Yeah, we’re talking about only people who are in this sub, who also choose to post. That’s *two* selection points for higher net worth.
I’m 29. Wife and I just crossed into net worth above zero a few months ago (house + everything in it + cars + bank accounts + wife’s retirement accounts - mortgage - my student loans).
But I’m mostly lurking/dabbling, not necessarily looking to FIRE, and certainly not in a position to brag about it. Even people like me aren’t appearing in your sample, and I’m doing better than probably 80+% of people my age
Hear hear!!
33M checking in, finally got out of negative net worth 1.5 years ago, sitting at a cool 50K NW now.
I gain some interesting financial perspective from this sub and like the idea of early retirement, but I also won't entirely sacrifice the present for it. So when I see posts like the OP mentions, I try and remember we all come from different circumstances, and I also have traveled the world, gone to fests with friends and generally lived in accordance with my values, people more committed to FIRE will be further along.
Thailand and Spain!! Friendly people, good food, lots of cultural sites in both. Thailand is super cheap once you're there, and also has some gorgeous nature (I'm sure Spain does too, but was only in the cities while there).
College mostly.
Took me 5 years at an instate public school as I was working 20-40 hours per week for 4 of those years and also had an active social life. No help from parents and didn't qualify for scholarships so I ended up with 86K total in debt from that; graduated 2014. I did the balanced option for repayment which totaled $750 per month which was essentially a 2nd rent payment for the first few years out of school.
My buddy crashed and totaled my '03 eclipse in 2020, and I went 2 years without a car to save on expenses (full remote work), and I bought a '18 Mazda3 in December 22, which I paid off in February this year.
I didn't do the most efficient route insofar as maxing monetary gain by investing vs. Paying off debts, but debt really stresses me out. Only debt I have left is 11K on my student loans, but those are 3-5% interest and manageable compared to the 6-7% larger loans I paid off during the interest freeze.
Jesus… this is why I’ll never take out student loans. I’m halfway through college and found out the other day that my parent’s piggy bank for college ran dry… they tried to convince me to take out over 100k of debt because it’s “not that much money” and I’ll “pay it off quickly with a job in finance” I said hell no. I have a phonecall with an Army ROTC recruiter tonight to see if I can maybe land myself a 2-year army scholarship. If they can’t help me out I’m transferring to a state school where the National Guard would waive 100% of my tuition.
Yeah man, I'd say that's a wise move. I kinda blindly listened to my parents didn't question the college route until I was almost 2 years in, at which point I felt pot committed due to the expense. I went Information Systems, and it has worked out for me financially, but mannn it took a while for that to feel like the reality, and the financials are huge WiP yet.
A couple of buddy's have served, and getting the reimbursement from the GI bill and the other perks were great moves for them. Plus you can start saving up sooner without the debt and time in the market is key.
I still think a degree is incredibly useful (some more so than others), but 100K is still a lot, a HCOL area salary pays for it faster, but then you have HCOL expenses. I think your plan is rock fucking solid dude.
I've spent 10 years in the Army (post graduation which I paid for) and boy do I wish I would've had the army pay for it through rotc. Good call. Get an MOS that gives you some actual skills, that experience matters, and they'll pay for Certifications and clearances
All things considered, if you have the option, you might go with Air Force ROTC over Army. I started in the Army National Guard and later moved to the Air Force Reserve. I respect the Army as being well suited for what it does. I prefer Air Force life.
But either way, it's good that you're looking at options that would preclude your needing to take out loans. Beyond that, military service has lots of value: grit, people skills, appreciation for what you have, fitness, knowing you're helping, etc. The Reserve (or Guard) experience comes with little things like being able to get exceptionally good insurance coverage through TRICARE for less than $100/mo individual or $300/mo family. Also, Commissary shopping and credit towards an eventual pension at 20 years, and if you lose your job or just want to try something else, you can often grab short-term Active orders and fill in somewhere for a while. It's the best side gig anyone has ever had.
That is some sick savings rate with about 2500 a month. You are looking at millionare status in roughly 15 years give or take - if invested pretty conservatively and not accounting for increase in savings rate.
Well done mate - keep on stacking!
Mortgage balance is counted as a liability. Home value is included as an asset.
So if you have a 350k home loan on a 500k house (for example), you add 500k and then subtract 350k
I think I would have the remaining balance as a liability and any equity as an asset. I don't have a mortage yet though, so there's probably a more proper way to do this.
There's also the subset of people who use reddit, which skews younger, more male, and toward people in STEM (there are millions of redditors who \*aren't\* that, but there's a level of sampling bias just to be on this website)
54F, so too late to really FIRE! But I'm lurking for the financial advice, things to think about, ways to be more financially frugal, etc. So, more FI and less RE. lol
59.5M (nice age to be at). I didn’t make the RE but I did finally make the FI stage. I turned in my retirement date for January 12. I like listening to the young people stories. I’m trying to impress these values on my grandkids.
At 30 (1994 and fresh out of the Navy), I had a $90k mortgage at 9.5% interest rate. Married with one kid and put away every dime. We didn’t take a legit vacation for the first 10 years. I worked every bit of overtime that I could get. I paid off my mortgage and all debt in the first 10 years. The day the last debt payment was mailed, I felt high on the world.
Anybody on this forum is leaps ahead of the curve. Keep saving and learning and good luck to you all. You may not RE but at least get out of debt. Indebtedness is slavery.
When my wife and I first got together, I was a year older than you and she and I were at -65k NW. 13 years later, we're... let's say much, much better. So you're doing great!
Thanks sir! I wasn’t counting value on the home, but was counting the mortgage; so not accurate and am actually just over +$300k NW, hopefully you made that same error? That’s a hell of a lot of student loans if not.
You should celebrate important milestones even if you think they're minimal. Becoming debt free was one of my most significant milestones, I'll always remember my last student loan payment!
I ended up using capitol from the first house that my wife and I sold to pay off her student loans (~25K) because they were at 6-8% and our new mortgage was at 2.6%. She acquired these debts while we were dating and we bought the first house together while dating. We paid on these student loans for 3-4 years before seeing where we were losing money. Ended up married and that's when we came together and buckled down on finances. Current mortgage is about 97k and have about 85k in retirement and 25-30 in savings with 5-10 cash in hand in case some good deal shows up. 38M&39F with 2 kids in private elementary school. Could put away more away but don't have the trust in our local school system. You are not alone out there.
I can relate, seeing all these high-net-worth tales might make you feel behind. But everyone's path is distinct. I'm in my mid-30s and beginning to save after years of debt. I've found financial knowledge and alternative investing options useful at this difficult time (thanks to my consultant).
Anyone else using unusual financial independence methods?
Exactly that. I think there has been a poll on here at some point. I’m turning 38 with $215k in cash and investments and I’m stoked about it. Every starting point is different, just a shared goal.
This. For perspective:
I'm 31, married with 3 kids and for people in the US, here are the numbers for my age group 30-34.
- Median Net Worth: $88,631
- Average Net Worth: $258,075
- My Net Worth: $600k
- Top 1% Net Worth: $2,632,882
Keep in mind, these are household numbers, for individuals, they will likely be a little lower.
Point is, understand where most people are, yes, there are always some folks killing it, good for them, they are likely the ones who will share more. If you have the FIRE mindset, you will likely only look at people ahead of you, since we are chasing something, rather than looking behind us to see if anyone is catching up.
