Author Topic: How many years of working did it take to feel like you were 'getting ahead?'  (Read 5846 times)

Healthie

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This was my first year of properly working; I made 88k, my expenses are around 2k/month, pretty frugal, I spent probably 3k or less on some nice purchases, I've spent a swack of dough on house renos and it just feels like it never ends. I remembered today that I need around 4500 to buy back pensionable time.

How many years of working did your expenses begin to settle into place and you felt like you were getting ahead?

Zikoris

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I started working full time when I moved out on my own at 18, very low paying, and I started to feel like I was getting ahead around my 25th birthday when I got into FIRE and started making measurable progress towards retirement. My expenses haven't really changed much since then, almost a decade later, though our income has increased substantially.

NotJen

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About a year after getting my first full-time job.

I worked part-time during college to pay expenses and stay “even”, not really getting ahead.

My first year working I paid off my student loan and bought/paid off my first car.  I kept my cheap college apartment for 3 years after graduation while saving to buy a house.

ender

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My first year working fulltime.

I was previously living as a graduate student. I continued living like a graduate student, so I had a ton of money suddenly.

jps

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I guess I have a different answer than others so far. SO is 27, I'm 26. Have both been working since graduation from university. Still don't feel like we are 'getting ahead'. Maybe it's self-imposed high expectations, but I feel incredibly average from a financial standpoint, even with a 200K NW.

SpareChange

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Shortly after my last graduation. I had between $8 and $9k of credit card debt at the time. I was only working PT, but every payday I would pay as much as I could on it. Watching that mofo get chopped to $0 in six months was awesome.

Tigerpine

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I didn't start to feel like I was 'getting ahead' until I got married.  So...with life's other mishaps and follies, that's somewhere in the neighbor of 10-15 years working, depending on how you count.

BlueHouse

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I was in my mid-40s before I felt like I was getting ahead.
I did feel as if I was "catching up" though in my early 30s when I had my first major salary increase while keeping spending the same.  But I looked around at everyone's nice cars and nice furniture and nice apartments and wondered if everyone else was just in debt up to their eyeballs.  Some were.  Some had inherited some money, and some just had their moms and dads chip in extra money each month to make ends meet. 

iluvzbeach

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I was in my mid-30s before I began to feel like I was "getting ahead."  I had been working 15+ years at that point.  For me, it wasn't the working that allowed me to feel like I was getting ahead, it was when I finally got my financial house in order, paid off all debt and began to actively save money.  So, I don't necessarily think it has to do with how long one works but rather when they get their finances in order and begin to have control over finances vs. allowing their finances to control them.  This was my experience.

Tigerpine

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I was in my mid-30s before I began to feel like I was "getting ahead."  I had been working 15+ years at that point.  For me, it wasn't the working that allowed me to feel like I was getting ahead, it was when I finally got my financial house in order, paid off all debt and began to actively save money.  So, I don't necessarily think it has to do with how long one works but rather when they get their finances in order and begin to have control over finances vs. allowing their finances to control them.  This was my experience.
+1

wenchsenior

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About 10 years after we started 'adulting' with 'regular' jobs post-college/grad school. 

This roughly coincided with us paying off student loans/car loans, getting notable raises (we never carried much credit card debt so that wasn't an issue), and having a few hundred thousand in retirement accounts/positive net worth.  Age-wise, this coincided to us being ~39 and 49 years old b/c my husband didn't even start college until his mid 20s after a stint in the army and a short stint working afterwards.  I started college a few years late as well.

After the first 10 years, apart from a few temporary bumps and setbacks, it was steady as she goes net worth growth for the next 10 years. We are close to being FI now...probably the next year or two, though retirement is questionable because I suspect my husband would just start spending our retirement money doing the same thing he's paid to do now...

Paper Chaser

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Year 1 I was able to pay off my student loans and start saving lots of my income so I was feeling pretty good. But it wasn't until maybe year 5 or so that the investment funds/net worth really started to grow.

SunnyDays

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I started my career job at 25, after finishing grad school and felt like I was getting ahead at 32, when I was able to buy a house.  Until then, I was spending my money getting set up for adulthood - buying everything to furnish an apartment, a car, work clothes etc.  That took a few years, then saving up a down payment took another few.  Once I had that then I felt I was getting ahead.

