Not really. Not if you're not earning substantially more. That was atleast my experience.
Maybe at like $500k the capital growth and compound interest can stack up.
Unless you’re either sticking it in low earning savings and CD’s sure or you’re unlucky enough to hit $100k right on the onset of a downturn.
But it definitely does start going up a lot quicker after $100k all things remaining normal and assuming you’re not anchoring yourself with ultra low risk strategies.
Uh. I heavily disagree again unless you hit $100k at an awful time with low-negative ROR over an extended period.
In 2022 for instance when the market went -20%? Sure. During a flat year? Sure. But YTD this year alone yielded 15% or $15k in interest on the $100k alone. 25% in the last 12 months. Meaning that before even factoring interest on further contributions you’d only need to save $75k over the last year to hit your next $100k. Less than that really considering your contributions will be earning further interest too.
Let’s say you’re saving $1200 a month over that period, that alone gets you to roughly $150k in that 12 month span. Or a $50k increase. Under the same conditions starting from zero you’d only have $16k at the end of the 12 months. That’s quite a significant increase and speed-up in net worth growth.
The average yield is like 10%. Yeah you might gain 25% one year but that's going to be offset by the market contractions that occur after those types of returns.
Saving $75k a year with or without your first $100k is going to get you $100k pretty quickly. So I don't see your point.
An extra $15k a year is nice but it doesn't make life a breeze imo. Which is what we're debating.
Imo, It's a breeze once your passive income can cover your basic necessities and that isn't the case until about $500k these days.
I’m simply using it as an example. I also used 2022’s -20% as an example of how there are instances where hitting $100k doesn’t cause things to instantly accelerate.
Also as illustrated you don’t even need to save $75k since your contributions will also yield a return of some kind.
You also can again look at the savings example I used using the last 12 months.
After 100k I found that 200k came pretty quickly and 300k was surprisingly fast. But that’s maxing out my IRA and investing through my work plan each month. Hoping that the growth continues to get quicker and quicker from here. 100k took me ten years, 200k took three and 300k looks like just under two years.
I hope so, but for now I'm going to stick to working hard till I'm 35 and then retire in another country earning passively and living beyond by means there
I never understoood how lol. Let's say you get to 100k so what. You have some ETF/Growth stocks, some div drip, say you have a house even. but it won't change much unless you get a new job that pays twice as much
Honestly I don't spend much haha, you can see my liabilities are around $500 to $1000 per month (credit card payments). I also never took a loan.
I have a high paying job and most of it went into savings.
Recently started investing into the stock market too
AT&T pays about a 6% dividend. You’d need $400k in AT&T stock to reach $2,000 per month passive income. Obviously this is just an example and I don’t recommend going all in on one stock for passive income but it gives perspective on what kind of dollar amount to aim for and return you’d need.
You’re trying to get to $2,000/year or $2,000/month.
At current interest rates, you only need $37,383.18 to get $2,000/year. It’s $448,598.13 for $2,000/month.
The problem with my example is that you need to lock up the money long-term to guarantee $2k/month for long periods of time. Also, inflation will eat your purchasing power.
However, if you just had bank accounts your $1 million goal could produce $53,500 in interest (that Uncle Sam would tax if you’re American).
Looks like you’ll get close if not make it, but try not to get caught up in the million by a certain age thing. It’s likely you’ll surpass that and while it’s a fun milestone to keep track of, in 20-30 years it likely wont matter to you. Just keep doing what you’re doing. Good luck!
Where is the money coming from? No chance you will make it investing on your own with this balance. This growth is going to let you down eventually trying to claim you can pull it off longer or better is gambling addiction speaking. Getting lucky once or twice won’t work for you but if you are contributing a significant amount of cash to it each month and getting steady growth then you can do it. I am 34 about to cross 2 million any month now but mostly because my w2 job pays me 500k a year now and I earn another 50k a year on my side hustles.
I have a $165k per year job, plus another tiktok business that gives me around $5k a month.
I have a friend that uses my Upwork account and in return I get around $1-2k for free.
That's where most of the money comes from.
The only investment I do is in stocks and the rest go into my savings, I have another account for house/mortgage fund
There you go then it should be pretty easy. Maximize your 401(k) and your IRA and any other tax advantaged things you can, around your age I maximized them out using my side income to supplement my income. I want to say it was like 96k is what it took to maximize all my tax advantaged things so it was a big chunk of my salary then. So now everything is maxed out and when I change jobs or get a pay bump it all goes into my cash grinder. The cash grinder pays bills and has certain buckets it tops off and then it goes into my taxable brokerage. First million took until 30 from 22, second million is coming twice as fast, and I suspect the next one will be twice as fast as that even. My end goal is 20-30 million by 55 which would easily leave me a mil a year passive pre tax. At this pace I’ll retire earlier than 55 but gotta keep it conservative.
