Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Sometime in our 40s. Two major factors that influence wealth accumulation include:
level of income (hard to save with a low income)
how much you spend
Education in the right field is the key for many people. Marrying the 'right' person can also play an important role, both from an income as well as expenditure perspective.
It would seem obvious, but the biggest factor that influences wealth accumulation to me is ... how much you want it.
For me, I've never been somebody who really cares about $. Even at middle age, I'd rather take a paycut to do an easier or more enjoyable job. I also doubt I'll live past 70 and have no chidlren, so I don't see the point of accumulating a large amount of wealth. I do have a reasonable amount of savings regardless.
My girlfriend has a friend who is still in her 20s and her sole focus is wealth accumulation. All of her Facebook posts advertise growing her business. She married an older guy and during their spare time, they look for houses to flip or other money making ventures.
In 8 or so years in this country, she's probably accumulated more wealth than the vast majority of people who have more education and advantages than her.
So, yea, if you want it, you can spend your weekend accumulating wealth, not necessarily working at McDonalds, but ... there are ways.
Hit the first $1M at 44 now 20 years later just over $4M. Two corporate buyouts, small inheritance, lump sum on a pension, max out on 401K and IRA's, living below my means, same house for 30 years, used cars, hard work and a little bit of luck.
Now for the hard part how to tax efficiently spend it, give it away to charities and leave it to the kids.
Hit the first $1M at 44 now 20 years later just over $4M. Two corporate buyouts, small inheritance, lump sum on a pension, max out on 401K and IRA's, living below my means, same house for 30 years, used cars, hard work and a little bit of luck.
Now for the hard part how to tax efficiently spend it, give it away to charities and leave it to the kids.
The subsequent millions do seem to come much quicker..
If I live frugally, in 2 years. But I'm a spender especially for my kid's hobbies and foreign trips 2x a year, so maybe in 10 years. I haven't really thought of it as a goal.
In terms of net worth, it's a different thing though because I have 2 homes and a classic Corvette.
Education in the right field is the key for many people. Marrying the 'right' person can also play an important role, both from an income as well as expenditure perspective.
That was key for us. High education/income marrying the same.
That was key for us. High education/income marrying the same.
In my case I have never married so no dual income, this makes it a bit tougher to accumulate wealth but at the same time I have never divorced which I have seen totally decimates a person's wealth. I also don't have kids which is a big financial responsibility so I guess that helps.
A friend of mine is a six figure earner but I can see his stress, two kids, child support, alimony to the ex and now he is courting this woman who not only makes very little income but she constantly asks him for money - rent money, expects to be wined and dined, asks him to take her 3 kids out (loser biological father is nowhere in the picture and has long since absconded from his responsibilities)... my point is that I think choice of romantic partner can definitely make or break financial goals. But it can also be challenging to find a partner who is financial savvy these days.
In my case I have never married so no dual income, this makes it a bit tougher to accumulate wealth but at the same time I have never divorced which I have seen totally decimates a person's wealth. I also don't have kids which is a big financial responsibility so I guess that helps.
A friend of mine is a six figure earner but I can see his stress, two kids, child support, alimony to the ex and now he is courting this woman who not only makes very little income but she constantly asks him for money - rent money, expects to be wined and dined, asks him to take her 3 kids out (loser biological father is nowhere in the picture and has long since absconded from his responsibilities)... my point is that I think choice of romantic partner can definitely make or break financial goals. But it can also be challenging to find a partner who is financial savvy these days.
I live in an area with some of the lowest incomes in the country. So even though hubby and I save nearly 50% of our gross income, we'll likely never reach $1M. On the other hand, our average annual expenses right now are about $22k, and that includes our mortgage, which will be paid off before we are 50, cutting our expenses to around $13k (in today's dollars). So we likely won't NEED $1M, even after factoring in inflation. Medical is the only big question mark...other than that, we'd be fine on just our SS, even if that gets cut to 75%. We're still saving as much as we can, but if we ever reach $700k, I'd be quite surprised. Right now, we're early 40s and have about $200k-ish, but no other debt besides the mortgage.
If I do end up inheriting at some point, that is a whole different conversation, as my parents have been in real estate most of their lives, and have quite a few rental properties. But they are only in their 60s, so they may use all of that up (which would be fine if they do, it's their money).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
