Net Worth 2007

[Goonie]

Single...no kids...miniscule debt will be paid off in a couple of months....current net worth just shy of $1M.....will be 50 yo & FIREing in April!!! I'm just a happy Goon!

 

[KM]

I think the first thing you will find is that one's net worth will obviously be somewhat tied to their household income. I think the key is how well are you doing with what you do have. No - I am not the $10M guy...or even the $5M...wish I were, though.

I started with a weekly budget many, many years ago and yes, I budgeted for everything. When it cost $100 to register my car, I budgeted $2/week. On week 25 of the year, I knew that $50 in my checkbook was untouchable as it was my car registration. I always thought it was funny when my friend would say "I have to use this week's paycheck to pay my car insurance." I used every paycheck to pay my car insurance! I simply took my car insurance bill and divided it by 52. That's how much went into the bank each week that I couldn't touch until my bill came due. Repeat for all expenses, so you know how much of your paycheck goes into your "bill-paying checking account". I took a portion of any excess and started an Automatic Savings with my first mutual fund. (Oh, and if you divide all your monthly bills by 4, you have "built in saving", as you will get 1 extra payment for each of those bills a year. I knew when those "extra payments" were available and took that money and put it aside for Xmas presents. I never worried about having enough for Xmas, but I also had to stay within that budget.)

Anyway, at the end of every year, I would review what we spent and adjust my budget accordingly for inflation or new expenses. That way, when we got our raises, I knew exactly how much I could increase my retirement savings by. I would then either increase a particular investment or diversify into a new one. We haven't changed our standard of living much in 20 years, except we have started to take nicer vacations, now that the kids are too old to bring along. But even still, we aren't spending more on vacation, we are just bringing fewer people.

In summary:
1) max out everything you can in a pre-tax 401(k)s at work. My company matches between $.60 and $1.00 on the $1.00 for the first 7% of your salary. I am amazed at the people not even participating!!!

2) Create and live within your budget. Be sure additional savings are in that budget. If there isn't, are you really sure you need everything else in that budget?? I am amazed what some people pay for cable and phone bills.....

3) Review that budget every year and adjust for inflation or new expenses

4) Don't take all of your raise and spend it - unless it is for something significant like a new house. Give as much of it to your retirement funds as you can.

5) Be sure you need something before you buy it. Do you really need a bigger house, newer car, latest and newest electronic device, $1000 in shoes and $3000 in clothes, etc, etc. If you do, go for it. But be sure you do.

6) Don't save so much that you are miserable (you have to treat yourself every now and then), but don't get everything you want. You don't need it. Trust me. I'm 49 and just bought my first car (used, no less) with power windows and locks. Just couldn't ever see paying extra for it.

7) Realize that one day everyone who used to call you "cheap" will start calling you "frugal" and then eventually "wise".


I think that is about it!

 

[wabmester]

Intresting question comes to mind for us singles. Do couples half the figure I feel really good about where I am but I think in this type of poll singles are comparing a single apple to a bowl Dual income teams have a distinct advantage in both the FIRE & Networth equations. Just food for thought and not too sour of grapes!

Single...no kids...miniscule debt will be paid off in a couple of months....current net worth just shy of $1M.....will be 50 yo & FIREing in April!!! I'm just a happy Goon!

Connie, meet Goonie.

Problem solved.

 

[Goonie]

Connie, meet Goonie.

Problem solved.

Still a slight problem...I'm still a devout member of the Little Rascals' "He Man Woman Haters Club"

 

[scrinch]

I'm still a devout member of the Little Rascals' "He Man Woman Haters Club"

Is there a Darla in the house?

 

[crazy connie]

Still a slight problem...I'm still a devout member of the Little Rascals' "He Man Woman Haters Club"

Rats!!! Foiled again!

 

[califdreamer]

Tell us your story & share some tips.

Buy some investment property at the beginning of a real estate boom

 

[Meadbh]

Start a high paying career with no debt. Work hard so you don't have time to spend what you earn. Start saving ASAP and pay yourself first. Don't be house poor. Buy quality goods that last, e.g. Japanese car.

Select your parents carefully. If not independently wealthy, they should be (a) frugal; (b) willing to pay for your education and (c) get along with you sufficiently to leave you something in their will.

Meadbh (<2.5m)

 

[dmpi]

Here's my story.
Worked summers to pay for school. After graduating got good job & lived with parents for 5+ years.
After getting kicked out by parents, bought house with 30% down. Met wife at work. Year & half later got married, pooled money and paid off house. LBYM + 2 good incomes + no debt for 15+ years.

dmpi ( < 4.0m )

 

[JustCurious]

I find it very interesting that one third of the people responding to this poll have a net worth of less than 1 million.

It is interesting because a good number are reporting combined net incomes for two, and, it includes home equity, and it includes the present value of pensions. Since I assume home equity is a good chunk for many, that tells me that a fair number of people are retired and living off a nest egg of substantially less than 1 million. Very interesting. And more than half have a net worth of less than 1.5 million.

Don't get me wrong, these are big numbers, and anything close to a million is a lot of money, but I am a bit suprised at the relatively low amount compared to what I expected, especially since this board includes many older (relative to the average age of mid 30's) retired people who presumably feel comfortable enough with their finances to forego earned income, and who are some of the most financially savvy and independent people around. It makes me re-evaluate how much I would really need to live on in retirement.

 

[Nords]

It makes me re-evaluate how much I would really need to live on in retirement.

ER's just not as expensive as people think.

Working can be far more costly...

 

[LOL!]

I find it very interesting that one third of the people responding to this poll have a net worth of less than 1 million.

