Author Topic: 401k Millionaires  (Read 2592 times)

4alpacas

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401k Millionaires
« on: November 12, 2013, 01:28:43 PM »
Ilene really turned things around after her divorce!

http://money.cnn.com/gallery/retirement/2013/11/11/401k-millionaires/4.html

Ilene Davis walked away from a divorce at the age of 37 with roughly $100,000 in financial assets. Less than 30 years later, she has built up more than $2 million in retirement savings while earning an average annual salary of less than $100,000.

mpbaker22

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Re: 401k Millionaires
« Reply #1 on: November 12, 2013, 03:53:35 PM »
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"The trick is that you condition yourself: I'm only getting paid (X dollars) a month, and you have to live with this," he said.
Simply put, I can't imagine thinking "I have to live on less than this x dollars."  I buy what I need, a few luxuries, make sure things that I buy are worthwhile, etc. and I always spend less than a 1/3 of what I make.

RootofGood

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Re: 401k Millionaires
« Reply #2 on: November 14, 2013, 12:40:26 PM »
Quote
"The trick is that you condition yourself: I'm only getting paid (X dollars) a month, and you have to live with this," he said.
Simply put, I can't imagine thinking "I have to live on less than this x dollars."  I buy what I need, a few luxuries, make sure things that I buy are worthwhile, etc. and I always spend less than a 1/3 of what I make.

My portfolio can provide X dollars per month, where X is around $3000 or $3500.  I typically spend much less, probably closer to $1.5-2k/month unless some large lumpy expense comes up.  So getting used to having max potential spending of 50-100% your typical spending isn't necessarily too hard to live with, and allows for needs, wants, and some pure luxuries.  I like to say I can have anything I want, but not everything I want.  (As long as "anything" doesn't cost more than $35-40k/yr).

Left

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Re: 401k Millionaires
« Reply #3 on: November 14, 2013, 01:11:06 PM »
hm... nice story but i don't think making 80k a year is "less than average"...
still hoping to have my retirement in 13 years... at age 40 :S