an asset management company to reduce the tax burden while making part of living expenses an expense.
③ Deposit funds in major securities firms to aim for priority allocation of IPOs.
④ Diversify funds into overseas investment destinations without relying only on the yen.
① is the image of practicing "borrowing money with credit" mentioned in STEP 1 at a larger scale. ② is a means of utilizing the difference in how taxes are applied between individuals and corporations, allowing part of expenditures close to daily life to be treated as expenses. ③ is a battle of effort to get information rather than financial power, and ④ is diversification to avoid the risk of concentrating on yen assets.
However, these are means that can only be used after having the initial seed money and a track record of continuing to put money in mechanically. Even if you skip STEPs 2 to 4 and start from STEP 5, it won't function because there are no assets to put up as collateral. Following the order is the shortest shortcut, even if it seems like a detour.
Summary
The procedure for becoming wealthy is:
① Understand the structure
② Create seed money
③ Exhaust tax-free slots
④ Decide allocation and continue mechanically
⑤ Increase means as scale grows
None of the steps require special talent. However, they won't function if you skip the order.
If you skip STEP 4 and try to imitate only the collateral loans of STEP 5, it's out of the question if you have no assets to use as collateral. If you skip STEP 2 and try to fill only the tax-free slots of STEP 3, it's meaningless if you have no seed money to fill them in the first place.
As long as you continue to work as a company employee, it's difficult to reach STEP 2 and beyond, so I recommend creating income other than labor, even if it's just a little, starting today. Just by knowing the procedure, your assets 5 or 10 years from now will change significantly.
What I've written here is just a broad framework. Which means you should actually choose and how to allocate seed money will change depending on your current situation.
I also talk about specific stories that I can't write on X, such as what I actually started and how in my 20s and 30s, on my official LINE.
