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Why not count net worth? As for your final point, who claimed to be a millionaire at 30? They just saved 100k.
Because net worth of most folks took a huge hit in 2007/08. Others took the hit in 1999/2001. Some of them recognize it, but some are in denial.
I just chose to count my bank deposit, that's all. When you are young you tend to believe that your net worth will always increase; I know I did. But it didn't. Gold crashed in 1980, stock market in '87, dot com crash in '99, real estate in '07. Everyone thinks that they are not going to get caught, and I hope you never do, but it's hard to avoid all life's pitfalls and misfortunes.
Happened to my sister. She was busy buying a house in California for 350K. Small house, so I asked her what she would do if the real estate values suddenly dropped. She never hesitated.
"I'd flip it."
She didn't, though. Rode that sucker all the way down to 150K. Just kept putting off selling.
It happens.
We avoided the last real estate crash by owning property free and clear. We have owned some of our properties for 35 years! The people we know who leveraged and then reinvested what they had made all got wiped out. And we know a couple who are still in denial. They think the market will come back. We don't think so.
I don't count 100K until there are 6+ digits in my bank account. In theory I could have been there earlier but my bank account didn't reflect that until the house sale since my equity was tied up in that. I also consider that since it was a net amount (after all sales expenses, mortgage paid off/realtor paid etc.) that it was a realistic point in time number (time being my age).
So to make you feel better, it may have been age 27 when I had a total net worth of 100K+, sell everything I owned including house/cars/retirement accounts/cash value life insurance/baseball cards/ precious metals/coin collection/ star wars figurines/record collection etc.
lol one of those yes the type that like a straight answer.I see ur the type that just assumes and can't tell the difference between a straight answer and assumption
Your assuming too!
My lord. The question is what age did you save 100k. The OPer said it could even be in your home.
The said poster was bragging ( I agree with you there) and made over 100k selling his/her home when they were 29.
It is that simple. I don't know how to explain it any easier. Some folks said they saved 100k through mutual funds and whatnot slowly rising....well this poster made it while selling their home.
Because net worth of most folks took a huge hit in 2007/08. Others took the hit in 1999/2001. Some of them recognize it, but some are in denial.
I just chose to count my bank deposit, that's all. When you are young you tend to believe that your net worth will always increase; I know I did. But it didn't. Gold crashed in 1980, stock market in '87, dot com crash in '99, real estate in '07. Everyone thinks that they are not going to get caught, and I hope you never do, but it's hard to avoid all life's pitfalls and misfortunes.
Happened to my sister. She was busy buying a house in California for 350K. Small house, so I asked her what she would do if the real estate values suddenly dropped. She never hesitated.
"I'd flip it."
She didn't, though. Rode that sucker all the way down to 150K. Just kept putting off selling.
It happens.
We avoided the last real estate crash by owning property free and clear. We have owned some of our properties for 35 years! The people we know who leveraged and then reinvested what they had made all got wiped out. And we know a couple who are still in denial. They think the market will come back. We don't think so.
I see what you're saying, but even for those crashes, there is always new life. I got caught in both the big stock market crashes, but stayed the course through each. Didn't panic. In fact, I used them as buying opportunities. Now I'm worth more than ever. As for real estate, yes some markets haven't recovered. Others have. Still others were never really affected at all. Location, location, location, as they say. I agree with you about owning property free and clear. Leveraging is far too risky for my comfort level.
My lord. The question is what age did you save 100k. The OPer said it could even be in your home.
The said poster was bragging ( I agree with you there) and made over 100k selling his/her home when they were 29.
It is that simple. I don't know how to explain it any easier. Some folks said they saved 100k through mutual funds and whatnot slowly rising....well this poster made it while selling their home.
Are you that daft?
Didn't mean it to sound like bragging. It was a great house in an even greater zip code (33432), may have seen 200K+ profit plus rental income had I held it 18-24 more months but the house was perfect, didn't know market was going to explode and I didn't want to risk tenants destroying the place. I had also moved out of the area so it wouldn't have been super convenient to rent from afar.
401K wealth is like home equity to me.....it can be there and then gone without ever having the chance to spend it if the market turns.....not a bad outlook because the IRS sees it the same way (un-taxable until you tap it/cash in). 6 digits in a check book is spendable money and most likely won't evaporate overnight. I don't count money I can't see, keeps me motivated to work more. I just had a dormant retirement account jump $9600 in the last quarter (I saw the statement on the counter, it notes the +/- over last quarter). Do I feel $9600 better off, nope still have the same $10 in my wallet I did yesterday and the bills on my desk are exactly what they were on Friday so I still need to go to work tomorrow!
Plenty of 30K millionaires out there.....make 30K and live like they have millions! I would rather think I have 30K while earning millions......(hypothetical, no 7 digit paydays yet)
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