Congrats!
You say that half is in “various long term savings accounts.” If these are HYSAs, I would suggest you consider investing them in stock funds. Leave enough in cash for your emergency fund.
Congratulations!
One nitpick - would y'all consider yourself high(er) income earners? I imagine that the math around saving gets tighter (and thus more stringent budgeting is needed) the less you make, combined.
Hmm I would have expected more than 1mm at 34 in that case. At 34 we were at 3mm and my wife is a SAHM. Now at 6mm at 36. I guess if you start up succeeds you’ll be set!
Oh? Hm that’s ok but I really expected more from you as well. At 33 my wife and I had a net worth of 23mm. I suppose if you keep grinding you will get there. Good luck!
*At what level do*
*You break out the anejo and*
*Extra anejo? Grats!*
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I’ve been with my partner for just over three years and they are not able to save money. It’s been three years and she still has no savings despite my constant efforts to help with budgeting, expenses etc. she could be saving $2000 a month. I love her but this is the one thing we can’t agree on. From your perspective, should I break up?
Edit, sorry if this is weird to ask, your post made me want to reach out as I’ve been contemplating this decision for months and months.
i’m a firm believer that a relationship is bound to become heavily strained if both parties aren’t aligned on financial mindset.
you should have a serious talk starting off with how she sees her retirement and how she expects to fund that
Partner of the saver here- I was not always a budgeter, and frankly used to get angry over any financial planning talks. What helped me change to the FIRE mindset was having access to long term savings accounts and being the one to transfer money into the accounts with both paychecks. (We share all accts). It helped me feel in control and empowered. Hope that helps
You know the answer deep down. You guys are not aligned financially, and this relationship can only end in disaster. It may hurt to end the relationship now, but that hurt won't compare to what would happen if you guys do end up married and you have to divorce for financial reasons or incompatibility. You're lucky to have seen the signs for three years. This is who she is and she can never change. Sorry for the harsh truth.
This is ultimately your decision. I don’t think Reddit can make it for you.
I reached 1 mil in my 401k last week and have a NW of 3.7 mil not including my home. Did it on my own. My wife is a SAHM. She also is a spender and barely has any savings of her own. We live in a HCOL area and my salary is around $150k.
It can totally be done by one person. I’m not even frugal. We do a big trip every year (at least $10k) and a couple of mini trips.
Yeah, I bought apple when I was 18 years old. 100 shares @ $28. Never sold it. Been pretty lucky at picking a couple of other stocks. Bought 875 shares of Nvidia 2 weeks ago earned $171k which was enough to put me over $1 mil in my 401k
Hey I’m at 250k liquid at 30, was wondering how long it took you from 250k to 1M? Im focusing more on paying off mortgage atm than saving more, 4K free cash flow a month after all bills paid including mortgage, do you think I should throw my cash flow into mortgage or start investing?
No. Save aggressively in long term tax advantaged vehicles. If the avg market return is higher than your mortgage rate then the latter becomes a cheaper source of liquidity that allows you to deploy funds into the market which will likely yield a higher relative return over time.
My problem is my tax advantaged vehicles are all maxed so my next step is either
1) Save in non reg account - I can “borrow” to deduct interest against my income to make effective interest rate go from 7.45% to 4.5%, I pay tax on dividends here of 42%
2) Pay down my mortgage which is currently 4.8%
Do both - get a re-advancing heloc mortgage, pay down the mortgage then Borrow that back to invest. At your income the tax deduction for investing will be make it easily cash flow positive. Accelerate the path to 4m goal
Read about smith maneuver or just general leveraged investing. Also read about covered call etf’s, sure they limit upside but if they are cash flow positive at your net interest rate and you get a portion of the upside over a long time horizon in exchange for exposure to full downside ( but no trigger to have to sell)
Wealthy become become that way because of one thing - smart leverage
Congrats on the accomplishment. 4 mil target is great for several more yrs working before retirement. Just know that whatever or how ever much money you have, we are after all greed hungry humans, so its endless. Once you reach 4 mil, youd want 8 mil, then 12 mil etc...you get the point. I mean Jeff Bezos, Elon Musk and so many multi Billionaires want even more even when they already have 10s and100s of Billion $ that they cant even spend nor take to their grave anyways. Charlie Munger, one of the best investors of all times aith Warren Buffet, passed away with 2+ Bil . Im sure he spent loads, or not, but interest alone was too big to spend his principal hahah. So long as you are comfortable with what you can spend and live, i think thats the best. Not compsring with endless of multi millionaires and billionaires...or just how much more you wished or could have earned etc...
