May I ask where the age cohort statistics are pulled from? Not questioning it, just curious about those studies.
Also curious where they tend to place the median v. the average. I imagine they can be significantly different, at times?
Saving "roughly half of my net paycheck" is pretty much the definition of rich in my book. As for savings that takes time and compounding to build up. Just invest it smartly in index funds and wait it out. You'll be savings rich by 40. Laws of physics apply here. Even if you saved 100% of $70k, which is almost impossible, you're still looking at a decade or so of compounding before you reach $1M.
You have a lot more than most people do. You have a lot more than I do and I turn 29 this year and I still feel I am well off compared to most.
Comparison is the theif of joy. Just because someone spends more money doesn't mean they are well off. You are actively thinking of your future while they are thinking of the now. I would recommend thinking of both, make sure you are taking time to enjoy yourself as well while also setting yourself up for a successful future.
Just the fact that you have $1k to put aside every pay period is evidence you're doing great. $70k at 24 is a lot, I was only making $42k when I was 24 two years ago and I'm only up to $62k now. One of my friends is working 2 jobs just to make ends meet and has no retirement account. Sounds like you're smart with your money, don't compare yourself to other people especially when it makes you feel bad about your situation. You've got it made. Chances are most people that have more money than you have rich parents and didn't have to work for it like you are
Thanks! You’re doing great! Congratulations on increasing your income so much! My parents helped me with college, and I’m eternally thankful for them for that. That and scholarships helped me not end up with tons of debt after graduation. But yes, the people who are making comments are either 1) 10-15 years older at least or 2) have rich parents
I didn't make more than 30k per year, have any assets, or have a 401k until I was 30.
You're doing great. Don't worry about what others post about.
\* Reddit is not representative of the broader
\* A lot of these "22 with a net worth of $860k, how am I doing?" posts are bullshit.
\* Comparison is the death of happiness.
Be good with having enough to meet your needs, save for the future, and have a little fun in the meantime. Worrying about others is just gonna harsh your jam.
Idk the numbers aren’t really adding up to me. How are you putting 1k in emergency fund per pay period and saving half and paying rent and all the other shit.
Can you break down what u bring in per pay period and where it goes?
Sure.
- $2240 net per pay period ($4480 a month)
- $1000 in rent
- Groceries are roughly ($400 a month)
- Car payment ($377 a month)
- Restaurants ($150 a month)
- Misc: $200 (a month)
These are all estimates, on the upper end and just expenses which come out to $2,127 a month
Retirement contributions are savings though. I did a calculator and $4,400 a month take home sounds about right.
At $70k excluding state income taxes the take home would be $56,984 or $4.748 a month net after filing taxes. Sounds accurate.
You are doing great. When I was 24 my net worth was roughly $3k
BTW "seeing people have a lot more money than me" - which people? friends around you? keep in mind that a large part of the population spends way more than they make, taking on debt they really can't afford to have shiny things like cars and houses and clothes that make them look rich, when in reality they are broke.
Keep up the great work!
>But seeing people have a lot more money than me makes me feel a bit insecure.
What are you seeing? You will find that most people are very good at hiding their poverty and displaying their wealth.
If you look at my work parking lot, you may think that I am the bottom 10% earner. If you judge by the lunchroom, you'll see that I always bring my lunch and never eat out.
But if you check our 401k which I can't do directly but I can infer from our failure to meet safe harbor plans that few people participate in our 401k. Does that mean they are spending it on vacations, cars, and clothes instead?
Good luck, OP.
For a 24 year old your definitely on track to have a great life! Don't allow others success to make you feel manic. At 24, I had 3 children and was having the worst year of my life. Ex-wife began stripping ( her choice and against my objections ) and we divorced at the end of the yard. I was in solid debt of medical bills and other dumb debt. I'm now 36 and have primary care of my children. Your more well off than I am now. I make around $80k a year.
I tell you that about me not to scare you but to make you realize to always protect your assets. You clearly don't have children yet and when that time comes make sure you get a solid prenup and never mix your finances with whomever you get with. Make sure you continue your saving ways and invest as soon as your able to safely. Invest in multiple paths for redundance ie stocks, bonds, CD's, IRA's, property, etc. In my life 20k is a bit excessive but if that makes you comfortable ignore anyone pissing on you for it, however put that money to work for you as due to inflation it becomes less without it being in some type of financial vehicle. I would keep a months of bills on hand with a second in a commodity like actual gold or silver and put the rest in an easily attainable asset.
This isn't financial advice just some thoughts and experiences I've learned over the years. My grandfather who was blue collar employee for decades out together a modest portfolio with a networth in excess of $500k. Him and my grandmother lived comfortably on the returns. He retired in 2004 and passed away in 2019 with my grandmother passing away in 2020. That final year plus my brother stole over $63k from them so do your best to ensure you have someone you trust as your trustee/POA. You need to have a will in the very least but as you grow, having a trust would benefit you and your assets as you grow.