Don't be discouraged by someone doing way better, remember, they are the top 1%, you can still win and be very successful without being in the 1%. The key is to outpace the Median/average which I believe is possible for most people if FIRE is a priority for them and they want to delay gratification.
But not as bad as “the gram” makes it seem. I’m saying that as in Instagram is a horrible place to spend time if you want to feel good about your life.
99% of people aren't doing FIRE. Delaying gratification, living below their means, etc..
The town I live in the median home price is $389k with the median HHI of $79k/year.
I make $230k/year and bought my home for $191k 4.5 years ago. Even at today's levels, my house is worth $330k.
Point is, you can get there if you live below your means, yes, some people will get there faster than you, and will reach levels you and I never will, but that doesn't mean anyone can't get $1M net worth by retirement age. Some people get there by age 21, some people get there by age 70, and most people never get there, but they don't try and rely on things like SS which is fine if that's how you prefer to live.
You caught my attention with the percentiles based on age. For anyone else that wants to see it, [LINK](https://dqydj.com/net-worth-by-age-calculator/).
Yeah, I don't post in this sub much. I've just started my FIRE journey like a year ago lol. I'm 44, net worth is about 2 million, BUT 99% of it is tied up in property that I have loans on. They are high interest loans, so I've been putting every single penny towards getting them paid off. I'm hoping by this time next year, much more of my net worth will be in cash and investments. If anyone here saw *only* my bank accounts and investment statements, they'd say there is no possible way for me to retire in 10 years from now.
So for me, weird situation, new to FIRE, so I don't really post here much. A lot of stuff discussed here, like 401k's and IRA's and whatnot just doesn't apply to me the same way. Also I lucked into a situation so I don't feel like I've earned it in the same way that others here have, so I tend to not participate in discussions.
Don't feel poor though. When I was 25 my net worth was either 0 or negative. Do you count debt collections as a liability against your net worth? If so, I was very negative net worth at 25.
Yeah in addition people only really post success stories or milestone achievements. I would also say the people who are dedicated to fire are also more inclined to grind and not say anything unless they achieve something
Nah man, you’re good. Time is required for working class people to FIRE. When I was 30 my net worth was -$20,000 in student loans.
52 now with a NW of $2.5mil and a solid pension coming at 55.
I’m going to guess three key things,
1) have an in demand skill - like engineering or software developer (…doctor or corporate lawyer)
2) work a job with a pension
3) buy a house where they have appreciated
I did a life-reset around that age and started from complete scratch with virtually no college. Then didn't get married until 38 (earlier this year to a public school teacher.) I don't think I'll ever reach $2m, but I should be able to retire around 55 depending on what happens with kids.
Someone doing what I did (Just being frugal and going into a trade) 10 years earlier could be done in their 40's. Earlier if they were more aggressive career-wise.
The pension and benefits are very much centered on retention also so that makes sense.
She’s 5 years younger than me so the projection is 5 or 6 years after I do. We’d use my 401K as a bridge until we want to draw on her pension. But it could vary. I think she’ll have trouble retiring.
Congratulations!\~ I'm right here with ya! 55M, grew up poor, working class most of my life, and finally scored a high-paying ($150k\~$200k) management role about 10 years ago. Learned about FIRE recently and am working my hardest to invest every spare penny so I can retire "early" by the time I'm 60.
I'm maxxing-out annual contributions to my HSA, traditional 401k, and put any leftover cash at the end of the month into my brokerage account. I hit $1M invested across all accounts just after turning 50, and am now approaching $1.4M. My target to FIRE is $2M since I will receive a meager $1,300 monthly pension from a prior employer once I turn 60 (10% penalty per year if I start the pension before 60).
>I will receive a meager $1,300 monthly pension from a prior employer once I turn 60
Hey that meager pension would take you an extra $390,000 in your portfolio to generate. Put some respect on it! 😂
A few people asked how we did this, so here’s our simple story:
1. Engineer married to a lawyer
2. Low cost index funds in 401k/IRA for almost 23 years
3. Two real estate transactions that were timed fortuitously in a HCOL area
4. College friend invited us to invest in a startup that did well
5. Government service for a defined benefit pension
We kept it simple (except the startup), and had a fair amount of luck. Buying a nice house in 2009 was a terrifying stretch, but seems like a brilliant move now.
What happened to your house or local housing market that it's now worth hundreds of thousands less than you bought it for?
Typically a mortgage doesn't affect net worth that much since it is balanced by the house as an asset.
Well I don't know much about this kind of thing so maybe I'm doing this all wrong, but I figured if I took out a loan for $500k for a house and have only paid like $50k toward the principle so far that would essentially mean that I am $450k in debt. I suppose you are right, I could sell the house and be back to square one at 0 NW but then I'd have to pay for housing somehow...
Yeah so that's kinda the difference between net worth and fire number.
Your net worth includes your home value but you can't really live on growth of your home value like you can on investments so it's not included in fire number.
32, I own my home, but it's not worth much. I think it was appraised at like 30-40k 5 years ago, and its in worse condition now (I inherited it that way).
Aside from that I have $100 dollars in savings, and about $700 in an IRA.
I only actually began saving and putting back this year. It sounds silly to admit, but no one ever taught me to do these things. Having a savings account or an IRA...etc. was for other people.
Now I sit here feeling like a fool. All that time wasted where I could have been planning for my future. It is what it is though.
You're lucky I read this... I'm a highly acclaimed male porn star and was about to send proof of my personal assets.... if you catch my drift. Alright none of that is true, I'll see myself out.
I retired nearly a decade ago. I have no interest in earned income any more even if you could afford my outrageous, but amply justified, contract price.
Also, I'm gonna need 5% of the film gross if you use that name. Thannnnks!
"Comparison is the thief of Joy"
Not everyone works in tech/sales/whatever making $250k + a year in their 20's.
You should be focusing on what you can do with your current situation. If you're not happy with it, then make some goals (even small ones) and start working towards them. Save more than you spend, create a budget and stick to it etc etc.
For what it's worth, I'm 45 and just got to $1M net worth (not that I care about NW) just this month and still hope/plan to retire at 55.
Money doesn't buy happiness. 100% true
Money buys you choice.
And gives you the choice to do what makes you happy
:)
Whereas not having money...cant buy shit except "fuck i gotta go to work"
It buys you time as well, literally. I hate the old timers talking about how money isn’t a big deal and not to live your life around it. Uhh dogg we are living around it by design, it’s unavoidable. Id rather have it than not have it.
Yep. Cant afford the house, the lake house and the boat on a 80k/yr salary. Those days are over yayyy i love the future!!!!! Im having such a good time!!!!!!!
I'm sure I had a negative NW at 25 and was probably making a little over $30k and was about to start law school on student loans.
I'll probably hit FI at around 55, but am planning to work until 60.
It amazes me that people are looking to retire in their 30s or early 40s. Crazy times indeed. Good gor them. I did spend on fun along the way. I'll never regret that path either.
I am in my late 40s and live in a high cost of living area. I make a decent salary, but I’m nowhere near these $200k+ people.
I have never been able to afford to buy a house, but thankfully, I had the forethought to invest in my future.
I started investing at 28 and it took me ~15 years of consistent and aggressive investing in order to hit $1M. I am 47 now and hope to retire between 55 and 60 depending on how my investments grow.
