Share your net worth progression

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
techcrium
Posts: 166
Joined: Sun Mar 24, 2013 12:09 am

Share your net worth progression

Post by techcrium »

I am curious to know how the bogleheads got wealthy, what was your salary + savings rate at your early age.

For me, had $3,000 or so at 18 (working various jobs)

saved up $30,000 at 23 (again various jobs and parents paid tuition)
This is when I purchased my first stock (JNJ at $54)

Currently:
$100,000 at 27 (100% equities and thanks to bull market; split between ETFS, indexes, and individual stocks)


EDIT: So for me, it is
2005: $3,000 (age 18) (worked at McD; KFC, etc earning $9/hour)
2010: $30,000 (age 23) (worked as intern in the summer earning $13-15/hour)
2014: $100,000 (age 27) (fulltime position earning 44,000 a year)

Edit: 2017 update
2017: $430,000 (age 30)(fulltime position earning $62,000 a year)
2018: $600,000 (age 31)
2019: $700,000 (age 32)
2020: $920,000 (age 33)
Last edited by techcrium on Mon Jul 06, 2020 5:19 pm, edited 6 times in total.
Professor Emeritus
Posts: 2628
Joined: Mon Aug 13, 2012 6:43 am

Re: Share your story of how you got wealthy

Post by Professor Emeritus »

Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
chaz
Posts: 13604
Joined: Tue Feb 27, 2007 1:44 pm

Re: Share your story of how you got wealthy

Post by chaz »

Same as Prof Emeritus.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
IlliniDave
Posts: 2388
Joined: Fri May 17, 2013 7:09 am

Re: Share your story of how you got wealthy

Post by IlliniDave »

In the material/financial realm I define wealthy for myself as having a bit more than enough. I went through a period of a couple years not so long ago where I realized I needed far less than what I had come to believe through time. That largely brought "enough" below what I already had, so I became wealthy. Pretty dull story. In the conventional sense, I probably wouldn't properly be considered wealthy.

Of course wealth exists in realms other than the material/financial. In some of those realms I'm wealthier than others, but the stories aren't worth getting into here.

Edit: I initially responded to the subject line of the OP. The content of the post asked something different. As often as that happens here, you'd think I'd learn. Expanded response follows.

I'm a plodder (I was accused yesterday of being reckless and lucky, boy do I wish either of those were true :) ). I started by saving 6% a year of my under-$30K salary in ~'88/'89. Bumped it up to 12% around '91. Rode it out with same employer, salary grew, and kept that savings rate until 2008 divorce (X->X/2). Lowered to 8% for a couple years while rebuilding non-retirement balance sheet. Now I max out, including catchups. Started taxable investing at Vanguard in 2012. Was 100% stock mutual funds (except for a window while QDRO was executed) from start of investing career until 2012. Now about 80% stock. In the 27+ years of my career I've bought one house, three vehicles (one of them used in 1987 for $1000).

I started my job broke and $10K in debt from student loans. Hit a $10K invested assets in 1990/91, reached $100K ~1998, not made it to $1M yet. Net worth might get there in 2-3 years, invested assets around 5 years, markets willing.

The formula is save early and steady, take reasonable risks with your invested money, go easy on the consumption side of the ledger, and be patient.
Last edited by IlliniDave on Tue May 13, 2014 12:02 pm, edited 4 times in total.
Don't do something. Just stand there!
User avatar
Zabar
Posts: 635
Joined: Thu Feb 27, 2014 8:05 pm
Location: San Francisco Bay Area

Re: Share your story of how you got wealthy

Post by Zabar »

Except at the extremes, salary is surprisingly uncorrelated with wealth. (Read The Millionaire Next Door.) In fact, one of the barriers to wealth is not appreciating the difference between an income statement and a balance sheet.

• Live below your means.
• Save and invest first when you get a paycheck; live on what's left over after saving and investing.
• Live below your means.
• Work in a field that you enjoy.
• Live below your means.
• Marry someone who shares your interest in long-term growth vs. short-term indulgences.
• Learn how to recover from failure, for the occasional failure is a sign of growth.
• Don't fall for get-rich-quick schemes or other "magic" paths to wealth. It takes time and work.
• And most important: Live below your means.
hicabob
Posts: 3796
Joined: Fri May 27, 2011 5:35 pm
Location: cruz

Re: Share your story of how you got wealthy

Post by hicabob »

I became reasonably wealthy 3 times - lost it twice.

First time - got some nice stock options from a startup, invested heavily in tech - got "wealthy" but back to earth after 2k tech crash

Second time - very well paying job, saved religiously and real estate did well - job disappeared and got divorced (minus 50% hit) so back to earth

Third time - started small biz, it did very well. I became a boglehead type investor, sold the company for a nice lump and so far so good.

