Author Topic: The first million is the hardest  (Read 101411 times)

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 7752
  • Age: 60
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: The first million is the hardest
« Reply #100 on: May 07, 2014, 09:59:13 AM »
Of course eventually your money will work harder than you can.. or at least what you are throwing in the savings pot becomes small.

Say you have a $1M portfolio, an  d its making 10% on average... That $100k per year.

If your saving $17.5K in your 401k, then thats pretty small in comparison.

But of course, watching the daily wild swings in my portfolio kinda makes finding this weeks special price on beans at the supermarket seem a bit trivial...:)


Frank

FiveSigmas

  • Pencil Stache
  • ****
  • Posts: 590
Re: The first million is the hardest
« Reply #101 on: May 07, 2014, 10:26:51 PM »
But of course, watching the daily wild swings in my portfolio kinda makes finding this weeks special price on beans at the supermarket seem a bit trivial...:)

Yet another reason not to pay daily attention to the market and instead just focus on things you can control (like asset allocation... and grocery bills) :-).

FireYourJob

  • Stubble
  • **
  • Posts: 110
    • Get Rich or Die Trying!
Re: The first million is the hardest
« Reply #102 on: December 31, 2014, 01:03:58 AM »
Been a while since we got an update bigote

Workinghard

  • Pencil Stache
  • ****
  • Posts: 636
Re: The first million is the hardest
« Reply #103 on: December 31, 2014, 03:35:48 AM »
I'm beginning to think the last 50k of the first million is the hardest! We've been up and down due to fluctuations with our home (we're including it-currently prepping for sale) and stock market,  wedding, college money for a grandkid. Didn't make it this year, but since my original goal was 900k at year end, we're still ahead. Still...

gnomemom

  • 5 O'Clock Shadow
  • *
  • Posts: 37
Re: The first million is the hardest
« Reply #104 on: December 31, 2014, 09:38:59 PM »
I love this thread!  I can't wait to be a member of the two comma club!

Davids

  • Pencil Stache
  • ****
  • Posts: 971
  • Location: Somewhere in the USA.
Re: The first million is the hardest
« Reply #105 on: January 01, 2015, 10:32:26 AM »
I crossed the $600K mark last month, cannot wait till I hit the $1M mark.

chuckaluck

  • 5 O'Clock Shadow
  • *
  • Posts: 64
Re: The first million is the hardest
« Reply #106 on: January 01, 2015, 11:37:09 AM »
I am blown away by how fast some have hit the million mark.  Congratulations!  This is my journey along with major expenses that slowed the accumulation rate a bit (but NO regrets): 

Started first real job in 1980
Married in 1990, Kiddos in 1990 and 1995.
Wife completed masters degree 1992
I completed doctorate in Jan 1996
500K net worth in May 1999
1 mil in Feb 2005
Kiddo 1, 4 years of private college (pd cash)
1.5 mil in Jan 2011
Retired at 58 yrs old in Dec 2012
Kiddo 2, Began 4 years of private college 2012 (pd, will pay cash)
2.0 mil in Oct 2013
2.2 mil in Dec 2014

Also along the way, two major additions onto home, vacations, various certifications for different fields, etc (all cash pd)








Exflyboy

  • Walrus Stache
  • *******
  • Posts: 7752
  • Age: 60
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: The first million is the hardest
« Reply #107 on: January 01, 2015, 12:37:54 PM »
Thats an amazing rate of growth Chuck.. What sort of salary were you making in recent years?

Frank

ysette9

  • Walrus Stache
  • *******
  • Posts: 8436
  • Location: Bay Area at heart living in the PNW
    • The Best Is Yet To Come
Re: The first million is the hardest
« Reply #108 on: January 02, 2015, 09:31:39 AM »
We just recently hit that mark and I have to say that looked by back on it, the ability to build net worth really took off after we got married. It took 10 years to reach that mark from when we first entered the workforce. I had estimated it would take another ten years for the second million and with it, FI. I certainly hope it comes more quickly than that!

