Meh at hitting a million

[EastWest Gal]

Will celebrate again when we hit eight figures. We get enticingly close when markets hit these highs, but that won't last

If I ever got close to that I'd always fly first class.


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[timmar]

Like scrabbler, we went over, then under, then back over a million in the last few years.

We think that makes us multi-millionaires.

 

[RobbieB]

I did the "bob and weave" during the crash. Been stacking ever since.

Buy more when the price is low, cha-ching!

 

[NW-Bound]

If I ever got close to that I'd always fly first class.

+1

That, plus a home on Rockaway Beach Road, Bainbridge Island.

Alas, I do not think that is going to happen, all those squiggly lines of FIRECalc notwithstanding. Or if it does, I will be so old I forget what it was that I wanted. All I will care will be someone to answer my bell, to help me to the bathroom.

 

[Markola]

Substitution effect might be part of it, but I bet the major driver of individual inflation rates going slower than national inflation rates are fixed long-term costs, and specifically fixed mortgage payments.

Over the course of a 30-year mortgage, housing prices will rise significantly, but the fixed payments on the 30-year mortgage will remain constant. (Of course, taxes and insurance will rise, but the overall housing costs will still rise much slower than inflation because of the fixed P+I payment).

Probably so since homes are most Americans' largest asset. Plus, homeowners can refinance when rates fall. Energy is often a big driver of the national inflation rate but ER's can often manage their personal energy costs by insulating their houses, relocating to better weather and walking or riding a bike because, by definition, no daily fixed commute costs!


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[rayinpenn]

Most multi millionaires won't talk about how much money they have. I 'imagine' at some point the money becomes less important. Once you have enough to cover 99% of what life throws at you life changes. You buy into the notion that anything is possible if you work smart and hard. Particularly if you came from humble beginnings..

I often hear people say "if I had a million I'd" (buy, quit, ...) I think to myself that's why you likely will never get to that million... Anyone can spend less can hang on to it.


There is an incredible amount of stealth wealth out there...
They don't all drive corniches ...

Edit: The real question is are you happy? Content? Stress free?

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[RobbieB]

Yes, we have over 10 million millionaires!

 

[truenorth418]

Hitting a million is a big deal. A major milestone. You should feel very proud to achieve something that very few others do, and, more importantly you are well on your way to greater financial independence, which is an even better feeling.

I understand the anti-climactic thing though. Unlike a wedding anniversary or a birthday, it is probably not something you are going to be announcing to the world and having a big party over. I think of it as the "quiet jubilee". I remember in my case I was so excited at reaching big milestone that I celebrated with dinner at my favorite steak house - alone.


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[Gumby]

I don't recall when we first hit a million in net worth, because I never gave any thought to the value of our house. I do recall when we hit a million in liquid assets. Like many here, I got to cross that milestone twice, once before and once after the 2008-09 market meltdown. I don't recall feeling anything the first time. The second time, my biggest feeling was one of relief. Neither time did we do anything to celebrate.

 

[Markola]

Yes, we have over 10 million millionaires!

It is extraordinary when you think about how many people that is. My home state of Georgia has about that many citizens. I read a book once called "Richistan", which is about how the U.S. mints wealthy people like no other country. Imagine if more people took the trouble to read a book here or there about saving and investing.


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[cyber888]

I'm kinda almost there - $950K, but don't feel like much, like you said - mehh. Another $50K saved in the next few months wouldn't feel that dramatic either. What I cherish most in my life was being able to travel 30 countries and cherish those memories and experience.

 

[daystar]

I'm an occasional viewer of this board and I think reaching $1 million is at least worth a small celebration. Maybe you can have a nice dinner with your wife. Unfortunately, it's hard to share the excitement with others because too many people will just get jealous or angry when you tell them your net worth.

I always thought reaching my first million would be really exciting. I plan to post on here when I get there. I'm at about $970,000 and just turned 37 in July. I have saved/invested about $500k - $600k myself since I started working full-time in 2003. The rest of the money has come from a rich grandma and generous parents whose gifts of stock and cash over the years is probably worth about $400k now.

 

[Pilot2013]

I'm an occasional viewer of this board and I think reaching $1 million is at least worth a small celebration. Maybe you can have a nice dinner with your wife. Unfortunately, it's hard to share the excitement with others because too many people will just get jealous or angry when you tell them your net worth.

I always thought reaching my first million would be really exciting. I plan to post on here when I get there. I'm at about $970,000 and just turned 37 in July. I have saved/invested about $500k - $600k myself since I started working full-time in 2003. The rest of the money has come from a rich grandma and generous parents whose gifts of stock and cash over the years is probably worth about $400k now.

Not to split hairs, but I don't think that is net worth just yet, unless you have absolutely $0 debt, no mortgage, etc. Which may be the case and if so, you are doing great!

 

[daystar]

I subtract my CC balance, next month's rent, and next month's church donations from my net worth when I run the numbers each month. I payoff the CC in full each month. I'm still renting so no mortgage yet and I paid cash when I bought my car last year. So, it's $970,000 in cash or invested assets.