I don't want to repeat the cycle again!
User avatar
mhc
Posts: 5261
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Share your story of how you got wealthy

Post by mhc »

1. Enlisted in Army at 18. Saved $200/mo. Starting pay was $550/mo. When I left 4 yrs later $10k/yr.
2. My Sergeant introduced me to mutual funds right after black Monday 1988. Invested $50/mo
3. Got my BS EE with Army College Fund and GI Bill.
4. Employer paid for MS EE.
5. Same job for 22 years.
6. Worked very hard and got promoted quickly.
7. Initially put 10% into 401k, now I max it out
8. Always lived below means and hated debt.
9. Done with debt by age 40.
10. Found bogleheads 3 years ago, and I straightened out my investing

By the grace of God I have done well.
52% TSM, 23% TISM, 24.5% TBM, 0.5% cash
User avatar
White Coat Investor
Posts: 17413
Joined: Fri Mar 02, 2007 8:11 pm
Location: Greatest Snow On Earth

Re: Share your story of how you got wealthy

Post by White Coat Investor »

techcrium wrote:I am curious to know how the bogleheads got wealthy, what was your salary + savings rate at your early age.
I'm certainly wealthy by any reasonable measure in any setting except this forum, which is composed primarily of multi-millionaires, millionaires, and those who will soon be millionaires.

Here's how I did it-

I got a job that pays a lot of money.
I saved a high percentage of it.
I invested it in a reasonable manner, minimizing taxes and other investment related expenses.

As outlined in my book, I graduated from med school at 28 with a 4 figure net worth (military paid for med school and I paid for undergrad), graduated from residency at 31 with a low 5 figure net worth, hit 6 figures within a year, and hit 7 figures a little more than 7 years out of residency, thanks to working hard, saving hard, and taking what the market gave.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
ubermax
Posts: 1888
Joined: Tue Feb 11, 2014 1:19 pm

Re: Share your story of how you got wealthy

Post by ubermax »

EmergDoc wrote:I'm certainly wealthy by any reasonable measure in any setting except this forum, which is composed primarily of multi-millionaires, millionaires, and those who will soon be millionaires.
How do you know that Doc ? new to this forum .
User avatar
mhc
Posts: 5261
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Share your story of how you got wealthy

Post by mhc »

ubermax wrote:
EmergDoc wrote:I'm certainly wealthy by any reasonable measure in any setting except this forum, which is composed primarily of multi-millionaires, millionaires, and those who will soon be millionaires.
How do you know that Doc ? new to this forum .
Here is the annual net worth survey:
http://www.bogleheads.org/forum/viewtop ... 0&t=129842 (fixed link)

Here is a summary link:
http://www.bogleheads.org/forum/viewtop ... 0&t=132688
Last edited by mhc on Tue May 13, 2014 11:36 am, edited 1 time in total.
52% TSM, 23% TISM, 24.5% TBM, 0.5% cash
User avatar
FelixTheCat
Posts: 2035
Joined: Sat Sep 24, 2011 12:39 am

Re: Share your story of how you got wealthy

Post by FelixTheCat »

Lived within my means and saved. My biggest wealth failure ~ Marrying the wrong person.
Felix is a wonderful, wonderful cat.
chw
Posts: 1315
Joined: Thu May 24, 2012 4:22 pm

Re: Share your story of how you got wealthy

Post by chw »

Professor Emeritus wrote:Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
+1, though did use a few only advisor for a few years- advice was good, but expensive. Glad to have found this website.
Louis2
Posts: 2
Joined: Tue May 13, 2014 11:27 am

Re: Share your story of how you got wealthy

Post by Louis2 »

Wealthy is of course subjective but...

1. [OT comment removed by admin LadyGeek] Healthy my whole life so far.
2. Raised by stable loving parents who valued hard work and insisted on good grades.
3. "You are good at math and science, you should become an engineer"
4. Married a hard working, low spending, fun and loving spouse. Two children, healthy and hard working, only semi-spoiled.
5. 28 years at big company, good salary, great benefits
6. Joined company match savings on first day, 100% stock, never touched it. Maxed company match then slowly increased % saved over time.
7. Some hard work, lots of luck and timing, regular promotions up to VP
8. Not Boglehead philosopy per se, but certainly low churn, diversified investment

If the OP is emphasizing savings, I would say I saved 20% of a very good salary my whole life. Always saved in company plan, plus always saved bonuses, windfalls, stock options, etc.
nakedbird226
Posts: 134
Joined: Fri Mar 28, 2014 12:18 pm

Re: Share your story of how you got wealthy

Post by nakedbird226 »

My net worth just became positive a week ago...Hopefully in 10 years or so from now I'll be able to share a story. 8-)