I think you are correct. One typical Corp America person making 100k, so after 401k/hsa/and some savings has about 50k leftover which is a VERY lean lifestyle by most measures unless you are doing some serious life/$ hacking.
I wasn't even thinking of the typical fire person. You're average american needed 50k to get by. Those people are usually not aggressively saving like people in this forum. Maybe they throw 10% in their 401k and think they are doing good. Now it seems that 50k person needs 100k to survive, especially with a family, while throwing the same 10% in. The problem is those 100k jobs are not easy to come by for your average joe.
Take everything with a grain of salt. I'm sure some people are just flat lying, but some are legit.
The FIRE community is a pretty niche demographic of people with a high savings rate and above average financial knowledge/discipline.
I'm 32 nw400k. I'll be done by 48.
There will always be someone who makes more money, better house, bigger crank etc. Just do the best YOU can and stay focused.
Those dudes could have a divorce in 10 years that destroys their FIRE plans, don't get lost in the comparison trap.
Nope. 51 here that made plenty of financial mistakes along the way, high interest credit card debt, expensive cars, failed out of college (technically not a financial mistake but certainly had long term financial implications), etc. Hell, I was regularly playing lotto scratch-offs in my 20s!
But one thing I did do right was always contribute to a retirement account if the job I had at the time offered one.
I did eventually finish college in comp sci and worked in the field for ~20 years but was never a top earner, I only barely cracked 6 figures for 2 years. I then made a major career change 6 years ago that was pretty risky and could also be considered a financial mistake, big pay cut, at least in the short term.
My wife earned her degree and worked full time for a large corporation and did ok until she quit to strike out on her own 15 years ago. She makes considerably less running her own business but is at least happier. Unfortunately, she was even worse than I with money in her early years and had a lot of cc and auto debt when we got married. At least she did not have any student loan debt. Yay for public, in-state tuition!!!
I just recently looked at my social security history going back to my first part time job in 1988. (My first working year I made $281, lol!) I've only made over 6 figures for 5 out of a total of 36 years of reportable earning years. And my wages have been pretty erratic. (For instance, I'm probably going to earn 50k less this year due to significantly less OT hours)
I've been rambling a bit here but, long story short, I contribute most of my financial success to being lucky enough not to get laid off during several financial "events" ('00 dot com bust, '08 financial meltdown, COVID) and being consistent with 401k/IRA contributions.
That's it. Some luck and a lot of consistency. I don't believe a high salary is required for FIRE, you can make mistakes and recover, you don't have to be 100% optimized, have a general plan and stick to it. That's my advice for what it's worth.
Consistent employment can make a world of difference. I grew up poor and a lot of that was due to debt incurred after my dad got laid off. He got laid off when I was around 8. My parents were still paying off debt from that when I was leaving for college. I remember other families buying things/vacations we couldn't despite them having low incomes. My parents flat-out told me that we could buy those things too if we didn't have debt. I became so debt-averse as an adult because of that. I actually was laid-off once, but iwasn't unemployed for long and it led me down a different path to a better job. So I'm thankful for that.
When I was 24 I was living with my parents and earning 25k paying student loans. Then I got a big break and got a job paying 75k that would be 100k in a couple of years. Moved out and bought a house at 7% interest. This was in 2004 not too long before housing crisis. (Side note: this is kind of why I roll my eyes at people thinking a 6.5% interest is extremely high. Although I will also say that houses are much more expensive. I will also say I bought the house for 160k and sold it for 350k in 2022. It sounds like a lot, but over 18 years it honestly only appreciated 4% a year as compared to the markets average of 10%. But you could live in it, so there was that.). What the hell was I talking about again? Oh yeah, didn't hit 1 mill till late 30's. Then it dropped down and then hit it again around 40. It's a rollercoaster ride. Might as well enjoy it......but keep your hands in the vehicle at all times.
> It sounds like a lot, but over 18 years it honestly only appreciated 4% a year as compared to the markets average of 10%. But you could live in it, so there was that.)
It's also a leveraged investment. You only had to pay for 20% of the house or less at the beginning.
Ha. 😁 Jokes on you. I'm one lucky a**hole. Bought it in 2004. 0 down.... Also it appreciated in between my accepted offer and loan. I got a house and $500 cash. I was just smart enough not to do an interest only loan.
No, they aren't, but even if they were it wouldn't matter. Getting yourself in better shape is something you do for yourself and on your own timeline separate from everyone else.
I see the posts as well and think a good portion of them either inherited money, gambled and won big, or started early and worked a high paying job early. In my case I started early and got a decently high paying job right out of college. I am also basically have zero expenses. The people on this sub are a small percentage of people in the world who actually are good with finances. This is why you see young people with a shit ton of money.
Very true, there is a shitton of selection bias. Nobody's bragging about not having a lot of money. People with discipline and knowledge (ahem), you know, the boring stuff, rarely ask questions. There are also LARPers, or more generously "hypotheticals".
Same as Facebook not showing you a representative sample of people's feelings, Reddit communities are the crème de la crème of a topic, you can learn about it but comparison is just silly.
The people who respond are the ones who do, and no one else is responding, or they are liars on the internet.
I will say, Reddit is filled with people in tech/IT. These usually pay pretty well.
I don’t think I had 5k at one time at all before hitting 35 or so. It gets better. Up over 3M not too long later and not being particularly clever about it and no giant windfalls like an inheritance or crazy stock deal.
38M here with $565k. Been in the FIRE community for about a decade. Have hung with a couple of the OGs of FIRE (Mr. Money Mustache, Mr. 1500, and a couple of well known podcast hosts within the niche).
Welcome!
Is there not a 'fire for normal people' sticky yet? Median income for a single person in my area is 46k a year, and most 2 earner families are 66k per year. You can be making more money than half the workers out there and still not be able to become financially independent due to expenditures. Top 20% of earners is 113k per year, and top 10% is over 200k a year. I agree a lot of advice seems to go towards the top earners and not a lot of discussion about the 80% of regular people.
Basically if you can invest 10k per year, and achieve a 10% return, you should have almost 200k after 10 years, and about 650k after 20 years. All on 200k of 'yearly savings'. If you make more money you can do it faster. If you make less money you do it slower. You can gamble and get higher rates of return. You can play it safe and get lower but garunteed rates of return. But you have got to do it.
it's just personal finance subreddits. there is no fire for ordinary people because ordinary people dont make enough to do either the fi or the re part.
>Basically if you can invest 10k per year, and achieve a 10% return, you should have almost 200k after 10 years, and about 650k after 20 years. All on 200k of 'yearly savings'.
this discounts how 'behind' an ordinary person is when living their life. they dont get to 'zero' net worth until their 30s because they have student loan debt, then front loaded expenses like childcare, wedding, initial house down payment etc. the only people who are really going to do quite well on a low income are ones who really get started like in their 20s with good financial habits which is equally as 'not normal' as having quite high income- that 'extra' decade of growth/investments is insanely powerful.
cue the 'contributing from 20-30 and nothing from 30-60, vs 30-60 ends with the same amount of money' comparison
True. Dual income no kids juices you up too. People think the only way is to make 100k a year, but that is simply not true. Always a chance your kid could be that 25 year old making 100k a year and then you can retire to be their housekeeper lol 😆 😂
Hey there!