MayDay

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Mid 30's, when both kids were in school full-time (minimal childcare expenses) and both parents were working after a career break while the kids were little.

Our financial house as always in order but until we had 10-15 years of salary growth we were giving things up to save and savings growth felt pitifully small.
« Last Edit: December 31, 2020, 06:43:19 PM by MayDay »

GuitarStv

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One.

I distinctly remember when I got my first 'real' job out of university.  I was living with three friends, didn't own a car, and had yearly expenses of about 8k.  It was just stupid how much of my salary was banging around my savings account at the end of year . . . and that was after maxing out all my tax deferred stuff.

:P

ctuser1

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OP, please make sure you get AT LEAST 10 years out of your frugal habits.

Please don't acquire expensive habits. It is very easy to start eating out, buy expensive car(s) and generally upgrading your life. It is VERY DIFFICULT to resist doing so when you see your friends and family start questioning why you are living like a grad student, still.

By the time 10 years pass you should be close to a millionaire, assuming markets reasonably cooperate. You should DEFINITELY feel like you are getting ahead at that time.



 

Healthie

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OP, please make sure you get AT LEAST 10 years out of your frugal habits.

Please don't acquire expensive habits. It is very easy to start eating out, buy expensive car(s) and generally upgrading your life. It is VERY DIFFICULT to resist doing so when you see your friends and family start questioning why you are living like a grad student, still.

By the time 10 years pass you should be close to a millionaire, assuming markets reasonably cooperate. You should DEFINITELY feel like you are getting ahead at that time.

What a great little post. I keep tossing money into renovating my house and my investments (only had for maybe 3-4 months) and it feels really slow and inconsistent. The renos should be done soon, but a few thousand here and there really eats into what can be put away.


 

mozar

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5 years, which I think is pretty short. I got my first office job at 25 after working in the arts. At 30 y/o I had 60k saved, bought a small house and "only" 60k left in student loans. I was really proud of myself!

Model96

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In Sydney Australia I felt like I was getting ahead when I had a good job and working hard with a young family......then when considering our first home purchase a Civil Engineer said something to me that made me realise I would never be FIRE unless I invested well AND took on some risk by borrowing money.....
He said I could work all I wanted, but I could never get ahead until I had more than one property because properties in this street had been appreciating $1000 a WEEK for OVER TWENTY YEARS!
I wish I had heard that 10 years earlier, FIRE would have been at 40 rather than 50 :-)

Loretta

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Call me crazy but Ill say the last year or 2–and I’m 42 and at my current job 18 years, in a very HCOL city.  I read once that It took at least salary of $78k/year to feel comfortable here. I feel like just now I can contribute the upper limit to my retirement account for example (750/pay period). 

SwordGuy

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@Healthie , you're in a great position!   Investing $45k a year for the next year, at the historical average rate of market return and inflation will put you at about $620k in today's dollars and $715k in future dollars.

And, of course, since you're just starting out you can expect your wages to rise so you can do even better than that!

Enjoy!

Sailor Sam

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About 1.5 years after I graduated college and entered the workforce. Age 25, when I got hired for my second ‘real’ job. Same career track as @spartana.

use2betrix

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I’m 32 now. I started to feel “comfortable” at around 23-24 years old when I first broke $100k/yr I felt like I started getting ahead.. I was paying off a lot of debt and still making a lot of stupid decisions (still do sometimes but my income offsets it).

In 2016/2017 I took my first 4 month sabbatical and felt comfortable. Later in 2017 I took another 4 month sabbatical. I went back to work Dec 1, 2017 with about $187k saved with no debt. I have been working non-stop since (some short vacations but no long sabbaticals) and now i’m up to $823k, in just three short years.

Still have a long ways to go, but making the progress I have long hoped for. If I can continue my current income and quality life until near FIRE, I’ll be a happy person.

Steeze

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7 years hustling to make spending money, then 5 years working but getting into a ton of  debt, 5 years paying it back, and about 4 years (so far) “making it”.