I may be getting married in the next year or two so will need to set aside $20K - $30K for wedding expenses (unless my gf will let me get away with less). I'm also considering buying a condo for around $250,000 with $50,000 to $100,000 down.

 

[Pilot2013]

I subtract my CC balance, next month's rent, and next month's church donations from my net worth when I run the numbers each month. I payoff the CC in full each month. I'm still renting so no mortgage yet and I paid cash when I bought my car last year. So, it's $970,000 in cash or invested assets.

I may be getting married in the next year or two so will need to set aside $20K - $30K for wedding expenses (unless my gf will let me get away with less). I'm also considering buying a condo for around $250,000 with $50,000 to $100,000 down.

That's great daystar! I stand corrected!

 

[tps7742]

I'm an occasional viewer of this board and I think reaching $1 million is at least worth a small celebration. Maybe you can have a nice dinner with your wife. Unfortunately, it's hard to share the excitement with others because too many people will just get jealous or angry when you tell them your net worth.

I always thought reaching my first million would be really exciting. I plan to post on here when I get there. I'm at about $970,000 and just turned 37 in July. I have saved/invested about $500k - $600k myself since I started working full-time in 2003. The rest of the money has come from a rich grandma and generous parents whose gifts of stock and cash over the years is probably worth about $400k now.

Congratulations you are doing very well for yourself!

 

[Milton]

Easy come, easy go

I read a book once called "Richistan", which is about how the U.S. mints wealthy people like no other country.

You should read (Robert Frank's) follow-up book, The High-Beta Rich:How the Manic Wealthy Will Take Us to the Next Boom, Bubble and Bust.

 

[ugeauxgirl]

Congrats on your milestone! My reaction was a bit different- we celebrated with champagne and steaks!

 

[EvrClrx311]

I relate to OP in so many ways... the meditating power of computing NW and even projected future NW values based on assumed ROI. I find it soothing as well, to spin on that kind of mental math, it never gets old for me. I often wondered if that was an obsession (OCD kind of thing), but when realized it's just my analytical mind at work - there is a reason I became an engineer. I love to solve problems... and math is always fun. More specifically the security and knowledge mixed in that I'm on the correct path, with a plan... it's comforting.

Coincidentally, I've zero'd in on 42 as the most likely year I'll get to the $1M number... 8 years to go... reading your post I can completely imagine feeling the same way. It's because $1M isn't the end... it's just a number along the way. Everything is relative. That is, when you're looking up at $1M from the age of 30 it can seem like a monumental goal... yet when you're actually there you're over that plateau and suddenly the other milestones ($2M, $5M) become the focus... still to climb.

Well on your way. Congrats!

 

[athena53]

I often hear people say "if I had a million I'd" (buy, quit, ...) I think to myself that's why you likely will never get to that million... Anyone can spend less can hang on to it.

The best post I read on this (as in, the most clueless) was on a board for people trying to improve their credit scores. "If I had $1 million I could invest it at 8% and take out $80K per year and I'd be set for life". Umm, no. If you're retired and that's your only nest egg, you'd have to invest too aggressively to get 8%, and even if you could, in 20 years $80K/year wouldn't look that lavish.

We didn't celebrate at $1 million. We just kept on saving. At $2 million we just laughed at the concept of becoming multimillionaires (as a household, anyway). We sure don't dress the part.

 

[nash031]

It occurs to me that maybe 90+% of Americans would read this thread while shaking their heads. That's why I think it's something to celebrate!

 

[aaronc879]

It occurs to me that maybe 90+% of Americans would read this thread while shaking their heads. That's why I think it's something to celebrate!

I agree that it is something to celebrate even if it isn't your finish line number. I am one of those people shaking my head when reading this thread. I have never met anyone that i'm aware of that has even reached $1M and I know a lot of people at all different ages including retired couples. $1M is enough for most people to retire comfortably. If you want to work longer to get a higher number that's fine but it's more than most will ever see.

 

[athena53]

If you want to work longer to get a higher number that's fine but it's more than most will ever see.

I agree- back when our local paper had a Personal Finance columnist, someone wrote and suggested that he ought to stop writing about people with hundreds of thousands of dollars in retirement savings and focus on people "who would be blessed to retire with $50,000 or $100,000 saved". The columnist's advice: if that's all you have, keep working.

A friend from HS was complaining on FB about how out-of-pocket medical expenses were "eating into our meager savings". At the time, she was 62 and retired from nursing; I don't know what he did for a living. They'll have to make those "meager savings" last a long time.

 

[Freedom56]

Keep in mind that a relatively small portion of the population are able to save $1 million in investable assets. I know many people with salaries over $200k per year living paycheck to paycheck, with lots of debt. A lot of people spend on "luxury items" to give the illusion of wealth but in reality they are destroying their financial security. I live in Los Angeles County. There are more millionaires here than any other county in the U.S. - about 268,000. The population is $9.8M. So having $1 million or more is a big deal to the majority of the population.

 

[Gumby]

$1M is enough for most people to retire comfortably.

That depends entirely on how much they spend. Just today I read that the median household income in the USA is $56,500 per year, and if the stories of everyone living paycheck to paycheck are true, they spend it all. That level cannot be prudently supported with a $1 million nest egg.