Under $100k Avg Annual Income Millionaires and How You Did It?

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Bud
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Bud » Thu Jan 10, 2019 9:52 am

Not much to add, but my story is...

Income mostly in the 60's-70's, three decades working in the non-profit sector, four kids, one wife :).

No debt except mortgage - no school loans, no car loans
Figure what you need first, then add what you want
simplicity pays dividends
Frugal - why buy name brand if you don't need it?
Learn to cook and eat at home the majority of the time
Cars & houses have expenses beyond the purchase price - think total cost about purchases, especially major purchases
develop multiple streams of income
Realize that money is a medium of exchange, not an end in itself. What do you value? What are you willing to exchange for that?
Cost of living is real so think about where you want to settle
remember that time value of money - spend $1,000 at age 20 is worth $25,000 when your 60.
Save early and often
Find hobbies and activities to enjoy that are free or low cost (jogging, hiking, etc)
live healthy

JGoneRiding
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by JGoneRiding » Thu Jan 10, 2019 10:29 am

Abe wrote:
Wed Jan 09, 2019 5:47 pm
It never ceases to amaze me when I read post from people making $100k a year and more. I never earned $100k in my life. Best I can remember, the most I ever made was around $67k, and most years much less. Of course I can remember when the people across the street built a nice house for $12k. I'm retired now with a networth around $7.5 million, at least that's about what it was before the latest downturn. I can't really remember my age when I hit my first million, but it probably was in my early to mid forties. As too keys to success, I would say an extremely high savings rate had a lot to do with it and living below my means. You can't keep up with the Joneses if you want to get rich. I also got into investing in mortgages, which was very lucrative; and rental property investments. Some of these types of investments would be considered risky, but you have to take more risk if you expect to get higher returns. The risk I took were calculated risk that paid off. Every penny I invested stayed invested and compounded for many years. To this day I have never spent a penny of any money I invested except for rental income. I live on the income from rental properties and social security.
Do you need adopted children, grandkids, how about a dedicated animal care taker for when you pass???

Seriously you know there is no reward for richest guy in the graveyard right!

I am always saddened (though you didn't say) by how many people on here say no.kids like it's an achievement or something! Yes kids are expensive but they don't need to break the bank and they add so much joy and meaning to life. But without them you also run the risk of a lonely terrible end of.life. I have 3 aunt's with no kids though one has steps and think who is going to do for them all that they and my mom do for grandma.

I dont meet the OP qualifications but we are on our way. Could be a lot further if we curtailed life style a touch more, and the second kid is going to cost a bit more but worth it!

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Toons
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Toons » Thu Jan 10, 2019 10:47 am

Darwin wrote:
Thu Jan 10, 2019 1:44 am
Toons wrote:
Wed Jan 09, 2019 5:45 pm
Take advantage of all tax deferred ,tax free saving vehicles,Ira,Roth,401k,max if possible,
Invest you must.You have to put the compounding machine to work you.
The compounding machine doesn't sleep ,you do,
Stick to a budget( I used and still use Quicken)
Live beneath your means
Do not live "up" to income,pay off debt or invest the raise in 401k etc...
Keep debt to a minimum,Do not,I repeat ,Do Not become a slave to the lender.
Do your best to get a 15 year mortgage and pay that off early if possible
Do not buy more house "than you need"
When thinking about a large expense for something "sleep on it"
Pay cash.
Completely ignore what "The Jones family has".
If you have to have a car payment keep it low,buy used,or buy economical.
Keep the car for years.
Don't smoke.
Do not over indulge your children,,,,teach them the value of a dollar and what it takes to earn one.
Stay focused on your financial goal,,day after day ,week after week ,year after year,,,remember
It is a marathon,,not a sprint.
I would say "good luck",,but
Good luck usually falls on those who are prepared :sharebeer
This worked for us!
Combined we've always earned less than 100k, and applying the above-mentioned strategy hit our first million last year (age 48) without help. If you only need a little to be happy, bank the rest. And let the Joneses do their thing. Meanwhile, I have a trail to hike and a fish to catch!
Perfect In Bold.
Kudos to you and yours
Enjoy :happy :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

stoptothink
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by stoptothink » Thu Jan 10, 2019 10:49 am

yeahman wrote:
Thu Jan 10, 2019 2:00 am
KlangFool wrote:
Wed Jan 09, 2019 11:41 pm
yeahman wrote:
Wed Jan 09, 2019 11:32 pm
I'd like to hear from the parents here. Average cost of raising a kid in the US is $2k/month. With daycare in a high COLA area, earning less than $100k and saving sufficiently to eventually net over a millionaire has got to be a struggle.
yeahman,

This is obviously a lie. US median household income is only 60K.

KlangFool
I had that number in my head and looked it up again. The $2k/month is for urban Northeast households earning over $107k. For all households and for urban Northeast households earning less than $107k, it's almost half that.
Kids cost however much you decide they cost. We have a 6 and 3 yr old, and even when both were in full-time daycare it wasn't $2k/month combined. And daycare is only for a handful of years. Currently, including daycare for my 3yr old, both children combined might cost us $1k/month.

Our HHI is now $200k+, but when we married it was <$80k and with one child in full-time daycare we still managed to save 35%+ of gross income those first few years. It's LBYM, not rocket science. We live in a neighborhood where our income is 3x-4x most of our neighbors, yet everybody has 2 nicer cars than us (we share one; I walk to work), has their kids in a million expensive activities, and goes on lavish vacations.

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CyclingDuo
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by CyclingDuo » Thu Jan 10, 2019 10:52 am

bigtex wrote:
Wed Jan 09, 2019 3:05 pm
Just looking for the millionaires on here that did it on less than a $100k average annual household income, and what your main keys to success were? Also, if you wouldn't mind posting at what age you achieved this milestone and any other relevant facts. Thanks!
What was the single most important "key" thing we did?: became a two income household from the get go.

How long was our combined gross income under $100K?: 1985 - 2010 for a total of 26 IRS years.

How long has our combined gross income been $100K or more?: 2011 - 2018 for a total of 8 IRS years.

When did we first achieve the milestone you mention?: 1998-1999 for portfolio alone (ages 37/40 respectively)*

*Portfolio obviously dipped wildly below and above the particular milestone a few times between 2000-2013.