So... about 17 years, 5 years post college, until I got on my feet and got comfortable.

Adventine

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I started working full time at 20 years old, in 2009, right after college graduation.

I finally felt like I was "getting ahead" in 2011-2012, when the following things happened:

1. I looked at my bank account and realized, "This emergency fund is too big. I need to do something better with it."

2. During a conversation about net worth, my boyfriend at the time threw out an educated guess about exactly how much money I had. He was surprised to learn that I actually had twice as much. While I was surprised that his guess was so off the mark.

I realized I was exceeding the expectations of even those who (supposedly) knew me well. 
« Last Edit: January 01, 2021, 11:28:46 PM by Adventine »

Imma

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I started working full time when I moved out on my own at 18, very low paying, and I started to feel like I was getting ahead around my 25th birthday when I got into FIRE and started making measurable progress towards retirement. My expenses haven't really changed much since then, almost a decade later, though our income has increased substantially.

My background is similar. Started working at 19, have had a chronic illness since 16 so especially the first few years were rough. Didn't always work fulltime or work at all but managed to survive without going into debt. I always had a lot of healthcare costs. Fulltime university wasn't an option due to health, instead I took evening classes and worked towards a degree that way. Bought an extremely cheap house with my partner at 24. It was cheaper than renting but it needed work. We'd pay for that out of pocket every month + education + healthcare. When I was 25 I opened my current brokerage account and started throwing in 10% of my then income - €100/month. By the time I was 28 we'd done most of the necessary work to the house and I had finished my degree and started a better paid job and that's when I really turned a corner. So it took me about 10 years of working.

I'll turn 31 this year and 2021 will be my first year of "purposely spending on joy". Not going on a big spending spree but this autumn I bought a proper new winter coat for the first time since high school, I'm going to splurge on a pillow this month to hopefully improve shoulder issues, I'm even looking into buying a few items that will help me conquer my physical limitations.

rothwem

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Maybe I’m nuts, but I’ve never felt “richer” than when I got my first paycheck from my first job—$320 seems like a fucking fortune when you’re 16 years old.  I bought Oakley sunglasses and some American Eagle cargo shorts and totally felt like a baller. 

Since then, I’ve always had expenses and I hide most of my money from myself, so even if I’m doing well I’m not totally aware of it most of the time.

NorCal

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I have two answers as a 40 year old.  There is how I viewed my life at the time, and how I view it with hindsight.  This is my take on my emotional take on "making it", and not a rational view on the numbers. 

With hindsight, I can confidently say I was getting ahead a little bit more every year since I joined the Army full time at 22.  There were two years I was treading water when I got my MBA, but that was really just setting me up for bigger and better things.

At the time, I never felt like I was getting ahead.  Even when we were making funny money in Silicon Valley.  We were saving 70% of a very high income, but always felt like we were falling behind because we lived in a dilapidated rental and didn't feel like we could afford Silicon Valley housing.  The more we saved, the less Silicon Valley house we could afford (since the market was appreciating so rapidly).  Shelling out a lot of money for daycare also didn't help.

The first time I felt like I was truly getting ahead was after we moved out of CA, purchased a house, and paid off the mortgage a few years later.  The feeling of owning my own home and having reserves for any foreseeable contingency makes it feel like we are making it and truly free.  I am in debt to no one (literally and figuratively), and no employer can hold a paycheck over my head to make me do stupid things.  I still have work to do to hit FI, but I feel confident that I can do it on my own terms.

iris lily

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I guess I have a different answer than others so far. SO is 27, I'm 26. Have both been working since graduation from university. Still don't feel like we are 'getting ahead'. Maybe it's self-imposed high expectations, but I feel incredibly average from a financial standpoint, even with a 200K NW.

I will bet if you look at those net worth charts for your age you’ll find that you are quite a bit ahead of others your age.