Edit
8/12/13 net worth = - $ 24,000
5/13/14 net worth = ~ $ 300

I am thankful it took me less than a year to get out of the red.
Last edited by nakedbird226 on Tue May 13, 2014 1:28 pm, edited 1 time in total.
User avatar
Toons
Posts: 14467
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: Share your story of how you got wealthy

Post by Toons »

1.Marry someone who is on the same "financial page''you are on :happy
2.LBYM for decades :happy
3.Save prodigiously for decades
4.Invest prodigiously for decades(without implementing number 3,there will be nothing to invest) :happy
5.Take full advantage of all tax-deferred and or tax- free investing vehicles,401k,IRA,Roth IRA and fully fund. :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Topic Author
techcrium
Posts: 166
Joined: Sun Mar 24, 2013 12:09 am

Re: Share your networth progression

Post by techcrium »

Sorry my thread is meant: Share your networth progression. I know of how to become "wealthy"; live below your means, save more, etc.
User avatar
Abe
Posts: 2572
Joined: Fri Sep 18, 2009 5:24 pm
Location: Earth in the Milky Way Galaxy

Re: Share your story of how you got wealthy

Post by Abe »

hicabob wrote:I became reasonably wealthy 3 times - lost it twice.

First time - got some nice stock options from a startup, invested heavily in tech - got "wealthy" but back to earth after 2k tech crash

Second time - very well paying job, saved religiously and real estate did well - job disappeared and got divorced (minus 50% hit) so back to earth

Third time - started small biz, it did very well. I became a boglehead type investor, sold the company for a nice lump and so far so good.

I don't want to repeat the cycle again!
Sounds like Arkad in "The Richest Man in Babylon". I think you may have learned the secret to wealth the third time.
Slow and steady wins the race.
User avatar
gravlax
Posts: 276
Joined: Thu Aug 21, 2008 2:29 pm
Location: Cole Valley, CA

Re: Share your networth progression

Post by gravlax »

I became a sort of a Boglehead for the first time in 2006 with a net worth of just about zero. Started saving, and then got taken by a fast talking Ameriprise investment advisor, and put all of my saving in high expense funds that were recommended. Rediscovered Bogleheadism (for real this time), and was able to amass a net worth of $67K by February of 2008. I continued on the path, and my net worth grew as follows:

Feb, 2008: $67K
Feb, 2009: $87K
Feb, 2010: $179K
Feb, 2011: $263K
Feb, 2012: $310K
Feb, 2013: $384K
Feb, 2014: $500K

Current: $518K
investingdad
Posts: 2139
Joined: Fri Mar 15, 2013 10:41 pm

Re: Share your networth progression

Post by investingdad »

I pulled up some older versions of my net worth projections, I created the original document when I was about 23 or so. When I did my first net worth forecast at 23 my eyes were opened to the possibilities of compounding over time. I'm 40 now and married. I'll give three data points.

Age 22 (1995): started career as engineer, made 33K a year. Not sure what my wife was earning as we hadn't met yet, probably in the mid 40s. We're the same age. Net worth = 5K (cash I had in the bank plus some small mutual fund investments)

Age 30 (2003): married with combined salary of 130K. Net worth = 130K.

Age 40.5 (2014): still married with combined salary of 210K. Net worth = 1.55 million


It goes without saying that the biggest factors were marrying somebody that had similar financial values, each enjoying a good paying career, and investing as much as possible right out of the box by controlling expenses.
steve_14
Posts: 1507
Joined: Wed Jun 20, 2012 12:05 am

Re: Share your networth progression

Post by steve_14 »

I:

-Moved to a high wage area after college
-Bought a house as soon as I could
-Got a skill and remained gainfully employed
-Lived simply and saved a lot
-Invested effectively

Doing this I achieved financial freedom after about 18 years, but there was a lot of luck involved (had the recovery from the most recent crash not occurred, I'd still have a ways to go).
User avatar
Abe
Posts: 2572
Joined: Fri Sep 18, 2009 5:24 pm
Location: Earth in the Milky Way Galaxy

Re: Share your networth progression

Post by Abe »

I never had a job; I always worked for myself. I never made a lot of money by most Boglehead standards, but I worked hard and saved. A lot of times I was taking one step forward and two steps back. I think in order to get to financial independence, you have to do three things: Save, Invest and Compound. Although I am basically conservative, I took some risk along the way that were out of my comfort zone, but now, I'm glad I did. I think there is some luck involved. I think Mr. Bogle said he was lucky to be born in this country. Anyone who does the SIC thing, Save, Invest, Compound and assuming they have some time and luck, should do okay.
Slow and steady wins the race.
sesq
Posts: 587
Joined: Wed Jan 30, 2013 8:24 am

Re: Share your networth progression

Post by sesq »

I have data starting when I was 31 (a year after marriage). Prior to that it was a long slog to $100k at around 28 or 29.