What was a second important "key" to future success?: one job in our household includes a pension

Main keys to success?: in the early years it was due to being invested in the technology adoption life cycle of the PC and Networking via individual stocks (Dell, Intel, Microsoft, Cisco, etc...), and always saving at least 15-20% of our income each and every year. We took some of the PC/Networking profits in 2000 and invested in land to diversify while the rest remained invested in a diversified portfolio of stocks and mutual funds. Since then, typical LBYM stuff (in terms of housing/transportation/food) and investing in retirement plans via low cost funds through thick and thin, investing in taxable via individual stocks and ETF's/Funds, and we also invested in our children's education funds from 1993-2015. Both graduated debt free and now have portfolios of their own due to the leftovers that were not used. :beer

We most likely hit our peak contributions to our retirement savings during years 2017 and 2018 at $225 per day as we combined peak earnings, over age 50 catch up rules, being empty nesters and enjoying lower expenses to become super savers. We both plan to continue working and saving for another 5-9 years, but we will dial the retirement savings back a bit due to the reality of being laid off from a job held the past 15 years which will cause the household gross income to dip by about $15-20K with the reality of the income from the new jobs (currently I have been working two jobs since mid-August).

All that being said, it takes us back to the first "key"...

What was the single most important "key" thing we did?: became a two income household from the get go.

That sets us up for the dual Social Security income stream from both working 35+ years once we claim.

The second "key" includes the one job with a pension which sets us up for another income stream in retirement. The SS and pension combined take some of the pressure off of the risk portfolio to meet our future needs in retirement as well as provide us with the option to perhaps choose a transition path into retirement that may end up having more flexibility in terms of full-time vs. part-time, choice of when to retire, etc... .

In the meantime, we forge ahead enjoying our jobs, family, food, cycling, travel, and saving at least 30% of our income each and every paycheck. Even though we are entering our 9th consecutive year of household gross income being over $100K, we did indeed spend 75% of our working and accumulation years being well under $100K where our first major milestones were reached. Utilizing the IRS catch up rules, as well as lower expenses due to being empty nesters allows us to continue socking away our savings for the future and whatever comes up along the way. Heck, maybe we are just saving for taxes at this point. :shock:

At age 57 and soon to be 61 respectively, consider us two of the Boomers who are part of this group: https://finance.yahoo.com/news/bed-bath ... 46376.html
"Everywhere is within walking distance if you have the time." ~ Steven Wright

LiterallyIronic
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by LiterallyIronic » Thu Jan 10, 2019 11:00 am

This thread is an inspirational one. It's been a good read.
yeahman wrote:
Wed Jan 09, 2019 11:32 pm
I'd like to hear from the parents here. Average cost of raising a kid in the US is $2k/month. With daycare in a high COLA area, earning less than $100k and saving sufficiently to eventually net over a millionaire has got to be a struggle.
Parent here. Wife stays at home with the toddler. Income is $75k. Saving 26% of gross (not counting employer match) and paying extra on the mortgage. Don't think we'll make it to the one million dollar club.

lostdog
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by lostdog » Thu Jan 10, 2019 11:06 am

If you listen to Dave Ramsey, listen to the Millionaire theme hours. Good stuff!
Current portfolio: 54% ITOT, VTSAX / 46% VTIAX

Northster
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Northster » Thu Jan 10, 2019 11:25 am

First a generous 403b at about 15% of salary, plus more savings. Also helped to be in the market in the 80s and 90s. I was actually pretty conservative, with half my 403 to TIAA Trad and half to equities.

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lthenderson
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by lthenderson » Thu Jan 10, 2019 11:28 am

02nz wrote:
Wed Jan 09, 2019 3:12 pm
- Live below your means
- Don't overspend on house and car
- Save and invest consistently, using low-cost funds
- Use all your tax-advantaged space, and defer your taxes as much as possible (say at 20% marginal and higher)
- Have some luck with the markets - this one you don't really control, obviously!
+1

From my perspective, 99% of the population fails on the first two items.

KlangFool
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by KlangFool » Thu Jan 10, 2019 11:34 am

LiterallyIronic wrote:
Thu Jan 10, 2019 11:00 am
This thread is an inspirational one. It's been a good read.
yeahman wrote:
Wed Jan 09, 2019 11:32 pm
I'd like to hear from the parents here. Average cost of raising a kid in the US is $2k/month. With daycare in a high COLA area, earning less than $100k and saving sufficiently to eventually net over a millionaire has got to be a struggle.
Parent here. Wife stays at home with the toddler. Income is $75k. Saving 26% of gross (not counting employer match) and paying extra on the mortgage. Don't think we'll make it to the one million dollar club.
LiterallyIronic,

But, with your low annual expense, you will be FI long before you reach 1 million. Meanwhile, some other folks like me will need more than 1 million to be FI.

KlangFool

yeahman
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by yeahman » Thu Jan 10, 2019 11:39 am

KlangFool wrote:
Thu Jan 10, 2019 8:12 am
My annual expense is 60K with 2 kids. I am in the Northeast. So, it is a lie even with 1K per kid per month. Many of my peers have a 600K house. So, it is obvious that they cannot afford 2K per kid per month too.
Full-time daycare anywhere within 10 miles of me is more than $1k/month. And these aren't fancy places. Just the bare minimums. Granted, I live in the 2nd highest cost of living metro area. Can have a parent stay home but then our income would fall more than the cost of daycare.
Last edited by yeahman on Thu Jan 10, 2019 11:42 am, edited 1 time in total.

crazycatman
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by crazycatman » Thu Jan 10, 2019 11:39 am

Toons wrote:
Wed Jan 09, 2019 5:45 pm
Take advantage of all tax deferred ,tax free saving vehicles,Ira,Roth,401k,max if possible,
Invest you must.You have to put the compounding machine to work you.
The compounding machine doesn't sleep ,you do,
Stick to a budget( I used and still use Quicken)
Live beneath your means
Do not live "up" to income,pay off debt or invest the raise in 401k etc...
Keep debt to a minimum,Do not,I repeat ,Do Not become a slave to the lender.
Do your best to get a 15 year mortgage and pay that off early if possible
Do not buy more house "than you need"
When thinking about a large expense for something "sleep on it"
Pay cash.
Completely ignore what "The Jones family has".
If you have to have a car payment keep it low,buy used,or buy economical.
Keep the car for years.
Don't smoke.
Do not over indulge your children,,,,teach them the value of a dollar and what it takes to earn one.
Stay focused on your financial goal,,day after day ,week after week ,year after year,,,remember
It is a marathon,,not a sprint.
I would say "good luck",,but
Good luck usually falls on those who are prepared :sharebeer
This is gold.