JLee

  • Walrus Stache
  • *******
  • Posts: 7233
Re: The first million is the hardest
« Reply #109 on: January 02, 2015, 11:47:22 AM »
We just recently hit that mark and I have to say that looked by back on it, the ability to build net worth really took off after we got married. It took 10 years to reach that mark from when we first entered the workforce. I had estimated it would take another ten years for the second million and with it, FI. I certainly hope it comes more quickly than that!
I am really looking forward to two incomes. Unfortunately we have an international border to cross for that, but hopefully soon.

chuckaluck

  • 5 O'Clock Shadow
  • *
  • Posts: 64
Re: The first million is the hardest
« Reply #110 on: January 02, 2015, 11:50:36 AM »
Thats an amazing rate of growth Chuck.. What sort of salary were you making in recent years?

Frank

Gross salaries only, my wife and I pulled in 200K + in each of the 5 years or so before I semi-retired at 58 years old.   By Mustachian standards, we did not do as well as we could have with regard to saving.  But to be honest, when we knew we were FI about 4 to 6 years ago (after being pretty Mustachian for many years), we kind of let up and did some of the things that we were going to do "some day".  No regrets for taking vacations, for example, while we are still healthy enough to enjoy it.   
« Last Edit: January 02, 2015, 11:52:35 AM by chuckaluck »

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 7752
  • Age: 60
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: The first million is the hardest
« Reply #111 on: January 02, 2015, 01:55:52 PM »
Thats an amazing rate of growth Chuck.. What sort of salary were you making in recent years?

Frank

Gross salaries only, my wife and I pulled in 200K + in each of the 5 years or so before I semi-retired at 58 years old.   By Mustachian standards, we did not do as well as we could have with regard to saving.  But to be honest, when we knew we were FI about 4 to 6 years ago (after being pretty Mustachian for many years), we kind of let up and did some of the things that we were going to do "some day".  No regrets for taking vacations, for example, while we are still healthy enough to enjoy it.   

Well done! Absolutely.. No shame in that at all.. I am 53 and we expect to have pensions of about $42k a year in 8 years from now.

Currently have a stash of just shy of $1.5M.. Plus have some rent, a part time (and very well paid) job for me and the Wife will work for another 2 years.. So without touching the stash we should be fairly close to where you guys are.

Frank


RyanAtTanagra

  • Handlebar Stache
  • *****
  • Posts: 1302
  • Location: Sierra Mountains
Re: The first million is the hardest
« Reply #112 on: January 02, 2015, 03:04:53 PM »
All of my spreadsheet projections look like the OP's path, with net worth growing like crazy once we no longer need it to. I find it slightly distressing and I expect it to keep me working longer than necessary.  One more year and I can buy a yacht! One more year and my grand kids also get free college. One more year and I can endow a scholarship. One more year and I can feed 1000 starving African families forever.  The payoff just goes up and up.

Fret not, there is probably a natural stop to this with the second 'number'.  The first being the point where your investment income equals your expenses.  If you keep working you'll eventually hit a point where your it equals your wage income.  Eventually your wage income will be dwarfed by your investment income, at which point it will feel more and more pointless to keep working ;-)

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #113 on: March 22, 2015, 03:10:53 PM »
Seeing the 100k thread got me thinking about the million dollar thresholds.

I started working in 1990.   I crossed a million in net worth in 2001. 

It took me until 2006 to cross 2MM.  I dipped below briefly during the crisis, but for the most part stayed between 2-3 until 2010.

I hit 3MM in 2010.

I hit 4MM in 2012.   

I hit 5MM in 2013.

So basically it took me 11 years to get to the 1st million, 5 years to the 2nd, 4 years to the 3rd, 2 years to the 4th, and 1 year to the 5th.

I'm defining net worth conservatively, I'm not including home equity but I did subtract mortgage debt for the years that I had it.


Any other 2 comma club members want to chime in?


Finally hit 6MM on Friday.   So it took two years from 5MM->6MM.  But it just barely crossed the line, so it could drop back below on Monday easily.    Anyway, this is the only place I can share the milestone, so I thought I would. 


dragoncar

  • Walrus Stache
  • *******
  • Posts: 9808
  • Registered member
Re: The first million is the hardest
« Reply #114 on: March 22, 2015, 03:46:12 PM »
Seeing the 100k thread got me thinking about the million dollar thresholds.

I started working in 1990.   I crossed a million in net worth in 2001. 

It took me until 2006 to cross 2MM.  I dipped below briefly during the crisis, but for the most part stayed between 2-3 until 2010.

I hit 3MM in 2010.