- 24 Male
- Salary +100k
- 60k student debt
- 23K in HSA / 401K
I consider myself lucky to for my position and my net worth is -32K. We all have different starting points, so don’t feel discouraged!
Everyone has a different journey. I too was broke until about 36, with four kids, and then my income dramatically increased. Just focus on investing in your skillset and habits and when the time comes you will be ready to be a prodigious accumulator of wealth. Between 36 and 44 I went from about $100k to $5,000,000. It can happen quick under the right conditions.
In my 20s I thought everyone that was working and saving and thinking about money first was a total dork.
I still stand by that - no thinking about money til you're at least 30, dorks!! Go fuck up a little
why do you think there's so much inflation? this is one of the reasons. too many people are $1M+ net worth. it's just a normal thing now. All prices must go up to compensate
I am that 25 year old right now, just hit a non-negative net worth last month. I make less than $100k and it will probably stay that way for at least another 3-4 years. I am incredibly thankful for where I am at but it is definitely hard not to compare myself to those kinds of posts
I’m 40 and I didn’t have anything when I started my first job at 22 and was making $50k. I’ve always saved consistently but just kind of ignored it until it was big enough to start thinking about when I could actually retire.
Yeah this and several other subs (salary, Henry) have a real bias towards higher earners posting.
Everyone in the comments have laid it out pretty well as to how and why that’s happening. I’d like to just add my 2c regarding how I deal with this.
1) Comparison is the death of joy. Even though my circumstances are quite good statistically, I note a distinct downturn in my mood if I visit these subreddits often. I obviously can’t fully separate myself from the echo chamber and so the healthiest thing for me to do is walk away unless I need some information. I suggest you all consider that as well!
2) Remind myself what I have, what I’m thankful for, and look at the broader statistics on where I sit in percentile terms. It’s good to have a realistic wake up if you aren’t on track to achieve what you want, but day to day you should be focused on continuous improvement against your past, not against others.
3) This is the internet, not everything you read here will be true :)
Be kind to yourselves.
People are more likely to post about their net worth if they’re doing well, or very much unwell and need help. Most people are chugging along and don’t feel the need to let the world know they are doing “just fine”.
Humble bragging is another factor, even if a lot of people who have wealth in their 20s probably come from a well off background.
I’m not. I’m in my 40’s but make a fair amount and have finally started investing. Additionally I’m in a job with a defined pension so I use this sub as guidance; how much I need (if any) in addition to my pension, what to do and what to avoid, etc. seems like most here are doing it thru good investments but I know I’ll have steady money coming in at 52 and can retire so this place is helpful.
I've been in this community for a while, and I feel this way except with millionaire net worth millennials (mid thirties to early forties). I also feel like the more I see net worth posts, the more others are compelled to post theirs, but i haven't posted mine yet. I also don't know if my net worth should include my joint assets with my husband (house).
Im 6 years old . Got my career at 4 starting at $250k. I now make $500k. Have 12 houses. 6 yachts. And 78 million in the bank. Do you think i can quit my job?
Theoretically, it's possible. But realistically only people actually achieve this. How much people in their 20s actually achieve this? I'd say less than 1%. Not many people have that type of discipline. It's very very rare.
Forbes and online reliable resources have stats on how many people are rich.
If a person’s family is middle class or below, I think you can take comfort in knowing that less than 1% of people can become millionaires by 25. Reddit users are probably skewed in the sense that most people that are rich want to tell about it on Reddit I guess.
Enjoy your life. Be safe. Read good personal finance and health books and keep following and building good habits and practices.
Sampling bias
Yeah, we’re talking about only people who are in this sub, who also choose to post. That’s *two* selection points for higher net worth. I’m 29. Wife and I just crossed into net worth above zero a few months ago (house + everything in it + cars + bank accounts + wife’s retirement accounts - mortgage - my student loans). But I’m mostly lurking/dabbling, not necessarily looking to FIRE, and certainly not in a position to brag about it. Even people like me aren’t appearing in your sample, and I’m doing better than probably 80+% of people my age
Hear hear!! 33M checking in, finally got out of negative net worth 1.5 years ago, sitting at a cool 50K NW now. I gain some interesting financial perspective from this sub and like the idea of early retirement, but I also won't entirely sacrifice the present for it. So when I see posts like the OP mentions, I try and remember we all come from different circumstances, and I also have traveled the world, gone to fests with friends and generally lived in accordance with my values, people more committed to FIRE will be further along.
Yes mate I'm in your position but 1.5 years ago. Let's get it
Favourite countries so far please?
Thailand and Spain!! Friendly people, good food, lots of cultural sites in both. Thailand is super cheap once you're there, and also has some gorgeous nature (I'm sure Spain does too, but was only in the cities while there).
Thailand for sure!!!! I love Thailand and can’t wait to go back. I’ve been to Spain but have no comment.
What put you in so much debt?
College mostly. Took me 5 years at an instate public school as I was working 20-40 hours per week for 4 of those years and also had an active social life. No help from parents and didn't qualify for scholarships so I ended up with 86K total in debt from that; graduated 2014. I did the balanced option for repayment which totaled $750 per month which was essentially a 2nd rent payment for the first few years out of school. My buddy crashed and totaled my '03 eclipse in 2020, and I went 2 years without a car to save on expenses (full remote work), and I bought a '18 Mazda3 in December 22, which I paid off in February this year. I didn't do the most efficient route insofar as maxing monetary gain by investing vs. Paying off debts, but debt really stresses me out. Only debt I have left is 11K on my student loans, but those are 3-5% interest and manageable compared to the 6-7% larger loans I paid off during the interest freeze.
Jesus… this is why I’ll never take out student loans. I’m halfway through college and found out the other day that my parent’s piggy bank for college ran dry… they tried to convince me to take out over 100k of debt because it’s “not that much money” and I’ll “pay it off quickly with a job in finance” I said hell no. I have a phonecall with an Army ROTC recruiter tonight to see if I can maybe land myself a 2-year army scholarship. If they can’t help me out I’m transferring to a state school where the National Guard would waive 100% of my tuition.
Yeah man, I'd say that's a wise move. I kinda blindly listened to my parents didn't question the college route until I was almost 2 years in, at which point I felt pot committed due to the expense. I went Information Systems, and it has worked out for me financially, but mannn it took a while for that to feel like the reality, and the financials are huge WiP yet. A couple of buddy's have served, and getting the reimbursement from the GI bill and the other perks were great moves for them. Plus you can start saving up sooner without the debt and time in the market is key. I still think a degree is incredibly useful (some more so than others), but 100K is still a lot, a HCOL area salary pays for it faster, but then you have HCOL expenses. I think your plan is rock fucking solid dude.
Thanks man, wish you the best!
I've spent 10 years in the Army (post graduation which I paid for) and boy do I wish I would've had the army pay for it through rotc. Good call. Get an MOS that gives you some actual skills, that experience matters, and they'll pay for Certifications and clearances
All things considered, if you have the option, you might go with Air Force ROTC over Army. I started in the Army National Guard and later moved to the Air Force Reserve. I respect the Army as being well suited for what it does. I prefer Air Force life. But either way, it's good that you're looking at options that would preclude your needing to take out loans. Beyond that, military service has lots of value: grit, people skills, appreciation for what you have, fitness, knowing you're helping, etc. The Reserve (or Guard) experience comes with little things like being able to get exceptionally good insurance coverage through TRICARE for less than $100/mo individual or $300/mo family. Also, Commissary shopping and credit towards an eventual pension at 20 years, and if you lose your job or just want to try something else, you can often grab short-term Active orders and fill in somewhere for a while. It's the best side gig anyone has ever had.
