Read on Twitter
I accumulated a million dollars in net worth at age 30.
I started my career as an investment banking analyst in a foreign country with a low tax rate. The take-home pay was good especially when you considered the low local tax rate, an expatriate allowance and the fact that you
I started my career as an investment banking analyst in a foreign country with a low tax rate. The take-home pay was good especially when you considered the low local tax rate, an expatriate allowance and the fact that you
worked so many hours that you literally had no time to spend your money. I started saving money immediately and paid off modest university loans in the first year.
After a couple years I moved back to the US and joined a private equity firm.
After a couple years I moved back to the US and joined a private equity firm.
At this point I had a few hundred thousand dollars in liquid assets, mostly cash. The pay continued to increase but so did the expenses. My hours were better so my lifestyle had gotten more expensive (nicer apartment, more money spent going out, cooler gadgets etc.).
Fast-forward several more years, I was now engaged. Getting married is not cheap – engagement ring, wedding expenses, a larger apartment etc. My expenses doubled and my wife’s income was insignificant. Nevertheless, I continued to save at a gradual, consistent pace.
I began investing my liquid assets more actively, focusing particularly on stocks. Some of the skills I picked up from my private equity job were useful in helping me become a better stock picker, but I also focused on educating myself through practice.
As I got better, I started to achieve decent returns on my investments which helped supplement my wage income.
After a couple years of marriage, we had our first child on the way. This again is another step-change in your operating expenses.
After a couple years of marriage, we had our first child on the way. This again is another step-change in your operating expenses.
Bigger apartment, child care expenses etc.
During this period, my income continued to rise in lock-step with my expenses. Actually, it was more the other way around – I adjusted my spending in line with increases in my wage income.
During this period, my income continued to rise in lock-step with my expenses. Actually, it was more the other way around – I adjusted my spending in line with increases in my wage income.
And as I had mentioned earlier, it was around this time when I crossed a million dollars of net worth – from the start of my professional career it took me nine years.
Two years later it hit $2 million. It took another year to hit $3 million and a year after that my liquid net
Two years later it hit $2 million. It took another year to hit $3 million and a year after that my liquid net
worth reached $5 million.
At that point, I had accumulated enough liquid net worth to feel financially “free”, especially as I had also gained confidence in my investing ability to know that I could support the family’s current lifestyle with investment income alone.
At that point, I had accumulated enough liquid net worth to feel financially “free”, especially as I had also gained confidence in my investing ability to know that I could support the family’s current lifestyle with investment income alone.