I hit 4MM in 2012.   

I hit 5MM in 2013.

So basically it took me 11 years to get to the 1st million, 5 years to the 2nd, 4 years to the 3rd, 2 years to the 4th, and 1 year to the 5th.

I'm defining net worth conservatively, I'm not including home equity but I did subtract mortgage debt for the years that I had it.


Any other 2 comma club members want to chime in?


Finally hit 6MM on Friday.   So it took two years from 5MM->6MM.  But it just barely crossed the line, so it could drop back below on Monday easily.    Anyway, this is the only place I can share the milestone, so I thought I would.

Sweet - remind us, are you still working?  Or is this including draw-downs?

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #115 on: March 22, 2015, 03:51:01 PM »
I'm not, my wife is even though she doesn't need to.   So no draw downs yet, though no significant additions either.

imustachemystash

  • Bristles
  • ***
  • Posts: 407
  • Age: 42
  • Location: Seattle
Re: The first million is the hardest
« Reply #116 on: March 22, 2015, 03:57:58 PM »
Bigote, you are so inspiring.  Thanks for keeping us posted so we can live vicariously through you. 

Workinghard

  • Pencil Stache
  • ****
  • Posts: 636
Re: The first million is the hardest
« Reply #117 on: March 22, 2015, 04:02:23 PM »
We finally broke through the 1m NW barrier. Have to admit I'm exhausted with working OT. We put 75k into savings last year and I want to do so again before my dh retires next year. It took us 23 years, starting out negative (dh not me), and living on one income of about 50-60k for 10 of those years.

FrontRanger

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: The first million is the hardest
« Reply #118 on: March 22, 2015, 05:48:27 PM »
I wish that I would have tracked NW all the way to this point. I think I was about $850K in 2008 and am at $1.97MM today. The last $30K is teasing me badly, but agree the first $1MM was the long haul.

I'm 37, married, and 3 small kids, so I will be in the working game another 10 years or so.

Money Badger

  • Bristles
  • ***
  • Posts: 489
Re: The first million is the hardest
« Reply #119 on: March 22, 2015, 09:25:52 PM »
Truly badass stories on moving up from 1M onwards on here...   What are the 3 best ways to accelerate from 1M though?   We're hoving at the 1M net mark (inclusive of home equity) but I have 6 years of college coming at me from 2 kids and am trying to keep the stash from taking a beating...   They're smart kids, and will go to a state school to max value of the education.  But the math says books/incidentals/housing are going to eat our monthly safety margin even after MMM lifestyle trimming in the overlapping 2 years.  Seems the best ways to get to 2M are:

1. Compounding.    Resist the urge to spend the cash flow/divy's from after tax accounts.
2. Real Estate Rental Income (after 1M).   Requires all the hard work/time/risk of rental property
3. Inherit.   Making it the old fashioned way is not likely given today's life expectancies...
4. What else did you really focus your energy on to get to 2M and beyond more effectively?

Gin1984

  • Magnum Stache
  • ******
  • Posts: 4898
Re: The first million is the hardest
« Reply #120 on: March 22, 2015, 09:39:15 PM »
Truly badass stories on moving up from 1M onwards on here...   What are the 3 best ways to accelerate from 1M though?   We're hoving at the 1M net mark (inclusive of home equity) but I have 6 years of college coming at me from 2 kids and am trying to keep the stash from taking a beating...   They're smart kids, and will go to a state school to max value of the education.  But the math says books/incidentals/housing are going to eat our monthly safety margin even after MMM lifestyle trimming in the overlapping 2 years.  Seems the best ways to get to 2M are:

1. Compounding.    Resist the urge to spend the cash flow/divy's from after tax accounts.
2. Real Estate Rental Income (after 1M).   Requires all the hard work/time/risk of rental property
3. Inherit.   Making it the old fashioned way is not likely given today's life expectancies...
4. What else did you really focus your energy on to get to 2M and beyond more effectively?
Don't assume a state school is the best idea.  My friends who went to private universities paid less  overall than public because the aid packages were better.

FOBStash

  • 5 O'Clock Shadow
  • *
  • Posts: 54
  • Age: 41
Re: The first million is the hardest
« Reply #121 on: March 22, 2015, 10:28:06 PM »
bigote, what is your age?

