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Im the one you're referring to. I began working a real job in 2010 (meaning more than $8/hr). It was for PepsiCo in the warehouse making $17/hr. Id average 1,000 hours of overtime a year. Since it was more than I'd ever made before, and I was already an active investor, I began putting 33-50% of my pay into my 401k. I maxed my 401k the last 2 years of my employment there. In 2012 I rolled it in a Roth IRA after leaving employment there. This was the same year I moved out. I put 50% of my Roth into FAS and saw my investment triple in less than 18 months. I have a second job which allows me to still put 10-15k/yr into investable assets. I also fix cars for cash on the side.
I don't buy new cars, I don't buy stuff I don't need. Even if I didn't have that great windfall on FAS I'd still have a significant net worth. For me it's delayed gratification. I still go to Vegas 3x a year and I have 1-2 other vacations a year. I choose wisely and work very hard to get where I'm at currently. I never went to school so I take advantage of the skills I do have.
Then are you counting the second job and the car repair for cash as a part of your salary? Perhaps that is where the perceived mis-balance is coming from. Sounds like you played it smart but it still seems unbelievable that you can afford to live and save 140K within the period of 5 years on just that salary.
As I mentioned your numbers didn't seem to be the only numbers a little off so I am not trying to come off as a whistle blower.
it would take about 50 years to earn a million bucks but they could earn a million over their life time . don't forget inflation can shorten that time frame up by a lot as the min wage goes up .
from just the stand point of earning a million bucks we all pretty much can and will do it .
It's interesting to me how many people interpret net worth differently than the textbook definition because it "feels" better.
Like if we were measuring height, some people would say "well, I'm 5'7 if I stand upright, but that doesn't feel natural so let's just say I'm 5'5."
Others say "I'm still growing, so someday I'll be 5'10"
No. Stand up straight, measure. Feelings or the future have nothing to do with your current measurement.
Then are you counting the second job and the car repair for cash as a part of your salary? Perhaps that is where the perceived mis-balance is coming from. Sounds like you played it smart but it still seems unbelievable that you can afford to live and save 140K within the period of 5 years on just that salary.
As I mentioned your numbers didn't seem to be the only numbers a little off so I am not trying to come off as a whistle blower.
Nope. Net worth is assets less liabilities. Jobs or income is not an asset. This is such a foolish assumption it boggles my mind. I have over 140k at this moment in investable assets. I don't count my future income, my future side job income, my future dividend income, future social security income, future temporary disability income (from when I get injured in 27 years); I only count current assets which at this stage in my life are retirements accounts (401k/Roth IRA) and taxable investment accounts.
Nope. Net worth is assets less liabilities. Jobs or income is not an asset. This is such a foolish assumption it boggles my mind. I have over 140k at this moment in investable assets. I don't count my future income, my future side job income, my future dividend income, future social security income, future temporary disability income (from when I get injured in 27 years); I only count current assets which at this stage in my life are retirements accounts (401k/Roth IRA) and taxable investment accounts.
I wasn't saying if you counted those as a part of your net worth. I was asking as a part of your salary. You listed $60K salary which I wondered if that was including your side jobs.
Anybody that does count future predicted income as a part of net worth is just absurd. In that case I am a multi billionaire. ha
I wasn't saying if you counted those as a part of your net worth. I was asking as a part of your salary. You listed $60K salary which I wondered if that was including your side jobs.
Anybody that does count future predicted income as a part of net worth is just absurd. In that case I am a multi billionaire. ha
I read your question wrong half asleep. The previous few posts were related to the right way to calculate net worth and although it seems very uniform it amazes me that some make assumptions that people consider current income as net worth.
I gave an estimate on my income from my two jobs only. Car repairs are very inconsistent based on when I feel like doing a job and if I can find the jobs I want. It's not consistent enough to add it to my income and the amount I make isn't significant.
Everyone in the world is allowed on this forum so all of this or none of it is believable. There are some very young and very rich people for whatever reason so yes a 25 year old may be very rich. And some of the people are lying because there are plenty of lairs in the world. What I can't believe is that there is a dispute about what you count as asset or debt. Seriously, some of you think if you own a house free and clear it doesn't count because it's your house and you don't want to sell it?
Here's an example of why that's an asset. Person owns house free and clear, but is cash poor. They run up medical bills and the only way they find to pay them is to refinance and use the equity in their house to pay these medical bills. Or they lose a lawsuit and have to cash out their house equity to pay that debt. When don't want to becomes have to home equity sure as hell is an asset. It's like saying, well ya there's money in my bank account, but 2 thirds of it I don't want to spend so that part doesn't count.
And keep in mind people do get in trouble for fraud when they apply for government services and only write down the assets they want to include on the application. I know someone that did this. There really isn't any gray area as far as what is asset and what is debt.
Your potential tax liability doesn't change your net worth
Of course it does. $100K in my bank account spends like $100K. $100K in an IRA account has to be discounted in some way for the tax liability. It's not real until you liquidate it. You can sell your primary residence tax-free assuming it's not super-expensive house with a big gain. If you sell a vacation home, you have to start with the cost basis of the home when you bought it and then pay tax on the gain just like if you're selling stock.
If I had to liquidate everything today and come up with a suitcase of $100 bills, the amount I end up with is going to be far lower than the market value of my real estate and what my bank, retirement, and brokerage accounts say I have.
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