Many people your age, if we ask them what their net worth is, would respond “huh? What? “

I used to look at the same charts and would see that we were never in the super saver top category of savers, but we were high savers. So I never achieved the highest level. Despite what people tell you, it IS a competition! Ha ha. just kidding.
« Last Edit: January 02, 2021, 11:16:55 AM by iris lily »

Mr. Green

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The feeling of "getting ahead" took a lot longer than it should have for me because I was so afraid of ending up poor. I grew up that way and ended up working in a career that made me borderline depressed in my 20's. So even though I was making a lot of money I was terrified of getting off the merry-go-round and ending up like my parents.

It probably wasn't until I was almost 30 that we had enough savings that I started to think we would be okay if the music stopped tomorrow. We had a few hundred thousand dollars by then, which is what I guess I felt I needed if I quit my job and then had to go back to school or learn a trade and not lose our house while my income was drastically reduced or non-existent.

Healthie

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A great bunch of replies - makes me wish I started really working younger. I got lucky to land my position and it was a position I did t even know existed elsewhere before.

SwordGuy

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I guess I have a different answer than others so far. SO is 27, I'm 26. Have both been working since graduation from university. Still don't feel like we are 'getting ahead'. Maybe it's self-imposed high expectations, but I feel incredibly average from a financial standpoint, even with a 200K NW.

I will bet if you look at those net worth charts for your age you’ll find that you are quite a bit ahead of others your age.

And here's one of those charts.   https://personalfinancedata.com/networth-percentile-calculator/

Median net worth for a 26-27 year old in the USA is...

drum roll please...

Spoiler: show
$6,550

MudPuppy

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I think I was 23 or 24. I had paid off my used car loan (first car the was ever remotely reliable!) early. The I had no consumer debt and only student loans. I put my tax refund on one of my student loans and felt all tingly.

Freedomin5

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Two years after graduating when I got my first real job related to my skills and training, and suddenly, my income was ten times more than our expenses.

CupcakeGuru

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You are doing fantastic!!

Perspectives from a 50 year old. Alot of bumps in the road but, I did mostly save money. At 30 I moved out of state and had a nw of about 70k. I felt rich! Got married, had a couple of kids, bought a house. We did ok, but we did fall into the consumer sucka camp for a couple of years. We dug out of that and now are doing great. Just stick to what you are doing and you will do fine.

Michael in ABQ

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About 5-6 years post-college and first "real job".

We became debt free in our early 30s after about 7-8 years of marriage/post-college and working. I graduated in 2008 but didn't start really making decent money at my job until 2013-2014 or so when I obtained a new position that had required a few years of additional education, experience, and professional licensing. That took my income from $30-35k up to about $55-60k. Once I had that we were able to pay off our remaining debt and really start making progress on saving and investing. However, as a single-income household with a lot of kids, we recognized early on that we would never "get ahead" as fast as our peers. Pretty hard to live like college students and pile up money when you've got several young children to take care of.

jps

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I guess I have a different answer than others so far. SO is 27, I'm 26. Have both been working since graduation from university. Still don't feel like we are 'getting ahead'. Maybe it's self-imposed high expectations, but I feel incredibly average from a financial standpoint, even with a 200K NW.

I will bet if you look at those net worth charts for your age you’ll find that you are quite a bit ahead of others your age.

And here's one of those charts.   https://personalfinancedata.com/networth-percentile-calculator/

Median net worth for a 26-27 year old in the USA is...

drum roll please...

Spoiler: show
$6,550


Yes but my feeeeelings tell me I'm behind. Facts be darned.

DeniseNJ

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I didn't feel like I was getting ahead until I found MMM just over 2 years ago. I'm turning 50, DH is 53, ds is 21 and dd is 18. I've been working this job for 22 years.

Before then we were always behind, always had cc debt, always just getting by no matter how much we made. Never maxed out retirement accounts, lived paycheck to paycheck. We made good money but it was never enough. I had been contributing some to my TSP so we had less than 400K in it with two TSP loans out for a house and a car--and we had a mortgage and a car payment.

Then I found MMM and my life has changed dramatically. I mean dramatically! No cc debt at all ever, no car payments, no TSP loans, maxing TSP and 403B and just short of 20K in the bank. Our investments are about 650K. In the last two years we've saved (or paid off TSP loans) about 100K even though we've been paying for state college tuitions. The rest of the increase was growth I guess.

