To anyone just starting the journey, my wife and I started at a net worth of -$90K in 2018. Through discipline , following Dave and graduating to the money guys, we crossed the $500K threshold last year. It is possible!
there's a whole lot of missing fluff inbetween -$90k in 2018 and $500k networth six years later today in 2024. You surely didn't do that on $35k household income, for example.
@@hanwagu9967 I mean, I don't expect a rando on the internet to post all of their financial plans. Pretty sure they just posted this to thank the money guys for helping get to where they are. To that extent, congrats on your journey Drew! An almost $600k swing in 5 years is amazing regardless of how it was achieved!
My wife and i (mid 30s) just did our net worth calculation and were astonished to find out that combined we're net worth millionaires, with ~450k in retirement/investments. Years of driving 20+ year old cars with multiple shades of paint (or as i called it, "custom" paint jobs) and knocking out $170k in student loans literally paid off. To people going through the struggle, take it step by (non trademark) baby step. You'll get through it. Its worth it.
Congratulations! I think that’s the first of three major financial milestones: •$0 net worth (at minimum able to balance assets and liabilities) •$100,000 net worth (in invested assets, so compound interest works with you) •$500,000-$1M net worth (prepared for financial freedom).
If you are deep in debt, listen to Dave Ramsey, but if you are reasonably disciplined, listen to these guys. I retired at 55 and it was great, but I realized now that I probably would not have been able to do it if I hadn't started investing in my 20's, stayed out of debt with the exception of a mortgage, and delayed some gratification. The good news is that if you show some discipline in your 20's, then you can ease up at you go through your 30's and 40's, and then you will find yourself in a great position to retire early if you want. Love this show and love their practical and reasonable advice.
Turned 25 4 days ago, PLEASE do not let the blessing of this information given to you go to waste. 119k in brokerage invested mainly in growth focused etfs, ~20k in Roth IRA and 401k with similar strategy. I do not make a crazy income but discipline and consistency are by far the biggest factors. Do what you can with what you have and don’t stop. Do not be afraid to ask questions and do your research!! You will transform your life in ways you can’t imagine with this stuff. Love you money guys!
I’ve been single my whole life until last May. Only making in the 40ish-K per year, I have a Networth of about 230K if I count my house. I keep hearing TMGs say most people hit the Million mark by their late 40s. I’m 47, but still proud of where I am. Something in me still sighs.
Not seeing that from where I am. 40s you're still in the messy middle with kids ( can't put a price on that joy!), paying down mtg debt, etc. We're now in our 60s, still healthy, and with net worth just shy of mil mark (including home). Couldn't be more content. We're both semi-retired and have months off at a time to travel and relax. Time together is more valuable than ever.
They don't say that most *people* hit 1 million at 49. They say that most *millionaires* hit 1 million at 49. The median net worth of a 47 year old in the US is less than $200k.
i finally took investing seriously about 4-5 years ago at 29. I checked yesterday and i am currently at $247k net worth with no debt and having only made $35k-$40k majority of my adult life since like 25
Congrats 🎉 are you a single income household? Or do you have very low expenses? It can be difficult to save a decent amount of money off that income. Congrats either way!
just out of curiosity how did that happen. I made some assumptions like having 50k at 29 when you got serious, but making 40k a year you would have had to put away like 70% of it per year over the last 5 years to get around 250k, and investing 70% of 40k doesn't seem to leave much to live on.
@@j.asmrgaming1228 it's possible he has some individual stocks that might be outperforming regular gains. He could also live with someone and only spend like 10k a year.
Me and the wife just hit 2.1M at Age 40. worked regualr jobs. She never hit six figures and stopped working 2 yrs ago, and Im only at 125k. Im pretty happy with that never being a high income person or business owner.
I'm 50, and I had a near-zero net worth at the beginning of 2019. I got a good paying job and started investing over 25%. Now I am at over $250K NW which mostly in TSP (401K-ish)/Roth IRA/Brokerage and about $10K cash. Additonally I will get about $3500/mo pension at retirement. So I feel pretty good even though I started late.
I started late with all of this and wish i knew more when I was younger. But I’m proud to say I’m now 33 and on track. 180k net worth without purchasing a house yet. Now I’m striving to educate my son and everyone I come across
The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?
Generally speaking, a good number of people discredit the effectiveness of financial advisors in planning finances, but over the past 10years I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $3million in gains… might not be a lot but i'm financially secure.
massive gains! mind sharing details of your adviser pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help fuel my money goal
Thanks for putting this out. I curiously searched for Heather Ann Christenen and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
We can not all do it. I live in Germany and the incomes people in America have sound crazy. Over 100.000 dollars a year???? Even 200.000??? Forget it. Only CEOs get that much.
When I graduated from College in 1987, my great uncle gave me some advice and I put together a 42 year plan for saving and investing. Milestones included: 2000 Age 35: Net worth $100k 2005 Age 40: Net worth $250k 2017 Age 52: Net worth $1mm 2025 Age 60: Net worth $2mm 2031 Age 66: Net worth $3mm 2032 Age 68: Retire Net worth $3.3mm The numbers in the plan were inclusive of home equity, but Uncle Bob said that you don't want your home equity to be higher than what you have in investments/the bank. We joked about how a $1.50 hamburger would be like $7-8 by then. Nobody is laughing about that now.
In 2008, I bought the home I gave my son. I paid $50k. It's a brick ranch with hardwood floors and a detached garage on 8 acres. It has a large outbuilding and a small barn. The best part is, it has lots of road frontage. It has paved road frontage on 2 sides and a dirt road on the other side. I could divide it up and build several homes. The area is trying to go commercial. One of the neighbors has a grave business. They dig and cover and sell stones. One sells wood work like swings, rocking chairs, etc. Now, a heating and air business is moving in beside the home I gave my daughter. We are minutes from I20 out of Atlanta. The road runs straight to the interstate. I told my son that I see a gas station on that land someday. It's good land that could easily be turned into a business. The gas station could be on the front. Of course any gas station could be used, but I'm thinking a station that pumps your gas, washes your windshield, and will even check your oil like the good ole days. If mfers will pay for Doordash, I'm sure they will pay a premium to have their gas pumped. Then a car wash down the side and a parts store on the other side of it. Plus a tax service and salon/spa on the other side. My son's house would be perfect for the tax service. We have another neighbor who has a farmers market and the guy past her has a tree service. Both my daughters are chefs. So, we might end up with a restaurant and a daycare.