7.2004 - $257k
ye 2004 - 298k
ye 2005 - 324k
ye 2006 - 346k
ye 2007 - 376k
ye 2008 - 300k (ouch)
ye 2009 - 418k
ye 2010 - 422k (wow, +$4k)
ye 2011 - 492k
ye 2012 - 679k
ye 2013 - 902k
ye 2014 - 1.12M EDIT
ye 2015 - 1.21M EDIT
ye 2016 - 1.53M EDIT
ye 2017 - 2.07M EDIT
ye 2018 - 1.89M EDIT Job loss in the mix
ye 2019 - 2.15M EDIT
ye 2020 - 2.50M EDIT
Ye 2021 - 3.04M EDIT
Ye 2022 - 2.75M EDIT
11/1/23 - 3.05M EDIT Had a stroke in July. I am back to work but struggling. Thankful to have resources.


My keys have been a higher salary and mostly consistent savings. The market has both punished (2008) and blessed us (2013, 2020-21).

EDIT I am a tax accountant, so my NW is presented net of my deferred tax liability. I use a 20% rate to estimate my liability on tax deferred accounts. Virtually all of my financial investments are in tax preferenced accounts.
Last edited by sesq on Thu Dec 21, 2023 5:25 pm, edited 14 times in total.
irishbear99
Posts: 78
Joined: Fri Sep 13, 2013 8:27 pm

Re: Share your story of how you got wealthy

Post by irishbear99 »

Professor Emeritus wrote:Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
+1

In addition to this, the biggest contributing factor to our (the hubby and I) building wealth (not wealthy yet, but working on it) was realizing it's possible for "people like us" (aka, not born into wealth and haven't won the lottery) to build wealth. We were both raised with the understanding that there are rich people and there are the rest of us, and never the two shall meet. A couple of years ago after we'd paid off our consumer debt, I discovered "The Millionaire Next Door." It was my first inkling that wealth doesn't just *happen* to most people, but that "people like us" can - and do - build wealth.

Since that discovery, we've increased our net worth 3x, mainly through steps similar to those Professor Emeritus mentioned. So, I'd say that those steps are pertinent to building wealth, the most important part for us was our "awakening" - the realization that it's possible.
investingdad
Posts: 2139
Joined: Fri Mar 15, 2013 10:41 pm

Re: Share your networth progression

Post by investingdad »

sesq wrote:I have 10 years of data, starting when I was 31 (a year after marriage). Prior to that it was a long slog to $100k at around 28 or 29, then a lawsuit settlement bumped me to ~$200k (sadly the doctors and lawyers made more and I have a lifetime of medical expenses to enjoy).

7.2004 - $257k
ye 2004 - 298k
ye 2005 - 324k
ye 2006 - 346k
ye 2007 - 376k
ye 2008 - 300k (ouch)
ye 2009 - 418k
ye 2010 - 422k (wow, +$4k)
ye 2011 - 492k
ye 2012 - 679k
ye 2013 - 902k
4.30.14 - 1.09M

I tend to max out the 401(k), and often max the Roth IRA's. I am generally 85|15 with my allocation. In 2009 I got promoted and the deferred comp related to that switch has had a big impact starting in 2012. My wife stays home with the kids and we live pretty comfortably. I don't think we quite hit the frugal standard, but we don't buy luxury items or overdo it with houses/cars.

My keys have been salary growth and mostly consistent savings. The market has both punished (2008) and blessed us (2013).
We're about the same age. Interestingly, my experience up to age 29 and getting to 100K matches yours. No lawsuits though which is why you're first datapoint is 100K higher than what I posted above. And like you, 2008 and 2010 were cruddy for the same reasons...invested fully in the market as a whole so we are riding the same waves.

The main area where we differ is that my wife works and is not home with the kids. If one of us were to stay home it would be be me since she earns more and probably has a much higher ceiling than I do.

But when I compare your points to mine, that 100K lawsuit bump puts you out in front of me for about 5 years. We track very closely for awhile. But then our (assumed) higher combined income starts to take over as we're probably able to put more into investments. And it's within the last 2.5 years that the extra investing and compounding has pushed us out in front of your posted numbers.

