davidsorensen32 wrote: ↑Fri Jul 02, 2021 9:22 pm
0.9M --> 3M networth in 6 years with $125 x 2 = $250k salary ? VTSAX only up $49 -> $109 i.e. 2.2x . OP, you must have done really well with stocks or crypto. Happy for you.
barnaclebob wrote: ↑Thu Jul 01, 2021 3:14 pm
The first number in my net worth changed for the better with today's monthy tally.
About 10% is inheritance. Lucky to not have student loans and good jobs out of college in 2008/9 which allowed us to buy a house at near the bottom.
Both salaries started at 60k and have steadily increased to 125k. Child coming in 4 months...well see how that changes our savings rate.
The only individual stock we held was our megacorp, non tech, company stock (5-10% of 401k's). It did about twice as good as the SP500 up until the pandemic and was then hit hard. But automatic re balancing may have given us a boost by buying when it was really low. Otherwise our housing value has done well. No rentals, but about 500k in gains have come from our house. The rest of our investments are index funds. No market timing of any kind. 401k is not including taxes so maybe that takes us down a few hundred thousand in real money terms. I just don't know what our tax rate will be and net worth is just a rough tracking tool.
We have a very high savings rate due to being DINK's for now. 30% directly into 401k's. Monthly credit card bill is about $2600, escrow and interest is $1450 per month, and maybe $250 of bills come straight out of the checking account. I think our effective tax rate is about 18% (no state taxes) which is 3750/month, Medicare/SS is 700/month. That nets to a roughly 58%% savings rate + 6% company match is about 64% total.
I have trouble figuring out how people spend so much money. We buy stuff as we need it but a lot of what we tend to buy is equipment or tools to support DIY activities which reduce other normal life expenses. For example we own a modest boat ($20k) and keep it at a marina which is expensive, $420/month inc in the CC bill . But we use that boat to fish, and we fish a lot in summer including a couple days during the work week. We are eating some of the best seafood in the world 3 or 4 nights a week that we didn't have to buy at the grocery store. Prior to having the boat we'd spend a couple thousand a year on fishing charters. 2 seats on a tuna boat is $1200 but we came home with about 120lbs of tuna lions after our last trip. That's a meal a week for about 2 years and a weekend vacation all in one.
We'll spend several hundred dollars a year on supplies for our vegetable garden which also feeds us 5 or 6 months a year. I spent $200 on upgrading 4 top of the line tomato cages this year. Yes I might be eating a big pile of snow peas 3 nights a week but they taste great so why not. Frequently during the growing season our grocery expenses are $30 a week for some lunch meat, a little bit of fruit (production isn't up to full speed at home), milk, and yogurt.
$300 on a new tool so I don't have to take the cars that we try to keep for 15 or 20 years or our boat to a mechanic, yeah no problem. $80 for a pair of pants, WTF no. I frequently find brand new banana republic khakis at value village for $8.
But having a kid is going to divert a lot of the time and energy needed for these kinds of activities a lot. We'll see what we can maintain. I'm guessing there wont be as much time to fish but we've got a couple relatives that hunt more elk and deer than they need.