Author Topic: Get to 1 Million in Net worth  (Read 138102 times)

usmarine1975

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Get to 1 Million in Net worth
« on: July 16, 2014, 10:08:35 AM »
Well I am going to throw this down as some others have stated if you write it down it becomes more etched in stone.  So etching will now commence.

My wife and I both work.  Our AGI is roughly 115k/year
I am 39 she is 36
I have a 7 mile commute my wife has about an hour or so.
We also have to transport our Son to and from Daycare on occasion.
Another Child is on it's way due in September oh boy. 
We are fortunate to have Grandma's to help watch but at that time will have to add a nanny which will be cheaper then a daycare but still an extra expense.

Current holdings

Cash or Bank $   12,800.00
Property         $ 725,900.00
Investments   $   56,800.00

Total Asset's  $  795,000.00

Liabilities        $  569,177.00

Net Worth      $  226,486.00




« Last Edit: September 03, 2014, 07:37:29 AM by usmarine1975 »

Thegoblinchief

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Re: Get to 1 Million in Net worth
« Reply #1 on: July 25, 2014, 08:10:21 AM »
I have no desire to get that high. It's possible we'll get that high including land/house, but our FIRE number in liquid assets is far lower than 1 mil.

Good luck though!

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #2 on: July 25, 2014, 08:23:42 AM »
I am including Real Estate in the Net worth Figure so actual Liquid cash will be much less as well especially considering our Current Real Estate Holdings is $725k.  So realistically our liquid cash or investments would be around $275K.

Our current timeline for Real Estate pay down is 15 years give or take.  The rental's alone generate enough income for us to live on once the properties are clear of leans.  I might even continue working who knows. 

Rbuckyfuller

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Re: Get to 1 Million in Net worth
« Reply #3 on: July 28, 2014, 05:17:04 AM »
I'll join this one.  I am also aiming for $1MM.  Though my wife would kill me if I shared our current net worth so I likely won't be able to provide updates or any real information at all =).  I'll let you know when we are done --- or maybe I won't be allowed to.

Alabaster

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Re: Get to 1 Million in Net worth
« Reply #4 on: July 28, 2014, 09:03:51 PM »
I'd love to join you, but its going to be a long ass time until I get anywhere near that. Good luck on your journey and congratulations on making it so far already! :cheer:

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #5 on: July 29, 2014, 03:19:58 PM »
I don't Expect this to happen for a couple years for us either so feel free to join in.  I have given myself 2 or 3 weeks to review the past few months spending to see if we have any other changes we could make to speed up our process.  As I get that done I will post.


KS

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Re: Get to 1 Million in Net worth
« Reply #6 on: July 29, 2014, 03:45:47 PM »
I'll join this one.  I am also aiming for $1MM.  Though my wife would kill me if I shared our current net worth so I likely won't be able to provide updates or any real information at all =).  I'll let you know when we are done --- or maybe I won't be allowed to.

I'm in this boat too... OP started this gauntlet the same day I happened to do some math and realized we may hit this milestone sooner than I thought, even without changing anything we're doing. Although it would of course be fun to optimize and get there even sooner! So I'm "in" but my husband doesn't want me sharing anything too specific on here, and I don't really blame him for being concerned so I generally keep things vague and will probably just continue lurking in this thread. :) Good luck to all, whether sharing details or not!

Happyback

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Re: Get to 1 Million in Net worth
« Reply #7 on: August 02, 2014, 11:22:40 AM »
Good resistance! 

I'm in on your $1M challenge.
I just paid off my mortgage today.
Current net worth is $888K (fun number!)
I am building my own off-grid, self sufficient cottage (cash), and hope to reduce my expenses TREMENDOUSLY in doing that. 
I estimate being at $1M net worth by the end of 2015.
:)

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #8 on: August 02, 2014, 08:39:07 PM »
Nice number. From the sounds of it you will beat me there but its good to have others joining the fight especially when they are further along.

catccc

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Re: Get to 1 Million in Net worth
« Reply #9 on: August 04, 2014, 11:04:55 AM »
Glad to join this gauntlet! 