crazycatman
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by crazycatman » Thu Jan 10, 2019 11:43 am

Abe wrote:
Wed Jan 09, 2019 5:47 pm
It never ceases to amaze me when I read post from people making $100k a year and more. I never earned $100k in my life. Best I can remember, the most I ever made was around $67k, and most years much less. Of course I can remember when the people across the street built a nice house for $12k. I'm retired now with a networth around $7.5 million, at least that's about what it was before the latest downturn. I can't really remember my age when I hit my first million, but it probably was in my early to mid forties. As too keys to success, I would say an extremely high savings rate had a lot to do with it and living below my means. You can't keep up with the Joneses if you want to get rich. I also got into investing in mortgages, which was very lucrative; and rental property investments. Some of these types of investments would be considered risky, but you have to take more risk if you expect to get higher returns. The risk I took were calculated risk that paid off. Every penny I invested stayed invested and compounded for many years. To this day I have never spent a penny of any money I invested except for rental income. I live on the income from rental properties and social security.
I'd love to hear about your journey with rental properties. I've got a post on here about it because my wife and I want to do the same thing - Invest in enough properties to be able to live on the rental income. Your story is inspiring!

Dottie57
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Dottie57 » Thu Jan 10, 2019 11:44 am

Started work full time at 14k in 1992. Ended work at 110k in 2017. Average is lower than 100kSurvey.

My paychecks were less than 50% of gross die to taxes and benefit costs. As income grew so did savings.

Assuming SS is around at age 70, my income from SS and Investments will give me same spendable as working.

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DaftInvestor
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by DaftInvestor » Thu Jan 10, 2019 11:48 am

crazycatman wrote:
Thu Jan 10, 2019 11:39 am
Toons wrote:
Wed Jan 09, 2019 5:45 pm
Take advantage of all tax deferred ,tax free saving vehicles,Ira,Roth,401k,max if possible,
Invest you must.You have to put the compounding machine to work you.
The compounding machine doesn't sleep ,you do,
Stick to a budget( I used and still use Quicken)
Live beneath your means
Do not live "up" to income,pay off debt or invest the raise in 401k etc...
Keep debt to a minimum,Do not,I repeat ,Do Not become a slave to the lender.
Do your best to get a 15 year mortgage and pay that off early if possible
Do not buy more house "than you need"
When thinking about a large expense for something "sleep on it"
Pay cash.
Completely ignore what "The Jones family has".
If you have to have a car payment keep it low,buy used,or buy economical.
Keep the car for years.
Don't smoke.
Do not over indulge your children,,,,teach them the value of a dollar and what it takes to earn one.
Stay focused on your financial goal,,day after day ,week after week ,year after year,,,remember
It is a marathon,,not a sprint.
I would say "good luck",,but
Good luck usually falls on those who are prepared :sharebeer
This is gold.
Great List! I am no longer in your income category but was for a number of years. I, too, found keeping a strict eye on where every dollar was going in Quicken helped me tremendously.
One thing I would add is too be sure to properly assess ways of increasing your primary income (EG: If you are a corporate worker - Work Hard, Be Dedicated: Someone with a Great Work Ethic supersedes someone with higher intelligence any day!; Look for ways of advancement into higher paid positions - sometimes this first requires a sideways move; Look at programs like ESPP carefully - I am surprised folks here who speak very intelligently in some threads have improperly assessed these programs in others). It's a lot easier to save more money if you make more money.

scrabbler1
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by scrabbler1 » Thu Jan 10, 2019 11:51 am

Old_Dollar wrote:
Wed Jan 09, 2019 6:48 pm
Question for the under $100k income millionaires.

Do you have any regrets about missing out on some things in your younger adult years as a consequence of high savings rates?
Not at all. I never had extravagant tastes or interests, so I still did what I wanted to do. I always had a surplus which I saved. If I wanted to do something badly enough, I did it. All it meant was that my already very high savings rate would be a tiny bit lower.

KlangFool
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by KlangFool » Thu Jan 10, 2019 12:12 pm

yeahman wrote:
Thu Jan 10, 2019 11:39 am
KlangFool wrote:
Thu Jan 10, 2019 8:12 am
My annual expense is 60K with 2 kids. I am in the Northeast. So, it is a lie even with 1K per kid per month. Many of my peers have a 600K house. So, it is obvious that they cannot afford 2K per kid per month too.
Full-time daycare anywhere within 10 miles of me is more than $1k/month. And these aren't fancy places. Just the bare minimums. Granted, I live in the 2nd highest cost of living metro area. Can have a parent stay home but then our income would fall more than the cost of daycare.
yeahman,

1) If you do not earn enough to live a good life in this area, why do you choose to live there? Your choice your life.

2) If you cannot live a good life and save enough money, why would you live there? You are not paid well enough to live there.

<<Full-time daycare anywhere within 10 miles of me is more than $1k/month.>>

3) For folks that save first and spend later, they decide what to save and spend the rest. If they do not have enough money to pay $1K/month, they do not pay 1K per month.

<<Can have a parent stay home but then our income would fall more than the cost of daycare.>>

4) For lowered income folks, one parent stays home and they babysat other folks' kid too.

The big picture question here is if you have 1/3 less income, how would you live? Obviously, there are folks that live on 1/3 less income in your area. But, are you willing to live on that kind of lifestyle in order to save this amount of money.

I live in a very affluent neighborhood with a median annual household income of 150K. I choose to live in a cheaper aka below average section of this neighborhood. Hence, I get to use the good public school and facility but pay a lot less in return. Are you willing to live a below average lifestyle as compared to your income peers? That is the question.

If you choose to be average, you will save close to nothing. You will live in financial trouble like the average folks.

I am a first generation immigrant. I came from a culture where normal people save 30+% of their gross income. The 1/3 of their income disappear from every paycheck. They live on 2/3 of their income. Hence, it is easier for me. We do this by default.