Just a very interesting comparison that demonstrates how consistent incremental savings differences begin to dominate in what otherwise was highly correlated tracks.
User avatar
obgyn65
Posts: 770
Joined: Sun May 06, 2012 9:11 am

Re: Share your networth progression

Post by obgyn65 »

I grew up in continental Europe. Went to university there, with no student debts. At the age of 25 I had about $10k I guess. Worked for a few years, reached $500k. Always lived below my means. Moved to the US about 15 years ago. Remained single. Now my net worth is average compared to the overall net worth survey results on this website. I will possibly reach mid seven figure if I stay another year or two, but I would like to retire this year, age 49.
"The two most important days in someone's life are the day that they are born and the day they discover why." -John Maxwell
letsgobobby
Posts: 12073
Joined: Fri Sep 18, 2009 1:10 am

Re: Share your networth progression

Post by letsgobobby »

My story: going up fiftyfold in ten years is easier when you start with very little.
etowers
Posts: 75
Joined: Sun Feb 23, 2014 3:18 am

Re: Share your story of how you got wealthy

Post by etowers »

Professor Emeritus wrote:Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
I don't really understand how you can choose 1) as an active step to building wealth. It seems to me more like the luck of the draw if you get someone with similar financial goals. I don't see how it is actionable to "choose" your life partner as a means of building wealth, as opposed to deciding how much to save every month.
herbie
Posts: 77
Joined: Mon Feb 10, 2014 5:06 pm

Re: Share your networth progression

Post by herbie »

Combined NW for DINKs. Rcvd inheritance in 03, graduated college in 06 and saving consistently since (probably average ~50% of gross income saved). Started tracking in 08. Stock market sure has been kind since then!

ye 08: 300
ye 09: 400
ye 10: 525
ye 11: 600
ye 12: 725
now: >1000

(Not adjusted to be post-tax.)
Stonebr
Posts: 1472
Joined: Wed Jan 21, 2009 10:19 am
Location: Maine

Re: Share your networth progression

Post by Stonebr »

The first $100,000 was by far the hardest. After that, things seemed to just compound. :happy
"have more than thou showest, | speak less than thou knowest" -- The Fool in King Lear
Slowmaha
Posts: 138
Joined: Fri Feb 21, 2014 6:00 pm

Re: Share your story of how you got wealthy

Post by Slowmaha »

etowers wrote:
Professor Emeritus wrote:Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
I don't really understand how you can choose 1) as an active step to building wealth. It seems to me more like the luck of the draw if you get someone with similar financial goals. I don't see how it is actionable to "choose" your life partner as a means of building wealth, as opposed to deciding how much to save every month.

#1 is a VERY active step to building wealth, albeit, not necessarily obvious. By not marrying a flighty spendthrift you minimized the expenses side of the equation. By marrying someone who has a good income or wealthy family you can maximize the "plus" column. By marrying your best friend with a rock-solid commitment you minimize the likelihood of a 50%+ divorce hit... Get all three and you have the trifecta. Can life throw you curve balls? Sure. But marrying the right partner is PARAMOUNT to building wealth.
User avatar
22twain
Posts: 4032
Joined: Thu May 10, 2012 5:42 pm

Re: Share your story of how you got wealthy

Post by 22twain »

Slowmaha wrote:[By marrying your best friend with a rock-solid commitment you minimize the likelihood of a 50%+ divorce hit...
Marrying someone whose earnings and lifestyle are similar to yours also reduces the likelihood of a 50% divorce hit, because he/she won't need to depend on part of your earnings after the divorce. This of course assumes that the two of you maintain that similarity during marriage.
Meet my pet, Peeve, who loves to convert non-acronyms into acronyms: FED, ROTH, CASH, IVY, ...
LFKB
Posts: 1264
Joined: Mon Dec 24, 2012 6:06 pm

Re: Share your networth progression

Post by LFKB »

Our net worth progressed something like this. Primarily through saving and some modest investment gains. We really only invested a large percentage of my net worth slowly over the last 15 months.

22: $100k
23: $200k
24: $400k
25: $620k
26: $850k
27 (current): $1.15M
J295
Posts: 3403
Joined: Sun Jan 01, 2012 10:40 pm

Re: Share your networth progression

Post by J295 »

5) never listen to or pay a dime to a broker or other thief
We don't use a broker as they don't bring value to our situation. However, the brokers I do know are hard working, honest, and want their clients to be successful. I appreciate the enthusiasm among Bogleheads for low cost investing; however, it seems use of the term "thief" was out of bounds.
TRC
Posts: 1969
Joined: Sat Dec 20, 2008 4:38 pm

Re: Share your networth progression

Post by TRC »

2000 graduated with a net worth of -$28,000. Lived at home for 2 years to become debt free, rented for a year, then bought our first property in 2003. My earnings soared into the multiple 6 figures starting in 2005. Today our net worth is about $1.7M (age 36). Lived below our means and invested a lot. Excited to see what the next decade brings for growth.
User avatar
Tyrobi
Posts: 730
Joined: Thu Jun 04, 2009 12:29 pm
Location: Florida
Contact:

Re: Share your networth progression

Post by Tyrobi »

I started out in negative territory after graduation in 2005. It took a while to reach 100k, but each 100k after that came at a faster pace. Wife is SAHM with a young daughter. At this rate, we will achieve our number in 11.8 more years on a single income earner.