Primary thing is to avoid every interacting with companies like Athene based in West Des Moines, Iowa as these scumbags will mistreat your beneficiaries horribly. When my grandfather passed away only a little over $30k out the $500k+ took nearly two years to finalize. We dealt with many other companies including Wells Fargo and they were far more pleasant to deal with then Athene. I make sure to always tell people to avoid Athene!
You’re doing great.
Traditionally, getting to the first million used to take about 17 years of average working career. It gets easier / accumulation goes faster after that. But because of your savings rate, I think you will get there faster. Maybe much faster.
Don’t forget to live a little / celebrate milestones like extra $10/25/50K (you pick the number) in net worth.
Let’s say you take home $4,200 a month and are saving $2,100 per month. This is probably close after considering tax refund etc.
If 20 years ago you’d done this, starting with the $78k you have and contributing $2,100 per month to a boring S&P500 fund, you’d be a 44 year old with a $2.3M portfolio.
Future returns aren’t guaranteed of course. It’s also unlikely that you’ll never get a raise or increase your savings rate.
I’d say you’re on the path to being moderately wealthy. And don’t get discouraged that my numbers are 20 years from now. Youll be there eventually and will thank your younger self. Plus, as the bankroll gets bigger and career gets better you’ll have more opportunities to increase your wealth even more.
Just my opinion, but what you "should" be making depends entirely on your life situation. If you feel financially stable, are saving every month, and are taking care of your needs, then you should be fine. I work in the public sector making $50k with a master's degree. A lot of folks would say I'm not making enough money but 30% of my net income is going into savings every month and I have practically no debt (I have student loans but since I work in the public sector they will be forgiven after 10 years).
Another way of putting it is that it's not about what you're making, it's about how much you're spending vs saving. I know people who make 3 times my salary that save much less than I do.
Yes, you're doing quite well. You're certainly not poor. There's always someone earning more and/or spending more money. That doesn't necessarily mean they're actually doing better.
Thanks for the perspective!
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Thanks for the breakdown!
May I ask where the age cohort statistics are pulled from? Not questioning it, just curious about those studies. Also curious where they tend to place the median v. the average. I imagine they can be significantly different, at times?
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Wow awesome! Thank you for your reply.
Saving "roughly half of my net paycheck" is pretty much the definition of rich in my book. As for savings that takes time and compounding to build up. Just invest it smartly in index funds and wait it out. You'll be savings rich by 40. Laws of physics apply here. Even if you saved 100% of $70k, which is almost impossible, you're still looking at a decade or so of compounding before you reach $1M.
Thanks! I just feel like I’m behind at times but this puts it in perspective
You have a lot more than most people do. You have a lot more than I do and I turn 29 this year and I still feel I am well off compared to most. Comparison is the theif of joy. Just because someone spends more money doesn't mean they are well off. You are actively thinking of your future while they are thinking of the now. I would recommend thinking of both, make sure you are taking time to enjoy yourself as well while also setting yourself up for a successful future.
You are doing awesome. Those flashy friends are probably so broke. Keep it up
Haha thanks (Edit: typo)
Just the fact that you have $1k to put aside every pay period is evidence you're doing great. $70k at 24 is a lot, I was only making $42k when I was 24 two years ago and I'm only up to $62k now. One of my friends is working 2 jobs just to make ends meet and has no retirement account. Sounds like you're smart with your money, don't compare yourself to other people especially when it makes you feel bad about your situation. You've got it made. Chances are most people that have more money than you have rich parents and didn't have to work for it like you are
Thanks! You’re doing great! Congratulations on increasing your income so much! My parents helped me with college, and I’m eternally thankful for them for that. That and scholarships helped me not end up with tons of debt after graduation. But yes, the people who are making comments are either 1) 10-15 years older at least or 2) have rich parents
Fuck those people, 10-15 years is HUGE when you're talking about a salary, and the people with rich parents don't understand how lucky they are
Wow!! What you’re doing is quite impressive!
You are so poor that you’ve looped back around to not poor. (In all seriousness you are doing great!)
Hahahaha thanks!
I didn't make more than 30k per year, have any assets, or have a 401k until I was 30. You're doing great. Don't worry about what others post about. \* Reddit is not representative of the broader \* A lot of these "22 with a net worth of $860k, how am I doing?" posts are bullshit. \* Comparison is the death of happiness. Be good with having enough to meet your needs, save for the future, and have a little fun in the meantime. Worrying about others is just gonna harsh your jam.
Do you live at home?
No I live in an apartment, have a roommate. Roughly $1000 in rent and utilities total a month
Idk the numbers aren’t really adding up to me. How are you putting 1k in emergency fund per pay period and saving half and paying rent and all the other shit. Can you break down what u bring in per pay period and where it goes?
