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

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

Post by dknightd » Fri Jan 11, 2019 10:58 am

international001 wrote:
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.
If you save 20-25% of your salary, you can have leisure now, and in the future. The best of both worlds ;)

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

Post by Dottie57 » Fri Jan 11, 2019 11:30 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.
+1

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

Post by Dottie57 » Fri Jan 11, 2019 11:41 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.
Some people are not made to be parents. I am very much an introvert and enjoy solitary pursuits. Never married. I like kids but with their parents. I would have needed a very strong spouse to deal with kids. No badge here, just the sense to know I would not be the a great parent.

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

Post by JGoneRiding » Fri Jan 11, 2019 3:20 pm

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.
If you can keep it up yes you will! Your child is a toddler so you have what 20 yr more to save. At that rate you will totally make it.

Hug401k
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by Hug401k » Fri Jan 11, 2019 4:58 pm

I got my first job in downtown Boston after college. I was making $20,000 in 1994. Even then, I had no idea how I would survive in such a HCOL area for so little, but I lived like a college kid (maybe worse). BUT I always set up a savings account on the side that payroll deductions were automatically sent to. I remember in 1994, it was $25 a week and I worked overtime to make up for it. Then I started contributing 3% to my 401k. (I'm too cheap to pass up free money in match). I just kept this habit up. I'd increase it every time i got a raise- first the 401k % and the savings percent. If I got any type of bonus it went into savings and I pretend it didn't exist. It was always 1) PAY YOURSELF FIRST 2) Put it somewhere where you can't access it when the mood strikes. (thank god I didn't have mobile banking then). I literally never carried the debit card around for the account. It stayed in a drawer. I practically hid it and pretended it didn't exist. 3) Live on what you have left. 4) Pay down debt and don't keep a credit card balance. Don't give your self lifestyle creep, give your bank account lifestyle creep.

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

Post by yourrealdad » Fri Jan 11, 2019 9:22 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!
crazycatman, will you link that post? Same here. I am 30 and want to put together a good plan to pay off our homes quickly, and then rent them as we move on. Hopefully have 2 or 3 paid off rentals by retirement.

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dwickenh
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Location: Illinois

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

Post by dwickenh » Fri Jan 11, 2019 9:41 pm

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
A great post, and probably the longest post I have seen from a man of few words!!

:sharebeer
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

TheHouse7
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Location: Washington State

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

Post by TheHouse7 » Fri Jan 11, 2019 9:41 pm

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.
Same story here, you guys will make it, inflation, raises, and compounding!

:beer
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.

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

Post by HEDGEFUNDIE » Fri Jan 11, 2019 9:49 pm

TheHouse7 wrote:
Fri Jan 11, 2019 9:41 pm
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.
Same story here, you guys will make it, inflation, raises, and compounding!

:beer
Inflation, lol. $1M is not what it used to be.

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Toons
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Location: Hills of Tennessee

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

Post by Toons » Sat Jan 12, 2019 4:58 pm

dwickenh wrote:
Fri Jan 11, 2019 9:41 pm
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
A great post, and probably the longest post I have seen from a man of few words!!

:sharebeer
Thanks Kindly,
It worked for us,,
I had to elaborate
:sharebeer :sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

KlangFool
Posts: 11109
Joined: Sat Oct 11, 2008 12:35 pm

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

Post by KlangFool » Sat Jan 12, 2019 5:24 pm

HEDGEFUNDIE wrote:
Fri Jan 11, 2019 9:49 pm
TheHouse7 wrote:
Fri Jan 11, 2019 9:41 pm
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.
Same story here, you guys will make it, inflation, raises, and compounding!

:beer
Inflation, lol. $1M is not what it used to be.
HEDGEFUNDIE,

For someone with an annual expense of 20K, it is good enough to FI. Meanwhile, it is not good enough for someone that spends 100K per year.

<<$1M is not what it used to be.>>

1M always has the same meaning in relation to someone's annual expense.

