Financial Independence 250k Milestone - 24 y/o, Self-employed, Married, 1 Kid |
- 250k Milestone - 24 y/o, Self-employed, Married, 1 Kid
- Daily FI discussion thread - January 07, 2020
- How to gamify financials to maintain motivation and forward momentum?
- 1.6MM net worth but with a weird job situation and asset allocation. Can I afford building a new house?
- Just hit $4MM today.
| 250k Milestone - 24 y/o, Self-employed, Married, 1 Kid Posted: 06 Jan 2020 08:32 PM PST Today, we hit a milestone and surpassed a 250k net worth. I'm in a bit of disbelief but I'm also extremely grateful. This community has changed our life and helped us realize that we can achieve FI. We have a ways to go before we reach our FI goal of 2 -3million but we've shown ourselves that we can get there through intentionality and discipline. I just want to encourage any young individuals/couples out there that this can be accomplished. My partner and I both work, and we split watching our child throughout the work week. (I love being able to stay home and be with our child. This is time I will forever cherish.) We are both 24 y/o and my partner works 3 days a week and I work nights/weekends. My Partner started working in her field (Video editing) out of high school and I started my business while in high school. I continue to run the business that I started in high school and this is how we got to this point. I also finished college and graduated with 65k in student loans. (Private college, don't regret the decision to attend, and also get angry sometimes at how much it cost.) *end rant Side note: My parents co-borrowed with me on my first mortgage to bump me up into the range I needed to purchase my first home. This occurred at 19 y/o and the agreement was to refinance after 1 year to get them off of the loan. This went as planned and my parents generosity aided in us getting to this point. Again, grateful for their example and for their help with this specifically. Income: 2013 - $8k 2014 - $41K 2015 - $55k 2016 - $110k 2017 - $128k 2018 - $133k 2019 - $150k Net Worth Breakdown: $75K - Primary Home Equity $75K - Rental Home #1 Equity $15K - Rental Home #2 Equity (50% ownership) $43k - Roth IRA $12K - 401(k) $30k - Safety Net =$250k Timeline of how we got here: 16 y/o: My parents told me they would not be paying for my college education but they wanted me to attend a university and get a degree. I never expected my parents to pay for my education but this conversation challenged me to really think about my future. I chose to enroll in an early college option offered in our state for my Junior and Senior year of high school and I graduated with 59 paid-for college credits. This is also the year I started a business that would end up being my full-time career path. I'm indebted to my parents for their hard work giving me the opportunity to pursue an education AND for them supporting me as a young person with an entrepreneurial venture. They both grew up in poverty, worked their way out, and again set an unbelievable example for us to follow. 18 y/o: Go to college, continue small business and begin to realize I am obnoxiously throwing away money. Start to follow Dave Ramsey and begin the "baby steps." Meet partner and begin to talk about the future. This was pivotal in our relationship developing with financial responsibilities in mind. Max Roth IRA and begin saving. 19 y/o: Change schools and buy first home. I lived here with 3 roommates who paid the mortgage until we got married. (Parents co-borrowed to help this purchase occur) 21 y/o: Got married and begin aggressively paying off student loans/car(s). 22 y/o: Paid off car(s), and student loans. 13 months of working extra jobs, selling stuff etc. Found out we were pregnant, and decided to move to a home that was better suited to raise a family. First home becomes a rental and we invested in a second rental property with a 50% stake. (Read The Millionaire Next Door, Rich Dad Poor Dad and listened to Dave Ramsey's podcast all the time.) 23 y/o: Became a family of 3, discovered FI/RE and decided this is the direction we wanted to pursue. We really reeled in our budget, began aggressively saving and chose to live on less than what we made. 24 y/o: Hit a 250K net worth with rental properties and savings. We have a long way to go and the market could change. Encouraged to pursue another year of saving and work towards FI. I definitely understand that we have a lot of NW in equity and that this could change if the bottom fell out. Also, I have to give credit to my partner. Without her onboard, none of this would have been possible and without this community we wouldn't have pursued this. Cheers to 2020. [link] [comments]  | ||||||||||||||||||||||||||||||
| Daily FI discussion thread - January 07, 2020 Posted: 07 Jan 2020 12:08 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  | ||||||||||||||||||||||||||||||
| How to gamify financials to maintain motivation and forward momentum? Posted: 06 Jan 2020 08:28 PM PST The journey has its ups and downs and requires resilience, commitment and attention to details. Financial acumen is a given and why most of us are here. Everyone's got different motivators, we all have the same objective. One way to keep the momentum going could be to gamify our financial milestones and goals. In your view, what's the best way of going about it should you have the means to do so? For instance, by maintaining your daily or monthly goal you receive points, if you are in excess you get a bonus, when you achieve a milestone you get a prize for yourself, IRL or virtual. If you complete a lifestyle challenge you get something different possibly. Alternatively, it could be a virtual world and you unlock new worlds by saving x amount or Y spend - which can be verified independently. Feedback welcome. I'm thinking of pulling something together, let your imagine fly. [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 06 Jan 2020 09:55 AM PST I'm a 35M, married with three young kids, and we want to upgrade our house and do a semi-custom new construction. But we're hesitating because it's such a big purchase: is it too reckless?
The house we want to build would probably run us $700K. We MUST purchase it all cash (probably via HELOC or home equity loan against our rental properties). (If you must know, it's because we're both victims of stalking/violent threats and we must purchase our primary residence anonymously through a trust/LLC - please no tangential questions about this) I know this is going to be a very personal decision, but wanted to run this by you guys in case I had any blind spots. Is this too much house for us? Is it too risky or reckless to spend this much on our primary residence? What other things should I be thinking about from a financial/affordability perspective? EDIT: We would sell the $350K primary residence after moving to the new house. [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 07 Jan 2020 03:06 PM PST This is a very big day for me as my NW just creeped above $4MM. Granted a lot of of the value is in real-estate which has a nebulous value until liquidated, but nonetheless. Single income earner with a wife and 3 kids. I'm planning to pull the plug in 2 years (when contract expires) and then maybe either quit or phone-it-in until it catches up with me. At my current rate, in 2 years I could maybe be close to $5MM if we don't have a major crash. I'm pretty embarrassed how at my age (46) I don't have more in 401k, but I chicken out back in the crash and sold everything and just sat on cash during the recovery. That was before I found helpful resources like this sub. Here's where I'm at: Savings
Investments
Real Estate
Retirement
Total: $4,004,000 For those curious, I work in the Media/Entertainment space and my income is currently as follows:
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