Poll:How You Got to $1 million NW

[ocean view]

I was lucky to select a career that paid well, so there was always left over cash from the bi-weekly paycheck that went directly to the investment account. So LBYM was definitely a part of it. However, profit sharing, stock options and ESPP were also part of my compensation. Looking back at my records, I think that the income from those items was probably the largest contributing factor. After the 2001 bubble, I made a point of selling a traunch of company stock every quarter to make sure we didn't get caught with all of our eggs in one basket. I viewed the equity as retirement savings, so many in the valley just view it as fun money to spend on the next toy.

 

[Toocold]

Saved and invested.

 

[Surewhitey]

70% LBOM & investing
30% Primary residence
100% Wanting to retire early...

 

[Cobra9777]

Saving, investing, and LBYM... but a few other things helped:

1. Two incomes for 30 long years.
2. Annual bonuses and equity compensation at a very successful high-tech Megacorp.
3. We both had traditional pensions and stuck with our employers despite offers with higher base.

 

[NW-Bound]

Isn't that what they all say? I would expect nothing less than 100% truth.

One can tell the truth, but certainly not the whole truth, particularly in a public forum. Why spill all your beans? And what is not said may be more important than what is.

 

[HillCountry]

Done 1M+ in each of the following -
stock IPO
individual stocks
internet business
real estate
engineer salary

Looking forward to doing 1M+ in
dividend/interest
index etf/fund

 

[W2R]

One can tell the truth, but certainly not the whole truth, particularly in a public forum. Why spill all your beans? And what is not said may be more important than what is.

What, you mean everything I read on the internet isn't true? How can that be? It's right there in front of me, in print!



As for me, controlling the spending end of the equation was what got me from Point A to Point B. Literally living like a student, saving and investing the excess worked for me. This is why I am getting such a kick out of my discretionary spending at this stage in life.

 

[NW-Bound]

Lies may be easy to detect. It is much more difficult to fill in the gaps of incomplete truths to truly understand something.

And what is the complete truth? Here on this forum, does one have to tell his whole life story to substantiate some mundane things that he shares?

Enough of this diversion...

 

[nvestysly]

I have never made over $50K/yr so my spending has always been low. I will never reach the $1M mark because I don't need to. I will retire early because of living frugally on my low income and saving/investing as much as I can.

Thanks for adding your comments. I've often said that it's not how much you make, but what you do with what you make. If you can save/invest sufficiently to cover your annual spending then you can retire.

 

[Nemo2]

"There are two secrets to success:
1. Never tell everything you know."

Steven Shelton

 

[Bir48die]

Saving, investing, bonuses, and managing/exercising megacorp stock options .

+1

 

[columbus]

Saving and investing in roth ira and real estate through 20s/early 30s since no good pretax options. In 30s DW and I now both have good pretax options so we max those and roths, I also max espp, use hsa, etc. About 75% of our income is saved.

 

[NW-Bound]

I like to read blogs of people who have less than I do. Spending more money is not too hard, I don't think, if somehow I stumble across the lottery ticket that wins a several-hundred-meg grand prize. We all saw the headline about Johnny Depp spending $2M a month. He wasn't born with that kind of money, and picked it up pretty quick.

To live with less, that may be more likely for me, and I like to see people doing well for an assurance.

 

[tinlizzy]

I just hit one million at age 50. LBYM, maxing out 401k/IRA for 20 years and investing in stocks in 2009 with cash from savings. No real estate.

 

[Danmar]

Spending more money is not too hard, I don't think, .

You wouldn't think so but we have had numerous threads on the difficulty in raising spending. I think you have admitted a real reticence to do so. Because of like counting it so much.

 

[Moemg]

1-LBYM
2- Overtime ( Many nights in the O.R. after working all day )
3- A husband who also believed in LBYM

 

[NW-Bound]

True that I like to count my money and watch it grow. I don't work anymore, and other than investing cannot make more.

About reading about recreational activities that others do, some of that look interesting and fun, and if I can easily imitate anytime because of no financial obstacle, then why not?

 

[ejman]

As stated elsewhere on this thread it's really not all that hard in the USA with its past history to build up a nut of $1M plus. Although many roads lead to Rome, for most of us at this ER site it's been spend way less than you earn and invest the rest in good mutual funds/stocks and don't do stupid stuff along the way and a good dollop of luck doesn't hurt (don't divorce, don't get sick, don't have a mental illness that makes you do dumb stuff). The part that baffles me is why so few do it?