Once I discovered MMM and Aldi I got serious and it didn't take long to really feel like I was finally getting ahead after 20 yrs of working. Just a couple of months after joining MMM I actually had money at the end of the month.

simonsez

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Could answer this in many ways.  Getting ahead of other humans?  Getting ahead of my expectations for myself at this point in time?  Getting ahead of other humans that are my age?  Getting ahead of other humans that live where I do?  Getting ahead of where my parents were when they were my age?  Siblings, friends, co-workers, etc.

Thus the answer ranges from 0 years to it hasn't happened yet with all types of in between.

Milestones that felt really good:
-1st time I had 4 figures in bank as a teen
-getting accepted to undergrad
-the last day of grad school
-first career job
-vested in stable pension
-first school loan paid off
->0 net worth
-maxing 401k, HSA
-paying a mortgage instead of rent
-401k>salary
-maxing Roth IRA
-401k>another benchmark, NW>another benchmark, assets>another benchmark

Michael in ABQ

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I guess I have a different answer than others so far. SO is 27, I'm 26. Have both been working since graduation from university. Still don't feel like we are 'getting ahead'. Maybe it's self-imposed high expectations, but I feel incredibly average from a financial standpoint, even with a 200K NW.

I will bet if you look at those net worth charts for your age you’ll find that you are quite a bit ahead of others your age.

And here's one of those charts.   https://personalfinancedata.com/networth-percentile-calculator/


68th percentile. Which still means about 3x the median for my age.

Alternatepriorities

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My first year working fulltime.

I was previously living as a graduate student. I continued living like a graduate student, so I had a ton of money suddenly.

+1 except I was previously an undergrad. It's amazing how far even an entry level engineering salary at the low end goes when you're used to living on nearly nothing... Though I didn't know the term then, limiting my lifestyle inflation that first year really helped me feel like I was making progress.

Y1) First paycheck after college - "Wow this is real progress"
Y3) Positive net worth (enough invested that I could pay off the student loans) - "I'm definitely getting ahead"
Y8) Enough invested to cover a conventional age retirement after compounding - "I think I'll take a year off to see the world"
Y16*) FI - "well I'll be damned, thanks MMM and community"

*This would have taken less time if I'd worked all of those 8 years and probably a lot longer without this blog and forum community. So thank you all again.

Avolonte

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I just turned 44 and finally feel like I'm getting ahead. I was treading water over a decade, first with 8 years of a marriage that wasn't great, followed by paying off a larger share of the debts after a divorce, and then with a second spouse who was in school full-time for 3 years.

I started reading MMM in 2011. My SO graduated in the summer of 2020 from a two year college (plus 1 year of prerequisites). With both of us working we are just now making progress, but that progress is unbelievably fast!

Laura33

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"Feeling" is entirely subjective.  I have a weird relationship with money -- terrible fear of ending up on a park bench, while still wanting All The Things -- and so I never actually felt like I was "getting ahead."  I just realized at about 45 that I was ahead and needed to let go of all of the angst and drama.

There were several points along the way when I thought I had it made.  I couldn't believe it when I got my first job at $57K -- my mom had never made more than about $30K in her life!  And then I started and realized I needed to pay my mortgage and car loan and save for the future and wondered how I'd ever do it -- and I felt more vulnerable than ever, because that year was the first big legal market crash, and I realized that I was on the hook for the condo mortgage even if I lost my job. 

When I got married, I totally thought I had it made -- $180K/yr DINKs!  We bought a townhouse and had decent new-ish paid-for cars and took a honeymoon in Greece, and I couldn't even conceive of that amount of money.  But after about a year I was looking at the houses in the same development and realizing we couldn't afford them even at our salary, and reading Conde Nast traveler about people paying $350/nt at some fancy resort and realizing we couldn't afford that, and wondered how people ever were able to afford that sort of thing.  Plus the commute and hours were killing me, and I couldn't figure out how to balance that with wanting to have a kid.

When we moved to CO was probably the best -- had enough money to ski periodically and buy my own equipment, though still didn't understand how people could afford to buy a place on the mountain.  Built our dream house and was blissfully happy with it and couldn't believe I could own something like that.  But then the job went away and we had to sell and move, and carrying two mortgages for a year brought me back to that horrible vulnerability I had felt early on.