2005: -$50.9k
2006: -$5.7k
2007: $4.6k
2008: $29.2k
2009: $87.4k
2010: $139.5k
2011: $192.8k
2012: $267.5k
2013: $345.2k
2014: $414.8k
Three-fund portfolio | "Simplicity is the master key to financial success." John C. Bogle
scrabbler1
Posts: 2798
Joined: Fri Nov 20, 2009 1:39 pm

Re: Share your networth progression

Post by scrabbler1 »

My way to be wealthy: LBYM, avoid more than 1 of the "big 3" types of debts at the same time (student loans, car loans, home mortgage), in my case I paid off the student loans before taking on a mortgage, never had a car loan (paid cash); stayed single, never wanted to have kids, was born at the right time - enjoying my biggest earning years in the 1990s when the stock market boomed. Worked for a company which had an exploding company stock value.

As for my NW progression (investments only, excluding my co-op apartment)

Age 25 - $10k
Age 27 - $25k
Age 29 - $50k
Age 31 - $100k
Age 34 - $200k
Age 36 - $300k
Age 38 - $400k
Age 40 - $500k
Age 41 - $600k
Age 42 - $700k
Age 43 - $800k
Age 43 - $900k
Age 45 - Retired
Age 47 - $1M
Age 49 - $1.1M
Age 50 - $1.2M
Age 51 (now) closing in on $1.3M
thomasbayarea
Posts: 393
Joined: Wed Feb 29, 2012 3:40 pm

Re: Share your networth progression

Post by thomasbayarea »

The last two years have been interesting ...

Image
Simple Simon
Posts: 166
Joined: Sat Apr 26, 2014 4:37 am

Re: Share your networth progression

Post by Simple Simon »

Started tracking household net wealth 10 years ago:

12-31-2003, $334K
12-31-2004, $408K
12-31-2005, $507K
12-31-2006, $624K
12-31-2007, $736K
12-31-2008, $599K,
12-31-2009, $790K
12-31-2010, $899K
12-31-2011, $1088K
12-31-2012, $1294K
12-13-2013, $1679K

Before that, I did not keep records. But here are some estimates.

12-31-1997, $10K (estimate) - this was the year I started work
12-31-1998, $35K (estimate)
12-31-1999, $65K (estimate)
12-31-2000, $100K (estimate)
12-31-2001, $230K (estimate - inherited $80K this year)
12-31-2002, $290K (estimate)

In terms of advice, I don't have much to offer above what has been said already. Choose the right parents. One house, one spouse.

Like many on this board I have been a slow and steady accumulator. My wife and I are well paid for our work. For example:

2013, gross household income $230K
2012, $262K
2011, $282K

We live OK but use some restraint in spending. I know because we track this too. For example:

2013, gross household expenditure $111K
2012, $109K
2011, $119K

Reading "Money or your life" and "Millionaire next door" shaped my views on personal finance, and these days MrMoneyMustache
25% stock, 25% bonds, 25% cash, 25% stuff
investingdad
Posts: 2139
Joined: Fri Mar 15, 2013 10:41 pm

Re: Share your story of how you got wealthy

Post by investingdad »

etowers wrote:
Professor Emeritus wrote:Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
I don't really understand how you can choose 1) as an active step to building wealth. It seems to me more like the luck of the draw if you get someone with similar financial goals. I don't see how it is actionable to "choose" your life partner as a means of building wealth, as opposed to deciding how much to save every month.
Of you course you can choose #1, why couldn't you? Let's spin it another way, let's say you meet somebody and find out a few months in they have a heroin habit. Do you say, "Well, it's outside my control to choose to be with this person so I guess I'm getting engaged to a heroin addict."? Of course you have a choice. I would say, "See you...I don't need your problems to become my problems."

You know going in whether the person is on the same general page as you...if you choose to stay on with a person that doesn't have similar life goals, it has nothing to do with luck and everything to do with you making the decision.
Johm221122
Posts: 6394
Joined: Fri May 13, 2011 6:27 pm

Re: Share your networth progression

Post by Johm221122 »

January 1
01 12k
02 18k
03 25k
04 43k
05 63k
06 84k
07 112k
08 133k
09 131k
10 143k
11 175k
12 184k
13 219k
14 288k
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Share your networth progression

Post by abuss368 »

Tyrobi wrote:I started out in negative territory after graduation in 2005. It took a while to reach 100k, but each 100k after that came at a faster pace. Wife is SAHM with a young daughter. At this rate, we will achieve our number in 11.8 more years on a single income earner.

