Hey everyone! Long time lurker, first time poster. As of today, I have finally hit a major financial milestone - 100k net worth at 26! I wanted to share my journey with you, and especially with those who may either be just starting out or are looking for some encouragement. Times are extremely tough right now, but I believe this is still the optimal way forward in securing a free and fruitful life.
For some context, I received my undergraduate degree in 2021. Worked part-time as a tutor and squirreled away as much as I could while completing my degree. After COVID wiped all of my internship and job opportunities (museum curatorial work), I spent the next 5 months working part-time and job searching until I landed an entry level paralegal role at a law firm. Worked remotely from home and saved as much as I could until the firm switched to hybrid in March 2022, so I decided to move closer to work. The city I moved to is VHCOL and I was not making a lot of money, so it was quite an adjustment within the first few months. I remember immediately ruminating that I would run myself into financial ruin and never be able to build a future where I'd enjoy anything. And so my journey into financial independence and investing would begin to take root.
After a year of building experience (and the death of any desire to attend Law School), I leveraged my resume and hopped to a better job as an analyst managing legal expenses in October 2022. Better pay, more responsibilities, and great opportunities to build transferrable and relevant skills. I've been here ever since, though I want to hop again to escape this dead end position (abhorrent job market permitting) and begin laying the foundation for a long term career. But enough backstory, let's see the current NW breakdown:
Salary
Year
Salary (Gross)
2021
$16/hour
2022
$50,000 (Includes Bonus)
2023
$85,000 (Includes Bonus)
2024
$90,000 (Includes Bonus)
Account
Total Amount
Checking
$5,388.38
HYSA
$29,142.45 (4.2% APY)
Traditional 401k
$33,836.25 (VLXVX)
Roth IRA
$15,752.50 (VT)
Taxable Brokerage
$18,643.58 (VT + VMFXX)
Total NW:
$102,763.16
After all of my research, reading, and calculations, my investment approach centers around simplicity. I want to focus on living my life rather than fixating on what to invest in. So... I bought the proverbial haystack. Went with the 2065 Target Date Fund for my Traditional 401k, VT and chill for the rest. I max my monthly 401k contributions (no employer match - ouch!), put aside some money for next year's Roth IRA max (VMFXX), and dump the rest into taxable brokerage (VT). Everything is automated to set and forget. Checking covers around a month or two of living expenses, and serves as a liquid means to pay off monthly credit card balances in full. My emergency fund can last well over 6 months without any change in quality of life, and I have some residual savings for several future expected expenses (car, gifts, et al).
Here are some graphs depicting growth and account allocation since graduating college. If you look closely, you can pinpoint the exact moment I began following this subreddit!
I haven't seen many posts here that involve single individuals earning a salary below six figures. It is definitely difficult to gauge how others in a similar situation are doing among numerous posts involving dual income couples, families, and extremely high earning singles. While I do not wish to compare dissimilar circumstances, hopefully this post can resonate a bit more with the formermost group of people. There are some seemingly insurmountable challenges we will all face but I promise you that every single penny you put towards your future is worth its weight and then some!
If there is anything to take away from this post, here are 10 core tenets I'd share with anyone beginning their journey or feeling disillusioned at the moment:
* Read the flowchart. Memorize the flowchart. Follow the flowchart.
* Small steps lead to great strides. Even if you only have $10 to put away every single week, do it!
* Don't have your investments/emergency savings accounts be visible. This causes unnecessary stress, believe me.
* Read, research, and listen. Many people here have been in your shoes before. Use this knowledge to your advantage.
* Accept that you are doing the best you can with the information available to you. Even if things go horribly wrong, you can't ever regret doing your best.
* Budget and track earnings/accounts/expenses every month. Paper or Excel work just fine. Spend 30 minutes at the end of the month and log everything.
* Curtail your frivolous expenses. Do you really need that thing, now? Spend money on that which means the most to you.
* Wealth isn't purely monetary or asset-based. Take care of your health, relationships, and passions too. Remember, you're building your life, NOT a corporate portfolio.
* Never. Ever. Stop. Markets will fluctuate and things will get bumpy. You're stronger than a line on a screen.
* Don't forget to enjoy the ride! Be present and grateful. You'll feel much better in doing so.