KlangFool
Last edited by KlangFool on Thu Jan 10, 2019 12:16 pm, edited 1 time in total.

stoptothink
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by stoptothink » Thu Jan 10, 2019 12:15 pm

yeahman wrote:
Thu Jan 10, 2019 11:39 am
KlangFool wrote:
Thu Jan 10, 2019 8:12 am
My annual expense is 60K with 2 kids. I am in the Northeast. So, it is a lie even with 1K per kid per month. Many of my peers have a 600K house. So, it is obvious that they cannot afford 2K per kid per month too.
Full-time daycare anywhere within 10 miles of me is more than $1k/month. And these aren't fancy places. Just the bare minimums. Granted, I live in the 2nd highest cost of living metro area. Can have a parent stay home but then our income would fall more than the cost of daycare.
Same here, but that doesn't necessarily change anything. Daycare is only for a few years and approximately 23% of children under age 5 are even in any form of daycare https://www.americanprogress.org/issues ... hild-care/. If it costs $2k/month for you to raise your (single) child and you don't live in a VHCOL area and have a two-career-household, that's a choice. If that level of cost was the norm, about half of the households in the country would not be able to afford to have a single child.

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Abe
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Abe » Thu Jan 10, 2019 1:31 pm

crazycatman wrote:
Thu Jan 10, 2019 11:43 am
Abe wrote:
Wed Jan 09, 2019 5:47 pm
It never ceases to amaze me when I read post from people making $100k a year and more. I never earned $100k in my life. Best I can remember, the most I ever made was around $67k, and most years much less. Of course I can remember when the people across the street built a nice house for $12k. I'm retired now with a networth around $7.5 million, at least that's about what it was before the latest downturn. I can't really remember my age when I hit my first million, but it probably was in my early to mid forties. As too keys to success, I would say an extremely high savings rate had a lot to do with it and living below my means. You can't keep up with the Joneses if you want to get rich. I also got into investing in mortgages, which was very lucrative; and rental property investments. Some of these types of investments would be considered risky, but you have to take more risk if you expect to get higher returns. The risk I took were calculated risk that paid off. Every penny I invested stayed invested and compounded for many years. To this day I have never spent a penny of any money I invested except for rental income. I live on the income from rental properties and social security.
I'd love to hear about your journey with rental properties. I've got a post on here about it because my wife and I want to do the same thing - Invest in enough properties to be able to live on the rental income. Your story is inspiring!
I started buying rental properties back in the mid 70's. Back then they would let you assume FHA and VA loans. The first house I bought I paid $32k for it. I paid $3k down and assumed the $29k FHA loan. I eventually paid the loan off. I still own that house. The current tenants have been there for about 25 years. They pay their rent on the first of every month and they hardly ever call me. Wish I could say that about some of the other houses I own. I guess I could sell that house for around $125k now. Rental properties do have some headaches. There's always some type of repair that need to be done, and some people will pay their rent on time and some won't. It just goes with the territory. But everything is a tradeoff. I like having the income from the rentals coming in now, especially since I'm retired. I've sold some and will eventually sell the remaining ones I own.
Slow and steady wins the race.

Whakamole
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Whakamole » Thu Jan 10, 2019 1:33 pm

I make over $100K now - but nearly all of the foundation for becoming a millionaire started when I was making under that, in some cases well under that (tech didn't pay the silly salaries it does now when I graduated college.)

- Live below your means. Preferably well below. This helps you in two different ways: the difference between income and expenses can be invested, but also your "lower standard of living" means that a million will go a lot farther, and you'll be better able to weather storms. Once I was laid off and my expenses were low enough that I managed to still save money since unemployment benefits were more than enough to cover my expenses.
- Take advantage of your workplace 401(k) and IRA. If you think you won't be in a position to be a high earner due to your occupation, I'd use tax-deferred over Roth.
- Use low cost index funds, be it direct (S&P 500 fund, etc.) or a target date fund that uses index funds.
- Patience and willpower. All this is going to be hard. You're looking at a plan that requires a lot of sacrifice, maybe even rejection from peers who look down on someone driving an older car and bringing their lunch to work, and it's going to take a while. But you will get there.

I think the most difficult parts are LBYM (living below your means) and having the willpower to buck peer pressure to overspend. Most of that is easier said than done.

In some ways I think I was better off not making a very high salary when I graduated college - many new graduates I know live in expensive apartments and live an expensive lifestyle because they can afford it; I couldn't so got used to having a cheap apartment and driving economy cars.

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Abe
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Abe » Thu Jan 10, 2019 1:44 pm

JGoneRiding wrote:
Thu Jan 10, 2019 10:29 am
Do you need adopted children, grandkids, how about a dedicated animal care taker for when you pass???

Seriously you know there is no reward for richest guy in the graveyard right!

I am always saddened (though you didn't say) by how many people on here say no.kids like it's an achievement or something! Yes kids are expensive but they don't need to break the bank and they add so much joy and meaning to life. But without them you also run the risk of a lonely terrible end of.life. I have 3 aunt's with no kids though one has steps and think who is going to do for them all that they and my mom do for grandma.
Thanks for responding to my post JGoneRiding. You are right, there is no reward for the richest guy in the graveyard, but I actually enjoy what I do. You could say it's my hobby. You are also right about no kids. I didn't get married until later in life so I don't have any kids. I'm sure I wouldn't be as well off financially if I had kids.
Slow and steady wins the race.

international001
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by international001 » Thu Jan 10, 2019 2:08 pm

My little life wisdom
Take it as a long term diet. For it to work, you have to find health food that you enjoy
So find a lifestyle that you enjoy and doesn't cost much. Reading, doing sports, hang out with (frugal friends), ..

