To all +100k guys out there: Share your success path (San Jose: apartments, rent)
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lol. i don't think you'll find too many multi-millionaires hanging out in this forum.
Well, I know there are people working for big companies around here and some of them should be successful and some not that much but sure all of them probably know what they did right or wrong. BTW you never know if your neighbor is a millionaire.
Well, I know there are people working for big companies around here and some of them should be successful and some not that much but sure all of them probably know what they did right or wrong. BTW you never know if your neighbor is a millionaire.
if you include land value, yes most of them are now millionaires. i worked for some digustingly rich people in the valley. one was raised by a wealthy family in newport beach. he was an engineer. he worked mainly in the ASIC field and took a small division and grew it considerably. he then bought companies, grew them considerably and sold them. he was what i call triple type A. he had the energy level of six people. after working probably a 100 hour week, he would spend at least one day a week sailing in the bay on his yacht. he also lost an eye as a child and considering his accomplishments, even his fortunate background was only a small part of his success. he also had the worst temper i've ever seen. knocking entire deskfuls of files onto the floor in a tantrum! his motivation was never about money though. never.
if you include land value, yes most of them are now millionaires. i worked for some digustingly rich people in the valley. one was raised by a wealthy family in newport beach. he was an engineer. he worked mainly in the ASIC field and took a small division and grew it considerably. he then bought companies, grew them considerably and sold them. he was what i call triple type A. he had the energy level of six people. after working probably a 100 hour week, he would spend at least one day a week sailing in the bay on his yacht. he also lost an eye as a child and considering his accomplishments, even his fortunate background was only a small part of his success. he also had the worst temper i've ever seen. knocking entire deskfuls of files onto the floor in a tantrum! his motivation was never about money though. never.
100 hours a week?? About 14 hours a day... haha kidding, i picked this on purpose but seriously, this is another example of you can't be millionaire by someone else's money. This is so true. You have the be the one writing your paycheck. I think having a wealthy background which is enough to cover your education is a must for all rich people.
Here is a profile of a rich man. I've learned a lot lately from this forum. My idea of buying all luxurious items, house, car has been trimmed to living a mediocre life, save save=>invest, save save =>invest, open your own business, save save=>invest, sell your business, change job, save save => invest.
First off, $120K a year does not a millionaire make. Your young, single, and will be paying taxes on that money. Lucky you. I am in a similar boat although I didn't start out in your situation.
Lets say that you want to become a millionaire. Good for you, the money you are making gives you more options than others. Here is what I would do.
1. Save an emergency fund of cash or savings that you can liquidate if needed. What you want is to build savings that will meet a year of exspenses.
2. If your company offers it, max out your 401K. Many companies offer an employer match. it is free money. I work for a hospital and we have a 403B that works the same way as a 401K. My employer offers a 50% match for the first 5% invested and gives every employee a 2% plan weather they invest or not. My wife and I both invest in the plan. I think that the max you can put in to a 401K or 403B is $16,000 a year of tax defered income.
3. Employee stock purchase plan if they offer it. We don't have one so not completly sure about this. I have friends that are offered it from their employers. Works even better if it is tax free dollars buying the stock. Not sure if that is possible though.
4. Save for a downpayment on a home. I know in the San Jose area that can cost a lot to do that. Not sure what your market looks like. I can tell you this that we have a home we bought for $310,000 that is a 50 year old home and we are happy with it. Always remember that when it comes to a residence, this is not an asset, it is a cost center. Keeping your cost down is the goal if you want to become a millionaire. A house becomes an asset when you go to sell it. Still a true guage for investment purposes is how much you put into that place before you can figure the profit on the place. Up till that point anything that you earn in the process are called unrealized gains when and if the property increases in value.
5. Build your own business. It is always good to have additional income streams other than your current employer. Maybe do some freelance work. What do you care, your single and want to become a millinaire.
6. Pay off your house, and any other debt that you have. The faster you pay off the home the more you will save in interest. Also you can use the money for investment purposes that will grow over time.