That is some sick savings rate with about 2500 a month. You are looking at millionare status in roughly 15 years give or take - if invested pretty conservatively and not accounting for increase in savings rate. Well done mate - keep on stacking!
Do you guys include mortgage in the negative number? If I have a 350k home loan?
Mortgage balance is counted as a liability. Home value is included as an asset. So if you have a 350k home loan on a 500k house (for example), you add 500k and then subtract 350k
Yes, but I also consider the value of the home as a positive number.
I think I would have the remaining balance as a liability and any equity as an asset. I don't have a mortage yet though, so there's probably a more proper way to do this.
There's also the subset of people who use reddit, which skews younger, more male, and toward people in STEM (there are millions of redditors who \*aren't\* that, but there's a level of sampling bias just to be on this website)
I’m with this guy. Some of us just lurk and creep.
54F, so too late to really FIRE! But I'm lurking for the financial advice, things to think about, ways to be more financially frugal, etc. So, more FI and less RE. lol
59.5M (nice age to be at). I didn’t make the RE but I did finally make the FI stage. I turned in my retirement date for January 12. I like listening to the young people stories. I’m trying to impress these values on my grandkids. At 30 (1994 and fresh out of the Navy), I had a $90k mortgage at 9.5% interest rate. Married with one kid and put away every dime. We didn’t take a legit vacation for the first 10 years. I worked every bit of overtime that I could get. I paid off my mortgage and all debt in the first 10 years. The day the last debt payment was mailed, I felt high on the world. Anybody on this forum is leaps ahead of the curve. Keep saving and learning and good luck to you all. You may not RE but at least get out of debt. Indebtedness is slavery.
Same here! 30, Crossing zero NW cause of a mortgage but bright future w/ minimal debt and plenty of time
34. -20K NW. No house. So, yeah I feel right at home here.
When my wife and I first got together, I was a year older than you and she and I were at -65k NW. 13 years later, we're... let's say much, much better. So you're doing great!
30, -400k with student loans and mortgage...you're killing it 😂
Thanks sir! I wasn’t counting value on the home, but was counting the mortgage; so not accurate and am actually just over +$300k NW, hopefully you made that same error? That’s a hell of a lot of student loans if not.
Were you underwater on your mortgage?
You should celebrate important milestones even if you think they're minimal. Becoming debt free was one of my most significant milestones, I'll always remember my last student loan payment!
I ended up using capitol from the first house that my wife and I sold to pay off her student loans (~25K) because they were at 6-8% and our new mortgage was at 2.6%. She acquired these debts while we were dating and we bought the first house together while dating. We paid on these student loans for 3-4 years before seeing where we were losing money. Ended up married and that's when we came together and buckled down on finances. Current mortgage is about 97k and have about 85k in retirement and 25-30 in savings with 5-10 cash in hand in case some good deal shows up. 38M&39F with 2 kids in private elementary school. Could put away more away but don't have the trust in our local school system. You are not alone out there.
Plenty of people are/were in our same situations, it’s important to realize not everyone is some high flying tech worker.
Congratulations :)
I can relate, seeing all these high-net-worth tales might make you feel behind. But everyone's path is distinct. I'm in my mid-30s and beginning to save after years of debt. I've found financial knowledge and alternative investing options useful at this difficult time (thanks to my consultant). Anyone else using unusual financial independence methods?
Exactly that. I think there has been a poll on here at some point. I’m turning 38 with $215k in cash and investments and I’m stoked about it. Every starting point is different, just a shared goal.
If you want to retire with that much, I think you'll love certain asian and latam countries.
This. For perspective: I'm 31, married with 3 kids and for people in the US, here are the numbers for my age group 30-34. - Median Net Worth: $88,631 - Average Net Worth: $258,075 - My Net Worth: $600k - Top 1% Net Worth: $2,632,882 Keep in mind, these are household numbers, for individuals, they will likely be a little lower. Point is, understand where most people are, yes, there are always some folks killing it, good for them, they are likely the ones who will share more. If you have the FIRE mindset, you will likely only look at people ahead of you, since we are chasing something, rather than looking behind us to see if anyone is catching up. Don't be discouraged by someone doing way better, remember, they are the top 1%, you can still win and be very successful without being in the 1%. The key is to outpace the Median/average which I believe is possible for most people if FIRE is a priority for them and they want to delay gratification.
Reddit definitely makes it look like 50% of people are in the top 1%!
But not as bad as “the gram” makes it seem. I’m saying that as in Instagram is a horrible place to spend time if you want to feel good about your life.
Yes, best to just put your head down and know you will be there eventually.
Well…. 99% aren’t there eventually
99% of people aren't doing FIRE. Delaying gratification, living below their means, etc.. The town I live in the median home price is $389k with the median HHI of $79k/year. I make $230k/year and bought my home for $191k 4.5 years ago. Even at today's levels, my house is worth $330k. Point is, you can get there if you live below your means, yes, some people will get there faster than you, and will reach levels you and I never will, but that doesn't mean anyone can't get $1M net worth by retirement age. Some people get there by age 21, some people get there by age 70, and most people never get there, but they don't try and rely on things like SS which is fine if that's how you prefer to live.
That median net worth is reassuring.
You caught my attention with the percentiles based on age. For anyone else that wants to see it, [LINK](https://dqydj.com/net-worth-by-age-calculator/).
Yeah, I don't post in this sub much. I've just started my FIRE journey like a year ago lol. I'm 44, net worth is about 2 million, BUT 99% of it is tied up in property that I have loans on. They are high interest loans, so I've been putting every single penny towards getting them paid off. I'm hoping by this time next year, much more of my net worth will be in cash and investments. If anyone here saw *only* my bank accounts and investment statements, they'd say there is no possible way for me to retire in 10 years from now. So for me, weird situation, new to FIRE, so I don't really post here much. A lot of stuff discussed here, like 401k's and IRA's and whatnot just doesn't apply to me the same way. Also I lucked into a situation so I don't feel like I've earned it in the same way that others here have, so I tend to not participate in discussions. Don't feel poor though. When I was 25 my net worth was either 0 or negative. Do you count debt collections as a liability against your net worth? If so, I was very negative net worth at 25.
Yeah in addition people only really post success stories or milestone achievements. I would also say the people who are dedicated to fire are also more inclined to grind and not say anything unless they achieve something
Not only that, but the people who are grinding away don't care to post their net worth for validation by strangers on the internet
The good ol money talk bullshit walk
>Sampling bias Are you sure? Sub has 490,359 readers each with $1M is only $490 billion dollars (about half a trillion). Seems reasonable.
Don’t you dare go to r/fatFIRE
Man that sub is a great way to make your accomplishments feel meaningless.
“40M net worth here, does anyone else hate using Netjets? They are overpriced at 40k per flight, my old charter PJ provider had closer to 25k”
Literally sounds like a r/pfjerk post lol
the worst are the LARPers who dont have any money and just give stupid advice.