Inspiring thread

FrontRanger

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: The first million is the hardest
« Reply #122 on: March 23, 2015, 06:14:45 AM »
Truly badass stories on moving up from 1M onwards on here...   What are the 3 best ways to accelerate from 1M though?   We're hoving at the 1M net mark (inclusive of home equity) but I have 6 years of college coming at me from 2 kids and am trying to keep the stash from taking a beating...   They're smart kids, and will go to a state school to max value of the education.  But the math says books/incidentals/housing are going to eat our monthly safety margin even after MMM lifestyle trimming in the overlapping 2 years.  Seems the best ways to get to 2M are:

1. Compounding.    Resist the urge to spend the cash flow/divy's from after tax accounts.
2. Real Estate Rental Income (after 1M).   Requires all the hard work/time/risk of rental property
3. Inherit.   Making it the old fashioned way is not likely given today's life expectancies...
4. What else did you really focus your energy on to get to 2M and beyond more effectively?

I would say invest in the market when others are fearful. I was smart enough to pile cash into the market from 2007-2010 and am  thankful I did.

Also, continue to find ways to maximize both earnings and spending. I have a personal mantra of growing my income at 2x my spending rate. Resulted in 65% savings rate to date.

Candace

  • Pencil Stache
  • ****
  • Posts: 582
  • Age: 56
  • Location: Hampton Roads, Virginia
Re: The first million is the hardest
« Reply #123 on: March 23, 2015, 07:42:52 AM »
Yep, I'm in the two-comma club if I include home equity. Investments that are in the stock market total about $875K. So right now my portfolio generates more additional stache money than I can, at least in a decent market year. It doesn't stop me from trying to save all I can though. I can't relax just because my money is on autopilot. Saving will still get me to FI earlier. I want a lifestyle that includes frequent travel, and that costs money, so I'm working longer to achieve that.

dude

  • Handlebar Stache
  • *****
  • Posts: 2371
Re: The first million is the hardest
« Reply #124 on: March 23, 2015, 07:59:08 AM »
Seeing the 100k thread got me thinking about the million dollar thresholds.

I started working in 1990.   I crossed a million in net worth in 2001. 

It took me until 2006 to cross 2MM.  I dipped below briefly during the crisis, but for the most part stayed between 2-3 until 2010.

I hit 3MM in 2010.

I hit 4MM in 2012.   

I hit 5MM in 2013.

So basically it took me 11 years to get to the 1st million, 5 years to the 2nd, 4 years to the 3rd, 2 years to the 4th, and 1 year to the 5th.

I'm defining net worth conservatively, I'm not including home equity but I did subtract mortgage debt for the years that I had it.


Any other 2 comma club members want to chime in?


Finally hit 6MM on Friday.   So it took two years from 5MM->6MM.  But it just barely crossed the line, so it could drop back below on Monday easily.    Anyway, this is the only place I can share the milestone, so I thought I would.

Holy shit!  What are you doing with ALL THAT MONEY???!  Do you pull 4%?  Less?  More?  I mean, shit dude, I'd with $240K/year in passive income, I'd be freakin' traveling the globe non-stop!

dude

  • Handlebar Stache
  • *****
  • Posts: 2371
Re: The first million is the hardest
« Reply #125 on: March 23, 2015, 08:10:08 AM »
Yep, I'm in the two-comma club if I include home equity. Investments that are in the stock market total about $875K. So right now my portfolio generates more additional stache money than I can, at least in a decent market year. It doesn't stop me from trying to save all I can though. I can't relax just because my money is on autopilot. Saving will still get me to FI earlier. I want a lifestyle that includes frequent travel, and that costs money, so I'm working longer to achieve that.

Yeah, ditto here as well, though I don't focus on net worth so much as I do on invested assets.  DW and I are somewhere just north of $700K. But I'm one of the fortunate folks left in America who have a pension benefit, which I'll be eligible for in about 4 years that's worth $1.5M or better if you use the 4% rule to estimate the annual benefit. Hard to overstate the good fortune of that situation.

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #126 on: March 23, 2015, 08:45:39 AM »
bigote, what is your age?

Inspiring thread

Thanks.   I'm 46.

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #127 on: March 23, 2015, 08:50:18 AM »
Holy shit!  What are you doing with ALL THAT MONEY???!  Do you pull 4%?  Less?  More?  I mean, shit dude, I'd with $240K/year in passive income, I'd be freakin' traveling the globe non-stop!