7. Invest in stocks on companies that you understand. Here is something else you can do. Take any companies logo. Try drawing the logo by hand with a box of crayons and some paper. If you can do that easily then you have found a company to learn about. If after researching the company and you have an understanding of what it is that they do, then you can safely invest in it. It is not a total, your going to hit the ball out of the ballpark strategy. Chances are though you will protect your investment and make some money on the side.
Here is the deal. Unless you plan on realizing an investment from your employer on a Facebook size range, or can build a large business on your own that will deliver you into millionaire status, you can do it over time. It is possible. Good luck with your new life.
100 hours a week?? About 14 hours a day... haha kidding, i picked this on purpose but seriously, this is another example of you can't be millionaire by someone else's money. This is so true. You have the be the one writing your paycheck. I think having a wealthy background which is enough to cover your education is a must for all rich people.
You think 14 hours a day is a joke? I used to work that much. How do you think people get ahead in Silicon Valley? It's not by working 9-5.
First off, $120K a year does not a millionaire make. Your young, single, and will be paying taxes on that money. Lucky you. I am in a similar boat although I didn't start out in your situation.
Lets say that you want to become a millionaire. Good for you, the money you are making gives you more options than others. Here is what I would do.
1. Save an emergency fund of cash or savings that you can liquidate if needed. What you want is to build savings that will meet a year of exspenses.
2. If your company offers it, max out your 401K. Many companies offer an employer match. it is free money. I work for a hospital and we have a 403B that works the same way as a 401K. My employer offers a 50% match for the first 5% invested and gives every employee a 2% plan weather they invest or not. My wife and I both invest in the plan. I think that the max you can put in to a 401K or 403B is $16,000 a year of tax defered income.
3. Employee stock purchase plan if they offer it. We don't have one so not completly sure about this. I have friends that are offered it from their employers. Works even better if it is tax free dollars buying the stock. Not sure if that is possible though.
4. Save for a downpayment on a home. I know in the San Jose area that can cost a lot to do that. Not sure what your market looks like. I can tell you this that we have a home we bought for $310,000 that is a 50 year old home and we are happy with it. Always remember that when it comes to a residence, this is not an asset, it is a cost center. Keeping your cost down is the goal if you want to become a millionaire. A house becomes an asset when you go to sell it. Still a true guage for investment purposes is how much you put into that place before you can figure the profit on the place. Up till that point anything that you earn in the process are called unrealized gains when and if the property increases in value.
5. Build your own business. It is always good to have additional income streams other than your current employer. Maybe do some freelance work. What do you care, your single and want to become a millinaire.
6. Pay off your house, and any other debt that you have. The faster you pay off the home the more you will save in interest. Also you can use the money for investment purposes that will grow over time.
7. Invest in stocks on companies that you understand. Here is something else you can do. Take any companies logo. Try drawing the logo by hand with a box of crayons and some paper. If you can do that easily then you have found a company to learn about. If after researching the company and you have an understanding of what it is that they do, then you can safely invest in it. It is not a total, your going to hit the ball out of the ballpark strategy. Chances are though you will protect your investment and make some money on the side.
Here is the deal. Unless you plan on realizing an investment from your employer on a Facebook size range, or can build a large business on your own that will deliver you into millionaire status, you can do it over time. It is possible. Good luck with your new life.
Well the topic turned into how to be a millionaire, but apparently it's my bad I've not elaborated my question. I asked more about how to manage your money so you can have some savings in the future and what usual mistakes people do when they first start their careers in SJ.
However, overall what you've listed seems a great deal of information. I've also ordered the book sportyandmisty recommended, it should be a great read.
I know a guy who's working at one of the major high tech companies and has gotten a ton of RSUs. He is living relatively frugally (has roommates in SF, although he's making well over 6 figures, not including stock). He's saved about $250k in 4 years and thinks he can get it up to $500k in another 4-5 years. He then plans to move to Denver, pay for a nice home with all cash and get a Director-level job out there by that time. That seems like the way to do it, if you're single and are mobile.
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