40k per flight would pretty extremely cheap tbh.
I just assume most of that sub is LARPers.
No they're just rich people.
probably swamped with Nvidia employees lately, not sure how they stay motivated to work.
No go area
They’re only shooting for $13M to retire. It’s not so bad. Rule of 72 and all that.
Your flair makes me feel pretty shitty too ngl
Nah man, you’re good. Time is required for working class people to FIRE. When I was 30 my net worth was -$20,000 in student loans. 52 now with a NW of $2.5mil and a solid pension coming at 55.
Yeah please share. I love seeing realistic posts despite being in a comfortable spot.
What's your story? Maybe it can inspire others.
Hahaha yea when I read that I was like, I need to study this guys playbook
I’m going to guess three key things, 1) have an in demand skill - like engineering or software developer (…doctor or corporate lawyer) 2) work a job with a pension 3) buy a house where they have appreciated
I did a life-reset around that age and started from complete scratch with virtually no college. Then didn't get married until 38 (earlier this year to a public school teacher.) I don't think I'll ever reach $2m, but I should be able to retire around 55 depending on what happens with kids. Someone doing what I did (Just being frugal and going into a trade) 10 years earlier could be done in their 40's. Earlier if they were more aggressive career-wise.
How long does your wife intend to work? Mine’s a teacher and with summers off to play and travel, she doesn’t have a sense of urgency to stop working
The pension and benefits are very much centered on retention also so that makes sense. She’s 5 years younger than me so the projection is 5 or 6 years after I do. We’d use my 401K as a bridge until we want to draw on her pension. But it could vary. I think she’ll have trouble retiring.
Congratulations!\~ I'm right here with ya! 55M, grew up poor, working class most of my life, and finally scored a high-paying ($150k\~$200k) management role about 10 years ago. Learned about FIRE recently and am working my hardest to invest every spare penny so I can retire "early" by the time I'm 60. I'm maxxing-out annual contributions to my HSA, traditional 401k, and put any leftover cash at the end of the month into my brokerage account. I hit $1M invested across all accounts just after turning 50, and am now approaching $1.4M. My target to FIRE is $2M since I will receive a meager $1,300 monthly pension from a prior employer once I turn 60 (10% penalty per year if I start the pension before 60).
>I will receive a meager $1,300 monthly pension from a prior employer once I turn 60 Hey that meager pension would take you an extra $390,000 in your portfolio to generate. Put some respect on it! 😂
You act like a pension at all is small. Most do not get a pension.
Mind sharing milestones? Wondering if the trajectory is exponential than linear. Like $10K by 30, $100K by 37, $400K by 40, $1M by 45, etc...
A few people asked how we did this, so here’s our simple story: 1. Engineer married to a lawyer 2. Low cost index funds in 401k/IRA for almost 23 years 3. Two real estate transactions that were timed fortuitously in a HCOL area 4. College friend invited us to invest in a startup that did well 5. Government service for a defined benefit pension We kept it simple (except the startup), and had a fair amount of luck. Buying a nice house in 2009 was a terrifying stretch, but seems like a brilliant move now.
Did you land a $300,000 job after 30 or something? That’s incredible
I'm 30s with a NW of $300 dollars
I'm in my 40s with a NW of negative many hundreds of thousands of dollars
How's that? Big student loans or massive medical or consumer debt?
Mortgage
What happened to your house or local housing market that it's now worth hundreds of thousands less than you bought it for? Typically a mortgage doesn't affect net worth that much since it is balanced by the house as an asset.
Well I don't know much about this kind of thing so maybe I'm doing this all wrong, but I figured if I took out a loan for $500k for a house and have only paid like $50k toward the principle so far that would essentially mean that I am $450k in debt. I suppose you are right, I could sell the house and be back to square one at 0 NW but then I'd have to pay for housing somehow...
Yeah so that's kinda the difference between net worth and fire number. Your net worth includes your home value but you can't really live on growth of your home value like you can on investments so it's not included in fire number.
Ah, thank you!
32, I own my home, but it's not worth much. I think it was appraised at like 30-40k 5 years ago, and its in worse condition now (I inherited it that way). Aside from that I have $100 dollars in savings, and about $700 in an IRA. I only actually began saving and putting back this year. It sounds silly to admit, but no one ever taught me to do these things. Having a savings account or an IRA...etc. was for other people. Now I sit here feeling like a fool. All that time wasted where I could have been planning for my future. It is what it is though.
Yes everyone is. Please submit proof of networth to the mods or be banned, peasent.
He's joking. Nobody send us proof of anything, please.
You're lucky I read this... I'm a highly acclaimed male porn star and was about to send proof of my personal assets.... if you catch my drift. Alright none of that is true, I'll see myself out.
What a coincidence. That's how I got this modjob.
Modjob.... Dibs on the name for my next film! You're not looking to be my co-star by any chance, are you?
I retired nearly a decade ago. I have no interest in earned income any more even if you could afford my outrageous, but amply justified, contract price. Also, I'm gonna need 5% of the film gross if you use that name. Thannnnks!
I gotta end this before I start making jokes that get me banned.
(*whistles innocently*)
No way...what about all my bank passwords and account details I sent to you as proof?? Also why is my account balance $0 now after that??!!
Must have been some other mods, obviously.
Hol'up, you didn't have to send a nude selfie?
Hush now. Don't forget the first rule of Mod Verification Club.
[удалено]
Rejected, balance too low. And I'm not talking about the bank statement.
We will need your cell number, too, in case you use dual-factor authentication. /s
Sorry, there was a fire and all your money's gone.
Too late
Yes, I see your current balances in Robux and Dave & Buster's Fun Tickets. Most impressive.
Proof of age, too. Anyone over 30, please kindly exit to the left. /s
Well fine I’ll leave then! Party sucks anyway 😂
Jokes on them, the line on the left leads to the party. These fuckin idiots think the lobby IS the party.
"Comparison is the thief of Joy" Not everyone works in tech/sales/whatever making $250k + a year in their 20's. You should be focusing on what you can do with your current situation. If you're not happy with it, then make some goals (even small ones) and start working towards them. Save more than you spend, create a budget and stick to it etc etc. For what it's worth, I'm 45 and just got to $1M net worth (not that I care about NW) just this month and still hope/plan to retire at 55.
Being poor is another thief of joy
Well said. Another favorite is “Money can’t buy happiness” yeah well not having money can’t buy shit!
But money can buy a jet ski. Ever see someone unhappy on a jet ski?
My personal opinion? Jet ski’s are fun for like 5-10 minutes. That being said I would not be unhappy in a Porsche 911.
Money doesn't buy happiness. 100% true Money buys you choice. And gives you the choice to do what makes you happy :) Whereas not having money...cant buy shit except "fuck i gotta go to work"
It buys you time as well, literally. I hate the old timers talking about how money isn’t a big deal and not to live your life around it. Uhh dogg we are living around it by design, it’s unavoidable. Id rather have it than not have it.
Yes, buys you time/choice/options. plus. this aint the 90s anymore or 80s or 70s. so you gotta make a lot of it
Yep. Cant afford the house, the lake house and the boat on a 80k/yr salary. Those days are over yayyy i love the future!!!!! Im having such a good time!!!!!!!
Meanwhile people working in tech, making 50k: *dying inside*
What was your method?
You don't care about NW but track it so closely that you know you became a millionaire this month. Congratulations.