2005: -$50.9k
2006: -$5.7k
2007: $4.6k
2008: $29.2k
2009: $87.4k
2010: $139.5k
2011: $192.8k
2012: $267.5k
2013: $345.2k
2014: $414.8k
Hi Tyrobi,

That is awesome! The simplicity of the Three Fund Portfolio must work!
John C. Bogle: “Simplicity is the master key to financial success."
CloudNine33
Posts: 127
Joined: Sat Dec 07, 2013 4:21 pm

Re: Share your networth progression

Post by CloudNine33 »

At 20 I was on my own making $10/hr, renting a room in a shared house and had negative net worth.
Last edited by CloudNine33 on Mon Jun 16, 2014 1:14 pm, edited 1 time in total.
Grt2bOutdoors
Posts: 25625
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Share your story of how you got wealthy

Post by Grt2bOutdoors »

Slowmaha wrote:
etowers wrote:
Professor Emeritus wrote:Would never claim I was wealthy but
I suggest
1) marry the right partner
2) Live in the same house for 34 years
3) work very hard at your profession
4) live below your means and save prodigiously
5) never listen to or pay a dime to a broker or other thief
I don't really understand how you can choose 1) as an active step to building wealth. It seems to me more like the luck of the draw if you get someone with similar financial goals. I don't see how it is actionable to "choose" your life partner as a means of building wealth, as opposed to deciding how much to save every month.

#1 is a VERY active step to building wealth, albeit, not necessarily obvious. By not marrying a flighty spendthrift you minimized the expenses side of the equation. By marrying someone who has a good income or wealthy family you can maximize the "plus" column. By marrying your best friend with a rock-solid commitment you minimize the likelihood of a 50%+ divorce hit... Get all three and you have the trifecta. Can life throw you curve balls? Sure. But marrying the right partner is PARAMOUNT to building wealth.
+1 Too many folks get together when one is pulling right and the other is pulling left - that's how marriages get "torn" apart.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Old Guy
Posts: 662
Joined: Mon Mar 19, 2012 7:20 am
Location: On the beach in SC. Hilton Head Island.

Re: Share your networth progression

Post by Old Guy »

11.3.2008 $381,466.78
5.13.2014 $1,093,151.50

This is on top of pensions that will be worth roughly $190,000 per year. We will each be triple dippers.

Wife and I were a combined GS 29-18 with 58 years in the federal government at the time we retired so we had substantial income and now pensions (we came to Washington to do good and all we did was well). Saved/invested as much money as we could, but sent our only child to 13 years of private school and 4 years of private college. Lived below our means but well. Didn't buy the most expensive houses we could afford. Didn't buy a second weekend house; bought timeshares instead but would suggest buying them on the secondary market and never from the developer. Benefited from the ever rising housing market in DC and its suburbs. Lucky. Didn't buy expensive cars. Ate out but only on the weekends. Collected and used Marriott points for "free" trips to Europe. Wife likes to shop but only buys stuff on sale, the better the bargain the happier she is. Cost isn't the issue; the overflowing closets are. Did well with our retirement jobs and deferred as much income as we could. Luck.

It seems to have worked for us. After nearly 40 years of marriage, my wife, who grew up poor and in the care of relatives, is very appreciative of how well I have managed our money. Luck.
kuttolas
Posts: 179
Joined: Tue May 06, 2008 4:11 am

Re: Share your networth progression

Post by kuttolas »

I got serious about savings roughly 10 years ago, But during this time, I had a ton of debt as well. I had good income from mid 20's and potential to make even more, but lacked the drive to make it happen, I was more focused on enjoying life, nothing wrong with that attitude, today I do not feel like I missed out lot in my youth.

I stated investing in 401(k) six years ago and in IRA an year before. Following is the progression of my net-worth in the last 5 years

2009 - 197K
2010 - 230K
2011 - 269K
2012 - 338K
2013 - 420K
Today - 442K
bnmn
Posts: 15
Joined: Tue Aug 09, 2011 3:21 pm

Re: Share your networth progression

Post by bnmn »

Married in 2008, kids born in 2011 and 2014. Numbers are combined for both of us. Only started to max out 401ks and IRAs in 2012.