I am eternally appreciative to all of you here that have shared advice or provided information in the comments. Please know that your time and attentiveness do not go unnoticed. Happy to answer any questions on things not covered in this post. Thanks for reading - onto the next milestone! submitted by /u/redditativeness
[link] [comments]
For some context, I received my undergraduate degree in 2021. Worked part-time as a tutor and squirreled away as much as I could while completing my degree. After COVID wiped all of my internship and job opportunities (museum curatorial work), I spent the next 5 months working part-time and job searching until I landed an entry level paralegal role at a law firm. Worked remotely from home and saved as much as I could until the firm switched to hybrid in March 2022, so I decided to move closer to work. The city I moved to is VHCOL and I was not making a lot of money, so it was quite an adjustment within the first few months. I remember immediately ruminating that I would run myself into financial ruin and never be able to build a future where I'd enjoy anything. And so my journey into financial independence and investing would begin to take root.
After a year of building experience (and the death of any desire to attend Law School), I leveraged my resume and hopped to a better job as an analyst managing legal expenses in October 2022. Better pay, more responsibilities, and great opportunities to build transferrable and relevant skills. I've been here ever since, though I want to hop again to escape this dead end position (abhorrent job market permitting) and begin laying the foundation for a long term career. But enough backstory, let's see the current NW breakdown:
Salary
Year
Salary (Gross)
2021
$16/hour
2022
$50,000 (Includes Bonus)
2023
$85,000 (Includes Bonus)
2024
$90,000 (Includes Bonus)
Account
Total Amount
Checking
$5,388.38
HYSA
$29,142.45 (4.2% APY)
Traditional 401k
$33,836.25 (VLXVX)
Roth IRA
$15,752.50 (VT)
Taxable Brokerage
$18,643.58 (VT + VMFXX)
Total NW:
$102,763.16
After all of my research, reading, and calculations, my investment approach centers around simplicity. I want to focus on living my life rather than fixating on what to invest in. So... I bought the proverbial haystack. Went with the 2065 Target Date Fund for my Traditional 401k, VT and chill for the rest. I max my monthly 401k contributions (no employer match - ouch!), put aside some money for next year's Roth IRA max (VMFXX), and dump the rest into taxable brokerage (VT). Everything is automated to set and forget. Checking covers around a month or two of living expenses, and serves as a liquid means to pay off monthly credit card balances in full. My emergency fund can last well over 6 months without any change in quality of life, and I have some residual savings for several future expected expenses (car, gifts, et al).
Here are some graphs depicting growth and account allocation since graduating college. If you look closely, you can pinpoint the exact moment I began following this subreddit!
I haven't seen many posts here that involve single individuals earning a salary below six figures. It is definitely difficult to gauge how others in a similar situation are doing among numerous posts involving dual income couples, families, and extremely high earning singles. While I do not wish to compare dissimilar circumstances, hopefully this post can resonate a bit more with the formermost group of people. There are some seemingly insurmountable challenges we will all face but I promise you that every single penny you put towards your future is worth its weight and then some!
If there is anything to take away from this post, here are 10 core tenets I'd share with anyone beginning their journey or feeling disillusioned at the moment:
* Read the flowchart. Memorize the flowchart. Follow the flowchart.
* Small steps lead to great strides. Even if you only have $10 to put away every single week, do it!
* Don't have your investments/emergency savings accounts be visible. This causes unnecessary stress, believe me.
* Read, research, and listen. Many people here have been in your shoes before. Use this knowledge to your advantage.
* Accept that you are doing the best you can with the information available to you. Even if things go horribly wrong, you can't ever regret doing your best.
* Budget and track earnings/accounts/expenses every month. Paper or Excel work just fine. Spend 30 minutes at the end of the month and log everything.
* Curtail your frivolous expenses. Do you really need that thing, now? Spend money on that which means the most to you.
* Wealth isn't purely monetary or asset-based. Take care of your health, relationships, and passions too. Remember, you're building your life, NOT a corporate portfolio.
* Never. Ever. Stop. Markets will fluctuate and things will get bumpy. You're stronger than a line on a screen.
* Don't forget to enjoy the ride! Be present and grateful. You'll feel much better in doing so.
I am eternally appreciative to all of you here that have shared advice or provided information in the comments. Please know that your time and attentiveness do not go unnoticed. Happy to answer any questions on things not covered in this post. Thanks for reading - onto the next milestone! submitted by /u/redditativeness
[link] [comments]