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Net Worth

RodnJen

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Below is an interesting article regarding net worth and how it is perceived by some. I think it is a useful tool to measure one's progress at various points throughout life. Not something that should be bragged about around the campfire, but rather discussed at the dinner table between you and your spouse. The article points out the need for a plan and the ability to see it through until your needs or priorities change.

The one part that caught my eye was the discussion of debt. I know it is not as much fun as real estate threads here, but the subject comes up often. I see it as a useful tool if you have a long-term plan. But like so many other things, too much of a good thing can work against you.

"One example is a Bay-area couple who, at the time they got married, had six-figure student loan debt and two mortgages. Though their student loans alone exceeded $150,000, they borrowed with the plan they would aggressively pay off the loans once they got jobs. They were able to make $4,000-per-month payments on the loans and still have enough leftover to cover their living costs.

While the couple also had two mortgages, they earned passive income by turning one home into a rental property. The tenants’ rent covered the entire cost of the mortgage, which allowed the homeowners to build equity in a long-term asset that will appreciate in value.

The couple had a considerable amount of debt, but they also knew that debt was necessary in order to grow their net worth in the long term. They weren’t struggling to pay off high-interest credit card debt, which doesn’t ever offer any kind of return on investment."

 

HOOTER SLED-

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Tough to build up your net worth if so many things are going up...😂😂😂
 

lakemadness

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Net worth is just a dick measuring contest. It won't matter when you're dead.. Live life, enjoy, and do what makes you happy.

True for some. But those are the ones that probably don’t know dick about financial strength or earning power.

For others, it’s an important component. For these people, they’re not out measuring or bragging, in my experience.
 

Boat 405

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True for some. But those are the ones that probably don’t know dick about financial strength or earning power.

For others, it’s an important component. For these people, they’re not out measuring or bragging, in my experience.
My point exactly.
 

Jimmyv

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I’ll bite.

Upfront - I don’t consider myself rich and don’t think this has to be a dick measuring contest.
I’ll keep things general.

I know and pay attention to my net worth. I have always had a financial plan and worked aggressively to meet it. Recognizing I couldn’t achieve it with a W2 and a 401k alone, I hustled and worked to get to a position of no external debt, beside mortgage, then used available capital to develop other income streams and investment vehicles.

I monitor these investments annually and make changes based upon performance. Not every investment is a home run, so I keep tabs to know where my money is and is not working for me. It’s important to know each investments return on investment and understand the opportunity cost of money held up in it.

Set goals for yourself. Make the decision you're going to do ‘X’ this year to increase your income or net worth and then stick to it.
 
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2Driver

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True for some. But those are the ones that probably don’t know dick about financial strength or earning power.

For others, it’s an important component. For these people, they’re not out measuring or bragging, in my experience.

True.

I have a friend and we talk a lot about money, personal earnings and deals we are doing, but in a purely mechanical and strategic way like talking about the mechanics of a football game. Zero ego in it.

I have other friends that can’t talk about money or investments at all. It is completely uncomfortable for them to even talk about a stock or fund they may own.
 

2Driver

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Net worth is just a dick measuring contest. It won't matter when you're dead.. Live life, enjoy, and do what makes you happy.

It will matter if you are 72, bagging groceries and trying to afford rent and prescriptions.

Sort of a balancing act, but no one on their death bed ever said, “gee I wished I had worked more”.
 

530RL

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Accumulating net worth provide two specific advantages.

1) It can reduce the burden of working as it works for you as you sleep and do other things.

2) Most importantly for me it gives one the ability to say NO much more frequently. It provides more personal freedom in choosing what to do, when to do it, and who you have to work with. And having a greater ability to say NO has true value when it comes to how one wants to spend their time and enjoy their work, family and life.
 

CLdrinker

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Along similar lines this is some scary shit about retirement savings in the US. I didn’t know it was that bad. :0


Some of my friends are saving for retirement and some aren’t.
They ask me how much I’m saving and when I tell them 15% per week they think I’m insane. I then told them yes I know I need to up it more they look at me with blank stares. I also put $100 into each kid’s account per month.


1 friend is saving 7%
The other has about 30k in his 401k.

Both the same age as me.

More people aren’t saving than are for sure.
 

Jimmyv

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Some of my friends are saving for retirement and some aren’t.
They ask me how much I’m saving and when I tell them 15% per week they think I’m insane. I then told them yes I know I need to up it more they look at me with blank stares. I also put $100 into each kid’s account per month.


1 friend is saving 7%
The other has about 30k in his 401k.

Both the same age as me.

More people aren’t saving than are for sure.

You’re on the right track, and having a friend or two with a similar mindset will help you strategize and work toward your goals.

You brought up another good point too, 401k, USE IT, do your best max it out every year. Do this before looking for other investment opportunities. Think of it as investing in yourself.

Kids, if you have them, make them a priority too.
Setup a 529 college savings account. Make monthly deposits. It’s amazing how these will grow, and you won’t be stuck looking to deplete your own savings to fund their education when the time is right.
 
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LowRiver2

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You’re on the right track, and having a friend or two with a similar mindset will help you strategize and work toward your goals.

You brought up another good point too, 401k, USE IT, do your best max it out every year. Do this before looking for other investment opportunities. Think of it as investing in yourself.

