Share your stubble - 5-figure net worth

[voxpopular]

I just broke $10,000! Is anyone else just getting started on FI? I figure us newbies should be able to bask in our modest accomplishments, too. ;)

How I did it: I'm 23, just graduated, and I was fortunate to have almost all of my college degree paid for by scholarships. My internship paid enough that I could save up and pay the rest of my tuition out-of-pocket. I'm very lucky compared to most of my friends.

I've been reading MMM since the start of the year, and upon getting hired full-time in June I set my 401(k) deduction to ~50% aiming to max it out by the end of 2014. Between that and an HSA, my take-home has been equal to my part-time intern pay; no room for lifestyle inflation. :D My expenses are ~$1300/month at this point, ~40% of my net income. (All of these numbers are purposely fuzzy.)

I'm actually backing off on the 401(k) for now. I want to replenish my emergency fund after the hit it took from my last tuition payment. After that, my plan is to work up to donating 1/3 of my net pay to causes I believe in; I'm trying to live by the philosophy that doing good early and often compounds the same way the stock market does, and I already consider myself very lucky and want to give back. So my strategy is to spend 1/3, save 1/3, donate 1/3, and work to increase my income if I'm not happy with any of those amounts. ;)

Looking forward to hearing about how you all are kicking off your quests for FI!

[dude]

Donate 1/3?  And you expect that to compound and come back to you?  Hmmm.  Good luck with that.  In my experience, the old maxim "no good deed goes unpunished" is a more likely outcome (don't get me wrong, I donate to charity, but not THAT much -- and there are some very good articles out there about whether or not your charitable dollars are doing what you think they're doing).  But hey, if donating 1/3 of your income makes YOU happy, then by all means, get happy!

[biffwhipster]

What about donating your time to charity? There are plenty of organizations that appreciate your time, just as much as your $. On top of that, you usually get to see the immediate result of your efforts.

[LadyStache]

That's so great! Congratulations!! I graduated a few years ago and my current goal is just to get to a net worth of 0 (when my 401k/IRA = student loan balance).

1/3 is a lot to donate to charity. Might not be feasible to continue doing so during your retirement, but at that point you would have tons more time to donate to good causes.

[g3]

Very similar boat as you, voxpopular.

22 year old, just started my career in June too.  I will be right around $10,000 in just over two weeks (after my next two paychecks).

I considered doing a major contribution to 401k for the 2014 year but decided against it (only 15%) so I could save up an emergency fund.  Personal Capital shows my last 30 days of expenses as ~$1700, which is great considering all the start up costs I've had this last month -- renter's insurance for the year, furniture for my entire apartment, security deposit and utility start up fees.

Glad to see someone my age also embracing the lifestyle as I watch my peers go out and spend >$200 on alcohol every weekend.

[welliamwallace]

OP, instead of donating 1/3, if you add that to the 1/3 you are saving, you could retire 10 years earlier. Then donate 10 years of your life volunteering!

[greaper007]

I'm almost a hundred-aire.

[Beric01]

Just broke 50K last month. 2 years in the workforce.

[badger1988]

Good for you voxpopular! I'm going to go against the general opinion here and encourage you to work towards your goal of donating 1/3 of your income. My wife and I also really enjoy giving back to organizations, individuals and causes that make significant, sustainable impacts in other peoples lives. I understand what you are trying to say about it being an "investment." We don't expect to see any personal gain from this "investment;" rather, we enjoy seeing the compounding effects this "investment" has on others.

Our goal is to continue increasing our percentage of charitable giving (last year was 18%) up to about 50% in the next few years, which shouldn't be too difficult now that all non-mortgage debt is paid off. Once we reach FI I plan to continue working as long as I find my career fulfilling and just donate 100%. I really enjoy my job, and it would be icing on the cake to know that the only reason I earn a paycheck is so I can have fun giving it all away. No need to squirrel it away just so I can see a bigger number in my Mint account.

Also, I wanted to make the obvious point that donating your money and donating your time are not mutually exclusive. I've found that when you do both, both aspects become much more meaningful. 128 non-working hours per week leaves plenty of time to volunteer.

[EarlyRetirementGuy]

27 here and just over $70k NW.

I'm not a fan of donating money to causes and you frequently dont know where the funds are actually going. Instead I donate my time by being a local Councillor and helping the local community events run.

[t-rymz]

Going into my senior year of college and I'll have hit the 5-figure mark by my last paycheck this summer. Only two more logs to go to millionaire status :)

[Mike2]

I'm a bit of a late starter but my net worth is about $80,000 and that doesn't include my house with an ever shrinking mortgage.