I'm 34 (for another 2 weeks), DH is 36, and I consider us essentially a one-income family (DH stays at home with the kids, but works at a cafe very part-time making $8.50/hr)  My salary is $85K.  We have 2 kids, 5 & 3.  So all in all, not too far off from OP.  Slightly less income, slightly younger.  My commute is slightly crappy though, 40 miles round trip, and will be slightly more when some overdue bridge construction starts.

Our net worth recently broke $500K.  We don't have a mortgage because we rent.  We'd like to own someday, but it isn't a priority right now.  I'd really love to hit 1M in 5 more years, before I turn 40.  It would be a stretch, but it isn't totally out of the question, I think.

Obviously we've been decent savers, and we are getting to the point where we are comfortable with our spending levels (40K-45K/year, depending on preschool tuition and vacations...)  But I think there is always room for improvement, I'd love to get below 40K.  Maybe when the kids are both in public schools.  Kind of got suckered into one more year of private school for our 5 y/o.  And when both kids are in school, DH can possibly pick up more work, which would help out.

We track spending pretty closely, using Yodlee for years, and YNAB since December 2013.  (I really love YNAB, I think it is helping a lot in keeping costs reigned in.)

catccc

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Re: Get to 1 Million in Net worth
« Reply #10 on: August 04, 2014, 11:22:08 AM »
Boo, just updated my tracking spreadsheet for July month end.  June 2014 month end was $544K, market (paper) losses have taken us down a notch to $533K for July 2014.  The year end goal for 2014 is $570K, so we are now below tracking for $570K.  But hopefully the market will rebound before year end.  I know, I shouldn't let these month to month swings weigh so heavily on me, but it still sucks.

minimustache1985

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Re: Get to 1 Million in Net worth
« Reply #11 on: August 04, 2014, 11:33:16 AM »
Awesome, although I'll also have to be vague as my husband would also not appreciate our specifics out there. We're about 1/3 the way there not counting real estate since we plan to stay in our current house.  We have one neutral rental (H's old house) that will become more positive as rents rise here, and are looking to add a second one this year to grow some passive income we can reinvest.

Cheddar Stacker

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Re: Get to 1 Million in Net worth
« Reply #12 on: August 04, 2014, 02:44:57 PM »
Good luck to you and everyone else usmarine1975. It's a goal of mine along the way to FI as well. I don't want to be too specific, so I'll just say we're no where near there now, but project to be there in about 5-6 years. Now I just need to keep us focused and on track.

Gin1984

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Re: Get to 1 Million in Net worth
« Reply #13 on: August 04, 2014, 04:17:03 PM »
I'll join up, because I already joined Budget's are sexy's millionaire goal.  :)

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #14 on: August 26, 2014, 08:28:06 AM »
So I have been tracking our expenses on a Weekly basis to a degree.  Need to spend a day just categorizing expenses on the software and tweaking other aspects to make the printout's a lot easier and quicker to produce.  At this point I have made the following changes.

I have reduced the amount of times I purchase lunch at restaurants.

I have decided to surrender the VGUL policy that I have been holding on to.  Going to take the cash balance and put it in my Roth & the premium/investment payment will also be added to my Roth on a Monthly basis.

My wife and I need to discuss in more depth the rest of the insurance we carry and our feelings on it.  (Hard to believe I am saying that)

Trying to be proactive in all our expenses.  I have August with the goal of riding bike to work 2 days a week.  Last week and this week it looks like I will be able to continue doing 3 day's/week. 

Our Net worth has stayed pretty stable.  Now to Increase it.

Cheddar Stacker

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Re: Get to 1 Million in Net worth
« Reply #15 on: August 26, 2014, 11:40:27 AM »
Very strong of you to open your mind and view the insurance from all angles. I'm sure that was difficult given your professional history.

The stache is strong with this one.