Income? The housing market didn't bottom till 2012. I'm April of 2011, my exhusband decided he didn't want to pay bills anymore and went home to live off mom and dad. I rented out home to a family that had been foreclosed on after 26 years. Dad was a truck driver who rarely came home, mom works at a Dr office, and son works for At&t. They paid enough in rent in 5 years that it paid my initial investment for my primary home. Their income was a lot higher than mine. I had a friend who just got a divorce too. He owned his business fixing planes. He would fly out of the state to pick up planes and needed me to babysit his 3 children. I could only rent the house for enough to cover the payment on it (and the mini farm) plus the taxes and insurance. I survived on rent from the mini farm. 2012 is when housing bottomed. The numbers to buy homes were so low but you had to have a job.....well except me. My first credit card was when a heating and air unit went out in one of my rentals. I called the company offering no money down and 0% financing. I was honest. I told the guy I wasn't working. He said no problem. He said as long as I had a good credit score, I would be approved. Sure enough, they went out and gave my tenant the air she wanted. I was on I think 30 months of payments. It was my first credit card. Thank you capital one. Homes were to be had for pennies on the dollar. The problem was, you needed to have a job, and not have debt. I had a friend with a good job but he was already a home owner. Subprime loans weren't the problem. I don't know one person who had an adjustable rate. The problem was debt.
I’ve been a MoneyGuy listener for 10 years and have put together a Net Worth statement at Brian’s encouragement. I’m now 34 and have gone from $50k to over $500k in the last decade. Thank you MoneyGuy team! All of us from the old “tightwad nation” appreciate the content, encouragement, and tools for success. I hope to be a client someday!
Why couldn’t I have known you guys existed 10 years ago? I wasted my 20’s with consumer debt and have been paying the price the last couple years. Almost out though and getting financially educated has been my prime goal.
2 things made this the best net worth show yet. 1) Breaking down the decade to the decade, the 5 and the 9. 2) Showing the difference between financial assets and net worth. Those differences were so helpful to see. Thanks for all you do!
Money Guy Team - I finally did it. I laminated my copy of the Financial Order of Operations. Of course, I got eye rolls from my family when I busted through the front door waving it around, but it's one of those IYKYK things. I'm partial to the old version with your faces on it because I feel like you're giving me a high five every time I make a good decision. You all rock!
I’m 32 and wife 31, with 2 young kids and net worth is 310K. Hoping to see it snowball and want to hit 1M before 40! Increases in salary/contributions should definitely get us there!
Awesome! My wife and I are 28 (close to 29) and just updated our net worth. We are at $155k. We are sitting on 20 acres that I did not include because it is attached to my house and not appraised. We plan to split off some land eventually and get a big boost. Should be able to pocket around $200k from that with what land is selling for in our neighborhood. Plus with some raises/promotions likely coming soon we think we can hit 1M by age 40. It will be hard work but achievable. Congrats on your accomplishments you can do it!
I'm so grateful for your details here. 5 years ago I was doing ok, better than most with no debt, putting 6% in my 401k, and just bought a house. But I had a major health setback that woke me up to needing to be really prepared, and I turned to RUclips and found the Money Guy Show. I may have been too late to really be in the FIRE movement, but I'm now well ahead of the calc on net worth. Thank you for giving me targets to go after. I can now choose when to retire and not stress over money in a way I wouldn't have before your show!
Starting a business can absolutely change your life. We started a business 3 years ago. Income prior to business was $180k, we saved up 6 months of income, saved up our start up costs in cash, quit our jobs and opened our business. It’s been 3 years and we are paying taxes on $518k. Wonderful and terrifying to think our tax bill is over $100k… It all started with getting out of debt, learning to live in less than we made, learning to save, actually saving, then spending wisely and growing at the speed of cash. Highly recommend wealthability for wealth strategy.
Started late, now almost 41, but gone $0 to $120k invested in 3 years on a median income by completely restructuring my life. I just maxed my Roth for 2024, will max my trad 401k, and am investing my tax refund in taxable. Every raise is going to savings and I am loving the simplicity of VTSAX and VTIAX and chill. As soon as my car is paid off (0% APR) that payment will get invested too. So excited for the future. Never thought I would get this far! Today is the best time to plant that tree!!
I’m 29 and just hit 175k in my retirement/brokerage accounts a few days ago. Have about 200k equity in my home and have a total net worth of around 435k. Hoping to hit 500k net worth end of 2025. Current income is about 90k a year and I’ve probably averaged around a 20-25% savings rate since I was 20. The key is consistency and not worrying about what everyone else is doing around you, because everyone else around is broke and in debt up to their eyeballs.
Age 38 and we’re at $1.1 million. About $375K of that is our house, which is paid for, and the rest is savings, investment, and retirement accounts. No debt. For us the most important thing is the idea of “enough” - being happy with cars, house, lifestyle that meet our needs and give us flexibility to save. My income has doubled in the last 10 years but we resisted the urge to buy a bigger house or get fancier cars. It’s made all the difference. There’s happiness and peace of mind and more control over your time in “enough.” I’ll also say: one of the most rewarding parts of this lifestyle is being generous: tithing at church, supporting causes that are meaningful to use, leaving outrageous tips, etc. Pay it forward!
You have such a great outlook! We’re still figuring out exactly what we want, and what is going to be enough for us. Immigrant parents who are going to either work until they are 80+ or rely on us makes me want to push harder for longer before getting to where you are now (which sounds great)
In my experience, you need to explain that equity in the home, goes towards net worth. Most folks don't realize that the difference between what is owed on the home, and what's the home is worth, goes towards net worth.
Back in the days, we set goals for future. I can remember that when I graduated from College, I set up my goal that at 29 i should have my own house and a millionaire. So i started early to save and invest. My first invest was car rent and i got a loan from Chase to start up the business.
48 yrs old making 120k a year. Net worth is 2.5M. Not easy to put aside wants for the last 20yrs but its possible with dedication. Averaged 20% including company match. Married with 2 kids
Y'all know they cut these videos up so there will be a separate video for each decade, right? They do it every year. If it's not already up, it'll be up soon.
Very grateful to have had parents who taught me the power of being frugal, delaying gratification, and saving as much as possible. I'm 28 and have spent my 20s saving 65%+ of my income. Now I'm set up to be in a great position to buy my first home this year. Woot woot!
Please also take the time and convince your peers where you can. You will be able to make such a positive impact on their future life, even if they don’t recognize it.
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
VTI and VXUS and chill. Gives you world wide exposure and by definition you get the average return. It's 0 stress and takes essentially 0 time. You aren't Warren Buffet. You can't pick stocks better and faster than professionals with Bloomberg terminals. Just take the average return and live your life.
Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
Although my knowledge of the business is limited, it seems that this is the ideal time to enter the market based on my understanding of supply and demand in the economy. The consistent price variations, which shouldn't be an issue, are the only thing stopping me. But I really need a counselor; could you please assist me?