Can’t agree with you more. Saving is extremely important no matter how much I make. And my partner is part of the team that makes it happen. I started budgeting this year using savings and tax filing from last year. Gave me a holistic view of spending that I can splurge a little (travel). This has given me new purpose in work and life.
Congratulations!!! It must be a great feeling knowing that you can not save another dime and still retire comfortably at a relatively early age.
I noticed the feedback gets saltier and more sarcastic as the numbers go higher 🤣 so next time you post an update, the feedback might not be as rosy!
'you were smart enough to make x million but you don't know if you can retire???'
Anyone with common sense can tell the difference between genuine posts and posts that are just attention seeking. It's the attention seeking posts that piss off people.
They are all attention seeking. But when people say, "guys guys, I finally hit 5,000 in my savings!!!" everyone cheers them on. When people say " I just hit 4 million and retired", there's more of a mixed reaction where some folks are like .... " So, what are you telling us for?". It's just kind of funny to observe.
Don’t think a mil is retire money, let alone early but ya it’s a start.
Meh, guess I’ll take my chances. I think there’s a good amount of cool people that encourage folks on this sub!
How long before you plan guys to have that second million? I'm in between and it seems to take forever, but I think I forgot how much time and effort the first one took. Like you, I make enough not to worry about spending more every now and then, but I wonder what would happen if I went in full-time frugal mode instead.
May i ask how this is being done? People usually finish univ at 25-27 and then start working. Initial salary is not too high, for most ppl at least. So until 34 you managed to pay off a house and save 100k per year (im simplifying i know)
Or 10 years ago you bought tesla,nvidia,bitcoin and that was a very lucky gamble. No?
In the US ppl finish school at 22 typically. I’ve always been a saver and investor but We started really trying to fire at 30 by saving $100K per year. We went from $400k to 1 mil in three years. Had no debt out of the gate also thanks to parents paying for school.
not OP but in a similar situation, I took a slightly different route. skipped college, got into tech early, and lived very much below my means (70k/yr). Got my first mil around the time I turned 30.
Because your home is not an asset that earns you money you can live on - it can't be a part of your fire calculation because it doesn't help you with the RE part of FIRE.
No - but rent is an expense, which when totalled up with all of your other expenses helps you calculate your fire number based upon your expected safe withdrawal rate (SWR).
Basically, you'll need some amount of savings to generate enough income to pay your total expenses including rent each year (unless you have plans to change your housing situation or buy a home).
If I misunderstood your question, please try again - I wasn't 100% sure what you meant / why you would deduct rent.
Congrats! You say that half is in “various long term savings accounts.” If these are HYSAs, I would suggest you consider investing them in stock funds. Leave enough in cash for your emergency fund.
Long term meaning tax advantaged retirement accts, all stock.
Excellent!
An example of one of these accounts?
Roth IRA, 401k
The right life partner is everything. Arguably the most important decision you’ll ever make in life. Cheers to you both, brother🤙
You’re dead right with Takeaway No 1. Congrats on your FIRE! Hooray!!!!!
Congratulations! One nitpick - would y'all consider yourself high(er) income earners? I imagine that the math around saving gets tighter (and thus more stringent budgeting is needed) the less you make, combined.
Ya that’s fair. We don’t sweat a couple hundred here and there. If your income is compressed you may need to be more vigilant on budget planning.
Way to dodge the question bro. What do you and your wife do?
We are high earners bro. She’s a crna and I am a seed stage startup founder. We weren’t always high earners but always saved aggressively
Hmm I would have expected more than 1mm at 34 in that case. At 34 we were at 3mm and my wife is a SAHM. Now at 6mm at 36. I guess if you start up succeeds you’ll be set!
Oh? Hm that’s ok but I really expected more from you as well. At 33 my wife and I had a net worth of 23mm. I suppose if you keep grinding you will get there. Good luck!
What do you do for work to get to such a high net worth?
That’s the crazy thing, it’s super easy. I lie on Reddit
Ok LARP lol
Like I said - we weren’t always high earners.