Cheddar Stacker

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Re: Get to 1 Million in Net worth
« Reply #16 on: August 26, 2014, 12:15:15 PM »
When I enter debates or discussions, whatever you want to call them, its not to prove that I am right.  Part of having those debates or discussions for me, is that other's challenge my views and or opinions and help me to evolve or improve.  The VGUL was the easiest for me to get rid of. 

The whole life will be tougher, I do feel that Life Insurance is valuable (when you die) for those you leave behind.  That being said my term is convertible, and maybe right now is not the best time to be paying for a permanent policy.  Again not 100% sold on  surrendering them, but at least I am reviewing why we have it and considering what should be done.

Agree 100% with all of this, and again, good job keeping an open mind. This is something I used to be horrible at, but mustachianism is teaching me the ways. I've become much better at this than I used to be, but I'm constantly working on it.

Ybserp

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Re: Get to 1 Million in Net worth
« Reply #17 on: August 27, 2014, 05:21:02 AM »
Marine-

If the age on your profile is accurate, and you are currently near $1M in assets, you may be among the select group for whom whole life is actually a good idea. With $1M in assets before 40, a significant portion of assets in stocks or real estate, and the kind of badass attitude that involves side jobs and DIY in FIRE you are likely to end up with $5M+ at your passing. And your heirs might thank you... Though for your life insurance (whole or not) to be *not* included in your estate for tax purposes, someone besides you needs to own the policy, not just be its beneficiary.

JoyBlogette

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Re: Get to 1 Million in Net worth
« Reply #18 on: August 28, 2014, 01:33:18 PM »
I'm in for this challenge.  $1M is my FIRE number as well.  Including a (downsized) house.  We are at $750k right now.  I would love to get there within 2 years.

Cheddar Stacker

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Re: Get to 1 Million in Net worth
« Reply #19 on: August 28, 2014, 01:46:15 PM »
I'm in for this challenge.  $1M is my FIRE number as well.  Including a (downsized) house.  We are at $750k right now.  I would love to get there within 2 years.

Based on your last journal post Joy, you might be able to get there quickly simply by consolidating and getting a true picture of your asset allocation. I hope your meeting goes well tomorrow.

arebelspy

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Re: Get to 1 Million in Net worth
« Reply #20 on: August 31, 2014, 12:34:19 AM »
I'm in for this gauntlet (though it reads more like a journal - maybe some posts should be split out into a separate journal?).  I'm hoping to accomplish this by next June, 2015.  Looks like I'll make it, though perhaps not depending on what the markets do.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

Roots&Wings

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Re: Get to 1 Million in Net worth
« Reply #21 on: August 31, 2014, 07:33:15 AM »
I'm in too, though it will be awhile.  Just hit $400k in NW.  Save about $3,900/mo currently, and depending on a host of variables, might reach $1M in 8-12+ years.  Would be nice if it happens sooner though :)

sleepyguy

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Re: Get to 1 Million in Net worth
« Reply #22 on: August 31, 2014, 09:17:03 AM »
Not exactly sure when we'll get there... sucks so much is tied up in RE.  We're both 35 and have 2 young kids.  She's been on parental leave for 2yrs so we lost about $230k of income.  She's back this Sept so we'll be seriously ramping up investments and paying down the home.  We're also considering moving to a place under 350k, but not until she get's her RE license (also something she wants to do after she leaves the corporate world).

House $630k (150k mortgage left)
Investments 400K

JoyBlogette

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Re: Get to 1 Million in Net worth
« Reply #23 on: September 03, 2014, 11:08:40 AM »
Based on your last journal post Joy, you might be able to get there quickly simply by consolidating and getting a true picture of your asset allocation. I hope your meeting goes well tomorrow.

All signed up.  Now I have to convert to e-series funds... hoop jumping...