I’m 26, $600K net worth. Been saving 50% of my salary and investing heavily. Money is a liability, not an asset. You have to exchange it for assets that represent real VALUE. Real estate - properties for rent. Stocks (dividends). Bonds (interest), funds, REITs (interest), intellectual property. Started from $0 since 3.5 years ago when I graduated college. I've come to realize that money is a tool if you don’t make money work for you, you can’t experience true freedom
I am little late in planning my financial journey, spent on many appreciable assets till now and keeping my saved earnings in banks. This inspired me a lot and gives a great zeal to start a fresh
Can't give financial advice. will recommend you speak with an FA, Martha Cornell Kerns, credit to her constant advice and guidance. Lots of People are sitting on large stockpiles of cash ready to time the market they’ll miss the mark and pile in late either way people that bought early will win
@ikshIshani do you also not buy groceries because of price fluctuations? I'm going to guess no, because you know you need them for tomorrow. I'd recommend finding a financial advisor in your area and not rely too much on wisdom and testimonies from the RUclips comment section. LinkedIn or coworkers or other peers who have a financial goal similar to yours would be a better resource.
This makes me feel a little bit better, though I still feel behind. I’m 52 and have about $700k in financial assets (mostly 401(k) and Roth IRA but also a paid-off rental home) and a paid off $425k home. I need to get on the ball.
A single income or relying on government support should not be every employee's dream or mindset, but having an investment plan by purchasing good stocks as income support and retirement is the best option one could take in life. economy of the country (America), which is unfortunately about to crash. According to the statistics of so many intermediaries and observations, the government does not pay attention to its economy and its citizens, but is investing in wars (Ukraine and Israel).
That's true, take a look at China and most countries in Europe that are not involved in war and have good growth in their economy, giving their citizens a better life and support in their country.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
An professional financial analyst or advisor can certainly add value by offering tailored advice, portfolio diversification, risk management, and timely insights. Linda Sue Baier is an expert that can potentially speed up wealth creation and navigate market complexities, She's the best chioce to make for investor as she gives a Favourable Market Stocks to produce high investment yields and ROI
I think the fact that I started actually saving 3 years ago, but I've already reached the average net worth for persons my age (25) spells good things for my future. Hopefully, I get ahead of the curve and surpass all of these numbers as time passes.
I used to work for a company with an employee stock purchase program for 15% less than the market price. I kept on buying every year and never thought about it. The current dividend on the stock is big enough to make payments for GMC 2500HD Duramax!
happy to say im 22 with over 60k in liquid assets. but im still far from fire according to yalls fire video but im still gonna do my best and hope to retire as early as possible.
Currently have a net worth of about 160k at age 27. I have maximized my contributions to both my 403b and IRA accounts. Trying to squeeze as much juice as possible from the final years of my twenties 😢
Already married. We got married at 23. Built it up together. We planned for my wife to stay home by the time we had our first kid. Thankful that she trusted the process and saved heavily.
Sitting at age 30 with 50k in retirement but have about 330k of debt between house and school loans. I bought the cheapest house that was livable in my area, but 150k of students loans between myself and my wife hits hard
I personally count my home equity in my net worth. If it's worth $500K and your mortgage is $350, well you own less you owe = $150K. Sure, it's not easy or immediate to realise that, and when you do, it may be worth a little different and you'd make an adjustment in your numbers either way. Similar to your slide @7:20. The same would be true of pensions. I can't very easily access my pension for another couple of decades, but I still consider our pension pots part of the over-all wealth, for the very same fact it is still an asset even if I can't immediately utilize it. Interesting as ever.
I feel late to the game. I’m 31 now I wanted to start investing when I was 21 and always had excuses. I started investing when I was 29 and right now I have $30,000 on my Roth IRA and I will continue to max out my Roth IRA yearly I’m hoping I’m not too late.
you gentlemen represent a net good. I came from a Hot Mess... Too much back story to explain, but I know that every word Brian and Bo speak is true. The Optimism itself is not to be discounted. very powerful message. I retire this july. I will make more retired than I ever did while working, including OT.
In your 20s, your income could go from minimum wage to six figures. So I would suggest using the average of your income over the previous decade to calculate.
doesn't matter how you stack up against others. What matters is how you stack up against your goals. Yes, time is your friend if saving for retirement, but if you don't have time, that only means you need to change/improve your situation. Some of us had the reckless die broke mentality and took us a few decades to let reality hit before turning things around and being able to retire younger. There is a lot that is possible, but you have to stop stacking yourself against others just like stop keeping up with the jonses, and instead, set financial goals and do the positive things that will get you there.
I just tried the wealth multiplier, I wish it would let you add what you’re currently investing. I’m age 26 with 53k invested in my Roth 401k and IRA should be 2.5 million without adding anything but I’m doing 20-25%.
Didn't put a penny into my 401k till i was 33. Now im 44 and at $440k. I feel im behind the curve, but working to get the total investment up to 25% over this year. Also, only debt is my house, where i owe $350, and its worth $900k
It’s true you just have to get started. I was lucky to had great mentors that gave me advice. At 43 we are in a position where we are doing well. If everything continues to go the same way our biggest problem will be that we will be paying a lot of taxes in retirement.
Ive got over 700 in investments, a roth ira of 400, a house downpayment of 500 (hoping to build up to 40K). A 6 month emergency fund. I save away 45% of my income… i only started back in August and I only make 15K a year… you can make it
@Money Guy show, why does the networth statement NOT include future expected liabilities (E.g. Taxes on stock sale, Estimated Property Fees when selling, etc..)?
$300k net worth No house High income earner 46 years old Feels like I could be further in life financially, but I am happy I have zero debt and I am educating myself on how to build wealth
Recently, I've been pondering retirement. I've also invested $800K on S&P 500 so i could secure my financial future. i need an approach to invest in Stocks like Nvidia stocks and of course AI stocks that will align with my risk tolerance and financial goals but it seem to be bearish right now.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@@MellisaAdam Her name is ‘Anna Rounds Fay’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I was shying away from looking at our net worth ending 2023 because I knew it wasn't a great year for us... or so I thought! For the first time, I've seen a direct benefit from the increase in the stock market!
Im 25, my wife is a foreigner with a 0 networth indivudally, and shes a stay at home mom with daughter who is 6 months old. She will work once our daughter starts school. But we own a home and have a mortgage, our car is paid off and is worth about $20-23k. Our networth is just over $100k right now. When we are 30 and she starts working, having 2 incomes will make it easy to start investing and coming up with a plan. We are going to aggressively pay down our mortgage first though, our interest rate is 6.5%
Age 36 Net worth: paid off house worth 400k~ , 290k in 401k, 35k in savings, 32k in brokerage account, 6k in bitcoin 😆 3 kids and stay at home wife. 130k income
You could apply the same logic to market investments: they aren’t worth what they say on paper until you actually sell them. I will continue valuing my house at the amount the market demands.
The difference is that if you plan to sell your primary residence to cash on it, you need to consider the replacement cost of the asset since you need a place to live. When you sell your portfolio, there is no replacement cost. I don't think it's wrong to include it in the net worth but there is a nuance.
I ran the formula and I think it needs to be adjusted for average salary over the past 5 years. My income jumped up this year, I saved almost all the extra money I made but it just throws off the number too much. On the website it says I need to invest $0 to hit 2 mil, but the formula says I am only 2/3rds to goal.