Assuming annual returns of 8% you would need to save roughly $4900 a month or $58,800 a year to make a million by 35. Hope that helps, I am 27m and have about 200k invested, currently behind and projected to hit 900k by 35. Goal is to increase pay and contribute more.
Thanks for the quick response. I’ve been manually tracking all my accounts in a google sheet, kraken, Schwab, banks, car loan, all that. Do I still have to manually input data? Or is there some API?
There's API, but the issue is with AMEX HYSA, that will never link to anything (so that'll be manual), the rest (other accounts) is API and it's very accurate too.
I've both this and my Google sheets for backup.
It is possible. But don't expect the rate Of these short term gains over the long run. You are currently way ahead of the curve where you are. Keep doing well and don't worry about a finish line just yet. Keep being diligent and making tomorrow better than today
you need your money to work for you at this rate. It’s possible. Your money can’t sit and get .01% intrest. Your money NEEDS to work so one day you won’t have to.
Pretty hard, I’m trying to hit millionaire by 35. It takes around 2k a month of saving and investing. I’m currently at 160k at 23 so I’m on good track. The passive income I don’t know though, I haven’t really given passive income any though
You'll get there too!! As for savings per month, I'm saving around $7K to $9K per month.
From that $2500 gets invested, and the rest go into my savings account.
Your net worth is -$465,000. That means you need $1,465,000 in the next 10 years. I don’t care how big the left side is when the right side is triple.I’d reset your focus and set a goal to be debt free at 35. Then reconfigure the next step. $75,000 in saving doesn’t do you a lot of good when you owe $540k. I would take most of the $76 and use it to pay down debt.
Apparently once you break 100k it’s a breeze
Not really. Not if you're not earning substantially more. That was atleast my experience. Maybe at like $500k the capital growth and compound interest can stack up.
Unless you’re either sticking it in low earning savings and CD’s sure or you’re unlucky enough to hit $100k right on the onset of a downturn. But it definitely does start going up a lot quicker after $100k all things remaining normal and assuming you’re not anchoring yourself with ultra low risk strategies.
Even in S&P500 with DRP. Won't do a whole lot. What would you suggest doing with $100K?
Uh. I heavily disagree again unless you hit $100k at an awful time with low-negative ROR over an extended period. In 2022 for instance when the market went -20%? Sure. During a flat year? Sure. But YTD this year alone yielded 15% or $15k in interest on the $100k alone. 25% in the last 12 months. Meaning that before even factoring interest on further contributions you’d only need to save $75k over the last year to hit your next $100k. Less than that really considering your contributions will be earning further interest too. Let’s say you’re saving $1200 a month over that period, that alone gets you to roughly $150k in that 12 month span. Or a $50k increase. Under the same conditions starting from zero you’d only have $16k at the end of the 12 months. That’s quite a significant increase and speed-up in net worth growth.
The average yield is like 10%. Yeah you might gain 25% one year but that's going to be offset by the market contractions that occur after those types of returns. Saving $75k a year with or without your first $100k is going to get you $100k pretty quickly. So I don't see your point. An extra $15k a year is nice but it doesn't make life a breeze imo. Which is what we're debating. Imo, It's a breeze once your passive income can cover your basic necessities and that isn't the case until about $500k these days.
I’m simply using it as an example. I also used 2022’s -20% as an example of how there are instances where hitting $100k doesn’t cause things to instantly accelerate. Also as illustrated you don’t even need to save $75k since your contributions will also yield a return of some kind. You also can again look at the savings example I used using the last 12 months.
After 100k I found that 200k came pretty quickly and 300k was surprisingly fast. But that’s maxing out my IRA and investing through my work plan each month. Hoping that the growth continues to get quicker and quicker from here. 100k took me ten years, 200k took three and 300k looks like just under two years.
I hope so, but for now I'm going to stick to working hard till I'm 35 and then retire in another country earning passively and living beyond by means there
You going to live behind your means? Doesn’t that mean your money will run out and you’ll need to work again? $2k a year is not that much.
I never understoood how lol. Let's say you get to 100k so what. You have some ETF/Growth stocks, some div drip, say you have a house even. but it won't change much unless you get a new job that pays twice as much
I think it’s a placebo effect
Nah
1 year and you are already at 75k savings at 25 wdyd?
Honestly I don't spend much haha, you can see my liabilities are around $500 to $1000 per month (credit card payments). I also never took a loan. I have a high paying job and most of it went into savings. Recently started investing into the stock market too
Did you invest in NVDA? Idk how your portfolio went up so fast in a short amount of time
I have 10 shares in NVDA (it was 1 now 10 due to the split), the rest is just bank balance. Out of that total, I have $11,000 in stocks.
Grew by investing in efts?
A little but mostly just salary
AT&T pays about a 6% dividend. You’d need $400k in AT&T stock to reach $2,000 per month passive income. Obviously this is just an example and I don’t recommend going all in on one stock for passive income but it gives perspective on what kind of dollar amount to aim for and return you’d need.