I recalculated our NW assuming a more conservative house value... total NW more like $650k.  Lots of work to do.  Got hubby more on board now.  I'm excited to see how that will change things in the coming months.  Good luck everyone!

thedayisbrave

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Re: Get to 1 Million in Net worth
« Reply #24 on: September 11, 2014, 04:32:33 PM »
Love it.  Thanks for posting, marine.  1MM is my FIRE number too but I'm not sure I'll completely stop when I reach it... it's more of a concrete number to be working towards.  Too many unknowns in life to say with absolute certainty but at that point I'd like to have the option of transitioning to part-time work and/or trying my hand at some entrepreneurial ventures.  If I'm aggressive over the next 5-7 years I could be really close.

brooklynmoney

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Re: Get to 1 Million in Net worth
« Reply #25 on: September 12, 2014, 04:38:28 AM »
This is the goal I'm most focused on right now but I am trying to reach it in liquid net with. About 2/3 there now goal is to reach in 2-3 years.

Dicey

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Re: Get to 1 Million in Net worth
« Reply #26 on: September 14, 2014, 02:38:30 PM »
We've been there for a couple of years, not including house, which is also paid for. We still have one rental with a mortgage, but we're going to let it ride. I chimed in just to say that we never thought we'd get there, until we did. Getting from 0-500k took a lot longer than from 500k to 1M. The key is to get started and then to stay focused. It may feel like this goal is impossible, but I assure you it is not!

One tip: it's far better IMHO to stuff the retirement/investment accounts once any debt is killed than to pre-pay the mortgage. When you hit your savings goals, you can write one check to pay off the house. More likely, by then you'll have learned that there are a lot of other interesting ways to create wealth besides paying off cheap mortgages.

clarkfan1979

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Re: Get to 1 Million in Net worth
« Reply #27 on: September 14, 2014, 06:20:40 PM »
Your numbers are somewhat similar to mine. Dual income of around 115K and net worth just above 200K. I am four years younger and also use my birth year in my screen name. The biggest difference is the property value/mortgage. I'm guessing that you are somewhere in So. Cal. If you love it and want to stay, I think your number should be 2 million. If you are planning on moving back to where you are originally from, then you will need much less, around 1 million. If you plan on moving back to your original area you should sell the house and rent. If you plan on staying, then stay the course and try to pay off the mortgage. Living in So Cal with a mortgage paid off is a long life dream of mine.

All things being equal I would harness some of that extreme marine strength and bike to work, 90% of the time. 

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #28 on: September 14, 2014, 07:27:17 PM »
My mortgage debt is for 6 properties with 7 rental units and a home we live in.  I am on the East Coast.  I was born in 75 great decade to be born imo

I am biking to work 3 of my 5 days.  Last month did 2.  Have a child that needs taken to daycare 1 day a week and usually something else that takes up a 2nd day of using my truck.  Dr appointment tomorrow gonna take the motorcycle. Its listed on CL maybe sell it beginning of the season.
« Last Edit: September 14, 2014, 07:29:55 PM by usmarine1975 »

clarkfan1979

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Re: Get to 1 Million in Net worth
« Reply #29 on: September 16, 2014, 07:24:26 PM »
I guess I was way off. I had no idea that the mortgage was for 7 rental units. I agree with the other recommendation that this should be a journal. In my quick opinion, if you have 7 rental units, your net worth should be way higher. However, it's obvious that I do not know your story. If you journal your story you should get some really good advice from the many readers.

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #30 on: September 16, 2014, 08:06:02 PM »
I did make a journal.  And my rounded numbers are on the first post on this thread and the journal as well.

NICE!

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Re: Get to 1 Million in Net worth
« Reply #31 on: September 16, 2014, 08:45:36 PM »
We're at about the same NW ($220k) and I like the goal. Married, no kids for a couple years. Wife in grad school for 2 years...about $105k salary. 10-15 years, depending on the market. I'd like to shave that down to 7-10 years.

CCCA

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Re: Get to 1 Million in Net worth
« Reply #32 on: September 30, 2014, 03:01:55 PM »
We passed this goal a few months ago!  This is not counting housing equity.  Our goal is about twice this amount because of expected college expenses for 2 kids (who are very young right now) and high living costs in SF Bay Area.  We're hoping we can get there in about 5-8 years, including downshifting our jobs to 50-75% levels over the next few years.  We're currently saving around $50K/yr, with income a little over $150K/yr.   

brooklynmoney

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Re: Get to 1 Million in Net worth
« Reply #33 on: September 30, 2014, 07:57:10 PM »
We've been there for a couple of years, not including house, which is also paid for. We still have one rental with a mortgage, but we're going to let it ride. I chimed in just to say that we never thought we'd get there, until we did. Getting from 0-500k took a lot longer than from 500k to 1M. The key is to get started and then to stay focused. It may feel like this goal is impossible, but I assure you it is not!

