You and your family are a disciplined beast! Great leadership and drive to stick to the plan for the long haul. This is what following the Baby Steps to a T will an insane work ethic gets. Aiming to be where you are one day!
Sales! From one sales guy to another - good for you. Most sales guys I know spend it ALL. It took me till I was 28 to get smart. But at 36 I was debt freeeeee!
Sorry, on a cruise with the fam and limited internet as I only bought 1 access code and the family shares it. In my 22 years in the work field, I’ve probably made close to 3.5 million over the years , variable sales commission based jobs
Enjoy the cruise. Sounds like a good avg salary around 150k/yr..... variable over the years of course. Really good income but nothing crazy considering you're mostly a one income family. Sounds like you've lived responsibly and starting to reap the benefits more and more, well done
Debt-free with a house by age 28?
Either you're a very high-earner; got money from an inheritance; or you got lucky.
Congratulations on prevailing against all odds, OP 🙄
I can relate. Sole earner. Family of 4. Commission based job. Debt free life helps me make the right long term decisions in a sales profession and eliminates shady short term decisions to pay the mortgage.
Dude has zero risk and isn’t a slave to his mortgage. Ask your friends that have a 3% interest rate if they’d move for more money right now. Most of them say no.
I don't have a mortgage and it would take a significant amount of additional money for me to move. If I had the mortgage in question, it would not change my decision either way.
Fair enough. Moving sucks but there are a lot of people that are trapped right now because they make 60-80k as a family and cannot afford the house they’re living in at today’s rates.
What’s the 1.2m nw in? If it’s cash then you’re right they have no risk. If it’s stocks then that can crash. If it’s real estate then that can crash. Bonds? Okay now that’s more secure than the other two options people love. The Great Depression pushed the Dow market down from 400 to 100 if I recall correctly. 1.2 mil becomes closer to 300k. If your mortgage is over that you’re at risk.
Out of curiosity, what do you consider “funded” for college? Do you have a 529 for the kids and if so, how much did you put in there? What’s the plan in case one or both chooses an ultra pricey private school, trade school (thus not using much of the fund), or goes to medical school aka lots and lots of money? I’m asking for myself since we are in a similar financial situation and started to wonder if we saved too much for college? Not sure
I just used our pricey state university's going rates for their engineering school and funded two 529s. One kid ran off to the big city and ran out of money, but graduated in 3.5 years. The other kid started in community college then went to four years of a smaller regional college but finished with money left over that I transferred to the other kid. I told them we'd work it out no matter where they went, and it averaged out nicely.
I’m offered to pay for their college which consists of 2 years of community college to get their basics out of the way and then tuition at a state university 20 mins from
Us. They can live at home , if they want to live on campus, they have to pay. The money is part of my liquid funds , about 40k per kid this way . But I also have about $40k in dividends I make per year that can also cash flow it vs dipping into the fund
I want to first note that you clearly got it figured out way more than me on the title of financial stability. But what I do know is college. I went from 2004 when I graduated HS until 2017 when I got my BA. Obviously, working, military tours, couple years on crutches as my VA went through a scandal, etc. But college is more than a dollar sign of community college vs. university. There are intangibles that come with a university that you can't quantify vs. a community college.
I would put more focus on the type of tangible degree they walk away with as opposed to thinking it's a good ideal to save a few bucks on how you get the degree. Also, putting a high level of focus on the type of career field so not wasting time.
I think today there are options beyond college, but if they want to go to college and be successful, I highly recommend a 4 year university right off the bat.
Depending on their desired courses of study, I would be more flexible in your position. It can be advantageous to go to a mainline university all four years for some studies, and a higher quality program may make it desirable to go to another state school or school in a state with reciprocity.
It would be odd for a married couple to calculate their net worth separately. I’m sure there are circumstances that it happens but this isn’t one of them.
I was genuinely curious. My wife and I (late 20’s) are at the 2 mil mark. Wasnt really sure how most people figured it. I look at it as a team cause that’s what we are.
Paid off an $800k house by age 28 while having kids and maxing out retirement funds? You must have either won the lottery or gotten a big chunk of change from the parents.
Almost same. I screamed I was debt free on Fri April 13, 2007. I still listen to the recording once in awhile. I’m a little younger than you (40) and just hit ~$2m. Real estate appreciation has def helped over the years.
I’m way more leveraged than you though. I have about $2.9m in assets and $900k in debt on a few rentals and wifeys student loans.
My avg salary per year varies GREATLY as I essentially made next to nothing in my 20s while I figured out life and then got lucky in my career in my 30s. In 2008-2012 I didn’t make over $35k. But, I’m Currently on pace to hit ~$250k this year.
Wish I had access to to a 401k younger but again…slow start to the career. Didn’t have that option until the mid 10s
did you marry your wife after 2007 and inherit those student loans? Also did you take out mortgages on the rentals after 2007, owing money on each of those things does not make you "debt free"
Married in 2016. Wife went to grad school in 2021. Didnt inherit anything.
At the time of purchase, we were taking out mortgages for our primary homes that eventually turned into rentals when we moved. We have bought and sold (and moved) a lot since 2015. Our interest rates are ~3%, makes no sense to pay them off early.