Age - Yr - Income - NW
27 - 2008 - 126k - 25k
28 - 2009 - 140k - 34k
29 - 2010 - 157k - 56k
30 - 2011 - 172k - 105k
31 - 2012 - 178k - 155k
32 - 2013 - 193k - 268k
33 - 2014 - 199k - 380k
TexasMu
Posts: 76
Joined: Wed Aug 28, 2013 8:39 am
Location: Dallas, TX

Re: Share your networth progression

Post by TexasMu »

Just started tracking mine last year at age 42

FYI - divorced in 2007 - currently making $95k

1/1/13 - $48k
1/1/14 - $98k

currently maxing 401k + roth ira as of 1/1/14

prior to 2014 - just fooling around investing minimum of $2k - $6k a year trying to reach $1M by 65 - 67

This crazy site has me investing on STEROIDS - not sure what my goals are anymore ... just trying to live decently and not waste all my money (thus maximizing the tax advantage retirement options)
Johnnyappleseed
Posts: 24
Joined: Mon Mar 16, 2009 1:22 pm

Re: Share your networth progression

Post by Johnnyappleseed »

In 2006 I was 32 years old, recently had gotten out of the military, was divorced, had a recent bankruptcy, and any unplanned cost was difficult to meet.

Net Worth Milestones
2006: $-39k
2009: $0
2011: $50k
2014: $150k

I'm no where near satisfied with my savings, but I'm on the right path and most importantly I'm enjoying life.

Life lessons:
1) Having a partner with different financial lifestyle isn't a great idea
2) All debt is bad debt (technically not true, but this mantra works for me)
3) Automatic savings removes money before you even know you have it
jms7
Posts: 16
Joined: Thu May 08, 2014 9:45 am

Re: Share your networth progression

Post by jms7 »

2006: Graduated college with about $18,000 in debt. No assets.
2009: Graduated law school with about $150,000 in law school debt; approximately $168,000 in total. No assets, but started saving in 401k. Started paying law school loans according to 10 year repayment plan (approximately $2,000 per month).
2010: Started maxing 401k.
2012: Married wife, who also graduated law school with about $150,000 in debt.
September 2012: Wife and I have a come-to-Jesus moment looking at loans, which had a weighted interest rate of about 6.5%. About $210,000 worth of the loans are at rates between 8.25% and 5% (disturbingly, these are all either Stafford, Perkins, or Grad Plus loans). We decide that instead of saving for a down payment, we'll direct all available funds to the loans. Started keeping track (on a joint basis) in September. After I take $30,000 from savings to pay off the 8.25%, total debt was about $244,000; total assets, $54,000. Net worth -$190,000.
June 2013: We finish paying off about $57,000 in 7.25% loans. Total debt $173,000; total assets $84,000. Net worth -$89,000. We begin the long slog of paying of Wife's partially consolidated law school loans, which total just north of $100,000 at 6.875%.
January 2014: My bonus puts us in positive net worth territory! Total debt $113,000, total assets $119,000. Net worth $6,000. I also switch firms for quality of life/better chance of advancement reasons, taking a fairly big pay cut in the process.
May 2014: About $17,000 left to go on the $100,000 6.875% loan. Total debt $90,000, total assets $129,000. Net worth $38,000.

Wife is due with our first kid any minute now (but is planning to go back to work), so we'll see what type of impact that makes on our progress (I'm assuming it will slow somewhat). We plan to wipe out the remaining $35,000 or so at or above 5%, then start saving for a down payment, which will be at least $100,000 in our high cost of living area. That will probably take us through October 2016, at which point we'll circle back and eliminate about $25,000 at 4.5%. That will leave us with about $25,000 at rates lower than 3.2%, which we plan to let ride.

Frankly, I have mixed feelings about the whole process. The accelerated loan repayment path that we've taken is a bit of a blessing and a curse. I know we're getting a very solid guaranteed return by doing it, and it's fun to watch the number get smaller, but at the same time, I can't help but think (particularly with kid number one imminent) how nice it would be to have a decent house in the suburbs at a low mortgage rate and (given how the market has performed the past few years) a healthy taxable account. I'll be very happy when it's over.
nepats
Posts: 396
Joined: Mon Jul 20, 2009 11:56 am

Re: Share your networth progression

Post by nepats »

OUR Milestones:

Age 21: Undergrad Graduation: -25K (College loans) :oops:
Age 23: Layoff turns to first business opportunity (Doubled my salary)
Age 24: Loans paid off: 50K
Age 26: Second business opportunity: (Doubled my salary) 200K
Age 28: 400K
Age 30: MBA graduation: payed cash for it
Age 31: Discovered Bogleheads :wink:
Age 33: 1 M :sharebeer
Age 35: 1.5 M +

Notes:

1. Been married since age 22 to a spouse I met in college who works and is NOT from Venus
2. Saved to 401Ks right from the start with good company matches and saved aggressively but did not penny pinch
3. Lived below our means ( no expensive cars, houses etc)
4. Took risks early in my career to make more :dollar :dollar that's paying off now
Last edited by nepats on Wed May 14, 2014 6:51 pm, edited 1 time in total.
Post Reply