The wealth multiplier calculator on the resources page says $0… does that mean I don’t need to save for retirement anymore? (I’m not gonna do that but I’m confused by the $0)…
At 7:20 they say to count pensions in your financial assets because they are liquid. That doesn’t make any sense since you can’t start collecting until you reach age 55-65. I view pension as future income. And you don’t count income in net worth. I suppose you could do a net present value calculation, but it’s still not a liquid asset.
I’m a CFP practitioner and love the research and presentation y’all do. The no BS approach is much appreciated in an industry that is filled with folks trying to make it more complex than it needs to be!
These episodes bring me peace of mind. I am 25 and I constantly feel like I am not saving/investing enough (current savings rate of 16%) but the data here shows that I’m doing 3x better than my peers. I think there are many financial mutants out there like myself that feel “behind” but zooming out and seeing data like this helps reassure me that I am well on my way. Thanks Brian and Bo!
I'm 45 and have been saving since around 22-23. Started with $500/month after tax (increased as my salary grew) and was getting employer match but not maxing out 401k the first couple of years (but have been maxing out since 27 or so.) Felt like nothing was really happening the first 5 years and not much more in years 5-10. But after that it really starts rolling and as you grow past some nice round numbers (i.e. 100k -> 200k -> etc.) you'll start to feel better about the whole process.
Just be careful with these comparisons. They are nice for seeing where you stand relative to everyone else, but what's most important is where you stand relative to your expenses. Someone might have $300K at age 65, but they also have a pension, social security and family members to rely on; plus their expenses are low. So they never even touch that $300K.
You know ow what gets me when it comes to these videos and I don’t want to seem negative but honestly I want to become wealthy fast not when I’m 65 and couple years left to thrive. I’m hustling my butt off as we speak. I have to battle inflation so I currently work three jobs and I just bought house and I’m going to rent it out to make some money over the course of the year. I will not settle to be 65 then be a millionaire at that age and then die.
A couple of questions about how exactly do I calculate if I am saving 25%? 1) Is the denominator my gross or post tax income? 2) Does the numerator include the principal I pay on mortgage?
Have my son 21 working made 50K (overtime) and his education is paid for while he is working, still have him at home and investing as much as possible. So happy to help him springboard his life the right way. Also setting aside cash to be able to purchase a home when he is ready.
Hey guys, love the content, but the math ain't mathin' for me here. @36:24 you talk about calculating and comparing net worth in your 40s using the net worth formula (age x income/10). However, this is an individual formula based on individual numbers, yet the rest of the slide is based on household figures. So, how do we use the net worth formula for household numbers - same formula, just use household income? Should we use the individual net worth formula and double it for 2 wage earners? I just want to compare apples to apples. Thanks.
48, net worth of just over 400k...but, I have a 55k per year pension that I am already collecting that includes low deductible medical, dental, and vision insurance for life at 350.00 per month. By age 55, I will have drawn out more than my payments into the pension plan. My lifetime pension payments should significantly exceed my total career earnings. All my new earnings can be invested because my pension covers all my expenses(0 debt). So my retirement accounts are booming.
To anyone just starting the journey, my wife and I started at a net worth of -$90K in 2018. Through discipline , following Dave and graduating to the money guys, we crossed the $500K threshold last year. It is possible!
how much of the $500k is your home?
$145K net equity
there's a whole lot of missing fluff inbetween -$90k in 2018 and $500k networth six years later today in 2024. You surely didn't do that on $35k household income, for example.
@@hanwagu9967 I mean, I don't expect a rando on the internet to post all of their financial plans. Pretty sure they just posted this to thank the money guys for helping get to where they are. To that extent, congrats on your journey Drew! An almost $600k swing in 5 years is amazing regardless of how it was achieved!
@@hanwagu9967 exactly people who report stuff like this but leave out probably the most important component, household income, really aren’t helpful.
25 years old and just hit 100k net worth🎉🎉
Real estate baby.
Congratulations, that's amazing!!
Nice!
Crushing it! Well done 👏🏾
My wife and i (mid 30s) just did our net worth calculation and were astonished to find out that combined we're net worth millionaires, with ~450k in retirement/investments. Years of driving 20+ year old cars with multiple shades of paint (or as i called it, "custom" paint jobs) and knocking out $170k in student loans literally paid off. To people going through the struggle, take it step by (non trademark) baby step. You'll get through it. Its worth it.
Just crossed the 0$ net worth this month 😂 not much but gotta start somewhere
That is much better than a negative net worth! Many people have it negative cause of Student loans.
Congratulations! I think that’s the first of three major financial milestones:
•$0 net worth (at minimum able to balance assets and liabilities)
•$100,000 net worth (in invested assets, so compound interest works with you)
•$500,000-$1M net worth (prepared for financial freedom).
@@AlexFlavellhoping to hit that 500k by 50 in my portfolio, at this point just brokerage.
@@nrivera567 yep that was my case, was negative for ~ a year after college because of student loans
Way to go! Keep following the FOO and you will end up in a good position over the long term hopefully
If you are deep in debt, listen to Dave Ramsey, but if you are reasonably disciplined, listen to these guys. I retired at 55 and it was great, but I realized now that I probably would not have been able to do it if I hadn't started investing in my 20's, stayed out of debt with the exception of a mortgage, and delayed some gratification. The good news is that if you show some discipline in your 20's, then you can ease up at you go through your 30's and 40's, and then you will find yourself in a great position to retire early if you want. Love this show and love their practical and reasonable advice.
Turned 25 4 days ago, PLEASE do not let the blessing of this information given to you go to waste.
119k in brokerage invested mainly in growth focused etfs, ~20k in Roth IRA and 401k with similar strategy.
I do not make a crazy income but discipline and consistency are by far the biggest factors. Do what you can with what you have and don’t stop. Do not be afraid to ask questions and do your research!!
You will transform your life in ways you can’t imagine with this stuff. Love you money guys!
Jesus you killing it
I’ve been single my whole life until last May. Only making in the 40ish-K per year, I have a Networth of about 230K if I count my house. I keep hearing TMGs say most people hit the Million mark by their late 40s. I’m 47, but still proud of where I am. Something in me still sighs.
Not seeing that from where I am. 40s you're still in the messy middle with kids ( can't put a price on that joy!), paying down mtg debt, etc. We're now in our 60s, still healthy, and with net worth just shy of mil mark (including home). Couldn't be more content. We're both semi-retired and have months off at a time to travel and relax. Time together is more valuable than ever.
They don't say that most *people* hit 1 million at 49. They say that most *millionaires* hit 1 million at 49. The median net worth of a 47 year old in the US is less than $200k.
21 years old married just bought a house and rocking $150K in net worth. Thanks for a great vid
Killing it 👏👏
Cut that to 75k due to divorce laws. Still doing excellent at 75k at 21!
