5 ms·
Anecdotally: I makes less than 100K usd per year. I have a wife (who also makes less than 100K), a car, a kid, and hobbies. I don’t live in the valley, or even
by throwaway18539 5y ago
Anecdotally:
I makes less than 100K usd per year. I have a wife (who also makes less than 100K), a car, a kid, and hobbies. I don’t live in the valley, or even the United States. I work 8 hour days, employed by somebody else.
I should be a millionaire by my mid thirties unless the stock market explodes. I don’t think I’m all that frugal, but we do try to save more than we make and live within our means.
I do recognize that I’m extremely fortunate - I have not suffered any significant setbacks in my life, my health is relatively good, and I have a good family structure, all of which have been immeasurably helpful.
- ZephyrBlu 5y agoI was skeptical, so I ran some numbers here: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator https://www.investor.gov/financial-tools-calculators/calcula... Assuming 150k USD combined income and 20% savings rate: - Initial Investment: $30k (20% of 150k) - Monthly Contribution: $2500 (1/12 of $30k) - Length of Time in Years: 15 years - Estimated Interest Rate: 10% (Avg Stock Market return) - Interest Rate Variance Range: 0 - Compound Frequency: Annually After 15 years you have just over $1M. I'm assuming you were including your wife's income because otherwise it's nowhere near. I think the takeaway here is: get a partner. Without a partner you need to be a high earner.
- nly 5y agoTwo people earning $50K is better than one earning $100K by a wide margin