[sekritdino]

I calculate my net worth on the first of every month. On August first it was $19,912! $11k of student loans is being counteracted by my 401(k) though :-/

[KittyFooFoo]

I just increased to 5 figures, too!!!!

(mine has a negative sign in front of it)

[Vitai Slade]

I started tracking my net worth back in November 2012 at around $13,125. Less than two years later and I'm at around $63,184 as of Friday. :) Average savings rate of 52.71% since the start of this year. I'll turn 25 come mid-September.

[TB_J]

Congrats everyone.

I've just hit $100k net worth, age 25. Started this 2.5 years ago at a similar age to OP! Unbelievable what can be achieved when you put your mind to it. Keep at it & don't deviate from the plan.

[greenmimama]

Congrats everyone.

I've just hit $100k net worth, age 25. Started this 2.5 years ago at a similar age to OP! Unbelievable what can be achieved when you put your mind to it. Keep at it & don't deviate from the plan.

You all are doing great, just think what you can have by the time you are 40!!

[voxpopular]

Great to hear from all of you -- congrats on your progress! Although KittyFooFoo, I hope you mean "increased" from negative six figures to negative five? :o

My wife and I also really enjoy giving back to organizations, individuals and causes that make significant, sustainable impacts in other peoples lives. I understand what you are trying to say about it being an "investment." We don't expect to see any personal gain from this "investment;" rather, we enjoy seeing the compounding effects this "investment" has on others.

... Also, I wanted to make the obvious point that donating your money and donating your time are not mutually exclusive. I've found that when you do both, both aspects become much more meaningful. 128 non-working hours per week leaves plenty of time to volunteer.

This is basically my philosophy. :) There are causes dear to me that I know will benefit more from having the money now (and maybe a little of my time), than receiving my time 10 years from now. I'm also committed to making sure my donations are being spent effectively -- how could I call myself a Mustachian if I only applied that to food, rent, and transportation? ;)

[snafuing1]

YNAB says we are up to just under 20k! I'm 25 years old and just graduated in May of this year, and my partner is my same age and still in school, so I think we're doing pretty well!

Unfortunately we are only putting about 15% or so in our 401(k)s, because we feel it's most important to pay for school in cash and avoid taking loans. We are living on about 40% of our income, though, so once school is paid for we'll be able to start maxing out our 401(k)s properly with no trouble.

[arebelspy]

I'm trying to live by the philosophy that doing good early and often compounds the same way the stock market does

Wow.  Well done.

You've inspired me to add a new item to my "Charitable Giving Goals" list.

Thank you!

[David Lurie]

YNAB says we are up to just under 20k! I'm 25 years old and just graduated in May of this year, and my partner is my same age and still in school, so I think we're doing pretty well!

Unfortunately we are only putting about 15% or so in our 401(k)s, because we feel it's most important to pay for school in cash and avoid taking loans. We are living on about 40% of our income, though, so once school is paid for we'll be able to start maxing out our 401(k)s properly with no trouble.

This is the right call. You'll be really surprised at how much the 'stache grows when you get rid of the school bills. Keep at it!

[Pooperman]

SO and I both 24. Mint puts our 'stache at 16k. This is my third attempt at doing this (other two times pre MMM and made some mistakes). we're saving about 80% for the next few months before moving out from SO's parents'. Savings rate will drop down to about 40-50% at that point.

[Dicey]

Congratulations to you! You are doing a lot of things right at a very young age. So smart.

Your money is yours to do as you wish, so I'm not going to be critical of your choices. I just want to share that my causes have changed with age. What I actively support now wasn't even on my radar when I was in my 20's. Perhaps you might consider holding and investing part of the charity allotment for future charitable giving. Compound interest will work its magic, giving you surprisingly more money over time. If your interests remain constant, you'll have the ability to give them even more. Help them now and help them even more later. Win-win.

[FireYourJob]

crossed the 7 figure mark this year.  Probably will work through one more bear market and back to the current highs or the next 5 years.  Whichever comes first. 

[so.mpls]

I just broke $10,000! Is anyone else just getting started on FI? I figure us newbies should be able to bask in our modest accomplishments, too. ;)

How I did it: I'm 23, just graduated, and I was fortunate to have almost all of my college degree paid for by scholarships. My internship paid enough that I could save up and pay the rest of my tuition out-of-pocket. I'm very lucky compared to most of my friends.

Congrats!  Was very similar when I graduated 3 years ago.  Now the wife (gf at the time) and I are over 80k NW and should break 100k by this time next year!  Always, always look for opportunities to get more cash flowing to the 'stache.