Well, I'm not actually pulling money out yet.  My wife is still working!  She likes her job.   That and a small child keeps us from traveling the world full time, but we do take nice vacations. 

Having said that we are, if not exactly mustachian, very much LBYM types.  One of our two cars turns 18 this year.   :)

Another thing I'll say - the 4% rule is traditionally based on a 30yr 'normal' retirement.   For planning purposes, I much prefer to think of 3%, though we won't come close to spending that much under ordinary circumstances.

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 7752
  • Age: 60
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: The first million is the hardest
« Reply #128 on: March 23, 2015, 10:38:30 AM »
This for me is the next interesting phases of MMM-ness.. I.e that point where you have saved so much that money is completely  irrelevant! You seriously could buy almost anything you want, new car every year, I could buy my airplane back, add a couple more and hire a mechanic to maintain them. Health insurance?.. Who cares what it costs?

Of course I'd never personally do this as its just not in my nature.

Not sure at what point ($2M, $5M??) this actually occurs, a lot of folks argue on this forum that I am at that place already, but I am nowhere near Bigote's financial position and I still worry about money.

Maybe its the point at which one actually stops worrying perhaps??...:)

starguru

  • Pencil Stache
  • ****
  • Posts: 752
Re: The first million is the hardest
« Reply #129 on: March 23, 2015, 02:17:59 PM »
Holy shit!  What are you doing with ALL THAT MONEY???!  Do you pull 4%?  Less?  More?  I mean, shit dude, I'd with $240K/year in passive income, I'd be freakin' traveling the globe non-stop!

Well, I'm not actually pulling money out yet.  My wife is still working!  She likes her job.   That and a small child keeps us from traveling the world full time, but we do take nice vacations. 

Having said that we are, if not exactly mustachian, very much LBYM types.  One of our two cars turns 18 this year.   :)

Another thing I'll say - the 4% rule is traditionally based on a 30yr 'normal' retirement.   For planning purposes, I much prefer to think of 3%, though we won't come close to spending that much under ordinary circumstances.

With a stache that size, how do you have it arranged?  Do you manage it all yourself?  Do you use a 3 fund portfolio?

Workinghard

  • Pencil Stache
  • ****
  • Posts: 636
Re: The first million is the hardest
« Reply #130 on: March 23, 2015, 04:23:17 PM »
I still can't believe we actually did it. It just seems surreal. I don't think we'll ever hit 2m as I'm not willing to keep up our current pace, we're older, and I want some "good" retirement years. Still...we have another year of saving 75k.

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #131 on: March 23, 2015, 04:43:07 PM »
With a stache that size, how do you have it arranged?  Do you manage it all yourself?  Do you use a 3 fund portfolio?

I am almost completely Boglehead in my investing, mostly index ETFs but I do buy a lot of single issue bonds (TIPs).   I was an asset class slice and dicer early on.  In hindsight I'd probably simplify things some more (maybe not three fund, but close) but now there's too much tax drag for me to change much. 

One thing about the larger portfolios, most of it tends to be outside of the tax sheltered accounts.   So selling anything can create a tax liability. 

zephyr911

  • Magnum Stache
  • ******
  • Posts: 3619
  • Age: 44
  • Location: Northern Alabama
  • I'm just happy to be here. \m/ ^_^ \m/
    • Pinhook Development LLC
Re: The first million is the hardest
« Reply #132 on: March 24, 2015, 11:28:13 AM »
The first [whatever increment] will always be the hardest. Exponential growth looks the same on any scale.
I recently graphed my last few years by quarter, and can say the same per 100k: the first increment took over 4 years, the second just 2, and we've grabbed nearly a third of #3 this quarter. Even if the market slacks off, we could hit 300 this year.
Wherever you find yourself, just keep pushing that ball till it starts pulling you forward. ^_^

dude

  • Handlebar Stache
  • *****
  • Posts: 2371
Re: The first million is the hardest
« Reply #133 on: March 24, 2015, 12:21:20 PM »
Wherever you find yourself, just keep pushing that ball till it starts pulling you forward. ^_^

I like this conceptualization!

