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I have a hard time believing that everyone is calculating their net worth accurately. Unless you have some sort of inheritance or money gifted then I don't see how a 25 year old making $60K/year could obtain a $140K net worth?
Or maybe they live at home with their parents and have saved $.75 of every dollar earned since graduation without a single student loan pretty much? Assuming even that they always made $60K and didn't start at a smaller salary.
I saw other examples as well so I am not trying to single out this one person. I just know for myself, my net worth hasn't even passed what I earn yet because I am busy trying to pay down my car and my mortgage (high interest payments in the beginning). Plus, I only paid off my student loans 2 years ago. I live in Chicago where 3/4th's of everything I make goes to bills so I am not sure if I just suck at saving or if many of the folks here are a tad "inaccurate" in their post. What do you all think?
You live in Chicago, the deck is already stacked against you for saving.
Housing is crazy expensive here, taxes are really high (and going up! looking forward to the increased sales tax, property tax, uber tax, Netflix tax, etc?)
All of this means the maximum percentage of your income you can save is capped much lower than other areas in the country. As a point of reference, if we were to move from Chicago to Dallas, we'd save an additional $2,000/mo. It's like we're lighting that money on fire to appease the tax gods. Living in Illinois is not worth $2,000/mo to us.
Or in other words, it's a lot easier to save $140k on a $60k income when you're not living in Lincoln Park or the Gold Coast...
I have a hard time believing that everyone is calculating their net worth accurately. Unless you have some sort of inheritance or money gifted then I don't see how a 25 year old making $60K/year could obtain a $140K net worth?
Or maybe they live at home with their parents and have saved $.75 of every dollar earned since graduation without a single student loan pretty much? Assuming even that they always made $60K and didn't start at a smaller salary.
I saw other examples as well so I am not trying to single out this one person. I just know for myself, my net worth hasn't even passed what I earn yet because I am busy trying to pay down my car and my mortgage (high interest payments in the beginning). Plus, I only paid off my student loans 2 years ago. I live in Chicago where 3/4th's of everything I make goes to bills so I am not sure if I just suck at saving or if many of the folks here are a tad "inaccurate" in their post. What do you all think?
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.
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.
It was until earlier this year when I thought oil had bottomed. That's a 20k mistake I'll never make again. Sticking with Wellington and my blue chips in the future.
I have a hard time believing that everyone is calculating their net worth accurately. Unless you have some sort of inheritance or money gifted then I don't see how a 25 year old making $60K/year could obtain a $140K net worth?
If you include some of your future earnings to your "net worth" as some of the posters have you are already there.
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 .
If you include some of your future earnings to your "net worth" as some of the posters have you are already there.
Whoever is doing that isn't calculating net worth
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