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Toons
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Toons » Thu Jan 10, 2019 2:10 pm

crazycatman wrote:
Thu Jan 10, 2019 11:39 am
Toons wrote:
Wed Jan 09, 2019 5:45 pm
Take advantage of all tax deferred ,tax free saving vehicles,Ira,Roth,401k,max if possible,
Invest you must.You have to put the compounding machine to work you.
The compounding machine doesn't sleep ,you do,
Stick to a budget( I used and still use Quicken)
Live beneath your means
Do not live "up" to income,pay off debt or invest the raise in 401k etc...
Keep debt to a minimum,Do not,I repeat ,Do Not become a slave to the lender.
Do your best to get a 15 year mortgage and pay that off early if possible
Do not buy more house "than you need"
When thinking about a large expense for something "sleep on it"
Pay cash.
Completely ignore what "The Jones family has".
If you have to have a car payment keep it low,buy used,or buy economical.
Keep the car for years.
Don't smoke.
Do not over indulge your children,,,,teach them the value of a dollar and what it takes to earn one.
Stay focused on your financial goal,,day after day ,week after week ,year after year,,,remember
It is a marathon,,not a sprint.
I would say "good luck",,but
Good luck usually falls on those who are prepared :sharebeer
This is gold.
Thanks Kindly crazycatman,,
Best
Toons :wink:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

international001
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by international001 » Thu Jan 10, 2019 2:22 pm

White Coat Investor wrote:
Wed Jan 09, 2019 7:10 pm
sergio wrote:
Wed Jan 09, 2019 4:05 pm
These are the most interesting posts IMO - the $80-120k/yr households with kids, no huge windfalls, etc. The one "benefit" of being in that income range is that you can get your taxes down pretty low, probably still qualify for some decent federal/state credits, if you save a lot.
I think it's just a continuum. The lower your income, the more "benefits" you get but the harder it is to reach financial goals. I've lived on $20K, 10 times that and 100 times that. I assure you this whole thing gets easier with higher income despite paying a lot more in tax. I have two friends who are continually arguing about the "ideal income." Their idea is that it is in the $250-400K range. I disagree. While I think there is an ideal for everyone (at some point your time is better spent doing something besides making money) since people exchange their time for money at different rates, there is no ideal income. If you got paid $10K an hour, why would you stop working for the year after just 40 hours? You're certainly not burned out. You probably don't have better things to do with ALL of that time.
Because leisure is a normal good ?

https://en.wikipedia.org/wiki/Labour_supply

FoolMeOnce
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by FoolMeOnce » Thu Jan 10, 2019 2:35 pm

KlangFool wrote:
Thu Jan 10, 2019 12:12 pm
<<Full-time daycare anywhere within 10 miles of me is more than $1k/month.>>

3) For folks that save first and spend later, they decide what to save and spend the rest. If they do not have enough money to pay $1K/month, they do not pay 1K per month.
In some areas, there is just no better option than expensive daycare. I don't think people should move because a temporary expenses will cut into their savings for a few years. If they would rather move than push retirement back a few years if it comes to that, sure. But it is perfectly reasonable to reduce savings for the temporary daycare years if necessary. This does not, in itself, make them bad savers.

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celia
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by celia » Thu Jan 10, 2019 2:45 pm

We started saving from the first jobs we had. Starting early and saving as much as you can (before house and kids) is the key, in my opinion. We didn't reach a million until we were retired in our 60s.

This was with a few layoffs (one year it was both of us at the same time [different job titles and industries] and we were both out of work for a year), taking 6 months off each time a kid was born without pay (good old days), going back to college for another degree (both of us), and paying for church-affiliated K-12 schools. Once everyone finished college, the mortgage was paid, and retirement accounts were a decent size, we retired with much lower expenses than when we were working. {This is my way of saying, don't give up if something makes you go backwards for a few years.}

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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by KlangFool » Thu Jan 10, 2019 3:19 pm

FoolMeOnce wrote:
Thu Jan 10, 2019 2:35 pm
KlangFool wrote:
Thu Jan 10, 2019 12:12 pm
<<Full-time daycare anywhere within 10 miles of me is more than $1k/month.>>

3) For folks that save first and spend later, they decide what to save and spend the rest. If they do not have enough money to pay $1K/month, they do not pay 1K per month.
In some areas, there is just no better option than expensive daycare. I don't think people should move because a temporary expenses will cut into their savings for a few years. If they would rather move than push retirement back a few years if it comes to that, sure. But it is perfectly reasonable to reduce savings for the temporary daycare years if necessary. This does not, in itself, make them bad savers.
FoolMeOnce,

Really? It usually starts with daycare and it goes downhill from there. It is an HCOL or VHCOL area for a reason. Kids will not get cheaper when they grow up. There will be other expenses.

How old are your kids?

KlangFool

dpa789kd
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by dpa789kd » Thu Jan 10, 2019 3:56 pm

38 and will make about $75k this year. Started this job at $30k in 2002 and thought I was making good money. I hit $1million net worth 5-6 years ago around age 32. I lucked out in many ways. I went to college in a nice college town with a strong rental market about an hour from home. I grew up doing a lot of hands on work so I had some decent skill sets for my age. My first boss convinced me to try to fix up a place to rent to me and my college roommates. I didn't have any credit so I talked my parents into buying a 4BR house for $80k that I put all the sweat equity into and me and my friends rented it. Long story short, I kept fixing things up after work and on weekends for a few years. Next thing I knew I had built up a significant portfolio of rentals. At 30 I got married and she made about the same as I did. We are both very frugal and enjoy working on things together. We focused on maxing out our tax advantaged accounts. We now have a combined income of about $160k. As of 2018 we have about $1million in investable assets and about $1.5million in real estate equity if I value it conservatively.

It really happened a lot quicker than I expected. Having a spouse who is on the same page and the dual income is a huge benefit. And she reigns me in when I get some hair brain idea that's way more than we should try to tackle.

Last year, after struggling for a few years, we had out first child. Now it's really hard for me to find motivation to work as much after hours when the alternative is picking her up at daycare and going to the park!

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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by FoolMeOnce » Thu Jan 10, 2019 4:08 pm

KlangFool wrote:
Thu Jan 10, 2019 3:19 pm
FoolMeOnce wrote:
Thu Jan 10, 2019 2:35 pm
KlangFool wrote:
Thu Jan 10, 2019 12:12 pm
<<Full-time daycare anywhere within 10 miles of me is more than $1k/month.>>

3) For folks that save first and spend later, they decide what to save and spend the rest. If they do not have enough money to pay $1K/month, they do not pay 1K per month.
In some areas, there is just no better option than expensive daycare. I don't think people should move because a temporary expenses will cut into their savings for a few years. If they would rather move than push retirement back a few years if it comes to that, sure. But it is perfectly reasonable to reduce savings for the temporary daycare years if necessary. This does not, in itself, make them bad savers.
FoolMeOnce,

Really? It usually starts with daycare and it goes downhill from there. It is an HCOL or VHCOL area for a reason. Kids will not get cheaper when they grow up. There will be other expenses.