One tip: it's far better IMHO to stuff the retirement/investment accounts once any debt is killed than to pre-pay the mortgage. When you hit your savings goals, you can write one check to pay off the house. More likely, by then you'll have learned that there are a lot of other interesting ways to create wealth besides paying off cheap mortgages.

Diane -- Reading your post, for the first time ever I really get why it might not be the best plan to pre-pay my mortgage as I try to race to 1million liquid. Thx!
« Last Edit: September 30, 2014, 07:59:06 PM by brooklynmoney »

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #34 on: September 30, 2014, 09:03:03 PM »
We re financed to 15 year mortgages simply because our payment increased minimally and shaved around 13 years off each mortgage. We do not plan to pay extra on the mortgages.

They say the first million is the hardest. Its good to hear successful stories.

Dicey

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Re: Get to 1 Million in Net worth
« Reply #35 on: October 06, 2014, 11:02:22 PM »
We've been there for a couple of years, not including house, which is also paid for. We still have one rental with a mortgage, but we're going to let it ride. I chimed in just to say that we never thought we'd get there, until we did. Getting from 0-500k took a lot longer than from 500k to 1M. The key is to get started and then to stay focused. It may feel like this goal is impossible, but I assure you it is not!

One tip: it's far better IMHO to stuff the retirement/investment accounts once any debt is killed than to pre-pay the mortgage. When you hit your savings goals, you can write one check to pay off the house. More likely, by then you'll have learned that there are a lot of other interesting ways to create wealth besides paying off cheap mortgages.

Diane -- Reading your post, for the first time ever I really get why it might not be the best plan to pre-pay my mortgage as I try to race to 1million liquid. Thx!

Hey, thanks brooklynmoney! That's why I hang around here post-FIRE. If MMM and this forum had existed when I first entered the workforce, FIRE would have happened a lot sooner...
Many relatively young MMMers have only seen low mortgage interest rates thus far in their adult lives. These rates will.not.last. In a few years, when rates return to historical norms, they will be kicking themselves for well, killing themselves to pay that cheap money back so early.




Open-mindedness is a very helpful tool in the MMM bag o'tricks.

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #36 on: October 07, 2014, 06:11:11 AM »
My first mortgage was in the 9% range.  Can't imagine even paying that on a Credit Card today.

mbl

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Re: Get to 1 Million in Net worth
« Reply #37 on: October 07, 2014, 07:18:51 AM »
usmarine1975

Are you still in the military? If so I would have also considered any military pension that you would be eligible for.
Also, what military benefits might you have available?  Something to consider going forward.

VirginiaBob

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Re: Get to 1 Million in Net worth
« Reply #38 on: October 07, 2014, 07:26:14 AM »
They say your first million is the hardest.  But in reality, I think getting to $0 is the hardest - to go from college/credit card debts to $0 net worth - ramen, apartment in the ghetto, and no social life for 2 years.  After that, $1,000, $5,000, $10,000, $25,000 (1st house), $50,000 (married), $100,000, $250,000 (kids).  Working on $500,000 and getting close.  One thing that I noticed - each milestone is easier than the last.  It was actually easier to go from $100,000 to $250,000 than $1,000 to $5,000.  Go figure. 

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #39 on: October 07, 2014, 07:37:55 AM »
I did 6 years in the Reserves with 2 deployments.  I do have limited benefits mainly in the form of medical care at the VA.  I do not have a disability or a pension with the military.  I take advantage of any discounts offered by companies etc...  The VA home loan has never really worked out for me.  Interest rates are too low.  Maybe in the future.  My highest interest rate now is 5.5% we have 6 mortgages and most are closer to 3 %. 