Uh, many of the folks on the board are still working. I assume some of them responded.

In other news, we moved up a notch, but it looks like everyone else moved up 2 notches. Congrats to all.

 

[wabmester]

In other news, we moved up a notch, but it looks like everyone else moved up 2 notches. Congrats to all.

It's not easy to see how many notches people moved up since net worth wasn't calculated consistently in the last poll, but we do have some heavy hitters these days, eh?

I moved up a notch due mostly to real estate gains (including tax-free realized gains -- woohoo!). That's going to be harder for me to replicate next year. I might actually have to increase my stock allocation to keep up with you guys (or go down in flames with you, as the case may be).

 

[uncledrz]

I find it very interesting that one third of the people responding to this poll have a net worth of less than 1 million.

I think this is because many on this forum are in their 20's and 30's and have not had the full benefits of compounding. They are well on their way, but not there yet. Easier to amass the second million than the first.

 

[tryan]

At the risk of repeating myself .... was upside-down on 4 mortgages during the early 90's. Soooo I dug-in deeper buying another dozen properties at auction/REO (~1993-95). Fast-forward 10 years, fire at 43.

tryan (<2.5m)

 

[Nords]

I might actually have to increase my stock allocation to keep up with you guys (or go down in flames with you, as the case may be).

Dude, it's not a competition and everyone's a winner.

 

[justin]

Definitely a fair share of 20- and 30-somethings that are just getting out of college or in the middle of starting a family/buying a house/cars, etc. I'm one of them (at 26 years old) but I've managed to move from near zero NW into the "<$250k" category in 2.5 years (with a $100k increase in net worth last year alone!).

 

[kaudrey]

Yes, I messed it up too. Just did my investments. Add in the home equity and the pension calc, and I go from the "<500K" group to the "<$1.8M" group.

Karen
Single (divorced), no kids, still working at 37.

 

[wabmester]

Dude, it's not a competition and everyone's a winner.

I see. So, you're saying size doesn't matter.

Yes, everyone here is above average, just like at Lake Wobegone, but that doesn't mean we should rest on our laurels.

While it's true that many of us left the rat race because we had enough (in more than one sense), that doesn't automatically neuter our competitive drive. Nor should it.

Go China! (Ugh, FXI is *down* 4% today. What happened?)

 

[Texas Proud]

Yes, I messed it up too. Just did my investments. Add in the home equity and the pension calc, and I go from the "<500K" group to the "<$1.8M" group.

Karen
Single (divorced), no kids, still working at 37.

Hey Karen.... if you are 'cute'.... let's get together and move up a couple of slots

BTW... I am NOT cute or metro or any of the other 'in' ways for a guy...

 

[DRiP Guy]

Go China! (Ugh, FXI is *down* 4% today. What happened?)

Thanks for ruining my day, as a co-holder*... but, hey the day is still Yung, so there is time for a rally (we are talking about China, after all)

Maybe we should have read this as 9:37 today and sold?

Beware Big Drops in Foreign Markets

By Doug Kass
Street Insight Contributor
1/4/2007 12:42 PM EST


This column was originally published on Street Insight on Jan. 4 at 9:27 a.m. EST.

Something to keep an eye in the year ahead is the action in foreign markets, which had a banner year in 2006 and might due for a selloff.
...
I am considering shorting the iShares FTSE/Xinhua China 25 Index (FXI - commentary - Cramer's Take) -- that's the China market ETF.

http://tinyurl.com/y8qryl


*(All kidding aside, I am a long term buy-n-holder, so this is of no concern whatsoever to me, of course)

 

[SLC Tortfeasor]

Definitely a fair share of 20- and 30-somethings that are just getting out of college or in the middle of starting a family/buying a house/cars, etc. I'm one of them (at 26 years old) but I've managed to move from near zero NW into the "<$250k" category in 2.5 years (with a $100k increase in net worth last year alone!).

Similar situation for me. Started my legal career 4.5 years ago with only $7,500 in student loans. Now I can see I'm definitely on track for FI, but it's a long, long, long track.

It will be interesting to see if this forum is even around by the time I make it to $1M in about 20 years. For that matter, will the Web even be the same? If so, I hope someone digs this post out of the archives and posts it again in 2027. By that time maybe my post count will finally be high enough to move me beyond "recycles dryer sheets."

 

[ZMAN]

Tortfeasor: DW and I are both in the biz. 25+ of practice and ready to FIRE. Key is public schools, no clubs, cash for cars and invest or bank the raises as they come along. Two lawyer incomes and both on the same financial page a real plus.

A lot of lawyers get sucked into extravagant lifestyles they cannot afford or which eats up what they can afford. You can still look the part with Joseph Bank suits, Honda Accords and good public school neighborhoods without breaking the bank.

Good luck!

 

[jerryo]

Hmmm....I'm not quite sure how I acquired my net worth (<$5 million, including pensions, < $4 million without); just plugging away, I guess. I'm a widower (6 years), mid-50's. Split career between university and gov't. Maxed out IRAs and 401k's. Small inheritance (parents); moderate life insurance from wife (mostly spent on private college tuition for two kids) and small survivors annuity. Fairly successful investments in stocks and real estate....(10%+/year for 30 years). Expect to retire in a couple of years.....

 

[LEX]

When I worked I was a mining lawyer. The legal track I took was in mining and mineral ventures. I left Private Practice decades ago when I realized my income was tied to the number of hours I billed and not the value of the deals. Once I left the practice and focused on the business side the numbers became quite compellling. My suggestion is to use the training as a tool on the business end and enjoy the ride.