How old are your kids?

KlangFool
Two kids not yet in kindergarten. Paying >3k/month for the both of them in daycare (we ended up at the most expensive one we looked at for convenience, but the others were pretty similarly priced. Just about every infant room in a reasonable radius/commute is at least $2k). Even with summers and after school care, costs will drop once they are in public school.

We can afford it and I don't really fit what the OP is looking for, so I'd rather not drift further off topic. Just wanted to say that some people don't have a better option than $1k/mo/kid daycare expenses; not everyone can "not pay 1K per month" without moving.

KlangFool
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by KlangFool » Thu Jan 10, 2019 4:17 pm

FoolMeOnce wrote:
Thu Jan 10, 2019 4:08 pm

Two kids not yet in kindergarten. Paying >3k/month for the both of them in daycare (we ended up at the most expensive one we looked at for convenience, but the others were pretty similarly priced. Just about every infant room in a reasonable radius/commute is at least $2k). Even with summers and after school care, costs will drop once they are in public school.

We can afford it and I don't really fit what the OP is looking for, so I'd rather not drift further off topic. Just wanted to say that some people don't have a better option than $1k/mo/kid daycare expenses; not everyone can "not pay 1K per month" without moving.
FoolMeOnce,

<< Even with summers and after school care, costs will drop once they are in public school.>>

You assume that the cost will drop. Yes, the childcare side will drop but something else will show up to eat up the cost.

<<We can afford it and I don't really fit what the OP is looking for,>>

Then, you are paid well enough to live there. If not, you will move.

KlangFool

veggivet
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by veggivet » Thu Jan 10, 2019 4:50 pm

Started off on the right foot when my dad established an IRA for me while I was in high school. (Thanks, Dad!)
Attended a relatively inexpensive state university and graduated debt-free.
Attended an in-state veterinary college, and graduated with only 20k of debt, which I paid off in 4 or 5 years.
Maxed out retirement accounts annually, with 100% equity exposure. Accelerated contributions during down markets, especially during the dot com bubble and 2007-08. No bonds until around 10 years ago.
Never took out any car loans; held on to cars for a while, and took good care of them.
Always paid credit card bills in full every month.
In general, lived below my means; no extravagant vacations or attempt to keep up with the Joneses.
Only had one child, who also attended a relatively inexpensive state university.
Got lucky with a couple of individual stocks along the way.

Don't recall exactly when I entered two comma territory.

Full disclosure: There were a few peak earning years where I surpassed 100k, but overall average is below your cutoff.
If you watch your pennies, your dollars will take care of themselves.

lexie2000
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by lexie2000 » Thu Jan 10, 2019 7:46 pm

We hit double commas in 2000. We had been out of college for 18 yrs. and single income for 11 of those 18. DH's income that year was $64K.

We lived WAY below our means. Example: When we bought our starter home we used only half our savings for our down payment and used the other half for a healthy EF.

We never paid interest on anything but a mortgage. We bought our starter home when mortgage interest rates were 11.25%. We refinanced when the rates dropped and paid off that mortgage in 10 years. Paying interest on anything else was anathema.

We started saving for retirement when we were 23. We maxed out the profit sharing program (which was after tax) which was eventually replaced by a 401k in 1983 or 1984. We did some risky trading in our early years.

We waited 8 yrs. to start a family and had one child. We wanted to make sure that we were financially stable before having kids.

We did not try to keep up with the Joneses. Example: When we first started at megacorp a lot of our contemporaries were leasing BMWs and Mercedes. We didn't drink the Kool-Aid and saved our money instead.

We took some pretty decent vacations along the way - Jamaica, Caribbean cruise, Mexican cruise, houseboat, cabin on the lake, Disneyland and other amusement parks etc., but mostly took road trips to visit family.

We rarely paid retail for anything. We always looked for sales on groceries, clothes, household items, etc.

When we bought a big ticket item (example: furniture) we bought quality and kept it for decades. We have several sets/pieces of furniture that are over 3 decades old.

DH reached 100K in salary by 2005 and retired in 2013 at age 56.

We learned quite early that having "stuff" doesn't equate to happiness.

dmk395
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by dmk395 » Thu Jan 10, 2019 7:50 pm

No kids, lived below means. Biggest thing though was getting into real estate at a young age.

Darwin
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Darwin » Thu Jan 10, 2019 8:01 pm

scrabbler1 wrote:
Thu Jan 10, 2019 11:51 am
Old_Dollar wrote:
Wed Jan 09, 2019 6:48 pm
Question for the under $100k income millionaires.

Do you have any regrets about missing out on some things in your younger adult years as a consequence of high savings rates?
Not at all. I never had extravagant tastes or interests, so I still did what I wanted to do. I always had a surplus which I saved. If I wanted to do something badly enough, I did it. All it meant was that my already very high savings rate would be a tiny bit lower.
Same for me. When I had the option of working weekends for overtime, I'd count those hours and put 1/3 of the savings towards my yearly travel budget as an incentive. The remaining 2/3 went to savings. I've travelled every year (I admit, we have no children). I still strap on the old backpack when it's time to hit the road and stay mostly in hostels. I guess I could occasionally stay in 5-stars, but there's something instinctual about not...
I bring it up because those instincts are the same ones that can result in a moderate- income couple being able to be financially secure before retirement age. But as folks before have mentioned, it takes time. And the right partner! 😋

Barefoot
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Barefoot » Thu Jan 10, 2019 8:10 pm

I retired last year at 60. I don't know what my net worth is , but my retirement account is into 2 comma territory. I made over 6 figures at the end of my career, but only in the last few years.

We always lived beneath our means. Against the normal rule we spend what we want and save what's left over.

We applied the "save half of every raise" policy, and it served us well. I increased retirement savings without feeling it in the pocketbook.

We have 2 kids who are out of college and in the real world with no debt.

We buy cars new, but keep them a long time. Last time we bought a car was 2010.

Who knows what the future will bring, but my secret, if you want to call it that, is time in the market.

