Millionaire by 30?

[Darkane]

If I were to change anything it would be getting my power eng ticket right out of high school.

That would have out me a home owner at 21-22 years old pre-boom.

I would also now certainly be in middle management.

Still did pretty good at 30. Goal around 35 now.

[TomcoPDR]

Got a feeling there are some legit Beyond 30yo millionaires who won't post in here. Sometimes, their time = $$$. Ain't nobody got time for that.

[max_boost]

Maybe start another thread so the beyond ballers can stand up.

Millionaire by 35-40 lol

[sputnik]

Originally posted by Little Dragon
For those of you who missed your financial goals, would you have changed anything in your younger years to achieve them? Hoping to gain some insight into lessons learned as I set my own goals.

Chances are good that regardless of whether or not you reach your financial goals... by the time you are in your 30s you will probably come to realize that time is more important than money.

[Manhattan]

This is a quote from Millionaire Next Door. Useful rule of thumb based on actual research instead of setting an arbitrary $1 million goal.

Whatever your age, whatever your income, how much should you be worth right now? The authors of The Millionaire Next Door, Thomas J. Stanley, Ph.D., and William D. Danko, Ph.D. use the following calculation to determine wealth:

Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.

For example, if Mr. Smith is fifty years old, earns $110,000 a year and has investments that return another $10,000, he would multiply $120,000 by 50. That equals $6,000,000. Dividing by ten, his net worth should be $600,000.

This formula was developed from years of surveying various high income/ high net worth people. So, how does your net worth match up? If you are in the top fourth of where your net worth should be, then you are a PAW, or Prodigious Accumulator of Wealth ($450,000 or greater in the above example). If you are in the bottom fourth, you are an UAW, or Under Accumulator of Wealth ($150,000 or less to Mr. Smith). Anywhere in between, you are an AAW, Average Accumulator of Wealth (anywhere from $150,000 to $450,000 for Mr. Smith). So are you a PAW, UAW, or just an AAW?

The authors have developed a simple rule of thumb: if your net worth equals the average calculated by the formula above, you are an AAW, if your net worth is twice the average, you are a PAW, if your net worth is half the average, you are a UAW.

[Disoblige]

Why is it so heavily influenced on age? I think that's kinda dumb.

[Sugarphreak]

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[FraserB]

Originally posted by Manhattan
This is a quote from Millionaire Next Door. Useful rule of thumb based on actual research instead of setting an arbitrary $1 million goal.

[/B]

So according to that formula, a new grad earning $70k at age 23 should be worth $161,000?

[Cos]

.

[Tik-Tok]

Sweet, I'm a PAW, but only because my house is worth twice what I paid, lol.

[bjstare]

Originally posted by FraserB

So according to that formula, a new grad earning $70k at age 23 should be worth $161,000?

Yeah, the formula definitely doesn't work for me, and I know I manage my money well. I fall somewhat close to the numbers you posted (age and income both a bit higher).

[Maxx Mazda]

I find this thread interesting. I started out making really good money right out of high school, but I hated what I was doing. I'm 29 now, and finally doing what I love, even though it meant taking a pay cut. I can say that my overall "happiness" in life has increased dramatically since I finally decided to pursue the career I worked so hard for. Getting up to go to a job that doesn't feel like work is a much better feeling than having 6 digits in your bank account. Still, I agree money can make a big difference in someone's life, and when I was younger that's all I could think about, and I worked my ass off and spent lots on toys, cars, etc. Looking back, I wish I had saved more and gotten into may career sooner.

[ExtraSlow]

New grad engineer who starts at 70k base salary will make way more than that in Total compensation by the time he's thirty.
10% bonus is probably a fair average.
and by the last couple of years, you have a bunch of stock vesting (assuming you work for an O&G producer). For the last three years, that'll add 25% to your income.

Also helps to marry someone who earns well and to delay having kids. Not saying it's easy to get to $1mm, I know I haven't, even with the high-earning wife, but your numbers are artificially low.

[r3ccOs]

Even if you had the luxury of completing an undergrad and continued graduate studies part time working through from a jr->senior membef of your profression

Unless you were a dentist or optomotrist running your own practice (of course borrowing from family to come up with the initial capital)

its going to be a very very rare case that you'd be able to just strickly earn a Million through savings.

You can only save 18% in registered investments, and even if you save every penny, the scale that Cos created is very realistic.

So unless you've taken opportunity to invest in the correct capital investments, principle properties, and possibly but unlikely registered invesetments, being that they only account for 18% of total earned income... you're not going to be millionare by the time you're 30.

For me... sure, some stocks yielded good return, but I can't even say I made anywhere near what I did in property investments with having bought into an aparement complex in Sask with about 5 other buddies back in 05', my principle property and the old condo I held on to (which all other than my current house, I bought well before the boom).

However, I never did expect real-estate to spike the way it did, and luckily I was able to divest my stake in the Sask asset at a great time.

so being an "opportunist" and luck can play a big role to fincial independance

[Euro_Trash]

Am I the only one a little sceptical that very many people are NET millionaires by the time they are 30? My wife and I do fairly well, but with a mortgage weighing us down I don't see us being real millionaires for some time.

[Sugarphreak]

...

[Cos]

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[Tik-Tok]

One thing I notced about that blurb from "Millionaire next door"... he says don't include inheritance in that calculation.

Without reading the rest of his book, just that fact alone makes me think that "formula" is intended for people who already come from well off, if not rich, families, where you already have a lot of things getting you ahead (such as not having student loans, etc.)

[r3ccOs]

put it this way

you cannot become a millionare before you're 30 without outside assitance or being conservative.

you have to make investments, which means you have to take risks

you can't just "save" everything you make, cause nobody is making 100k out of the gate as a new grad at the age of 20... (well unless you're a rig pig, but that definatley means you aren't saving anything)

[max_boost]

Lol only on beyond where you wanna hit one mill before 30. But then we ain't average. Ain't no one on here ok with being basic!