Is the ‘HK$1 million by 30’ goal still relevant?

Charlie Munger, who was the longtime friend and business partner of Warren Buffett, once said during a shareholder meeting in the 1990s: 

“I don't care what you have to do— if it means walking everywhere and not eating anything that wasn't purchased with a coupon— even if you have a job that's beneath you. Get to $100,000. After that, you can ease off the gas a little bit.”

In this quote, we find the timeless advice of delaying gratification and allowing compounding to accelerate wealth building. But considering that it was shared more than two decades ago, does the headline number – what Munger referred to as US$100,000 – still stand today?

A sum of US$100,000 in the 1990s roughly translates to about US$200,000 today. However, some people have argued that the numerical value does not matter as much as the psychological boost of seeing an added sixth digit to their wealth. 

In Hong Kong, a more frequently cited number is perhaps whether individuals can save HK$1 million (around US$127,390) by their thirties. Before delving into the strategies to achieve this goal, it is important to pause and consider the reasons behind aiming for $1 million and why it is targeted by the age of 30. 

Why is HK$1m by 30 your success metric?

For simplicity, let's consider this HK$1 million as unspent money, which could be held in cash and investments while excluding home purchase. 

People often ask how much they should have by 30 years old – HK$1 million by 30 is certainly possible, even for those starting with a typical graduate salary in Hong Kong. The average monthly salary for fresh graduates was HK$19,806 in 2024, which would mean that a 22-year-old fresh graduate needs to save slightly over 50% of his monthly salary to achieve this goal. 

However, possible doesn’t mean that it is necessarily right for you. Goals like this can be a helpful kickstarter to your financial journey by orienting you to a point of reference, but they don’t account for the different starting points and needs of individuals. 

Goals should not only be sensible, but also meaningful to you. Mindless chasing of such goals can sometimes lead to unhealthy sacrifices – neglecting your health or missing out on invaluable life experiences with your loved ones. True wealth encompasses well-being, not just a bank balance. 

Before you turn to others to find out how much you should have by 30, or whether you can save HK$1m by 30, you should be clear about why you want to achieve it. Is it a number you've seen others chase, or does it represent something deeply personal – a launchpad for your dreams, a safety net, or a stepping stone towards financial independence? Understanding your why is the anchor to keep you grounded, and the fuel to get you to your goal. 

Read more: What is goal-based investing and why does it matter?

How to achieve HK$1m by 30: Save or invest?

When we think about financial goals, most people intuitively turn to saving because that’s what our parents have taught us. Saving is a risk-free way to achieve $1m, but can prove to be challenging, especially if you don’t have a substantial monthly income. 

On the other hand, investing involves risk, which is not inherently bad. See it as an admission price to give your money its best chance to grow. Investing is essentially placing your trust in the markets to use your money to generate even more money for you.

Read more: What are equities and why should you invest in them?

We calculated how much you will need to achieve $1m by 30 at different starting points, purely by saving versus purely by investing. 

How much do you need to save versus invest each month to have HK$1m by 30? 

As the table shows, investing significantly reduces the monthly financial contributions required to reach your $1m goal, attributed not just to the higher potential returns, but also the compounding effect of reinvesting the returns that exponentially grows your wealth. 

Remember, volatility is the price of admission for higher returns. Uncertainty and volatility are natural features of the markets that are frequently misunderstood, stemmed out of fear of the unknown and the uncontrollable. What you should know is that short-term market fluctuations are usually a reflection of human emotions rather than the actual fundamentals of economic health.

“We're emphasising the knowable by predicting how certain people and companies will swim against the current. We're not predicting the fluctuation in the current.”

– Charlie Munger

Investing doesn’t – and shouldn’t – mean throwing your money into the wind and hoping for the best. It is taking control of what you can control – taking educated and intentional steps to ensure the risks you take are appropriately rewarded. 

This means constructing a globally diversified portfolio that is adjusted to your risk tolerance, time horizon and financial goals, all of which contribute to the financial and emotional resilience you will need to ride out the volatility of markets over the long term. 

You may wish to explore our customisable Endowus Flagship Portfolios, which invest in Best-in-Class funds curated by the Endowus Investment Office, and managed by global fund management companies with proven expertise and track records. 

For those who have a shorter time horizon, you may consider our cash management solutions, Endowus CashUp Portfolios. To design your own investment plan, try out our Investment Plan calculator.

Tips to succeed at your HK$1m by 30 goal

Start with a plan

Wealth building requires discipline, as plenty of distractions lie along the path to your goal. A realistic plan with achievable milestones will keep you accountable and anchored. Based on the number of years you have to reach 1m, work backwards to find out how much you need to save and invest. 

Put your plan to HK$1m on autopilot

Set yourself up for success by automating habits that cultivate financial discipline. Pay yourself first, before you have a chance to spend it. Set up automated transfers from your monthly income to your savings and investment accounts each month. 

This approach to investing is called dollar-cost averaging, which takes away the stress of trying to time the market, and cultivates a disciplined approach towards investing regardless of market conditions. 

Maintain a healthy relationship with money

Munger saw wealth accumulation not as an end, but as a means to achieve freedom. What does money mean to you, alongside other priorities? In the pursuit of wealth, don’t neglect what’s most important to you and ironically sacrifice what money is supposed to get you. 

Establishing a healthy relationship with money helps you stick to your long-term plan, especially when faced with temptations and setbacks. The journey itself sets the tone for the outcome.

What comes after HK$1m at 30?

Reaching HK$1 million by 30 is a significant achievement. What comes after that are other financial goals that you will continue to pursue, such as purchasing a new home, planning for kids or retirement planning. 

Ideally, as you plan to achieve your first $1m, also consider how this pool of money will continue to grow within the separate buckets for the goals you have beyond 30. 

For example, someone who wants to use $1m as a springboard for their subsequent goals may bucket it as such: 

Bucketing your goals by time horizon, not just by the numerical value, helps you to understand the amount of risk you can take with the respective sums of money. 

Read more: How to invest your first 100k

Your financial journey, your terms

Saving HK$1 million by 30 gives you a significant head start, but remember, it's just one possible milestone in your unique financial journey. Define what financial success means to you, build healthy habits, and leverage the power of investing to achieve it.

At Endowus, we empower our clients with essential knowledge and tools to invest wisely for their goals. 

Whether your goal is HK$1 million by 30, or to have a personalised plan for long-term wealth, feel free to reach out to our team of SFC-licensed client advisors for a 1:1 consultation. 

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