Darwin
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Darwin » Thu Jan 10, 2019 8:49 pm

bigtex wrote:
Wed Jan 09, 2019 3:05 pm
Just looking for the millionaires on here that did it on less than a $100k average annual household income, and what your main keys to success were? Also, if you wouldn't mind posting at what age you achieved this milestone and any other relevant facts. Thanks!
It's kinda funny to read some of these replies...
As some have mentioned, one's age changes the meaning of the question:
100k was worth a LOT more as you look further back in time. Considering it in "today's dollars" might level this.
The life choices have effects too (children, number of working folks in the household, geographic location etc).
Starting positions are also varied: parents launching you in college/housing/business/falling-on-your-face insurance.
I feel this difference on a personal level, having started at age 16 as a homeless kid living on the streets...
Pretty hard to quantify!

crit
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by crit » Thu Jan 10, 2019 9:39 pm

As is always true on the interwebs, I'll answer even though we don't really qualify. That is, I think we won't hit 1M until next year, and our income now is over triple your requirement.

But that's the point. Over the last ten years, our average income would be less than $100k, and here we are closing in on 1M, and that is because: our lifestyle was pretty well set in stone before the income happened, including the things that make us happy. So when extra money came in, we just shrugged and threw it at another low cost index fund.

In very simple terms, live within your means to start with, and avoid lifestyle creep. After that, just see #2, throw it in the bank and forget about it, and it'll pile up.

bltn
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by bltn » Thu Jan 10, 2019 10:10 pm

Abe wrote:
Wed Jan 09, 2019 5:47 pm
It never ceases to amaze me when I read post from people making $100k a year and more. I never earned $100k in my life. Best I can remember, the most I ever made was around $67k, and most years much less. Of course I can remember when the people across the street built a nice house for $12k. I'm retired now with a networth around $7.5 million, at least that's about what it was before the latest downturn. I can't really remember my age when I hit my first million, but it probably was in my early to mid forties. As too keys to success, I would say an extremely high savings rate had a lot to do with it and living below my means. You can't keep up with the Joneses if you want to get rich. I also got into investing in mortgages, which was very lucrative; and rental property investments. Some of these types of investments would be considered risky, but you have to take more risk if you expect to get higher returns. The risk I took were calculated risk that paid off. Every penny I invested stayed invested and compounded for many years. To this day I have never spent a penny of any money I invested except for rental income. I live on the income from rental properties and social security.
Abe
Very impressive.
As I was reading your post and saw your figures for net income and net worth , I was scratching my head. Then I saw your investment types and I realized how you did this with the leverage of real estate investing. Very well done.
Reminds me of a friend of mine who works as an insurance agent in a small town, and has accumulated about 60 rental houses over the years, now all clear of mortgages. Still acquiring new properties, probably for cash.
My experience with a single rental house years ago was so dismal, I got out of that as quickly as I could, and never considered single family rentals again!
That kind of investing is harder than it looks.
I realized after a number of trial investments with potential high returns that didn't t work out, if I continued to save a large portion of my income, 30-40%, and invest passively in the stock market, with time, I would be all right. Even with all the typical family expenses of colleges, wedding , graduate schools with a single income family. Stick to a budget and continually dollar cost average into index funds. Not flashy but it works for those of us unable to bring any unusual skills to the investing table.

dknightd
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by dknightd » Fri Jan 11, 2019 7:06 am

LiterallyIronic wrote:
Thu Jan 10, 2019 11:00 am
Parent here. Wife stays at home with the toddler. Income is $75k. Saving 26% of gross (not counting employer match) and paying extra on the mortgage. Don't think we'll make it to the one million dollar club.
If you keep saving 26% of your salary for 30 years you probably will end up a millionaire.

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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Grt2bOutdoors » Fri Jan 11, 2019 7:35 am

JGoneRiding wrote:
Thu Jan 10, 2019 10:29 am


I am always saddened (though you didn't say) by how many people on here say no.kids like it's an achievement or something! Yes kids are expensive but they don't need to break the bank and they add so much joy and meaning to life. But without them you also run the risk of a lonely terrible end of.life.

I dont meet the OP qualifications but we are on our way. Could be a lot further if we curtailed life style a touch more, and the second kid is going to cost a bit more but worth it!
+1. And those who highlight the “no kids like a badge of achievement” seem to forget they themselves were once a kid.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Grt2bOutdoors » Fri Jan 11, 2019 7:50 am

lostdog wrote:
Thu Jan 10, 2019 11:06 am
If you listen to Dave Ramsey, listen to the Millionaire theme hours. Good stuff!
That and the Debt Free scream!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

ddurrett896
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by ddurrett896 » Fri Jan 11, 2019 7:55 am

dpa789kd wrote:
Thu Jan 10, 2019 3:56 pm
Now it's really hard for me to find motivation to work as much after hours when the alternative is picking her up at daycare and going to the park!
Have 2 more kids, then the motivation to work more will come back :D

Great story!

dpa789kd
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by dpa789kd » Fri Jan 11, 2019 8:15 am

Grt2bOutdoors wrote:
Fri Jan 11, 2019 7:35 am
JGoneRiding wrote:
Thu Jan 10, 2019 10:29 am


I am always saddened (though you didn't say) by how many people on here say no.kids like it's an achievement or something! Yes kids are expensive but they don't need to break the bank and they add so much joy and meaning to life. But without them you also run the risk of a lonely terrible end of.life.

I dont meet the OP qualifications but we are on our way. Could be a lot further if we curtailed life style a touch more, and the second kid is going to cost a bit more but worth it!
+1. And those who highlight the “no kids like a badge of achievement” seem to forget they themselves were once a kid.
I was in that boat until a couple years ago. Loved having my niece and nephew over for a weekend but it just wore me out and I told my wife I could be perfectly content with no kids. She talked me into having one a couple years ago and man was I wrong. They definitely are allot of work but it makes all the problems I encounter day to day seem insignificant, and there's nothing better than spending time with her and watching each new milestone. I still think there's nothing wrong with not wanting them. They are a ton of work and definitely change your life, but some people act like others are crazy for having them.

scrabbler1
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by scrabbler1 » Fri Jan 11, 2019 8:17 am

Grt2bOutdoors wrote:
Fri Jan 11, 2019 7:35 am
JGoneRiding wrote:
Thu Jan 10, 2019 10:29 am


I am always saddened (though you didn't say) by how many people on here say no.kids like it's an achievement or something! Yes kids are expensive but they don't need to break the bank and they add so much joy and meaning to life. But without them you also run the risk of a lonely terrible end of.life.