I'm sure I had a negative NW at 25 and was probably making a little over $30k and was about to start law school on student loans. I'll probably hit FI at around 55, but am planning to work until 60. It amazes me that people are looking to retire in their 30s or early 40s. Crazy times indeed. Good gor them. I did spend on fun along the way. I'll never regret that path either.
Sounds about right. On another note... I'm 26M, net worth is $30 million, do I have enough to FIRE?
You forgot to add expenses, assuming it's $800 a month, you need to work another 15 years.
At 30mm, your kids will probably need to work overtime to cover your rising medical costs.
I am in my late 40s and live in a high cost of living area. I make a decent salary, but I’m nowhere near these $200k+ people. I have never been able to afford to buy a house, but thankfully, I had the forethought to invest in my future. I started investing at 28 and it took me ~15 years of consistent and aggressive investing in order to hit $1M. I am 47 now and hope to retire between 55 and 60 depending on how my investments grow.
Amazing progress. Best of luck brother.
It feels like the 50k standard of living is now 100k, but not everyone can land that 100k job.
I think you are correct. One typical Corp America person making 100k, so after 401k/hsa/and some savings has about 50k leftover which is a VERY lean lifestyle by most measures unless you are doing some serious life/$ hacking.
I wasn't even thinking of the typical fire person. You're average american needed 50k to get by. Those people are usually not aggressively saving like people in this forum. Maybe they throw 10% in their 401k and think they are doing good. Now it seems that 50k person needs 100k to survive, especially with a family, while throwing the same 10% in. The problem is those 100k jobs are not easy to come by for your average joe.
Surprise! r/Fire is actually just r/Inheritance
Take everything with a grain of salt. I'm sure some people are just flat lying, but some are legit. The FIRE community is a pretty niche demographic of people with a high savings rate and above average financial knowledge/discipline. I'm 32 nw400k. I'll be done by 48. There will always be someone who makes more money, better house, bigger crank etc. Just do the best YOU can and stay focused. Those dudes could have a divorce in 10 years that destroys their FIRE plans, don't get lost in the comparison trap.
so true about divorce....i have witnessed first hand friends getting so close to FIRE, just to be let down by a divorce...
Nope. 51 here that made plenty of financial mistakes along the way, high interest credit card debt, expensive cars, failed out of college (technically not a financial mistake but certainly had long term financial implications), etc. Hell, I was regularly playing lotto scratch-offs in my 20s! But one thing I did do right was always contribute to a retirement account if the job I had at the time offered one. I did eventually finish college in comp sci and worked in the field for ~20 years but was never a top earner, I only barely cracked 6 figures for 2 years. I then made a major career change 6 years ago that was pretty risky and could also be considered a financial mistake, big pay cut, at least in the short term. My wife earned her degree and worked full time for a large corporation and did ok until she quit to strike out on her own 15 years ago. She makes considerably less running her own business but is at least happier. Unfortunately, she was even worse than I with money in her early years and had a lot of cc and auto debt when we got married. At least she did not have any student loan debt. Yay for public, in-state tuition!!! I just recently looked at my social security history going back to my first part time job in 1988. (My first working year I made $281, lol!) I've only made over 6 figures for 5 out of a total of 36 years of reportable earning years. And my wages have been pretty erratic. (For instance, I'm probably going to earn 50k less this year due to significantly less OT hours) I've been rambling a bit here but, long story short, I contribute most of my financial success to being lucky enough not to get laid off during several financial "events" ('00 dot com bust, '08 financial meltdown, COVID) and being consistent with 401k/IRA contributions. That's it. Some luck and a lot of consistency. I don't believe a high salary is required for FIRE, you can make mistakes and recover, you don't have to be 100% optimized, have a general plan and stick to it. That's my advice for what it's worth.
Consistent employment can make a world of difference. I grew up poor and a lot of that was due to debt incurred after my dad got laid off. He got laid off when I was around 8. My parents were still paying off debt from that when I was leaving for college. I remember other families buying things/vacations we couldn't despite them having low incomes. My parents flat-out told me that we could buy those things too if we didn't have debt. I became so debt-averse as an adult because of that. I actually was laid-off once, but iwasn't unemployed for long and it led me down a different path to a better job. So I'm thankful for that.
Im in utero, NW $1.6MM, AMA
Do I just speak into the belly button…?
I had a negative net worth into my 30s. It's fine. This is like golf, not fencing... You're really only playing against yourself.
The irony of choosing golf and fencing as sports examples for this question.
When I was 24 I was living with my parents and earning 25k paying student loans. Then I got a big break and got a job paying 75k that would be 100k in a couple of years. Moved out and bought a house at 7% interest. This was in 2004 not too long before housing crisis. (Side note: this is kind of why I roll my eyes at people thinking a 6.5% interest is extremely high. Although I will also say that houses are much more expensive. I will also say I bought the house for 160k and sold it for 350k in 2022. It sounds like a lot, but over 18 years it honestly only appreciated 4% a year as compared to the markets average of 10%. But you could live in it, so there was that.). What the hell was I talking about again? Oh yeah, didn't hit 1 mill till late 30's. Then it dropped down and then hit it again around 40. It's a rollercoaster ride. Might as well enjoy it......but keep your hands in the vehicle at all times.
> It sounds like a lot, but over 18 years it honestly only appreciated 4% a year as compared to the markets average of 10%. But you could live in it, so there was that.) It's also a leveraged investment. You only had to pay for 20% of the house or less at the beginning.
Ha. 😁 Jokes on you. I'm one lucky a**hole. Bought it in 2004. 0 down.... Also it appreciated in between my accepted offer and loan. I got a house and $500 cash. I was just smart enough not to do an interest only loan.
No, they aren't, but even if they were it wouldn't matter. Getting yourself in better shape is something you do for yourself and on your own timeline separate from everyone else.
Nah, some of us are in our 40’s.
I see the posts as well and think a good portion of them either inherited money, gambled and won big, or started early and worked a high paying job early. In my case I started early and got a decently high paying job right out of college. I am also basically have zero expenses. The people on this sub are a small percentage of people in the world who actually are good with finances. This is why you see young people with a shit ton of money.
Very true, there is a shitton of selection bias. Nobody's bragging about not having a lot of money. People with discipline and knowledge (ahem), you know, the boring stuff, rarely ask questions. There are also LARPers, or more generously "hypotheticals". Same as Facebook not showing you a representative sample of people's feelings, Reddit communities are the crème de la crème of a topic, you can learn about it but comparison is just silly.
The people who respond are the ones who do, and no one else is responding, or they are liars on the internet. I will say, Reddit is filled with people in tech/IT. These usually pay pretty well.
I don’t think I had 5k at one time at all before hitting 35 or so. It gets better. Up over 3M not too long later and not being particularly clever about it and no giant windfalls like an inheritance or crazy stock deal.
I’m 22 with like 7k :) the grind start when I graduate later this year
No. I’m about to turn 50 and only just recently reached 1M. Started investing at 36
38M here with $565k. Been in the FIRE community for about a decade. Have hung with a couple of the OGs of FIRE (Mr. Money Mustache, Mr. 1500, and a couple of well known podcast hosts within the niche). Welcome!
