To understand this verse, you have to sort through the whole passage (Matthew 19:16-30) and understand the conversation. Also, it helps to understand this conversation in the context of Jesus’s mission in the book of Matthew and Matthew’s presentation of Jesus as the redeemer, rescuer, priest king that the OT is about.
Pop theology and our embedded religious concepts get in the way. The Bible is not about heaven and hell. It is about new creation. It is about heaven and earth. The storyline is that God created humans and gave them a vocation to partner with him to cultivate the good world God created. And the partnership was to begin at a place where heaven and earth met. The end of the story is a new heavens and earth where the rebellion has been defeated, the results of the rebellion are healed, and the original purpose of creation commences. Humans and God live and work together from a place where heaven and earth meet. When Jesus announces that the “Kingdom of God is at hand” he is announcing that the promised project is moving forward. And the conversation with the rich young man is about Jesus’s invitation to participate in the kingdom that Jesus is inaugurating and that the Hebrew Bible had promised.
The phrases used in the passage “have eternal life”, “enter life”, “if you would be perfect”, “you will have treasures in heaven”, “enter the kingdom of heaven”, “enter the kingdom of God” need to be understood in the context of the story of the Bible rather than in our culturally embedded religious concepts. Jesus is inviting people to come participate, to be part of His project, to participate in his kingdom. The young man considers and then declines. There are other stories about folks considering and declining.
A few notes. Jesus engages with the guy based on his initial questions about “what must I do”. The conversation exposes the one thing that the guy loves too much to leave behind. When the disciples respond to Jesus’s comment about how hard it is for wealthy folks to leave behind riches Jesus says, “With man this is impossible, but with God all things are possible”.
I don’t see the passage, in context, without the hinderance of our cultural baggage, saying anything about hell or concluding that “rich” folks can’t participate in Jesus’s kingdom. It says something more like, “love something more than Jesus and it will be hard for you to take up your cross and follow him”, but then, “as hard as it is to forsake all, with God, all things are possible.”
A last note about “hell”. Our cultural understanding hinders us here, as well. The OT talks about the grave. The NT talks about the second death, where the rebellious spiritual beings, death and the grave are destroyed in a “lake of fire” (imagery for sure!) at the end of the age as the new heavens and earth are introduced and the Kingdom is consummated.
That’s my take, which of course, I didn’t come by on my own. And, as at other times, I know I write these things in the presence of Bible scholars here on the forum, whose coaching or comments I welcome.