Author Topic: Just crossed over $1 million NW  (Read 5368 times)

REfinAnon

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Just crossed over $1 million NW
« on: November 08, 2019, 10:45:57 AM »
My wife and I just crossed over a $1 million NW (including home equity). We're only there by the skin of our teeth (under 15k buffer depending on how you peg home equity), so we may fall back under within the next year, but still as of today we're millionaires. Other than briefly discussing it with my wife, I haven't gotten to tell anyone or pat myself on the back at all, so I felt compelled to post it here.

I'm 32 and she's 31. How we got here was pretty simple. When we first graduated from college our combined income was probably around $80k. Today it's more like $300k. Yet our lifestyle remained almost the same that whole time. I still drive my honda civic from college. We rented a small 1BR apartment up until this summer when we finally bought a modest condo in a less than super trendy area. We've always fully funded our 401K (basically $50k per year when counting employer match) and then as of today we probably manage to save another $100k cash annually beyond that. I wouldn't say we're ultra mustachian but we live far more modestly than most of the people we work with - and that gameplan seems to be working.

Life goes on as normal for the time being - but hey, we crossed this one threshold!
« Last Edit: November 08, 2019, 10:50:05 AM by REfinAnon »

dandarc

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Re: Just crossed over $1 million NW
« Reply #1 on: November 08, 2019, 10:49:45 AM »
Woo!

SwordGuy

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Re: Just crossed over $1 million NW
« Reply #2 on: November 08, 2019, 04:23:06 PM »
You're definitely going about it the right way!

Congrats!

It's hard to screw up with that kind of income and yet, so VERY many people do!

Brother Esau

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Re: Just crossed over $1 million NW
« Reply #3 on: November 09, 2019, 05:53:19 AM »
Bravo

dblaace

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Re: Just crossed over $1 million NW
« Reply #4 on: November 09, 2019, 06:52:25 AM »
Congratulations! I'm inching ever closer.

Focus_on_the_fire

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Re: Just crossed over $1 million NW
« Reply #5 on: November 09, 2019, 08:03:13 AM »
Congrats to you both!!! Nice job.

lollylegs

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Re: Just crossed over $1 million NW
« Reply #6 on: November 09, 2019, 12:09:30 PM »
Congratulations!!

LetItGrow

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Re: Just crossed over $1 million NW
« Reply #7 on: November 09, 2019, 04:57:20 PM »
Yeah, nice! Maintain focus.

janf1972

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Re: Just crossed over $1 million NW
« Reply #8 on: November 11, 2019, 06:19:54 AM »
Awesome work at such a young age!  Congrats!!

oldtoyota

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Re: Just crossed over $1 million NW
« Reply #9 on: November 11, 2019, 06:48:24 AM »
Well done!

Congratulations!!

What is your target number for retirement?

REfinAnon

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Re: Just crossed over $1 million NW
« Reply #10 on: November 11, 2019, 09:01:01 AM »
Thanks all!

I wouldn't say we have clearly defined ER goals at the moment other than a vague concept that I'd like to be financially independent at a relatively young age. Even if we don't ER that might free us up to pursue more fulfilling careers or take more risk (start a business etc.) There's still so many variables in our lives and our careers provide us with some mental stimulation that we're not that eager to give up.

Based on our current spending I'd guess we'd be technically FI at around $1.6 million invested, which theoretically is probably ~4 years into the future, but realistically I'm looking to at least double that. Even though we've been good about avoiding lifestyle creep I'm still expecting our spending to go up over the next decade. We live in a pretty HCOL area. We don't yet have kids but would like them. I want to buy a single family home one day. I would want to fully fund college educations.

So for the time being we're just trying to accrue wealth as fast as possible knowing that it will make everything easier in the future and that we can always figure it out later. It also just makes day to day life way less stressful even pre FI.

2sk22

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Re: Just crossed over $1 million NW
« Reply #11 on: November 15, 2019, 07:34:33 AM »
Excellent work!

Much Fishing to Do

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Re: Just crossed over $1 million NW
« Reply #12 on: November 15, 2019, 08:56:46 AM »
You're rocking it, and are a good 6 years or so ahead of where we were.  We did allow spending to go up as we approached a minimal FI number, but not too much so we would hit it fairly quickly.  HItting the number is awesome, b/c at that point you're literally just working to increase the lifestyle, or you stop, up to you, the coolest part is either way its just no big deal and a pure choice...

trc4897

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Re: Just crossed over $1 million NW
« Reply #13 on: November 15, 2019, 09:00:46 AM »
Congrats! I'd be happy to get to $1 million NW by your age, but I think 35 is more likely. Keep up the good work!

Buffaloski Boris

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Re: Just crossed over $1 million NW
« Reply #14 on: November 16, 2019, 06:10:10 AM »
Thanks all!

I wouldn't say we have clearly defined ER goals at the moment other than a vague concept that I'd like to be financially independent at a relatively young age. Even if we don't ER that might free us up to pursue more fulfilling careers or take more risk (start a business etc.) There's still so many variables in our lives and our careers provide us with some mental stimulation that we're not that eager to give up.

Based on our current spending I'd guess we'd be technically FI at around $1.6 million invested, which theoretically is probably ~4 years into the future, but realistically I'm looking to at least double that. Even though we've been good about avoiding lifestyle creep I'm still expecting our spending to go up over the next decade. We live in a pretty HCOL area. We don't yet have kids but would like them. I want to buy a single family home one day. I would want to fully fund college educations.

So for the time being we're just trying to accrue wealth as fast as possible knowing that it will make everything easier in the future and that we can always figure it out later. It also just makes day to day life way less stressful even pre FI.

Congrats on your first million!  Not to be discouraging but kids will definitely throw a spanner in your financial plans. But they are soooo worth it! 

frugal_c

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Re: Just crossed over $1 million NW
« Reply #15 on: December 06, 2019, 06:33:21 PM »
First million is far and away the hardest so at your age you are so set.  Congrats.

iris lily

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Re: Just crossed over $1 million NW
« Reply #16 on: December 06, 2019, 07:40:24 PM »
Yay, good news!

Focus_on_the_fire

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Re: Just crossed over $1 million NW
« Reply #17 on: December 07, 2019, 11:06:21 AM »
Congrats! Enjoy the first of many accomplishments.

EscapedApe

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Re: Just crossed over $1 million NW
« Reply #18 on: December 18, 2019, 04:14:59 PM »
Life goes on as normal for the time being - but hey, we crossed this one threshold!

Great work! What's the next step for you two?

Exflyboy

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Re: Just crossed over $1 million NW
« Reply #19 on: December 21, 2019, 03:05:56 PM »
Well done!

It gets easier from here..

conwy

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Re: Just crossed over $1 million NW
« Reply #20 on: December 26, 2019, 02:13:33 PM »
Congratulations! Well done!

I may have a similar feeling as you do, as just this week, I checked all my balances and was delighted to discover that I've also crossed over $1M. (Though in AUD not USD.)

This feels like a milestone. *sigh* :)

From here on, the market will no doubt go up and down, but in the long-term (10-30 year range), the evidence suggests that my net worth will steadily rise, being as it is mostly invested in indexed stock funds.

I'll continue working throughout this period, but I now feel ever freer to take easier, more fun, more convenient jobs, and to work only enough to cover my basic expenses and maybe add a little to the fund.

At any point I can step off the savings ladder, and as long as I limit my spending to 2% or less of the portfolio ($20,000 AUD per year) the principle will probably last my lifetime. And $20k per year is easily enough for me to live well. But as long as I continue working part-time, I'm pretty sure I won't even need to draw that much.