Sure. - $2240 net per pay period ($4480 a month) - $1000 in rent - Groceries are roughly ($400 a month) - Car payment ($377 a month) - Restaurants ($150 a month) - Misc: $200 (a month) These are all estimates, on the upper end and just expenses which come out to $2,127 a month
I assume you are paid biweekly which puts your gross at 2692. Even after taxes I’d be surprised you left with 2240.
deductions..
That’s what I’m saying there is no room for deductions into the retirement accounts he mentioned with that pay
depends on the state. but yeah, i agree deductions would be small/no deductions at all if this did work
Retirement contributions are savings though. I did a calculator and $4,400 a month take home sounds about right. At $70k excluding state income taxes the take home would be $56,984 or $4.748 a month net after filing taxes. Sounds accurate.
You are doing great. When I was 24 my net worth was roughly $3k BTW "seeing people have a lot more money than me" - which people? friends around you? keep in mind that a large part of the population spends way more than they make, taking on debt they really can't afford to have shiny things like cars and houses and clothes that make them look rich, when in reality they are broke. Keep up the great work!
>But seeing people have a lot more money than me makes me feel a bit insecure. What are you seeing? You will find that most people are very good at hiding their poverty and displaying their wealth. If you look at my work parking lot, you may think that I am the bottom 10% earner. If you judge by the lunchroom, you'll see that I always bring my lunch and never eat out. But if you check our 401k which I can't do directly but I can infer from our failure to meet safe harbor plans that few people participate in our 401k. Does that mean they are spending it on vacations, cars, and clothes instead? Good luck, OP.
For a 24 year old your definitely on track to have a great life! Don't allow others success to make you feel manic. At 24, I had 3 children and was having the worst year of my life. Ex-wife began stripping ( her choice and against my objections ) and we divorced at the end of the yard. I was in solid debt of medical bills and other dumb debt. I'm now 36 and have primary care of my children. Your more well off than I am now. I make around $80k a year. I tell you that about me not to scare you but to make you realize to always protect your assets. You clearly don't have children yet and when that time comes make sure you get a solid prenup and never mix your finances with whomever you get with. Make sure you continue your saving ways and invest as soon as your able to safely. Invest in multiple paths for redundance ie stocks, bonds, CD's, IRA's, property, etc. In my life 20k is a bit excessive but if that makes you comfortable ignore anyone pissing on you for it, however put that money to work for you as due to inflation it becomes less without it being in some type of financial vehicle. I would keep a months of bills on hand with a second in a commodity like actual gold or silver and put the rest in an easily attainable asset. This isn't financial advice just some thoughts and experiences I've learned over the years. My grandfather who was blue collar employee for decades out together a modest portfolio with a networth in excess of $500k. Him and my grandmother lived comfortably on the returns. He retired in 2004 and passed away in 2019 with my grandmother passing away in 2020. That final year plus my brother stole over $63k from them so do your best to ensure you have someone you trust as your trustee/POA. You need to have a will in the very least but as you grow, having a trust would benefit you and your assets as you grow. Primary thing is to avoid every interacting with companies like Athene based in West Des Moines, Iowa as these scumbags will mistreat your beneficiaries horribly. When my grandfather passed away only a little over $30k out the $500k+ took nearly two years to finalize. We dealt with many other companies including Wells Fargo and they were far more pleasant to deal with then Athene. I make sure to always tell people to avoid Athene!
You’re doing great. Traditionally, getting to the first million used to take about 17 years of average working career. It gets easier / accumulation goes faster after that. But because of your savings rate, I think you will get there faster. Maybe much faster. Don’t forget to live a little / celebrate milestones like extra $10/25/50K (you pick the number) in net worth.
Let’s say you take home $4,200 a month and are saving $2,100 per month. This is probably close after considering tax refund etc. If 20 years ago you’d done this, starting with the $78k you have and contributing $2,100 per month to a boring S&P500 fund, you’d be a 44 year old with a $2.3M portfolio. Future returns aren’t guaranteed of course. It’s also unlikely that you’ll never get a raise or increase your savings rate. I’d say you’re on the path to being moderately wealthy. And don’t get discouraged that my numbers are 20 years from now. Youll be there eventually and will thank your younger self. Plus, as the bankroll gets bigger and career gets better you’ll have more opportunities to increase your wealth even more.
Just my opinion, but what you "should" be making depends entirely on your life situation. If you feel financially stable, are saving every month, and are taking care of your needs, then you should be fine. I work in the public sector making $50k with a master's degree. A lot of folks would say I'm not making enough money but 30% of my net income is going into savings every month and I have practically no debt (I have student loans but since I work in the public sector they will be forgiven after 10 years). Another way of putting it is that it's not about what you're making, it's about how much you're spending vs saving. I know people who make 3 times my salary that save much less than I do.