RWD

  • Walrus Stache
  • *******
  • Posts: 5563
  • Location: Mississippi
Re: The first million is the hardest
« Reply #134 on: March 24, 2015, 12:22:44 PM »
The first [whatever increment] will always be the hardest. Exponential growth looks the same on any scale.

While this is true of pure exponential growth, you have to consider contributions as well. Assuming mostly constant contributions your first <smaller increment> will be easier than your first <larger increment>. This makes sense. If you're saving $10k per year then your first $10k will be accomplished in just under a year with almost no help from compounded growth.

At $10k saved per year compounded at 7%:
 - $10k saved takes 12 months
 - $20k saved takes 23 months
 - $100k saved takes 91 months
 - $200k saved takes 150 months
 - $1 million takes 357 months
 - $2 million takes 465 months

Therefore (with these assumptions), the first $10k is almost as easy as the second $10k. The first $100k is 54% harder than the second $100k. And the first $1 million is more than three times as hard as the second $1 million.

Obviously these numbers shift with different assumptions, but the first <larger increment> will always be relatively harder compared to the second <larger increment> than with a <smaller increment>.

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #135 on: March 24, 2015, 02:21:04 PM »
Sure enough, I'm back below the threshold today.   I think I'll get to relive this milestone a bunch of times.   :)

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 7752
  • Age: 60
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: The first million is the hardest
« Reply #136 on: March 24, 2015, 03:12:23 PM »
Sure enough, I'm back below the threshold today.   I think I'll get to relive this milestone a bunch of times.   :)

Haha.. yup, its a hard life for sure..:)

starguru

  • Pencil Stache
  • ****
  • Posts: 752
Re: The first million is the hardest
« Reply #137 on: March 24, 2015, 03:27:54 PM »
How much were you saving each year?  Was it large savings or good returns or both that allowed you to achieve that number? 

starguru

  • Pencil Stache
  • ****
  • Posts: 752
Re: The first million is the hardest
« Reply #138 on: March 24, 2015, 03:28:25 PM »
How much were you saving each year?  Was it large savings or good returns or both that allowed you to achieve that number? 

ScroogeMcDutch

  • 5 O'Clock Shadow
  • *
  • Posts: 86
Re: The first million is the hardest
« Reply #139 on: March 25, 2015, 01:54:59 AM »
Lovely thread and congratulations Bigote

I get frustrated and sometimes wish time would pass faster so I could see that growth happening, even though I have also returned 20% in 9 months that I am in the market. Can't go fast enough for me, but I know I should refrain from taking bigger risks than I am. Reading stories of people getting there is nice.

Currently at about 200k euros NW @ 34 and able to save a 50-60k a year.

Bjorn

  • 5 O'Clock Shadow
  • *
  • Posts: 68
Re: The first million is the hardest
« Reply #140 on: March 25, 2015, 04:14:23 AM »
Congrats with your badassity Bigote, it surely is inspiring to read!

I get the feeling you will never spend those $6MM, or whatever amount you will accumulate with time. So where exactly will this money end up? Will you donate it, pass it on to your next generation, spend it on something?

Jakejake

  • Pencil Stache
  • ****
  • Posts: 720
  • FIRE: June 17, 2016
Re: The first million is the hardest
« Reply #141 on: March 25, 2015, 05:05:21 PM »
I went back and looked at our spreadsheets. Our first one was in 1997 when we had $200k. It took until 2010 to reach a million (13 years for that 800k). In Dec 2014 we ended at 1.7 million; 4 years for 700k is pretty good considering we didn't earn that much in salaries in 4 years.  I'm hoping to hit 2 million by the end of this year. We're planning to retire in 4 years when the house is paid off. It's unbelievable to me that we could have 3 million by then or even maybe 4, but that's the trajectory.

Murdoch

  • Stubble
  • **
  • Posts: 158
  • Location: QLD, Australia
Re: The first million is the hardest
« Reply #142 on: March 26, 2015, 05:33:25 AM »
Inspiring thread. Cheers.

NearlyThere

  • Bristles
  • ***
  • Posts: 252
Re: The first million is the hardest
« Reply #143 on: March 26, 2015, 10:57:41 AM »
I am just shy of 50% (47%) of my first FI target and things really seem to be taking hold. It's taken me two years to get here, but I can see the second 2 years or less becoming less of a struggle - markets pending. I have another 30% available in an offset mortgage, so I intend to invest fully on the next big market correction. For now though its saving me 5.49% on mortgage rates, so I'm happy keeping it where it is.