I dont meet the OP qualifications but we are on our way. Could be a lot further if we curtailed life style a touch more, and the second kid is going to cost a bit more but worth it!
+1. And those who highlight the “no kids like a badge of achievement” seem to forget they themselves were once a kid.
What does that have to do with anything? In my childfree world, the phrase, "you were a kid once" is what we call a "bingo," those tired, overused sayings we hear way too often to try to belittle those of us who choose not to have kids.

Going against society's norms and living that part of the "Life Script" can be difficult because we have to face some bad treatment from family, coworkers, religion, etc. Just like how those of us here in BH-land have to go against the grain when it comes to investing, saving, and spending.

The OP asked us how those of us with low incomes became millionaires and we are answering his question. Being childfree is part of our answers.

Nowizard
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Nowizard » Fri Jan 11, 2019 8:30 am

No secrets, and no feeling of having sacrificed. When you grow up with little in the way of physical things but with parents who were frugal by necessity but balanced in their perspective of never seeing themselves as having less than others, you develop an awareness that your adult finances are not ostentatious but better than during your childhood. In other words, you develop an attitude toward the role money plays in your life (And occasionally shaking your head at others who earn similar or greater amounts, spending it all as quickly as it is earned). It is important to not compare yourself to others who may have received (Or anticipate) significant inheritances or monetary gifts and establish a consistent approach to investing. By doing so, you do not guarantee the outcome but control the process.
Beyond that, living in a LCOL area, starting to save early, having blind luck with early investments and gradually developing a more disciplined approach to investing is the explanation. Though results have been very good, there is no feeling that "anyone can do it" or disdain for those who work just as hard but with less success. Hard work is important but a good attitude toward a balanced life, early saving, having started saving during a time when the market was doing very well are keys. However, luck and never experiencing a job lay-off or unexpected, serious illness cannot be discounted.
Tim

RadAudit
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by RadAudit » Fri Jan 11, 2019 8:40 am

scrabbler1 wrote:
Fri Jan 11, 2019 8:17 am
The OP asked us how those of us with low incomes became millionaires and we are answering his question.
As is oft quoted on this forum - Their are many roads to Dublin.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

LiterallyIronic
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by LiterallyIronic » Fri Jan 11, 2019 9:56 am

dknightd wrote:
Fri Jan 11, 2019 7:06 am
LiterallyIronic wrote:
Thu Jan 10, 2019 11:00 am
Parent here. Wife stays at home with the toddler. Income is $75k. Saving 26% of gross (not counting employer match) and paying extra on the mortgage. Don't think we'll make it to the one million dollar club.
If you keep saving 26% of your salary for 30 years you probably will end up a millionaire.
Yeah, probably, but 30 years from now, I'll be 65. I didn't finish university until I was 32 and I'd like to retire at 50. So I'm trying to limit myself to an 18-year career.

dknightd
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by dknightd » Fri Jan 11, 2019 10:23 am

LiterallyIronic wrote:
Fri Jan 11, 2019 9:56 am
dknightd wrote:
Fri Jan 11, 2019 7:06 am
LiterallyIronic wrote:
Thu Jan 10, 2019 11:00 am
Parent here. Wife stays at home with the toddler. Income is $75k. Saving 26% of gross (not counting employer match) and paying extra on the mortgage. Don't think we'll make it to the one million dollar club.
If you keep saving 26% of your salary for 30 years you probably will end up a millionaire.
Yeah, probably, but 30 years from now, I'll be 65. I didn't finish university until I was 32 and I'd like to retire at 50. So I'm trying to limit myself to an 18-year career.
I finished school at 30. One wife, two kids. Stay at home mom for most of the time. I expect to retire this year at 61. Expecting to retire after only 18 year career is pushing it. You'd probably have to save 1/2 your income.

ps. I would not retire until your toddler was able to take care of themselves.
pss. I think as reasonably intelligent people it is our responsibility to have kids.
Last edited by dknightd on Fri Jan 11, 2019 10:41 am, edited 1 time in total.

international001
Posts: 561
Joined: Thu Feb 15, 2018 7:31 pm

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by international001 » Fri Jan 11, 2019 10:40 am

For all that show your frugality medals... Hope you get to spend it in retirement. Otherwise it would have been such a high opportunity cost of leisure. Unless you count frugality under leisure itself.

LiterallyIronic
Posts: 953
Joined: Sat Dec 05, 2015 10:36 am

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by LiterallyIronic » Fri Jan 11, 2019 10:53 am

dknightd wrote:
Fri Jan 11, 2019 10:23 am
LiterallyIronic wrote:
Fri Jan 11, 2019 9:56 am
dknightd wrote:
Fri Jan 11, 2019 7:06 am
LiterallyIronic wrote:
Thu Jan 10, 2019 11:00 am
Parent here. Wife stays at home with the toddler. Income is $75k. Saving 26% of gross (not counting employer match) and paying extra on the mortgage. Don't think we'll make it to the one million dollar club.
If you keep saving 26% of your salary for 30 years you probably will end up a millionaire.
Yeah, probably, but 30 years from now, I'll be 65. I didn't finish university until I was 32 and I'd like to retire at 50. So I'm trying to limit myself to an 18-year career.
I finished school at 30. One wife, two kids. Stay at home mom for most of the time. I expect to retire this year at 61. Expecting to retire after only 18 year career is pushing it. You'd probably have to save 1/2 your income.

ps. I would not retire until your toddler was able to take care of themselves.
pss. I think as reasonably intelligent people it is our responsibility to have kids.
Agreed, it's going to be pushing it, but I think we can make it. Currently at $64k saved; needing to get to $600k (to have a 4% SWR of $24k/year) saved by 50 (15 years from now). Based on our current saving of $2,000/month (including employer match that vests immediately), my math says we'll get there in time if the market returns 4% per year - assuming I did my math correctly. If not, maybe I'll just make my wife work for four more years, since when I'm 50, she'll only be 46. :P

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