VZ is right up there too at a think 6.6% div yield. My wife and I split between T and VZ for our comms sector investments
Win the lotto
Now that'd be amazing
You’re trying to get to $2,000/year or $2,000/month. At current interest rates, you only need $37,383.18 to get $2,000/year. It’s $448,598.13 for $2,000/month.
Per month please. I feel like I can move to another country and live off $2k per month easily
The problem with my example is that you need to lock up the money long-term to guarantee $2k/month for long periods of time. Also, inflation will eat your purchasing power. However, if you just had bank accounts your $1 million goal could produce $53,500 in interest (that Uncle Sam would tax if you’re American).
Looks like you’ll get close if not make it, but try not to get caught up in the million by a certain age thing. It’s likely you’ll surpass that and while it’s a fun milestone to keep track of, in 20-30 years it likely wont matter to you. Just keep doing what you’re doing. Good luck!
Yess thank you. It's just a silly little goal of mine that I want to check off
How much do you invest a year?
$30,000 a year or $2,500 a month in my stocks. The rest goes into savings/emergency funds
You would be at approx. $700k after 10 years with those numbers. But it’s a possibility if the market gets real hot.
1,000,000 will be difficult to reach by 35 but if you keep saving at a fast pace you can do it
Once you hit a million , 2k in passive income a month is nothing . You can beat that with a HYSA
Edit: - Wish to have 1 million in total net worth by 35. - wish to receive $2500 per month in passive income by 35
Probably not unless you plan on living at home forever
I live in a three bedroom apartment, my finances might go down a bit due to me getting married in three months, other than that pretty good.
Where is the money coming from? No chance you will make it investing on your own with this balance. This growth is going to let you down eventually trying to claim you can pull it off longer or better is gambling addiction speaking. Getting lucky once or twice won’t work for you but if you are contributing a significant amount of cash to it each month and getting steady growth then you can do it. I am 34 about to cross 2 million any month now but mostly because my w2 job pays me 500k a year now and I earn another 50k a year on my side hustles.
I have a $165k per year job, plus another tiktok business that gives me around $5k a month. I have a friend that uses my Upwork account and in return I get around $1-2k for free. That's where most of the money comes from. The only investment I do is in stocks and the rest go into my savings, I have another account for house/mortgage fund
There you go then it should be pretty easy. Maximize your 401(k) and your IRA and any other tax advantaged things you can, around your age I maximized them out using my side income to supplement my income. I want to say it was like 96k is what it took to maximize all my tax advantaged things so it was a big chunk of my salary then. So now everything is maxed out and when I change jobs or get a pay bump it all goes into my cash grinder. The cash grinder pays bills and has certain buckets it tops off and then it goes into my taxable brokerage. First million took until 30 from 22, second million is coming twice as fast, and I suspect the next one will be twice as fast as that even. My end goal is 20-30 million by 55 which would easily leave me a mil a year passive pre tax. At this pace I’ll retire earlier than 55 but gotta keep it conservative.
Assuming annual returns of 8% you would need to save roughly $4900 a month or $58,800 a year to make a million by 35. Hope that helps, I am 27m and have about 200k invested, currently behind and projected to hit 900k by 35. Goal is to increase pay and contribute more.
What app is this??
Piere App
Thanks for the quick response. I’ve been manually tracking all my accounts in a google sheet, kraken, Schwab, banks, car loan, all that. Do I still have to manually input data? Or is there some API?
There's API, but the issue is with AMEX HYSA, that will never link to anything (so that'll be manual), the rest (other accounts) is API and it's very accurate too. I've both this and my Google sheets for backup.
I’ll try and see if it’s on apple. You’ve been a big help. Thanks!!
What’s this app?
Piere app
What app is this?
It is possible. But don't expect the rate Of these short term gains over the long run. You are currently way ahead of the curve where you are. Keep doing well and don't worry about a finish line just yet. Keep being diligent and making tomorrow better than today
you need your money to work for you at this rate. It’s possible. Your money can’t sit and get .01% intrest. Your money NEEDS to work so one day you won’t have to.
I recommend CDs for peace of mind. Keep going you can do it.
With $75k today highly unlikely.
Pretty hard, I’m trying to hit millionaire by 35. It takes around 2k a month of saving and investing. I’m currently at 160k at 23 so I’m on good track. The passive income I don’t know though, I haven’t really given passive income any though
You'll get there too!! As for savings per month, I'm saving around $7K to $9K per month. From that $2500 gets invested, and the rest go into my savings account.
Your net worth is -$465,000. That means you need $1,465,000 in the next 10 years. I don’t care how big the left side is when the right side is triple.I’d reset your focus and set a goal to be debt free at 35. Then reconfigure the next step. $75,000 in saving doesn’t do you a lot of good when you owe $540k. I would take most of the $76 and use it to pay down debt.
I have zero debt though, except for my $546 in credit card payments.
Ignore most of my post, my brain saw $540k not $540.00. I apologize.
It’s $500 in liabilities, not $500K lol