KlangFool

crazycatman
Posts: 42
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by crazycatman » Sun Jan 13, 2019 12:07 am

yourrealdad wrote:
Fri Jan 11, 2019 9:22 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!
crazycatman, will you link that post? Same here. I am 30 and want to put together a good plan to pay off our homes quickly, and then rent them as we move on. Hopefully have 2 or 3 paid off rentals by retirement.
Sure! Here you go: viewtopic.php?t=268831

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 » Sun Jan 13, 2019 5:08 am

dknightd wrote:
Fri Jan 11, 2019 10:58 am
international001 wrote:
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.
If you save 20-25% of your salary, you can have leisure now, and in the future. The best of both worlds ;)
That's fine.. but I'm hearing lots of posts saying how little traveling they did before retirement and how much they did after it

$1M for $100k salary is fine, but if you do it a very early age it sounds like you don't like enjoying life at all.

ponyboy
Posts: 624
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Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Post by ponyboy » Sun Jan 13, 2019 5:31 am

Im 35, never made over $63k/year...and my account total around $520k at the moment.

Im not a millionaire yet, but well on my way. Ive always been a saver, even in high school. STarted investing heavily when in 2006, maxing 401k/roth. 2018 was the first year since 2006 that I didnt max my 401k, took a new job, actually lower pay.

Save often, live below your means. The recipe is boring for the most part. I play the long game. I never needed instant gratification. I knew I would never get rich quick.

My wife is making significantly more than I am now. Her current investments/savings are approx $350k. She sat on the sidelines for 5 years as she got her Phd. But, it wont be too long before her accounts pass mine, which will be a great day!

ponyboy
Posts: 624
Joined: Fri Feb 06, 2015 10:39 am

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

Post by ponyboy » Sun Jan 13, 2019 5:46 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 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 think its odd that people view kids as people who may or may not take care of them when they get older. I never understood that viewpoint. Or those who say how lonely they will be when they get old if they do not have kids to visit.

I can straight up say that I rarely see parents who look genuinely happy about having kids. Not grown adult "kids", but kids who still require a lot of attention, I guess any under 12 years old. All the parents look run down, you can see it affect their relationships with their spouse. But, because society sets standards for what is the "norm," people think they have to have kids to have some fulfilled lifestyle.

If you want to have kids, go for it. If you do not want to have kids, then dont. For anyone to say you have to have kids to have a better life...yikes. I cant really say what I want or id get banned.

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

Post by dknightd » Sun Jan 13, 2019 8:48 am

international001 wrote:
Sun Jan 13, 2019 5:08 am

That's fine.. but I'm hearing lots of posts saying how little traveling they did before retirement and how much they did after it

$1M for $100k salary is fine, but if you do it a very early age it sounds like you don't like enjoying life at all.
You can have a lot of fun for not a lot of money. It just depends on what you want to do. I've taken many fun enjoyable trips while I was young. Many of these were doing things I probably will not be able to do in retirement. I agree with your premise - you should balance your life today, with the life you may have in the future.

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 » Sun Jan 13, 2019 3:56 pm

dknightd wrote:
Sun Jan 13, 2019 8:48 am
international001 wrote:
Sun Jan 13, 2019 5:08 am

That's fine.. but I'm hearing lots of posts saying how little traveling they did before retirement and how much they did after it

$1M for $100k salary is fine, but if you do it a very early age it sounds like you don't like enjoying life at all.
You can have a lot of fun for not a lot of money. It just depends on what you want to do. I've taken many fun enjoyable trips while I was young. Many of these were doing things I probably will not be able to do in retirement. I agree with your premise - you should balance your life today, with the life you may have in the future.
Yes.. and going against myself, I find that often when you are young you can have more fun when you are young with much less money. Perhaps because on older age you value much more the conveniences/luxuries that tend to be overpriced.
In any case, it's good to diversify your leisure options over time.

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 » Sun Jan 13, 2019 3:58 pm

ponyboy wrote:
Sun Jan 13, 2019 5:31 am
Im 35, never made over $63k/year...and my account total around $520k at the moment.

Im not a millionaire yet, but well on my way. Ive always been a saver, even in high school. STarted investing heavily when in 2006, maxing 401k/roth. 2018 was the first year since 2006 that I didnt max my 401k, took a new job, actually lower pay.

Save often, live below your means. The recipe is boring for the most part. I play the long game. I never needed instant gratification. I knew I would never get rich quick.

My wife is making significantly more than I am now. Her current investments/savings are approx $350k. She sat on the sidelines for 5 years as she got her Phd. But, it wont be too long before her accounts pass mine, which will be a great day!
So when did you start saving and how much did you save? Either you lived with your parents or you really timed the market.

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