I was able to get a lot of credits for my military service.  I did a ton of MCI's while in and those courses took care of about 1.5 years of college classes reducing the amount I needed to spend on a degree.  I also got grants related to my service etc... The GI bill at the time was laughable at best because I was a reservist.  They changed it after I graduated and didn't make it retro active One of those time's it would have been beneficial to wait to go to school.  Oh well.

Great experience over all.

Dyk

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Re: Get to 1 Million in Net worth
« Reply #40 on: October 07, 2014, 07:59:46 AM »
Quote
They say your first million is the hardest.  But in reality, I think getting to $0 is the hardest - to go from college/credit card debts to $0 net worth - ramen, apartment in the ghetto, and no social life for 2 years.  After that, $1,000, $5,000, $10,000, $25,000 (1st house), $50,000 (married), $100,000, $250,000 (kids).  Working on $500,000 and getting close.  One thing that I noticed - each milestone is easier than the last.  It was actually easier to go from $100,000 to $250,000 than $1,000 to $5,000.  Go figure.

VirginiaBob - Thank you!
I am 4 months into this, with a very late start, and single income family.  So at times the possibility of 1 Million seems laughable, but your post helped out a ton.  Thanks again.

arebelspy

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Re: Get to 1 Million in Net worth
« Reply #41 on: October 07, 2014, 09:59:00 AM »
They say your first million is the hardest.  But in reality, I think getting to $0 is the hardest - to go from college/credit card debts to $0 net worth - ramen, apartment in the ghetto, and no social life for 2 years.  After that, $1,000, $5,000, $10,000, $25,000 (1st house), $50,000 (married), $100,000, $250,000 (kids).  Working on $500,000 and getting close.  One thing that I noticed - each milestone is easier than the last.  It was actually easier to go from $100,000 to $250,000 than $1,000 to $5,000.  Go figure.

This is pretty person specific.

Getting to zero is hard if you make a lot of mistakes up front. 

If you don't, it shouldn't be.

And look at the percent of millionaires versus people with a 0 NW.  The latter is certainly more common.  ;)
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #42 on: October 07, 2014, 10:45:14 AM »
They say your first million is the hardest.  But in reality, I think getting to $0 is the hardest - to go from college/credit card debts to $0 net worth - ramen, apartment in the ghetto, and no social life for 2 years.  After that, $1,000, $5,000, $10,000, $25,000 (1st house), $50,000 (married), $100,000, $250,000 (kids).  Working on $500,000 and getting close.  One thing that I noticed - each milestone is easier than the last.  It was actually easier to go from $100,000 to $250,000 than $1,000 to $5,000.  Go figure.

This is pretty person specific.

Getting to zero is hard if you make a lot of mistakes up front. 

If you don't, it shouldn't be.

And look at the percent of millionaires versus people with a 0 NW.  The latter is certainly more common.  ;)

I took it to mean that for most people or the majority getting to 0 NW is the most difficult part.  The latter being more common seems to prove that point. 

I made many mistakes and have managed to increase my NW above zero.  I try not to think to often about what could be if I had done this or that.  I try to live in the present, learn from the past, and keep moving forward.  In the end my NW really won't matter much when I become potting soil for an Oak Tree.  It's all about the journey we take to get to that point and then we find out what really matters.

arebelspy

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Re: Get to 1 Million in Net worth
« Reply #43 on: October 07, 2014, 11:01:49 AM »
Getting to zero is hard if you make a lot of mistakes up front. 

If you don't, it shouldn't be.

And look at the percent of millionaires versus people with a 0 NW.  The latter is certainly more common.  ;)

The latter being more common seems to prove that point. 

Huh?  Doesn't  the fact that many, many more people have a net worth of 0 than have a net worth of 1MM (i.e. 1MM is rare compared to 0) mean that it is much harder to get 1MM?
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Workinghard

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Re: Get to 1 Million in Net worth
« Reply #44 on: October 07, 2014, 11:31:24 AM »
All I know getting to 1m feels like it's  taking forever since I've found MMM. We were oh, so close with the possibility of reaching it by the end of the year, but then our net worth dropped. Gasp. :)

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #45 on: October 07, 2014, 11:45:43 AM »
I didn't articulate my point very well.

