How do people here build net worth so quickly?

Dec 5, 2019 51 Comments

I see people here saying they have a met worth of 300k+ after 3/4 years of working. How is this possible? Could people in this category share their compensation and savings over the years?

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TOP 51 Comments
  • Nordson gotcoffee
    Make 150k, save 75k a year, without even investing a penny you save 300k
    Dec 5, 2019 9
    • Microsoft / Eng dUKM75
      Seattle. In bay area savings would drop about 20k with current income but I would be making 2x more. So....
      Dec 6, 2019
    • Microsoft / Mktg blue 🦴
      They have no kids
      Dec 18, 2019
  • Facebook an0nymouse
    I’ve saved 600k in 4 years with no penny pinching and ordinary performance at my company.

    I spend ~45k a year and invest the rest.

    My fiancé is a high performer so he’s been able to save more. There’s no magic about it. Just save and invest.
    Dec 5, 2019 12
    • New / Strategy
      NonCodeSW1

      New Strategy

      BIO
      program manager
      NonCodeSW1more
      I feel like 45k is just for rent alone on the bay area. How about food, car, car insurance, gas, parking, groceries to stock house.. if no car, then public transport costs, home/ renters insurance, phone, cable/Netflix..
      Dec 5, 2019
    • Facebook an0nymouse
      I don’t keep cash. Lol I keep like 1-2 months expenses but just so I don’t accidentally overdraw my account with any autopay.

      Fiancé and I live in a 2bd/2ba apartment in South Bay. My half of rent and utilities is less than 2k a month. (Would be less than 1.5k if we lived in a 1bd instead, we splurge for various reasons.) I don’t have a car because I have a work shuttle and uber on the weekends. I don’t cook because I eat at work and eat out on the weekends. I travel a TON and that’s my biggest expense after rent.

      Yes, expenses will go up with a family but you have a good 8-10 years to save and invest before then.
      Dec 5, 2019
  • Compass HWV39
    be weary of these figures. People adding relo, 401k match, hsa, free food and beverage, flights to meetings, free laptop, what they could make if they worked weekends moonlighting, and fx effects of their home country.
    Dec 5, 2019 3
    • Compass HWV39
      Oh, left out the Nw multiplier. TC x 12
      Dec 5, 2019
    • Nordson gotcoffee
      😂😂😂😂
      Dec 5, 2019
  • Google yehe67
    Save money, then invest it. I buy houses.

    Note: Do not buy houses in the Bay.
    Dec 5, 2019 3
    • Luxer One GrdR43
      Second
      Dec 5, 2019
    • Google yehe67
      Look for working class to middle class neighborhoods in states which still have reasonable costs of living. These will often be suburbs of metros. Try to get at least 1% of the house's price in rent each month, 1.5% is a reasonable and achievable goal. Oftentimes, over 2% requires dipping one's toes in public housing or other compromises.

      The REIT Index has a long tun average of 9%, you can probably do slightly better with active participation and solid dealmaking.
      Dec 5, 2019
  • Amazon / Eng OlAl28
    My wife also works and we got lucky because the company she works for went public this year (combined NW is 430k with ~2 YOE, will be around 450k in Jan when some of my RSUs vest)
    Dec 5, 2019 5
    • Twitch asdfack
      Any recs on investing books?
      Dec 5, 2019
    • Amazon / Eng OlAl28
      Anything by Taleb. "The intelligent investor", and then "security analysis" to get an understanding of the old school value investor perspective. "Common stocks and uncommon profits" to understand the growth perspective. "The most important thing" is also a good modern one. "The little book of common Sense investing" is also alright, although it contradicts "the most important thing" in that Bogle claims no one can ever beat the market.

      Aside from those I also recommend the Bezos reading list to get a feel for what it takes to build extraordinary businesses. That is effectively the commonality for a lot of the "post-value" Fisher investing approach (for lack of a better word).
      Dec 5, 2019
  • Google enTv35
    Max 401k, HSA, etc. Forget about your stock grants and put them into savings. Put your bonus into your 401k and forget it exists. That should put you close to 100k of savings.
    Dec 5, 2019 0
  • Fast Enterprises lodoxjs8
    Just don’t buy useless shit. Also d yourself a favor and don’t trade derivatives, you’re not that smart just because you made a lot of money quickly because you’re gonna lose it even faster

    Source: me
    Dec 5, 2019 0
  • Amazon / Eng escaflowne
    I have a nw of 500k after about 6 years without actively penny pinching, but that's primarily from company hopping and stock. Some of my friends have a lot more and it makes me feel bad, but then I remind myself that it's fine because it's still a lot.
    Dec 5, 2019 4
    • Amazon internazon
      OP
      Would really be insightful for many people cuz you're doing really well!
      Dec 5, 2019
    • Amazon / Eng escaflowne
      @OIAI28 They have job hopped as well but the tldr is that they're extremely cheap. My ex for example paid $700 in rent a month at a super crappy place (and then mostly stayed with me since I had in-unit laundry and was in a nicer and safer area etc). A lot of my friends also never Uber, even if the public transit ride is really long. They rarely buy anything and they never buy gifts for others. Etc.

      @OP I'll have to go take a look at my Mint but let me get back to you on that. I will say that I got super lucky in some senses because I worked at Microsoft and joined when the stock was $35 a share. Now it's nearly $150.
      Dec 5, 2019
  • Intel Alt-Tab
    Join eToro and trade like Steve is how ppl get rich
    Dec 5, 2019 4
    • Amazon / Eng OlAl28
      Fuck. No.
      Dec 5, 2019
    • Intel Alt-Tab
      Please!
      Dec 5, 2019
  • Indeed / Eng rainwater
    Seems like a net worth of ~300k after working 5 years isn't that hard to achieve given the recent circumstances. Let us count the ways:
    1) Tech stocks have performed well, so good for employee equity grants and ESPP. 2) Generally investing in public markets has paid off handsomely for past decade, so 401k plans should be doing well.
    3)Most FANG companies have great matching also.
    4) If you bought real estate the appreciation in tech cities has been substantial.
    5) Dual income plus starting out with some savings or family money helps too.
    Dec 6, 2019 0

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