When we moved back to the east coast and I made partner I again thought I had it made.  But the extra income was more than offset by the higher COL and ridiculous daycare expenses, especially after we added #2, not to mention a major home renovation.

I should note that this whole time, we were maxing out our 401(k)s and saving significantly beyond that.  But as long as I continued to focus on what I didn't have and kept inflating my lifestyle, I never felt like I was making progress.  Even when we hit $1M invested, it was a letdown, because that still wasn't enough to support the lifestyle we had come to expect.

After about 20 years I finally started to get my head on straight.  I loosened up and agreed to take a big vacation when DH got double vacation one year, and that experience made me realize that I was being really stupid to worry so much when I could afford to do something like that.  I started building my stoicism muscles more and focusing on how little I needed vs. how much I wanted.  I was really driven by being poor as a kid, and by losing the CO house, but when I realized that between savings and cutbacks, I would never have to lose this house even if both jobs went into the shitter, it was like a light bulb went off and the stress went away.  We also chose to live in a neighborhood here where are salaries are well above average, so I am not surrounded by conspicuous consumption every day -- and I no longer read those magazines that make me feel worse instead of better.

This is a very long way of saying that my "feelings" about getting ahead were very powerful, but also very divorced from reality.  If you want to be happy and content sooner than I managed, start working on ignoring what other people have and building your own resilience and stoicism muscles, so you grow the confidence in yourself to know that you will able to handle whatever comes.

aceyou

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At 32 when i found this site.  I was getting ahead before.that a little bit, bit didnt have enough knowledge to know it.  Since then its accellorated fast.  Dw and i are in 15 and 14th year in education. 

tooqk4u22

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Maybe I’m nuts, but I’ve never felt “richer” than when I got my first paycheck from my first job—$320 seems like a fucking fortune when you’re 16 years old.  I bought Oakley sunglasses and some American Eagle cargo shorts and totally felt like a baller. 

Since then, I’ve always had expenses and I hide most of my money from myself, so even if I’m doing well I’m not totally aware of it most of the time.

+1 there was nothing better than having some coin, even small coin, with absolutely no responsibilities and cares about the future, pure bliss.  But even back then I still had more money saved than my parents :)   

But to the real OP, getting ahead was never an easy feeling for me.  Probably didn't get it til close to FIRE because I was always forward looking/what has to be done next mentality, which is productive but not great feeling.   There are so many variables and life changes/stages that drove this (not unique to me I am sure), graduating and desiring to pay off student loans, moving cross country couple of times, buying houses, having kids, paying for kids, saving for kids (college), retirement, and so on and so on.  But FIRE desire was the worst for feeling like getting ahead for me bc every time I thought I was getting close I would reevaluate and always conclude I needed more in the budget and a lower WR.   But I got there and now no I got ahead.

clarkfan1979

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I left grad school in August 2011 and got my first academic job at the age of 32. My girlfriend at the time (now wife) were engaged to be married in August 2012. She is 4.5 years younger than me.

We bought a house in January 2012 for 95K. We were making about 85K/year total and our total mortgage was $650/month. However, with house repairs and saving for a wedding we didn't have any extra money. About one year after our wedding in August 2013, most of the house repairs were done and we started to stock pile money pretty easily. That would put me at age 34 and my wife at age 29.


maisymouser

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About two and four for FEELING it and mathematically REALIZING it, respectively.

Left a PhD program four years in (2016) at the age of 24 with no debt and a master's degree (yay!) but a NW of only ~$40k (meh). It felt *really* good to get a big-kid job in industry that paid ~$55k in a MCOL and I figured it was pretty decent money for something that would have a much better work-life balance. Grad school wrecked me in a lot of ways, and was probably one of the most mentally unhealthy periods of my life- leaving and earning ANY money was cathartic.

One big reason I left grad school was to become financially secure enough to have a kid while splitting expenses evenly. We had our son in summer of 2018 (age = 28). This was the time where I really FELT like I was 'getting ahead' in the personal sense- I finally earned enough money to do what was really important to me, which was start a family.