Question is how many are at zero or even compared to a negative net worth?


« Last Edit: October 07, 2014, 11:48:12 AM by usmarine1975 »

BaldingStoic

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Re: Get to 1 Million in Net worth
« Reply #46 on: October 07, 2014, 11:52:36 AM »
One Million is a nice round number with definite psychological appeal but is it the right number?  I encourage others to reflect on how much is enough. For some the number be lower; for others higher.  For me, the number is higher; I've got 3 young kids and live in overpriced SoCal.  I could certainly FIRE now, if I move somewhere with a lower cost of living but factoring 3 kids and current cost of living I'd want a stash of 2M prior to declaring financial independence.
« Last Edit: December 23, 2014, 04:33:37 PM by BaldingStoic »

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #47 on: October 07, 2014, 12:23:01 PM »
I will Fire with out reaching 1 mm. I currently have enough rental income to more then cover my income needs once mortgages are clear. For me the goal is just an unnecessary game. I do not watch sports so I have taken to watching my NW which actually benefits my life contrary to sports which does nothing. Save playing games with my son or catch. I do agree its an individual number. 1 mm is just a number that many see as way out there. I do not. I will surpass it.

arebelspy

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Re: Get to 1 Million in Net worth
« Reply #48 on: October 07, 2014, 12:28:45 PM »
I didn't articulate my point very well.

Question is how many are at zero or even compared to a negative net worth?

Median household net worth in 2013 was 56k: http://www.nytimes.com/2014/07/27/business/the-typical-household-now-worth-a-third-less.html

In 2012, about 80% of households had a positive net worth: http://usatoday30.usatoday.com/money/perfi/basics/story/2012-05-12/households-net-worth-university-of-michigan/54912016/1
Quote
About one in five U.S. households owe more on credit cards, medical bills, student loans and other debts that aren't backed by collateral — so not including car loans — than they have in savings, checking accounts and other liquid assets, according to a new University of Michigan report.

(It's actually more, as things have gotten better over the last two years and that appears not to be counting retirement money).

Of course some sources claim about half have a net worth of essentially zero (though not negative), but that doesn't jibe with the median number, obviously.

I found various sources around various dates, but I'd guess the percentage with a negative net worth is around 10%.

It varies a lot by age, of course. Young people are much more likely to be negative (around 37%?).  Older have a much higher net worth.  But every age group has a positive median net worth, so less than 50% of any age group has a negative net worth (so it's more common to be worth something than owe something).

In other words, yes, zero net worth may seem like a big hill depending on where you're starting out, but most people are past that, so I'd argue that 1MM is harder than 0. 

Plenty of people are happy to be at 0, living paycheck to paycheck, and treading water.  (Or, if not happy, at least are continually making that choice.)  How many make the choice to save and invest and get to 1MM?  That's why it's harder, IMO, it takes lifestyle changes and choices and agency.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

usmarine1975

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Re: Get to 1 Million in Net worth
« Reply #49 on: October 07, 2014, 12:59:41 PM »
Let's try this again.  I think the idea is that if you are at a Negative NW it may seem harder or almost impossible to get to Zero, basically because you have debt eating away at what you make.  Compared to having 250k earning you money helping to propel you to the 1mm number.  Again not necessarily that it is harder to get to zero, but it may seem to be when you are underwater and barely getting by.  I was never really at a Negative NW so I don't really know what that's like, I can only assume.  And you know what they say about making assumptions.

I also think as you garner more money it is easier to earn more not necessarily on the mental front but you have more tools to work for you earning you more money hence the reason the rich just keep getting richer, and they follow good sound principles.  Although some steal and cheat along the way.

I live in a poor neighborhood and I don't think anyone in my neighborhood has the opinion that they can get to 1MM, or that it's my goal.

 

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