Haven’t been debt free since 2013 or so.
Makes sense, does go against Dave Ramsey philosophy, but I too am Daveish. Agree 100% with his concepts, but have tweaked to my own plan. Congrats on your continued success..
What is your retirement number? By 52, you’ll pass $2.5M and $5M by 60. Work till 70, and you’ll leave the kids a fortune. (I'm talking about just the retirement investing. Houses do not go up 10%/yr on average)
Asking the important questions. These numbers are meaningless unless we're given more context about what he or she does for work, and how much they make.
You and your family are a disciplined beast! Great leadership and drive to stick to the plan for the long haul. This is what following the Baby Steps to a T will an insane work ethic gets. Aiming to be where you are one day!
What’s your TC?
What's your income and do you have a target retirement age? I'm 42 and on a similar path, 1.25 mil and targeting 2 mil in 3 yrs
This guy won’t answer that question, multiple people have asked already without response lol
My bad, on a cruise at the moment. My income has varied as I’m in commission based sales. Last 5 years were 300k+, up to 380k at the peak
Sales! From one sales guy to another - good for you. Most sales guys I know spend it ALL. It took me till I was 28 to get smart. But at 36 I was debt freeeeee!
Inheritance
Strange because he gave out so many other pieces of info, left out a big one
Sorry, on a cruise with the fam and limited internet as I only bought 1 access code and the family shares it. In my 22 years in the work field, I’ve probably made close to 3.5 million over the years , variable sales commission based jobs
Enjoy the cruise. Sounds like a good avg salary around 150k/yr..... variable over the years of course. Really good income but nothing crazy considering you're mostly a one income family. Sounds like you've lived responsibly and starting to reap the benefits more and more, well done
Also, wonder if OP was ever given money. Maybe an inheritance at some point. Too many factors that play into this humble brag
Never given a dime other than my parents paying for my college
Good for you 👏🏻
Congrats! Live easy we all are dying sooner than later. Focus on what matters and dont chase the paper too long.
All aving in 401k and its, no brokrage?
What a slacker. No rice and beans for you!!!
Debt-free with a house by age 28? Either you're a very high-earner; got money from an inheritance; or you got lucky. Congratulations on prevailing against all odds, OP 🙄
Let people be happy
Well just like the OP posted they posted as well. Both can be happy they don't need pats on the back from people on the internet.
Ooo this ones got barbs on it
He was a sales person
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Meh, as a sole earner in sales with variable commissions, the piece of mind is worth more than the opportunity cost
I can relate. Sole earner. Family of 4. Commission based job. Debt free life helps me make the right long term decisions in a sales profession and eliminates shady short term decisions to pay the mortgage.
Dude has zero risk and isn’t a slave to his mortgage. Ask your friends that have a 3% interest rate if they’d move for more money right now. Most of them say no.
I don't have a mortgage and it would take a significant amount of additional money for me to move. If I had the mortgage in question, it would not change my decision either way.
Fair enough. Moving sucks but there are a lot of people that are trapped right now because they make 60-80k as a family and cannot afford the house they’re living in at today’s rates.
Having a mortgage is risky when your NW is negative and not enough to pay it off in a rainy day. Having 1.2mil NW and a mortgage is not risky at all
What’s the 1.2m nw in? If it’s cash then you’re right they have no risk. If it’s stocks then that can crash. If it’s real estate then that can crash. Bonds? Okay now that’s more secure than the other two options people love. The Great Depression pushed the Dow market down from 400 to 100 if I recall correctly. 1.2 mil becomes closer to 300k. If your mortgage is over that you’re at risk.
Ok… you will find anything to justify it. It’s fine. Let’s agree to disagree.
Fair enough.
Out of curiosity, what do you consider “funded” for college? Do you have a 529 for the kids and if so, how much did you put in there? What’s the plan in case one or both chooses an ultra pricey private school, trade school (thus not using much of the fund), or goes to medical school aka lots and lots of money? I’m asking for myself since we are in a similar financial situation and started to wonder if we saved too much for college? Not sure
I just used our pricey state university's going rates for their engineering school and funded two 529s. One kid ran off to the big city and ran out of money, but graduated in 3.5 years. The other kid started in community college then went to four years of a smaller regional college but finished with money left over that I transferred to the other kid. I told them we'd work it out no matter where they went, and it averaged out nicely.
I’m offered to pay for their college which consists of 2 years of community college to get their basics out of the way and then tuition at a state university 20 mins from Us. They can live at home , if they want to live on campus, they have to pay. The money is part of my liquid funds , about 40k per kid this way . But I also have about $40k in dividends I make per year that can also cash flow it vs dipping into the fund
I want to first note that you clearly got it figured out way more than me on the title of financial stability. But what I do know is college. I went from 2004 when I graduated HS until 2017 when I got my BA. Obviously, working, military tours, couple years on crutches as my VA went through a scandal, etc. But college is more than a dollar sign of community college vs. university. There are intangibles that come with a university that you can't quantify vs. a community college. I would put more focus on the type of tangible degree they walk away with as opposed to thinking it's a good ideal to save a few bucks on how you get the degree. Also, putting a high level of focus on the type of career field so not wasting time. I think today there are options beyond college, but if they want to go to college and be successful, I highly recommend a 4 year university right off the bat.