One thing I have decided on however is to not wait till FI to make big changes in my life. We've decided to spend two months in Spain (working remotely) and then take the winter season in the Alps, again working remotely, but much less. This will probably happen to coincide with FI, but the plan is to come back work for a little while longer and really build a buffer. The trips are really to prove to myself I can leave the business for an extended period, without the commitment of actually retiring.

By heck I'm excited.

frugaljo

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: The first million is the hardest
« Reply #144 on: March 29, 2015, 03:41:42 PM »
I am just shy of 50% (47%) of my first FI target and things really seem to be taking hold. It's taken me two years to get here, but I can see the second 2 years or less becoming less of a struggle - markets pending. I have another 30% available in an offset mortgage, so I intend to invest fully on the next big market correction. For now though its saving me 5.49% on mortgage rates, so I'm happy keeping it where it is.

One thing I have decided on however is to not wait till FI to make big changes in my life. We've decided to spend two months in Spain (working remotely) and then take the winter season in the Alps, again working remotely, but much less. This will probably happen to coincide with FI, but the plan is to come back work for a little while longer and really build a buffer. The trips are really to prove to myself I can leave the business for an extended period, without the commitment of actually retiring.

By heck I'm excited.

damn that's exciting MajorFacepunch! I love seeing someone make a inspiring plan and make it happen!

clarkfan1979

  • Magnum Stache
  • ******
  • Posts: 2951
  • Age: 43
  • Location: Pueblo West, CO
Re: The first million is the hardest
« Reply #145 on: March 30, 2015, 06:02:33 AM »
Thank you for the interesting goal of 1 million in 11 years. I got my first real job in August 2011. I was in grad school full-time from August 2004 to May 2011. I bought a house in May 2007 and got married in August 2012. Based on my first 3 years and 8 months of working full-time, our net worth is 276K. In order to hit 1 million in 11 years, we would have to average $99K per year for the next 7.33 years. Our net worth increased 113K during the past 12 months, so it's doable.   

Bigote

  • Bristles
  • ***
  • Posts: 277
Re: The first million is the hardest
« Reply #146 on: March 30, 2015, 06:21:45 AM »
That's right, just financial assets.   I don't have any investment properties. And I excluded my residence. 

ender

  • Walrus Stache
  • *******
  • Posts: 6965
Re: The first million is the hardest
« Reply #147 on: March 30, 2015, 06:36:15 AM »
Thank you for the interesting goal of 1 million in 11 years. I got my first real job in August 2011. I was in grad school full-time from August 2004 to May 2011. I bought a house in May 2007 and got married in August 2012. Based on my first 3 years and 8 months of working full-time, our net worth is 276K. In order to hit 1 million in 11 years, we would have to average $99K per year for the next 7.33 years. Our net worth increased 113K during the past 12 months, so it's doable.   

The way I have looked at my net worth, now that I have enough data, is "what is the increase from one year ago?" which imo provides an interesting perspective.

Knowing your net worth increased $50k/year means at that pace in 20 years you'll be at 1M.

Or $100k puts you there in 10 years (!).
« Last Edit: March 31, 2015, 06:21:33 AM by enderland »

ender

  • Walrus Stache
  • *******
  • Posts: 6965
Re: The first million is the hardest
« Reply #148 on: March 31, 2015, 06:21:56 AM »
You mean $50K/year right?

Haha. Yeah :)

$50/year would take a while...

BlueMR2

  • Handlebar Stache
  • *****
  • Posts: 2229
Re: The first million is the hardest
« Reply #149 on: March 31, 2015, 10:02:16 AM »
While I agree that a 7-figure NW is a formidable goal for many, $1mil is doable on a modest income if a person 1) starts early enough and 2) does it right.

This.  I have reasonable enough income, but I started late.  Also, in my career path, income and jobs tend to go down as time goes on.  Combine that with the terrible economic conditions in the USA today and it's bad timing (I know the newspapers are pushing good employment numbers, but they don't reflect reality, totally missing the fact that so many people don't show up in there due to having completely run out all their benefits).  Things will probably pick up again right when we can't take advantage.  Currently my wife and I put together make less than I made by myself back in 2005/6.