Throughout grad school and the new job my expenses were ridiculously low since we rented out 3+ bedrooms in the house DH bought, AirBnb'd out a camping site, lived like college kids, dumpster dived occasionally, sold stuff on CL, etc. I mean, absurdly low expenses overall. By 2019 though I realized that maybe I didn't want to live with housemates too much longer and that I was fairly underpaid. Sites like this one helped me realize that I could do a lot better financially by getting a higher-paying job. NW at this point was something like $100k.

So I started job-searching in 2018 while on maternity leave and landed a job 45 minutes north that requires a learning curve but seems more stable and fulfilling in the long-term. A salary of $65k along with increased benefits meant I got something like a 15%+ raise, something I couldn't refuse based on my frustrations at the previous job.

We ended up moving to be closer to this 'new' job, which meant a move away from what I consider to be my dream home. Thanks to our frugal habits though we have been able to keep the old house and rent it with the intent to either sell it (if my new job keeps going well) or move back (if I job-hop again).

At this point I feel like I am getting ahead in the mathematical sense. My NW is at ~$280k or something as a 29-year-old, which isn't super duper impressive compared to many others on this forum but is respectable compared to my millennial peers. My "coast FIRE" age- what age I could retire if I stopped contributing to my FIRE funds- is 53 or so. I take this to mean that barring any catastrophes, I am going to attain FIRE* and I am "ahead".

Considering I didn't really start earning a living wage until 5 years ago I'm feeling pretty badass about it!

*Dependent on the health care situation in the US. Unfortunately this is going to be my #1 FIRE limitation for sure at this point... Need to have really good insurance for chronic health conditions that max out my OOP every. single. year.
« Last Edit: January 09, 2021, 02:49:33 PM by maisymouser »

MissPeach

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OP, please make sure you get AT LEAST 10 years out of your frugal habits.

Please don't acquire expensive habits. It is very easy to start eating out, buy expensive car(s) and generally upgrading your life. It is VERY DIFFICULT to resist doing so when you see your friends and family start questioning why you are living like a grad student, still.

By the time 10 years pass you should be close to a millionaire, assuming markets reasonably cooperate. You should DEFINITELY feel like you are getting ahead at that time.

I totally agree with this.

I married young to someone who was constantly upgrading their life and looked like he was doing well on the outside. I didn't realize he was in six figures of debt. It took my whole 20s to dig out of the hole until we divorced. It took me about 5 years after that to get a good footing under me but I divorced with $2k in debt, a car payment, and had to pay 50% of my take home pay in alimony for awhile. By good footing I don't mean high NW but well enough that I didn't live paycheck to paycheck, had debt paid off, and was starting to save/invest.

BlueHouse

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I answered previously, but there's one other point at which I started feeling ahead.  After I sold my first house.  I sold it for twice what I bought it for 7 years prior (60K to 120K), and having that big chunk of change really made me feel as if I could do anything.  In fact, I did!  I went on a mini-retirement vacation for 6 months overseas. 

In the early years of saving/wealth building, it's very hard to make that much (relative to the time) in such a short period.  Home ownership and appreciation truly does help the average american gain wealth. 
 

Imma

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Home ownership and appreciation truly does help the average american gain wealth.

This is the main reason that I'm so strongly pro-home ownership, especially for those on average incomes and not a lot of interest in "difficult boring things" like investing. If you buy a modest home and pay it off according to schedule, you're going to end up with a lot more money than you ever thought was possible. It can fund additional care in your old age and it's an inheritance for your children - leaving something behind is very important to a lot of people.

If you are a true mustachian it could be cheaper to rent so they can find the cheapest possible apartment every year, or to never pay off a mortgage and invest the difference, but for the average person, buying a house and paying it off is the best thing they could do. I actually am a mustachian and fairly frugal on an average income and the wealth in my house is still growing faster than my investments.

In my country, the laws around mortgages are designed so that people are strongly nudged into paying off their mortgage according to schedule and to not roll consumer debt into the mortgage, so a lot of the bad stories I hear on here couldn't happen irl in my country.