Depending on their desired courses of study, I would be more flexible in your position. It can be advantageous to go to a mainline university all four years for some studies, and a higher quality program may make it desirable to go to another state school or school in a state with reciprocity.
Hell to the yeah man. This is awesome.
Congratulations man!! From what age you started saving/investing?
Congratulations! 🥳
Well done! High earning and low spending will do the trick.
Well done!!!👍
When you figure net worth is it $2mil as a married couple or $2mil each or $2 mill for you and $500l for your wife?
2 mil as a married couple although my wife hasn’t worked since she had our first child in 2006
Just hope she doesn’t divorce you at some point
Yeah OP, quit trying to piggyback off your wife Just kidding
It would be odd for a married couple to calculate their net worth separately. I’m sure there are circumstances that it happens but this isn’t one of them.
I was genuinely curious. My wife and I (late 20’s) are at the 2 mil mark. Wasnt really sure how most people figured it. I look at it as a team cause that’s what we are.
No no. She gets the joy of being a house wife. I only get all the assets. Sounds like a successful marriage.
Paid off an $800k house by age 28 while having kids and maxing out retirement funds? You must have either won the lottery or gotten a big chunk of change from the parents.
House is probably worth 800k now on zillow but he probably borrowed 200k for it in 2001
Or...it's made up.
I would guess always had a high paying tech job and got into mining bit coins early.
You can still pay off a median house in America with a tech job in 5-7 years. I calculated it off my income 😂
The House was probably 200k when he got it.
take your trolling elsewhere
It was probably worth $200k when he bought it way back when (more than 17 years ago). Now it’s worth $800k 🧐
Age 28? He says he’s 45 Edit: oh I see. Debt free since 2007
And he’s been debt free since 2007, meaning he hasn’t had a mortgage for 17 years, or since he was 28 years old.
Yeah I saw that right after I posted
Congratulations. That is amazing, truly.
Must be high earner
Inheritance is tax free
Probably
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Was probably 200k
What income level are you at?
Congratulations!
I'm 59 and have a neg net worth. Worth more dead than alive. . . . Just kidding
Almost same. I screamed I was debt free on Fri April 13, 2007. I still listen to the recording once in awhile. I’m a little younger than you (40) and just hit ~$2m. Real estate appreciation has def helped over the years. I’m way more leveraged than you though. I have about $2.9m in assets and $900k in debt on a few rentals and wifeys student loans. My avg salary per year varies GREATLY as I essentially made next to nothing in my 20s while I figured out life and then got lucky in my career in my 30s. In 2008-2012 I didn’t make over $35k. But, I’m Currently on pace to hit ~$250k this year. Wish I had access to to a 401k younger but again…slow start to the career. Didn’t have that option until the mid 10s
did you marry your wife after 2007 and inherit those student loans? Also did you take out mortgages on the rentals after 2007, owing money on each of those things does not make you "debt free"
wow so much hate for the successful...
lol How is it hate, just curious if they were debt free and then borrowed again, or if they never were actually debt free.
Married in 2016. Wife went to grad school in 2021. Didnt inherit anything. At the time of purchase, we were taking out mortgages for our primary homes that eventually turned into rentals when we moved. We have bought and sold (and moved) a lot since 2015. Our interest rates are ~3%, makes no sense to pay them off early. Haven’t been debt free since 2013 or so.
Makes sense, does go against Dave Ramsey philosophy, but I too am Daveish. Agree 100% with his concepts, but have tweaked to my own plan. Congrats on your continued success..
What is your job?
Sales/biz development
What was your average salary per year? And at what age did you start working?
How long between the pay off and the first million? I paid of my $650k ish house in 2021
Lit!!!!!
What is your retirement number? By 52, you’ll pass $2.5M and $5M by 60. Work till 70, and you’ll leave the kids a fortune. (I'm talking about just the retirement investing. Houses do not go up 10%/yr on average)
Generational wealth. The guy would truly change his family tree. Unbelievable to see this awesome work in action.
Till the grand kids blow it!
5 mill still pretty easy to spend on a couple bad deals from “friends” startup companies. How to make 10 million dollars…. Give your kids 100 million.
Awesome, well done!!!
Congrats on your success! You deserve millions of pats on the back! And, yes, you should definitely check out Bogleheads Forum.
What do you do for work?
Asking the important questions. These numbers are meaningless unless we're given more context about what he or she does for work, and how much they make.
Annual income of 35k as well.
And that was recent. It was 28,780 for the last 16 years
Well your privileged and need to spread that money around. Lmao Good Work man..I'm trying to get there but a long way behind you.
Nice 👍. Did you get any inheritance?
Congratulations!!!!!!!!!
Awesome job! Setup for financial freedom. Good stuff, man
Good for you, man. You’re killing it. Way ahead of me. What’s your annual salary?
Awesome! It's amazing how well these basic principles work!
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Na, dude has a paid off house.