🧢🧢🧢🧢
@@jackieboy1593 haha fair enough lol
i finally took investing seriously about 4-5 years ago at 29. I checked yesterday and i am currently at $247k net worth with no debt and having only made $35k-$40k majority of my adult life since like 25
Congrats 🎉 are you a single income household? Or do you have very low expenses? It can be difficult to save a decent amount of money off that income. Congrats either way!
Wow
just out of curiosity how did that happen. I made some assumptions like having 50k at 29 when you got serious, but making 40k a year you would have had to put away like 70% of it per year over the last 5 years to get around 250k, and investing 70% of 40k doesn't seem to leave much to live on.
@@j.asmrgaming1228 it's possible he has some individual stocks that might be outperforming regular gains. He could also live with someone and only spend like 10k a year.
@@kylebanks13 i am single income person. i live at home with family with very low expenses.
Me and the wife just hit 2.1M at Age 40. worked regualr jobs. She never hit six figures and stopped working 2 yrs ago, and Im only at 125k. Im pretty happy with that never being a high income person or business owner.
125k is top 20% earner, I’d say that’s a high earner
@@idkmybffjill9682 I'm now ar 90k. made that 125 for 3 years.
@@idkmybffjill9682depends on the cost of living of his area. Might is well be making 70k if his morgage is 2800+.
125k is a high earner what are you talking about. Your are about 2x the average household income.
Y'all trippin. $125k a year in places like Cali is practically broke. @@kylecouture1917
I really wish they would put chapters and time stamps in their videos/descriptions
Fair, but they always do smaller chucked videos of this from this video curtailed for each decade
I am at 40k at 24, I feel pretty good about it. I own real estate and am starting my investments journey.
I'm 50, and I had a near-zero net worth at the beginning of 2019. I got a good paying job and started investing over 25%. Now I am at over $250K NW which mostly in TSP (401K-ish)/Roth IRA/Brokerage and about $10K cash. Additonally I will get about $3500/mo pension at retirement. So I feel pretty good even though I started late.
I started late with all of this and wish i knew more when I was younger. But I’m proud to say I’m now 33 and on track. 180k net worth without purchasing a house yet. Now I’m striving to educate my son and everyone I come across
The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?
Generally speaking, a good number of people discredit the effectiveness of financial advisors in planning finances, but over the past 10years I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $3million in gains… might not be a lot but i'm financially secure.
massive gains! mind sharing details of your adviser pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help fuel my money goal
Delusional.
Heather Ann Christensen is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks for putting this out. I curiously searched for Heather Ann Christenen and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
Just crossed 1M! 38, married, 2 kids. Messy middle with
What are your careers if you don’t mind sharing?
Talk is cheap
@@NinjaKiller117 engineer and part time elementary school teacher
Awesome!
We can not all do it. I live in Germany and the incomes people in America have sound crazy. Over 100.000 dollars a year???? Even 200.000??? Forget it. Only CEOs get that much.
When I graduated from College in 1987, my great uncle gave me some advice and I put together a 42 year plan for saving and investing. Milestones included:
2000 Age 35: Net worth $100k
2005 Age 40: Net worth $250k
2017 Age 52: Net worth $1mm
2025 Age 60: Net worth $2mm
2031 Age 66: Net worth $3mm
2032 Age 68: Retire Net worth $3.3mm
The numbers in the plan were inclusive of home equity, but Uncle Bob said that you don't want your home equity to be higher than what you have in investments/the bank.
We joked about how a $1.50 hamburger would be like $7-8 by then. Nobody is laughing about that now.
Nice. The temptation is to get off the working train sooner than 68. Retiring early will take a hold of you. It has consumed me. 13 months to go.
Are you on track?
@andrewdiamond2697, did you achieve those goals so far? Are you way off? (Good or bad) or are you very close?
In 2008, I bought the home I gave my son. I paid $50k. It's a brick ranch with hardwood floors and a detached garage on 8 acres. It has a large outbuilding and a small barn. The best part is, it has lots of road frontage. It has paved road frontage on 2 sides and a dirt road on the other side. I could divide it up and build several homes. The area is trying to go commercial. One of the neighbors has a grave business. They dig and cover and sell stones. One sells wood work like swings, rocking chairs, etc. Now, a heating and air business is moving in beside the home I gave my daughter. We are minutes from I20 out of Atlanta. The road runs straight to the interstate. I told my son that I see a gas station on that land someday. It's good land that could easily be turned into a business. The gas station could be on the front. Of course any gas station could be used, but I'm thinking a station that pumps your gas, washes your windshield, and will even check your oil like the good ole days. If mfers will pay for Doordash, I'm sure they will pay a premium to have their gas pumped. Then a car wash down the side and a parts store on the other side of it. Plus a tax service and salon/spa on the other side. My son's house would be perfect for the tax service. We have another neighbor who has a farmers market and the guy past her has a tree service. Both my daughters are chefs. So, we might end up with a restaurant and a daycare.
Income? The housing market didn't bottom till 2012. I'm April of 2011, my exhusband decided he didn't want to pay bills anymore and went home to live off mom and dad. I rented out home to a family that had been foreclosed on after 26 years. Dad was a truck driver who rarely came home, mom works at a Dr office, and son works for At&t. They paid enough in rent in 5 years that it paid my initial investment for my primary home. Their income was a lot higher than mine. I had a friend who just got a divorce too. He owned his business fixing planes. He would fly out of the state to pick up planes and needed me to babysit his 3 children. I could only rent the house for enough to cover the payment on it (and the mini farm) plus the taxes and insurance. I survived on rent from the mini farm.
2012 is when housing bottomed. The numbers to buy homes were so low but you had to have a job.....well except me. My first credit card was when a heating and air unit went out in one of my rentals. I called the company offering no money down and 0% financing. I was honest. I told the guy I wasn't working. He said no problem. He said as long as I had a good credit score, I would be approved. Sure enough, they went out and gave my tenant the air she wanted. I was on I think 30 months of payments. It was my first credit card. Thank you capital one.
Homes were to be had for pennies on the dollar. The problem was, you needed to have a job, and not have debt. I had a friend with a good job but he was already a home owner.
Subprime loans weren't the problem. I don't know one person who had an adjustable rate. The problem was debt.
I’ve been a MoneyGuy listener for 10 years and have put together a Net Worth statement at Brian’s encouragement. I’m now 34 and have gone from $50k to over $500k in the last decade.
Thank you MoneyGuy team! All of us from the old “tightwad nation” appreciate the content, encouragement, and tools for success. I hope to be a client someday!
Wow, well done!
Why couldn’t I have known you guys existed 10 years ago? I wasted my 20’s with consumer debt and have been paying the price the last couple years. Almost out though and getting financially educated has been my prime goal.
2 things made this the best net worth show yet. 1) Breaking down the decade to the decade, the 5 and the 9. 2) Showing the difference between financial assets and net worth. Those differences were so helpful to see. Thanks for all you do!
Money Guy Team - I finally did it. I laminated my copy of the Financial Order of Operations. Of course, I got eye rolls from my family when I busted through the front door waving it around, but it's one of those IYKYK things. I'm partial to the old version with your faces on it because I feel like you're giving me a high five every time I make a good decision. You all rock!
