'I Don't Do Debt,' says 25 year-old with $282,000 in Savings

[kfire20]

http://www.theglobeandmail.com/globe-investor/personal-finance/genymoney/edmonton-millennial-focused-on-retirement-calls-home-ownership-a-pretty-crappy-investment/article32105612/?ord=1

Occuption: Millwright
Where: Alberta and Sasketchewan
For Who: Oil Industry
Duration: 7 months of each year (for the last 5 years)

Pay: $126,000/yr. including pension, benefits, expenses
OT: Yes, sometimes 12.5 hr. days
After Tax Take Home: $4,200 per week
Investing: Index Funds: Invests $200.00 per week Stocks: $5,000 per month to buy stocks
FIRE Goal: Age 55 and 2 million in the bank.
Mustachian Car: 2004 Ford Taurus
Rent: $800.00 per month
Eating Out: Rarely
Accommodation while on the job: work camps which he describes as '1 star hotels'
Future Career: Financial Planner.. :-)
Home Buying: No way... wants his freedom and says it is no investment

MMM characteristics all in. Skimmed the first 10 comments as I'm posting this just now and they are all atta boy.

[Miss Piggy]

He'll likely have a hell of a lot more than 2 million at age 55.

[Cromacster]

Good story....but wtf does he spend his money on? 

After tax Monthly Income working 7 months per year: 10,600
Stated Monthly Expenses: 1,410
Monthly Investment in stocks: 5,000
Monthly Investment in Index funds: 800

Left Over: 3,390

If he's been working the job for 5 years, though the article states he's only been saving for 3.5, but if you go by 5 years there's atleast $200,000 $141,000 unaccounted for in his NW. 

Student loans maybe?  Actual budget is nowhere near what he thinks it is?

Edit to add:  It's even crazier if he were investing the left over 3,390, where he'd be investing 9,000/month.  With that his NW should be more around 378,000 or about 100k higher.  If he'd been investing that much for 5 years his NW would be closer to 650k.

[FIRE Artist]

I assume that the left over is going to cover expenses the other 5 months of the year if he only works for 7 months.  Maybe I am reading this wrong...

[marty998]

Good story....but wtf does he spend his money on? 

After tax Monthly Income working 7 months per year: 10,600
Stated Monthly Expenses: 1,410
Monthly Investment in stocks: 5,000
Monthly Investment in Index funds: 800

Left Over: 3,390

If he's been working the job for 5 years, though the article states he's only been saving for 3.5, but if you go by 5 years there's atleast $200,000 $141,000 unaccounted for in his NW. 

Student loans maybe?  Actual budget is nowhere near what he thinks it is?

Edit to add:  It's even crazier if he were investing the left over 3,390, where he'd be investing 9,000/month.  With that his NW should be more around 378,000 or about 100k higher.  If he'd been investing that much for 5 years his NW would be closer to 650k.

His income would not have been $126,000 since he started working. No one pays a 20 year old that amount.

Must have had significant pay rises in the last couple of years.

[Cromacster]

Good story....but wtf does he spend his money on? 

After tax Monthly Income working 7 months per year: 10,600
Stated Monthly Expenses: 1,410
Monthly Investment in stocks: 5,000
Monthly Investment in Index funds: 800

Left Over: 3,390

If he's been working the job for 5 years, though the article states he's only been saving for 3.5, but if you go by 5 years there's atleast $200,000 $141,000 unaccounted for in his NW. 

Student loans maybe?  Actual budget is nowhere near what he thinks it is?

Edit to add:  It's even crazier if he were investing the left over 3,390, where he'd be investing 9,000/month.  With that his NW should be more around 378,000 or about 100k higher.  If he'd been investing that much for 5 years his NW would be closer to 650k.

His income would not have been $126,000 since he started working. No one pays a 20 year old that amount.

Must have had significant pay rises in the last couple of years.

Even if that's the case, working in that type of industry he probably started around 100k per year.  I'd believe that a 20 year could be hauling in that kind of cash working in the oil industry.  I went to school in North Dakota during the recent oil boom.  I had a few friends that dropped out of school to go make 100K+ working in the oil industry.

[slugline]

I wonder how much Corona can be bought for $200 in Canada.

[meghan88]

I wonder how much Corona can be bought for $200 in Canada.

Beer is expensive in Canada.  http://www.liquordirect.ca/Corona-Extra-P7395.aspx - in Alberta, a 12-pack of Corona will set you back CAD$ 30.

[DailyGrindFree]

I wonder how much Corona can be bought for $200 in Canada.

Beer is expensive in Canada.  http://www.liquordirect.ca/Corona-Extra-P7395.aspx - in Alberta, a 12-pack of Corona will set you back CAD$ 30.

Wow. That is expensive. Where I live (US), 12-pack of Corona is usually $12.99.

[doggyfizzle]

Good story....but wtf does he spend his money on? 

After tax Monthly Income working 7 months per year: 10,600
Stated Monthly Expenses: 1,410
Monthly Investment in stocks: 5,000
Monthly Investment in Index funds: 800

Left Over: 3,390

If he's been working the job for 5 years, though the article states he's only been saving for 3.5, but if you go by 5 years there's atleast $200,000 $141,000 unaccounted for in his NW. 

Student loans maybe?  Actual budget is nowhere near what he thinks it is?

Edit to add:  It's even crazier if he were investing the left over 3,390, where he'd be investing 9,000/month.  With that his NW should be more around 378,000 or about 100k higher.  If he'd been investing that much for 5 years his NW would be closer to 650k.

His income would not have been $126,000 since he started working. No one pays a 20 year old that amount.

Must have had significant pay rises in the last couple of years.

Even if that's the case, working in that type of industry he probably started around 100k per year.  I'd believe that a 20 year could be hauling in that kind of cash working in the oil industry.  I went to school in North Dakota during the recent oil boom.  I had a few friends that dropped out of school to go make 100K+ working in the oil industry.

I made 100k+ as a 22 year old working in the oil industry.  If you're willing to work OT and in the field (instead of at a desk), it's easy to crack six figures at any age.  I worked as a geophysicist on seismic boats and made about $500/day starting out, and my day rate only I ncreased as my skill set further developed.

[financialfreedomsloth]

Somebody should inform him 1 million USD is more than enough to retire on for him alone. He might be including kids and wife not working into his calculations for what he needs but even then he should be able to retire way before 55. If he can save 250k in 3 and a half years then 10 more years should add another 750k to it, add to it average investment gains and at 35 he should be sitting around 1,5 million USD. Somebody should introduce him to MMM and ERE, we’ll shave 20 years of his working career!!

[nobodyspecial]

If he can save 250k in 3 and a half years then 10 more years should add another 750k to it,

Oil industry - in the boom is was 6 figures but nobody is paying 20-something rig-hands $100k this year, or next year.
 

[FIRE Artist]

I made 100k+ as a 22 year old working in the oil industry.  If you're willing to work OT and in the field (instead of at a desk), it's easy to crack six figures at any age.  I worked as a geophysicist on seismic boats and made about $500/day starting out, and my day rate only I ncreased as my skill set further developed.
[/quote]

Ah, a fellow doodlebugger.  I worked offshore seismic from 98-04. 

[MrsPete]

Good for him, and I don't mean to diminish his hard work -- 12+ hours work in a day takes dedication -- but, at the same time, it's not exactly difficult for a single guy to arrogantly declare, "I don't do debt" when he's bringing home $4200/week after taxes. 

[soccerluvof4]

Working 12 hrs a day is a lot easier 1) when your young and 2) when you have 5 months off.

But agreed, no need for the duration of time he is talking.