 

[nvestysly]

...The part that baffles me is why so few do it?

+1 to that. I'm frequently surprised that many others think saving/investing is somehow for other people. Who are those other people? I guess I'm one of them other people... saved, invested, avoided significant levels of debt, invested even when the stock market was down, continued saving and investing regardless of the 1987 crash, the dot-com crash and the great recession. And then, as if by magic, 20+ years later... DW and I RE'd. A little planning goes a long way.

 

[dan9]

I was worth $550K in 1991, which would have a present
value a little over a $1mm. I accrued that pretty quickly
in just a few years in the boom and bust of commercial
fishing in Alaska.

By 1995 I had a negative net worth in the aftermath of
2 divorces and a rather spectacular business implosion.

I've worked as an employee for evil mega-corps for 22
years now and have squirrelled away crumbs from the
master's table worth about $1.25mm liquid today.

I voted "saving from employment income" in the poll
because that is where just about everything I have
now can be traced to. But there was an earlier
incarnation that was more interesting. I wish all the time
that I had managed that early run better and wonder
where I'd be if I had.

I have a similar scenario as yours. I'm 2000 my liquid networth reached b $1M. Between two bear markets, divorce of a 30 year marriage, and having to sell all my real estate at market bottom in 2011/2012 due to the divorce my current liquid networth is only $1.1M. At least I got mid of my cancer ( my ex wife). Much happier with a great woman.

 

[Jerry1]

Hit $1M around 2011, so not that long ago. Like most, working and saving and controlled spending. Not really LBYM, but concentrated on paying off our house and no large fancy vacations. Lived well though. Probably the most significant event was my promotion to Director 20 years ago. Call that luck or a blessing, but it's not something I had a lot of control over. Someone left right while I was peaking. Took the blessing and didn't really change my lifestyle and boom, got DD through college, bought other DD a house (which was just about as much as other DD's college), paid off my house and about 6 years later, I'm knocking on $2M and RE. Life's been good and I'm thankful every day of my life.

 

[DrRoy]

As stated elsewhere on this thread it's really not all that hard in the USA with its past history to build up a nut of $1M plus. Although many roads lead to Rome, for most of us at this ER site it's been spend way less than you earn and invest the rest in good mutual funds/stocks and don't do stupid stuff along the way and a good dollop of luck doesn't hurt (don't divorce, don't get sick, don't have a mental illness that makes you do dumb stuff). The part that baffles me is why so few do it?

Thanks all for the replies. I am glad that many have enjoyed the thread. On the above, I know that many do not have the means to save/invest their way to $1M. For those who could but do not, I think it is because they do not have the self discipline to delay the gratification of spending and enjoying their money now, instead of saving it to enjoy more of it later.

 

[Danmar]

A little planning goes a long way.

I think this is really the key. My DW and I are almost obsessive planners. I have a calendar out till next summer as to where we expect to be each day. I forecast our financial position out 3 years. I have spreadsheets for many aspects of our lives. When we travel we plan extensively leaving very little to chance. I think I feel more in control if I am well planned? Having multiple homes and frequent travel makes planning more necessary as well. Been this way for decades.

Most of our friends and family take a much more relaxed view of things. They don't seem to know when/if they will arrive tomorrow for instance. They will usually change or cancel their plans (that affect us) daily. Drives us crazy.

I suspect planners are much more likely to be financially responsible and reach FI. Obviously we go overboard and I certainly don't think our level of planning is a requirement for FI but it must help?

 

[Eastbayboy]

I never got married! [emoji125]

 

[NW-Bound]

As this poll shows that most of the millionaires here got their money by investing their savings, perhaps mostly through retirement accounts such as 401k, 403b, FERS, etc..., I am quoting what I just ran across in a Web article.

According to a 2016 report from the Economic Policy Institute (EPI), the median working-age family (50th percentile) had only $5,000 saved in 2013. In contrast, the top one percent of families had $1.08 million or more stashed away in 2013, or 216 times more.​

So, if you've got $1M, you are in the top 1%.

PS. That's $1M in investable assets, not NW so does not include home equity. And that's in 2013 too. So, save harder if you want to catch up.