😂 good for you! where can we find the old version?
I’m 32 and wife 31, with 2 young kids and net worth is 310K. Hoping to see it snowball and want to hit 1M before 40! Increases in salary/contributions should definitely get us there!
I have the same goal. 1Million by 40! I have just over 1M in assets but still have about 170k left on a low interest mortgage.
Keep up the solid work.
Congratulations! I hope you reach your goals!
Awesome! My wife and I are 28 (close to 29) and just updated our net worth. We are at $155k. We are sitting on 20 acres that I did not include because it is attached to my house and not appraised. We plan to split off some land eventually and get a big boost. Should be able to pocket around $200k from that with what land is selling for in our neighborhood. Plus with some raises/promotions likely coming soon we think we can hit 1M by age 40. It will be hard work but achievable. Congrats on your accomplishments you can do it!
It will, I know from experience
I'm so grateful for your details here. 5 years ago I was doing ok, better than most with no debt, putting 6% in my 401k, and just bought a house. But I had a major health setback that woke me up to needing to be really prepared, and I turned to RUclips and found the Money Guy Show. I may have been too late to really be in the FIRE movement, but I'm now well ahead of the calc on net worth. Thank you for giving me targets to go after. I can now choose when to retire and not stress over money in a way I wouldn't have before your show!
Starting a business can absolutely change your life. We started a business 3 years ago. Income prior to business was $180k, we saved up 6 months of income, saved up our start up costs in cash, quit our jobs and opened our business. It’s been 3 years and we are paying taxes on $518k. Wonderful and terrifying to think our tax bill is over $100k… It all started with getting out of debt, learning to live in less than we made, learning to save, actually saving, then spending wisely and growing at the speed of cash. Highly recommend wealthability for wealth strategy.
Started late, now almost 41, but gone $0 to $120k invested in 3 years on a median income by completely restructuring my life. I just maxed my Roth for 2024, will max my trad 401k, and am investing my tax refund in taxable. Every raise is going to savings and I am loving the simplicity of VTSAX and VTIAX and chill. As soon as my car is paid off (0% APR) that payment will get invested too. So excited for the future. Never thought I would get this far! Today is the best time to plant that tree!!
That's so awesome, keep up the good work!
I’m 29 and just hit 175k in my retirement/brokerage accounts a few days ago. Have about 200k equity in my home and have a total net worth of around 435k. Hoping to hit 500k net worth end of 2025. Current income is about 90k a year and I’ve probably averaged around a 20-25% savings rate since I was 20. The key is consistency and not worrying about what everyone else is doing around you, because everyone else around is broke and in debt up to their eyeballs.
I am about to enter my 30's and this has been a great video to watch.
It happened!!! Just completed net worth statement for my annual New Year's tradition. Critical mass achieved!!! Great start to 2024!
Age 38 and we’re at $1.1 million. About $375K of that is our house, which is paid for, and the rest is savings, investment, and retirement accounts. No debt. For us the most important thing is the idea of “enough” - being happy with cars, house, lifestyle that meet our needs and give us flexibility to save. My income has doubled in the last 10 years but we resisted the urge to buy a bigger house or get fancier cars. It’s made all the difference. There’s happiness and peace of mind and more control over your time in “enough.”
I’ll also say: one of the most rewarding parts of this lifestyle is being generous: tithing at church, supporting causes that are meaningful to use, leaving outrageous tips, etc. Pay it forward!
You have such a great outlook! We’re still figuring out exactly what we want, and what is going to be enough for us. Immigrant parents who are going to either work until they are 80+ or rely on us makes me want to push harder for longer before getting to where you are now (which sounds great)
Amazing! House paid off at 38 is crazyyy 🎉
In my experience, you need to explain that equity in the home, goes towards net worth. Most folks don't realize that the difference between what is owed on the home, and what's the home is worth, goes towards net worth.
Back in the days, we set goals for future. I can remember that when I graduated from College, I set up my goal that at 29 i should have my own house and a millionaire. So i started early to save and invest. My first invest was car rent and i got a loan from Chase to start up the business.
Yes true back in the days you can easily plan for your retirement . But now i don't how the systems works.
The System is not the same anymore, planning now needs an expert to guide you, otherwise you'll loose all at once.@@olivergeorge8788
Now is more of Tech investment than the old way.
48 yrs old making 120k a year. Net worth is 2.5M. Not easy to put aside wants for the last 20yrs but its possible with dedication. Averaged 20% including company match. Married with 2 kids
Y'all just made me realize I'm a year closer to 40 than I thought. This simultaneously makes me feel old and like retirement will never get here.
Can you guys do chapters in your videos? Would be great to be able to skip to my age group or other topics, love the content !
You must not like it that much that you want to skip portions lol
Not everyone has 50 mins to watch a video . Putting in chapters is not hard and im sure they can do it too@endofquoterepeattheline7516
Y'all know they cut these videos up so there will be a separate video for each decade, right? They do it every year. If it's not already up, it'll be up soon.
I just got my first RRSP to take my employer match! Only able to put $100/mth but the first step in the right direction!
Very grateful to have had parents who taught me the power of being frugal, delaying gratification, and saving as much as possible. I'm 28 and have spent my 20s saving 65%+ of my income. Now I'm set up to be in a great position to buy my first home this year. Woot woot!
way to go!!!
18 years of age in the air force been investing in my Roth Ira and TSP
Please also take the time and convince your peers where you can. You will be able to make such a positive impact on their future life, even if they don’t recognize it.
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
VTI and VXUS and chill. Gives you world wide exposure and by definition you get the average return. It's 0 stress and takes essentially 0 time. You aren't Warren Buffet. You can't pick stocks better and faster than professionals with Bloomberg terminals. Just take the average return and live your life.
@@TheFireGiverpretty sure ur talking to a bot
VUG
Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
Although my knowledge of the business is limited, it seems that this is the ideal time to enter the market based on my understanding of supply and demand in the economy. The consistent price variations, which shouldn't be an issue, are the only thing stopping me. But I really need a counselor; could you please assist me?
I had a feeling that this is a scam post.
@DavidEVogel all these comments with hundreds of likes seem to be scams
Lots of bots
I’m a 40s “uh oh” due to layoffs and medical expenses 😬.
But I just broke through the 200k net worth 🤷🏻♀️. Slightly better than the median I guess.
