1 M $ net worth by the time I am 30

Jan 10, 2020 35 Comments

As title. I want to reach a net worth (excluding any mortgage debt) of 1 M $ by the time I am 30. Is it possible to do so? What strategies would you advise?

age: 26
TC: 220k with an average yearly increase of 20%
current net worth: 220k
no mortgage
car loan of 18k

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TOP 35 Comments
  • Google
    GmuY00

    Go to company page Google

    GmuY00
    marry someone with 1.8m nw and divorce
    Jan 10, 2020 1
  • I feel like you could do the math way better than we could.... nobody knows your personal situation
    Jan 10, 2020 3
    • OP
      I save atleast 50% of my income plus another 20% into 401ks.

      I’m in Ca so around 30% tax rate.
      Jan 10, 2020
    • Google
      swinglyf

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      swinglyf
      That’s not quite enough detail. It’d be much easier if you put dollar numbers, but it sounds like you’ll get there basically without doing anything different as long as your money is invested in reasonable equity instruments, and you can do the math yourself. 🤷🏻‍♂️
      Jan 10, 2020
  • Cisco / Eng
    f=ma_

    Go to company page Cisco Eng

    BIO
    Hands on developer, hardworking, leader, influencer, extremely committed to work, like to learn new things, level head in times of pressure
    f=ma_
    That's hard with your TC trajectory. You can aim a million by 35 maybe. Else you will just kill yourself next 4 years to reach there.
    Jan 10, 2020 6
    • Google
      swinglyf

      Go to company page Google

      swinglyf
      Nice list !

      Obviously, 5 is beyond us to predict. 1-4, though, op has control over. I agree with you that those are challenging but still doable. Op is in an environment where 20pc comp growth is possible.

      I was a poor grad student at 26 which helped with not splurging but it’s certainly possible.

      A car loan won’t break op either way so that isn’t a big deal to me.

      Taxes probably won’t change very much from where they are today and op will have to stay disciplined. It’s certainly possible to save a big chunk of post tax income with discipline.
      Jan 10, 2020
    • Cisco / Eng
      f=ma_

      Go to company page Cisco Eng

      BIO
      Hands on developer, hardworking, leader, influencer, extremely committed to work, like to learn new things, level head in times of pressure
      f=ma_
      Yes, agreed. It is achievable with all the assumptions with self discipline, consistent savings and sane investment choices.
      I was very naive at 26, young, hot blooded, impulsive, and a high TC got to my head. Also as an immigrant, I had responsibilities back home where I had to divert my funds too.
      No regrets of my spending but in retrospect much of the money I spent could have been put into growth investments would have added a lot more to my NW today.
      Jan 10, 2020
  • Google
    bighead2

    Go to company page Google

    bighead2
    You should not be holding that car loan. What rate is it at?

    To reach 1m in the next four years, you'll need to focus on decreasing your spending.
    Jan 10, 2020 2
    • OP
      I’m holding it because it’s at a very low interest rate (3% simple interest).

      What percentage should I save?
      Jan 10, 2020
    • Google
      bighead2

      Go to company page Google

      bighead2
      I'd ditch the car loan but reasonable people could disagree on this.

      With those aggressive net worth goals, I'd say you probably should have bought a cheaper car to begin with. You'll have to do the math on what spending you can get away with. In general, a penny saved is more than a penny earned, after factoring income tax. So if you could cut your annual spending by 20k, for example, that's like a 30k bump in comp.
      Jan 10, 2020
  • Apple / Eng
    MakingIt

    Go to company page Apple Eng

    MakingIt
    When I was 26. 2 years out of school. My TC was 136. I hit 1m around 32-33. 1/3 due to company stock. Rest have to do with moving $ into moonshot bets.

    Since your TC is much higher. You have an opportunity to save a lot more than i could

    Here’s another equation for calculation. How much is your liquid net worth versus your gross income (Box1 on W2). Right now my liquid NW (not including properties) is 40% above my total gross income through 2019 since the day I graduated from college
    Jan 10, 2020 0