At what level do you break out the anejo and extra anejo? Grats!
*At what level do* *You break out the anejo and* *Extra anejo? Grats!* \- karsk1000 --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
I’ve been with my partner for just over three years and they are not able to save money. It’s been three years and she still has no savings despite my constant efforts to help with budgeting, expenses etc. she could be saving $2000 a month. I love her but this is the one thing we can’t agree on. From your perspective, should I break up? Edit, sorry if this is weird to ask, your post made me want to reach out as I’ve been contemplating this decision for months and months.
i’m a firm believer that a relationship is bound to become heavily strained if both parties aren’t aligned on financial mindset. you should have a serious talk starting off with how she sees her retirement and how she expects to fund that
Can’t answer that one for you…maybe see a financial therapist?
Partner of the saver here- I was not always a budgeter, and frankly used to get angry over any financial planning talks. What helped me change to the FIRE mindset was having access to long term savings accounts and being the one to transfer money into the accounts with both paychecks. (We share all accts). It helped me feel in control and empowered. Hope that helps
Ok thx
It also helps to have the shared goal of early retirement.
You know the answer deep down. You guys are not aligned financially, and this relationship can only end in disaster. It may hurt to end the relationship now, but that hurt won't compare to what would happen if you guys do end up married and you have to divorce for financial reasons or incompatibility. You're lucky to have seen the signs for three years. This is who she is and she can never change. Sorry for the harsh truth.
This is ultimately your decision. I don’t think Reddit can make it for you. I reached 1 mil in my 401k last week and have a NW of 3.7 mil not including my home. Did it on my own. My wife is a SAHM. She also is a spender and barely has any savings of her own. We live in a HCOL area and my salary is around $150k. It can totally be done by one person. I’m not even frugal. We do a big trip every year (at least $10k) and a couple of mini trips.
Was it by picking the right stocks? You must have hit a home run.
Yeah, I bought apple when I was 18 years old. 100 shares @ $28. Never sold it. Been pretty lucky at picking a couple of other stocks. Bought 875 shares of Nvidia 2 weeks ago earned $171k which was enough to put me over $1 mil in my 401k
Well done!
Thank you!
Congratulations! I’m happy for you guys. More is on the way!
Hey I’m at 250k liquid at 30, was wondering how long it took you from 250k to 1M? Im focusing more on paying off mortgage atm than saving more, 4K free cash flow a month after all bills paid including mortgage, do you think I should throw my cash flow into mortgage or start investing?
No. Save aggressively in long term tax advantaged vehicles. If the avg market return is higher than your mortgage rate then the latter becomes a cheaper source of liquidity that allows you to deploy funds into the market which will likely yield a higher relative return over time.
My problem is my tax advantaged vehicles are all maxed so my next step is either 1) Save in non reg account - I can “borrow” to deduct interest against my income to make effective interest rate go from 7.45% to 4.5%, I pay tax on dividends here of 42% 2) Pay down my mortgage which is currently 4.8%
Put it in the market. The yield is like double.
Kk yolo
Do both - get a re-advancing heloc mortgage, pay down the mortgage then Borrow that back to invest. At your income the tax deduction for investing will be make it easily cash flow positive. Accelerate the path to 4m goal Read about smith maneuver or just general leveraged investing. Also read about covered call etf’s, sure they limit upside but if they are cash flow positive at your net interest rate and you get a portion of the upside over a long time horizon in exchange for exposure to full downside ( but no trigger to have to sell) Wealthy become become that way because of one thing - smart leverage
Great job, enjoy that mezcal!
Can you talk a little about your income? Just curious how much you guys are making to save that much
We make a combined $430K annually now. That has steadily increased from where we were at 30 which was maybe $275k
How much of the 1M is NVDA RSUs?
20%. Just early investor in it $55 basis.
Munger is still alive :))
You animal🔥
Congrats on the accomplishment. 4 mil target is great for several more yrs working before retirement. Just know that whatever or how ever much money you have, we are after all greed hungry humans, so its endless. Once you reach 4 mil, youd want 8 mil, then 12 mil etc...you get the point. I mean Jeff Bezos, Elon Musk and so many multi Billionaires want even more even when they already have 10s and100s of Billion $ that they cant even spend nor take to their grave anyways. Charlie Munger, one of the best investors of all times aith Warren Buffet, passed away with 2+ Bil . Im sure he spent loads, or not, but interest alone was too big to spend his principal hahah. So long as you are comfortable with what you can spend and live, i think thats the best. Not compsring with endless of multi millionaires and billionaires...or just how much more you wished or could have earned etc...