Still on track for a milli
I’m 26, $600K net worth. Been saving 50% of my salary and investing heavily. Money is a liability, not an asset. You have to exchange it for assets that represent real VALUE. Real estate - properties for rent. Stocks (dividends). Bonds (interest), funds, REITs (interest), intellectual property. Started from $0 since 3.5 years ago when I graduated college. I've come to realize that money is a tool if you don’t make money work for you, you can’t experience true freedom
I am little late in planning my financial journey, spent on many appreciable assets till now and keeping my saved earnings in banks. This inspired me a lot and gives a great zeal to start a fresh
Can't give financial advice. will recommend you speak with an FA, Martha Cornell Kerns, credit to her constant advice and guidance. Lots of People are sitting on large stockpiles of cash ready to time the market they’ll miss the mark and pile in late either way people that bought early will win
sweet bro
@ikshIshani do you also not buy groceries because of price fluctuations? I'm going to guess no, because you know you need them for tomorrow. I'd recommend finding a financial advisor in your area and not rely too much on wisdom and testimonies from the RUclips comment section. LinkedIn or coworkers or other peers who have a financial goal similar to yours would be a better resource.
those(they) are scam bots. The initial comment tries to be organic relative to the video in topic
Shout out to Brian for keeping the show young. Great content
This makes me feel a little bit better, though I still feel behind.
I’m 52 and have about $700k in financial assets (mostly 401(k) and Roth IRA but also a paid-off rental home) and a paid off $425k home.
I need to get on the ball.
1/1 Happy Net Worth Day!!!
Wish I knew about this show years ago. Good info here
You and me both
A single income or relying on government support should not be every employee's dream or mindset, but having an investment plan by purchasing good stocks as income support and retirement is the best option one could take in life. economy of the country (America), which is unfortunately about to crash. According to the statistics of so many intermediaries and observations, the government does not pay attention to its economy and its citizens, but is investing in wars (Ukraine and Israel).
That's true, take a look at China and most countries in Europe that are not involved in war and have good growth in their economy, giving their citizens a better life and support in their country.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It
is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
Do you mind sharing info on the adviser who assisted you? I'm 40 now and would love to grow my stock portfolio and plan my retirement.
I can easily ask you to look up for Linda Sue Baier to help you grow your finance
An professional financial analyst or advisor can certainly add value by offering tailored advice, portfolio diversification, risk management, and timely insights. Linda Sue Baier is an expert that can potentially speed up wealth creation and navigate market complexities, She's the best chioce to make for investor as she gives a Favourable Market Stocks to produce high investment yields and ROI
I think the fact that I started actually saving 3 years ago, but I've already reached the average net worth for persons my age (25) spells good things for my future. Hopefully, I get ahead of the curve and surpass all of these numbers as time passes.
Happy to report im going to eclipse 200k net worth by my 30th bday this year and over 150 in retirement funds!
27:15 what's the difference between a job and a career? How do I know if I currently have a job or a career?
I used to work for a company with an employee stock purchase program for 15% less than the market price. I kept on buying every year and never thought about it. The current dividend on the stock is big enough to make payments for GMC 2500HD Duramax!
happy to say im 22 with over 60k in liquid assets. but im still far from fire according to yalls fire video but im still gonna do my best and hope to retire as early as possible.
Currently have a net worth of about 160k at age 27. I have maximized my contributions to both my 403b and IRA accounts. Trying to squeeze as much juice as possible from the final years of my twenties 😢
Thankful for this channel. $350k NW at 27. Definitely feels like the messy middle at the moment but I’m looking forward to the future.
Be sure to firewall that money before you get married!
Already married. We got married at 23. Built it up together. We planned for my wife to stay home by the time we had our first kid. Thankful that she trusted the process and saved heavily.
Great job! Killing it!
Damn how much do you make? Good for you and your wife. I just started to take saving/investment seriously at 26 so im trying not to be envious haha 🤑
Nice, sounds like we’re in very similar positions. My wife is stay at home as well, we have $500k at 29
Hi money guys, Neg net worth over here. Glad to see your video here
31 YO with $780K net worth thanks to these guys and Dave Ramsey.
no one cares bro
@@devonwolf 47 YO with 2.1M net worth thanks to these guys and Dave Ramsey
Sitting at age 30 with 50k in retirement but have about 330k of debt between house and school loans. I bought the cheapest house that was livable in my area, but 150k of students loans between myself and my wife hits hard
Bo’s face at 17:36 when Brian says “sloppy happy”… lol 😂
At 11:18 Brain says "wet sloppy tears" and gets Bo going earlier. Brians new favorite word?
Bryan really loves getting to do this every year! 😂❤
I personally count my home equity in my net worth. If it's worth $500K and your mortgage is $350, well you own less you owe = $150K. Sure, it's not easy or immediate to realise that, and when you do, it may be worth a little different and you'd make an adjustment in your numbers either way. Similar to your slide @7:20.
The same would be true of pensions. I can't very easily access my pension for another couple of decades, but I still consider our pension pots part of the over-all wealth, for the very same fact it is still an asset even if I can't immediately utilize it.
Interesting as ever.
I mean obviously your mortgage is deducted. But also consider adjusting for cost of selling. Probably 10%
I've been anticipating and looking forward to the annual videos, yay!
I feel late to the game. I’m 31 now I wanted to start investing when I was 21 and always had excuses. I started investing when I was 29 and right now I have $30,000 on my Roth IRA and I will continue to max out my Roth IRA yearly I’m hoping I’m not too late.
you gentlemen represent a net good. I came from a Hot Mess... Too much back story to explain, but I know that every word Brian and Bo speak is true. The Optimism itself is not to be discounted. very powerful message. I retire this july. I will make more retired than I ever did while working, including OT.
In your 20s, your income could go from minimum wage to six figures. So I would suggest using the average of your income over the previous decade to calculate.
doesn't matter how you stack up against others. What matters is how you stack up against your goals. Yes, time is your friend if saving for retirement, but if you don't have time, that only means you need to change/improve your situation. Some of us had the reckless die broke mentality and took us a few decades to let reality hit before turning things around and being able to retire younger. There is a lot that is possible, but you have to stop stacking yourself against others just like stop keeping up with the jonses, and instead, set financial goals and do the positive things that will get you there.
Is the 25% just from wages or should we include interest earned and dividend reinvestments also?
Just gross wages. I think dividend reinvestment is expected to build net worth.
@@zachhecksel2920 Figured so. Thanks for the info!
I’m in my late 30s & am still not sure if I want to own a home, so I’m just saving. One distraction I’ve managed to avoid is having kids 😂
same same bro i’m 33
Video games?
I just tried the wealth multiplier, I wish it would let you add what you’re currently investing. I’m age 26 with 53k invested in my Roth 401k and IRA should be 2.5 million without adding anything but I’m doing 20-25%.
sweet bro
Didn't put a penny into my 401k till i was 33. Now im 44 and at $440k. I feel im behind the curve, but working to get the total investment up to 25% over this year.
Also, only debt is my house, where i owe $350, and its worth $900k
I’ve become an old person…. Back in my 20s, the IRA limit was $2000 a year.
It’s true you just have to get started. I was lucky to had great mentors that gave me advice. At 43 we are in a position where we are doing well. If everything continues to go the same way our biggest problem will be that we will be paying a lot of taxes in retirement.