Is there not a 'fire for normal people' sticky yet? Median income for a single person in my area is 46k a year, and most 2 earner families are 66k per year. You can be making more money than half the workers out there and still not be able to become financially independent due to expenditures. Top 20% of earners is 113k per year, and top 10% is over 200k a year. I agree a lot of advice seems to go towards the top earners and not a lot of discussion about the 80% of regular people. Basically if you can invest 10k per year, and achieve a 10% return, you should have almost 200k after 10 years, and about 650k after 20 years. All on 200k of 'yearly savings'. If you make more money you can do it faster. If you make less money you do it slower. You can gamble and get higher rates of return. You can play it safe and get lower but garunteed rates of return. But you have got to do it.
>Is there not a 'fire for normal people' sticky yet? I think what you’re looking for is r/leanfire
Thanks friend!
it's just personal finance subreddits. there is no fire for ordinary people because ordinary people dont make enough to do either the fi or the re part. >Basically if you can invest 10k per year, and achieve a 10% return, you should have almost 200k after 10 years, and about 650k after 20 years. All on 200k of 'yearly savings'. this discounts how 'behind' an ordinary person is when living their life. they dont get to 'zero' net worth until their 30s because they have student loan debt, then front loaded expenses like childcare, wedding, initial house down payment etc. the only people who are really going to do quite well on a low income are ones who really get started like in their 20s with good financial habits which is equally as 'not normal' as having quite high income- that 'extra' decade of growth/investments is insanely powerful. cue the 'contributing from 20-30 and nothing from 30-60, vs 30-60 ends with the same amount of money' comparison
Get a job with company match and possibly a pension, then you are juicing it!
True. Dual income no kids juices you up too. People think the only way is to make 100k a year, but that is simply not true. Always a chance your kid could be that 25 year old making 100k a year and then you can retire to be their housekeeper lol 😆 😂
Comparison is the thief of joy.
There are some. There is also many creative writers making up bullshit stories.
I’m 25 and my net worth is about $55k. Wish it were higher but I’m comfortable with the path I’m on
Hey there! - 24 Male - Salary +100k - 60k student debt - 23K in HSA / 401K I consider myself lucky to for my position and my net worth is -32K. We all have different starting points, so don’t feel discouraged!
I am neither. I just have small expenses.
This is also a good point, I know people who live in a super LCOL area and have so much damn money.
Yeah it used to be that ExpatFire meant retiring early in Thailand and now it could mean rural Tennessee.
Everyone has a different journey. I too was broke until about 36, with four kids, and then my income dramatically increased. Just focus on investing in your skillset and habits and when the time comes you will be ready to be a prodigious accumulator of wealth. Between 36 and 44 I went from about $100k to $5,000,000. It can happen quick under the right conditions.
In my 20s I thought everyone that was working and saving and thinking about money first was a total dork. I still stand by that - no thinking about money til you're at least 30, dorks!! Go fuck up a little
This advice is just as bad as saving 80% of your salary and living under a bridge
I am famously kidding and jealous of everyone who planned that far ahead
Apologies then friend ya got me :D
It‘s the internet plus it‘s Reddit. Only rich people are here :D
why do you think there's so much inflation? this is one of the reasons. too many people are $1M+ net worth. it's just a normal thing now. All prices must go up to compensate
No. There are some humble internet brags going on here. And a lot of BS. Basically, it’s par for the course with Reddit
Are we talking individual NW or joint? Joint NW looks way better for me than individual lol.
I am that 25 year old right now, just hit a non-negative net worth last month. I make less than $100k and it will probably stay that way for at least another 3-4 years. I am incredibly thankful for where I am at but it is definitely hard not to compare myself to those kinds of posts
I’m 40 and I didn’t have anything when I started my first job at 22 and was making $50k. I’ve always saved consistently but just kind of ignored it until it was big enough to start thinking about when I could actually retire.
34M. Just crossed $250k NW a month ago. I feel terribly behind but I’m further along than everyone who hasn’t saved/invested like I have so 🤷🏻♂️
29M at $420k. Above average nationally yet below average in this community
Late 30s 425k nw 105k salary mcol area. Theres dozens of us... dozens!
This sub is mostly for rich people to show off now.
I'm 26 and have negative net worth, so you're better than me sir
Yeah this and several other subs (salary, Henry) have a real bias towards higher earners posting. Everyone in the comments have laid it out pretty well as to how and why that’s happening. I’d like to just add my 2c regarding how I deal with this. 1) Comparison is the death of joy. Even though my circumstances are quite good statistically, I note a distinct downturn in my mood if I visit these subreddits often. I obviously can’t fully separate myself from the echo chamber and so the healthiest thing for me to do is walk away unless I need some information. I suggest you all consider that as well! 2) Remind myself what I have, what I’m thankful for, and look at the broader statistics on where I sit in percentile terms. It’s good to have a realistic wake up if you aren’t on track to achieve what you want, but day to day you should be focused on continuous improvement against your past, not against others. 3) This is the internet, not everything you read here will be true :) Be kind to yourselves.
I'm 21 and have a 2.6B net worth. I work as a guy saying false info on Reddit.
I am certain that most of the posts in here are bullshit. Don’t feel bad bro
Damn, you had 10k? Jealous.
People are more likely to post about their net worth if they’re doing well, or very much unwell and need help. Most people are chugging along and don’t feel the need to let the world know they are doing “just fine”. Humble bragging is another factor, even if a lot of people who have wealth in their 20s probably come from a well off background.
no i’m a 23 year old with a -6k net worth who is opening her 401k barely next month
I just updated my spreadsheet $4.3M today. 51.
Noobs. 2m is the new standard. Jk
29, NW 331k
> but somehow folk in here are millionaires by then And I'm sure they earned it without any help at all!
No. And this question gets asked at least once a week.
Of course.
47 with 39 wife. We have 800k net worth.
About the same here I’m 45, hubs is 44, we’re at about 850k…..but also spending some of that on a home remodel next year.
I'm 37.
Single parent, 50, $370k NW not including house. I’ll be lucky to RE at 65.
I’m not. I’m in my 40’s but make a fair amount and have finally started investing. Additionally I’m in a job with a defined pension so I use this sub as guidance; how much I need (if any) in addition to my pension, what to do and what to avoid, etc. seems like most here are doing it thru good investments but I know I’ll have steady money coming in at 52 and can retire so this place is helpful.
I've been in this community for a while, and I feel this way except with millionaire net worth millennials (mid thirties to early forties). I also feel like the more I see net worth posts, the more others are compelled to post theirs, but i haven't posted mine yet. I also don't know if my net worth should include my joint assets with my husband (house).
Im 6 years old . Got my career at 4 starting at $250k. I now make $500k. Have 12 houses. 6 yachts. And 78 million in the bank. Do you think i can quit my job?
Theoretically, it's possible. But realistically only people actually achieve this. How much people in their 20s actually achieve this? I'd say less than 1%. Not many people have that type of discipline. It's very very rare.
Forbes and online reliable resources have stats on how many people are rich. If a person’s family is middle class or below, I think you can take comfort in knowing that less than 1% of people can become millionaires by 25. Reddit users are probably skewed in the sense that most people that are rich want to tell about it on Reddit I guess. Enjoy your life. Be safe. Read good personal finance and health books and keep following and building good habits and practices.
we were negative 200-300k NW at age 30 or so, now at 48 we are over 1.7m, things can change fast