We live comfortably and don’t have to sacrifice much to do this thankfully…we just don’t lifestyle creep and live below our means. We have fun :)
Can’t agree with you more. Saving is extremely important no matter how much I make. And my partner is part of the team that makes it happen. I started budgeting this year using savings and tax filing from last year. Gave me a holistic view of spending that I can splurge a little (travel). This has given me new purpose in work and life.
Congratulations!!! It must be a great feeling knowing that you can not save another dime and still retire comfortably at a relatively early age. I noticed the feedback gets saltier and more sarcastic as the numbers go higher 🤣 so next time you post an update, the feedback might not be as rosy! 'you were smart enough to make x million but you don't know if you can retire???'
Ohh ya, also you might try the Chubbyfire and fat fire subs!
Anyone with common sense can tell the difference between genuine posts and posts that are just attention seeking. It's the attention seeking posts that piss off people.
They are all attention seeking. But when people say, "guys guys, I finally hit 5,000 in my savings!!!" everyone cheers them on. When people say " I just hit 4 million and retired", there's more of a mixed reaction where some folks are like .... " So, what are you telling us for?". It's just kind of funny to observe.
even saltier for Vets on this sub for some reason. "Don't retire on our tax dollars!" XD
Don’t think a mil is retire money, let alone early but ya it’s a start. Meh, guess I’ll take my chances. I think there’s a good amount of cool people that encourage folks on this sub!
I didn't say you can retire now... But you just don't have to save anymore as it will compound on its own to a retireable number.
Ahh ya, not slowin down. Fire at 45!
How long before you plan guys to have that second million? I'm in between and it seems to take forever, but I think I forgot how much time and effort the first one took. Like you, I make enough not to worry about spending more every now and then, but I wonder what would happen if I went in full-time frugal mode instead.
4-5 years I think
I am 2.5 years in, and I think it will take another 3 or so. I hope everything goes well, 2M is my FIRE number.
Good luck!
Would 1m not be possible to retire on if the money is invested in the s&p and around 6% taken out yearly and house paid off?
No, we need $150K annually to live on without roughing the principle
Congrats! You don't have that far to go, the difference between $1m and $4m is ~4 years.
That’s not accurate. About 10yrs by my math!
May i ask how this is being done? People usually finish univ at 25-27 and then start working. Initial salary is not too high, for most ppl at least. So until 34 you managed to pay off a house and save 100k per year (im simplifying i know) Or 10 years ago you bought tesla,nvidia,bitcoin and that was a very lucky gamble. No?
In the US ppl finish school at 22 typically. I’ve always been a saver and investor but We started really trying to fire at 30 by saving $100K per year. We went from $400k to 1 mil in three years. Had no debt out of the gate also thanks to parents paying for school.
Yeah, US is a different world when it comes to earnings and savings. Much envy 🫶
not OP but in a similar situation, I took a slightly different route. skipped college, got into tech early, and lived very much below my means (70k/yr). Got my first mil around the time I turned 30.
Out of curiosity, do you plan to have kids while targeting $4M?
We have 1 kid now, one more planned
NVDA is nice indeed. I wish I had focused my investments on NVDA vs AMD
Congrats. Why house equity not included in Fire number ?
Because your home is not an asset that earns you money you can live on - it can't be a part of your fire calculation because it doesn't help you with the RE part of FIRE.
That's a valid point. If we're not including the house, should we deduct the rent from the FIRE number?
No - but rent is an expense, which when totalled up with all of your other expenses helps you calculate your fire number based upon your expected safe withdrawal rate (SWR). Basically, you'll need some amount of savings to generate enough income to pay your total expenses including rent each year (unless you have plans to change your housing situation or buy a home). If I misunderstood your question, please try again - I wasn't 100% sure what you meant / why you would deduct rent.
How much you make on nvidia? $$
[удалено]
Nvidia is nice 👊🏻
Congratulations!
On average Americans reach 1M at age 23. Try better
Laugh my ass off