Ive got over 700 in investments, a roth ira of 400, a house downpayment of 500 (hoping to build up to 40K). A 6 month emergency fund. I save away 45% of my income… i only started back in August and I only make 15K a year… you can make it
@Money Guy show, why does the networth statement NOT include future expected liabilities (E.g. Taxes on stock sale, Estimated Property Fees when selling, etc..)?
Good question!
$300k net worth
No house
High income earner
46 years old
Feels like I could be further in life financially, but I am happy I have zero debt and I am educating myself on how to build wealth
Love the idea over using home purchase price in the net worth equation vs an estimate on zillow. Much better visibility into what's actually going on
Recently, I've been pondering retirement. I've also invested $800K on S&P 500 so i could secure my financial future. i need an approach to invest in Stocks like Nvidia stocks and of course AI stocks that will align with my risk tolerance and financial goals but it seem to be bearish right now.
While the market is promising, expert guidance is essential for effective portfolio management.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@@KimberHart I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
@@MellisaAdam Her name is ‘Anna Rounds Fay’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Started with nothing and pretty much still have most of it!
If you are married, do you just double the expected net worth? Or is it something more like 1.5x?
If you're the same age you can just do total household income and plug in the age formula to save headaches
@@isiah675 Oh duh that makes sense. Thanks!
I was shying away from looking at our net worth ending 2023 because I knew it wasn't a great year for us... or so I thought! For the first time, I've seen a direct benefit from the increase in the stock market!
Recent years have been very good IMO. My projections were probably too pessimistic, but I hit $1M about 5 years earlier than expected.
Im 25, my wife is a foreigner with a 0 networth indivudally, and shes a stay at home mom with daughter who is 6 months old. She will work once our daughter starts school. But we own a home and have a mortgage, our car is paid off and is worth about $20-23k. Our networth is just over $100k right now. When we are 30 and she starts working, having 2 incomes will make it easy to start investing and coming up with a plan. We are going to aggressively pay down our mortgage first though, our interest rate is 6.5%
Age 36 Net worth: paid off house worth 400k~ , 290k in 401k, 35k in savings, 32k in brokerage account, 6k in bitcoin 😆 3 kids and stay at home wife. 130k income
You could apply the same logic to market investments: they aren’t worth what they say on paper until you actually sell them. I will continue valuing my house at the amount the market demands.
The difference is that if you plan to sell your primary residence to cash on it, you need to consider the replacement cost of the asset since you need a place to live. When you sell your portfolio, there is no replacement cost. I don't think it's wrong to include it in the net worth but there is a nuance.
18% at 29 (: inching along over here!
I ran the formula and I think it needs to be adjusted for average salary over the past 5 years. My income jumped up this year, I saved almost all the extra money I made but it just throws off the number too much. On the website it says I need to invest $0 to hit 2 mil, but the formula says I am only 2/3rds to goal.
The wealth multiplier calculator on the resources page says $0… does that mean I don’t need to save for retirement anymore? (I’m not gonna do that but I’m confused by the $0)…
At 7:20 they say to count pensions in your financial assets because they are liquid. That doesn’t make any sense since you can’t start collecting until you reach age 55-65. I view pension as future income. And you don’t count income in net worth. I suppose you could do a net present value calculation, but it’s still not a liquid asset.
I’m a CFP practitioner and love the research and presentation y’all do. The no BS approach is much appreciated in an industry that is filled with folks trying to make it more complex than it needs to be!
I’m single and 29 living in KY net worth currently sits at around 200k everything considered hopefully can hit 1M by 40
What would be really interesting is a segment on net worth of college graduates versus high school graduates versus people with masters degrees etc.
How should I include the equity in my house in the net worth calculation? Should it be excluded or included?
They say to calculate at purchase value so you take the price paid for the house minus the balance owed and you add that to your net worth.
These episodes bring me peace of mind. I am 25 and I constantly feel like I am not saving/investing enough (current savings rate of 16%) but the data here shows that I’m doing 3x better than my peers. I think there are many financial mutants out there like myself that feel “behind” but zooming out and seeing data like this helps reassure me that I am well on my way. Thanks Brian and Bo!
Right there with you pal. I’m 26 with the same savings rate. Keep it up!
I'm 45 and have been saving since around 22-23. Started with $500/month after tax (increased as my salary grew) and was getting employer match but not maxing out 401k the first couple of years (but have been maxing out since 27 or so.) Felt like nothing was really happening the first 5 years and not much more in years 5-10. But after that it really starts rolling and as you grow past some nice round numbers (i.e. 100k -> 200k -> etc.) you'll start to feel better about the whole process.
Just be careful with these comparisons. They are nice for seeing where you stand relative to everyone else, but what's most important is where you stand relative to your expenses. Someone might have $300K at age 65, but they also have a pension, social security and family members to rely on; plus their expenses are low. So they never even touch that $300K.
Bunker down and get that number higher (savings rate)!
You are probably comparing up or to the financial mutants in these comments. You’re doing great, run your own race!
You know ow what gets me when it comes to these videos and I don’t want to seem negative but honestly I want to become wealthy fast not when I’m 65 and couple years left to thrive. I’m hustling my butt off as we speak. I have to battle inflation so I currently work three jobs and I just bought house and I’m going to rent it out to make some money over the course of the year. I will not settle to be 65 then be a millionaire at that age and then die.
A couple of questions about how exactly do I calculate if I am saving 25%?
1) Is the denominator my gross or post tax income?
2) Does the numerator include the principal I pay on mortgage?
1) gross income
2) no
3) include your pension contribution and/or your employer's 401k matching contribution if your household income is below 200k/yr
Have my son 21 working made 50K (overtime) and his education is paid for while he is working, still have him at home and investing as much as possible. So happy to help him springboard his life the right way. Also setting aside cash to be able to purchase a home when he is ready.
Hey guys, love the content, but the math ain't mathin' for me here. @36:24 you talk about calculating and comparing net worth in your 40s using the net worth formula (age x income/10). However, this is an individual formula based on individual numbers, yet the rest of the slide is based on household figures. So, how do we use the net worth formula for household numbers - same formula, just use household income? Should we use the individual net worth formula and double it for 2 wage earners? I just want to compare apples to apples. Thanks.
i would say do the household income and avg the ages so if you 42 and spouse 44 do 43 x household income and divide by 10.
It would make more sense to calculate each person's number separately and just add the results together
Does anyone have link to the fed report they are referencing?
Love networth by age videos. Watch them every single year even though im not where im supposed to be 😂
Love this net worth formula! Still in my early 20s but good to see I’m on track
48, net worth of just over 400k...but, I have a 55k per year pension that I am already collecting that includes low deductible medical, dental, and vision insurance for life at 350.00 per month. By age 55, I will have drawn out more than my payments into the pension plan. My lifetime pension payments should significantly exceed my total career earnings.
All my new earnings can be invested because my pension covers all my expenses(0 debt). So my retirement accounts are booming.
Bo is so excited about this topic
@The Money Guy Show
You should also add a graph that shows health over time. A critical resource like time & money!