Kids, if you have them, make them a priority too.
Setup a 529 college savings account. Make small monthly deposits. It’s amazing how these will grow, and you won’t be stuck looking to deplete your own savings to fund there education when the time is right.
This:


My 457 has kept my sanity through 2 divorces.

No matter the attack on my finances, that financial snowball builds and performs to keep my ass in my own home vs some retirement home crap.
 

CLdrinker

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You’re on the right track, and having a friend or two with a similar mindset will help you strategize and work toward your goals.

You brought up another good point too, 401k, USE IT, do your best max it out every year. Do this before looking for other investment opportunities. Think of it as investing in yourself.

Kids, if you have them, make them a priority too.
Setup a 529 college savings account. Make small monthly deposits. It’s amazing how these will grow, and you won’t be stuck looking to deplete your own savings to fund there education when the time is right.

No one I know is saving as aggressively as we are a I think we are not doing enough.

With my new job we will be able to step up our efforts.

As of now my employer does 100% match of 6% of my contribution. They then give 6% of my salary as a profit sharing contribution to my 401k.

I am also eligible for a 3% cost of leaving increase each as well as a performance bonus up to 14% of my salary.

It’s safe to say I will be making some gains in my retirement picture.
 

TimeBandit

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I use the "MINT" program/app, same people as TurboTax and it's free.

Good way to track all your different accounts and it gives a net worth at the bottom.

The closer to retirement I get, the more I save.
 

Mcob25rg

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Most millionaires are living in an average house (paid for) driving a well used car ( paid for ) and all their toys are cash purchases. They sleep pretty well, haven’t been to any of the cool restaurants, but enjoy eating at home. I know it’s hard to see all the DCB guys looking like $ doesn’t matter, but they’re like pro athletes - DCB sells 13-16 boats/year - there’s 310,000,000 of us in the US. I can tell you the 40’s and 50’s go by quick, and suddenly, your 60, starting to hurt, moving slower, and thinking about how you go forward w/o working income. My advice to my kids is 15% is a minimum, w/12 months expenses in CASH. They have already, at 39 & 40 thanked me many times. Disasters only happen to the unprepared, non long term thinkers - I’m excluding health issues here.
By the way, I’m NOT knocking the DCB CREW, most of those are bought cash ( from the horses mouth) which is why they look so happy when they’re boating !!!
 

cakemoto

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Along similar lines this is some scary shit about retirement savings in the US. I didn’t know it was that bad. :0

I’m 38 and don’t have shit but few grand.I have a whole Lotta equity in my house though so hopefully someday I’ll sell that bitch and Rake money off that for living. At this point I don’t see myself ever retiring
 

2FORCEFULL

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Below is an interesting article regarding net worth and how it is perceived by some. I think it is a useful tool to measure one's progress at various points throughout life. Not something that should be bragged about around the campfire, but rather discussed at the dinner table between you and your spouse. The article points out the need for a plan and the ability to see it through until your needs or priorities change.

The one part that caught my eye was the discussion of debt. I know it is not as much fun as real estate threads here, but the subject comes up often. I see it as a useful tool if you have a long-term plan. But like so many other things, too much of a good thing can work against you.

"One example is a Bay-area couple who, at the time they got married, had six-figure student loan debt and two mortgages. Though their student loans alone exceeded $150,000, they borrowed with the plan they would aggressively pay off the loans once they got jobs. They were able to make $4,000-per-month payments on the loans and still have enough leftover to cover their living costs.

While the couple also had two mortgages, they earned passive income by turning one home into a rental property. The tenants’ rent covered the entire cost of the mortgage, which allowed the homeowners to build equity in a long-term asset that will appreciate in value.

The couple had a considerable amount of debt, but they also knew that debt was necessary in order to grow their net worth in the long term. They weren’t struggling to pay off high-interest credit card debt, which doesn’t ever offer any kind of return on investment."

then one or the other got caught giving, or getting a blow job from a co worker.... the lawers got the net worth with a swoop of the net,... they moved into seperate apt. with room mates...
 

CLdrinker

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I’m 38 and don’t have shit but few grand.I have a whole Lotta equity in my house though so hopefully someday I’ll sell that bitch and Rake money off that for living. At this point I don’t see myself ever retiring

What is the reason you make that choice?
 

lakemadness

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I’m 38 and don’t have shit but few grand.I have a whole Lotta equity in my house though so hopefully someday I’ll sell that bitch and Rake money off that for living. At this point I don’t see myself ever retiring

Sell your house and live on profits? Where ya going to live?

Maybe take some of the equity and invest it in an income producing asset...
 

530RL

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Most millionaires are living in an average house (paid for) driving a well used car ( paid for ) and all their toys are cash purchases. They sleep pretty well, haven’t been to any of the cool restaurants, but enjoy eating at home. I know it’s hard to see all the DCB guys looking like $ doesn’t matter, but they’re like pro athletes - DCB sells 13-16 boats/year - there’s 310,000,000 of us in the US. I can tell you the 40’s and 50’s go by quick, and suddenly, your 60, starting to hurt, moving slower, and thinking about how you go forward w/o working income. My advice to my kids is 15% is a minimum, w/12 months expenses in CASH. They have already, at 39 & 40 thanked me many times. Disasters only happen to the unprepared, non long term thinkers - I’m excluding health issues here.
By the way, I’m NOT knocking the DCB CREW, most of those are bought cash ( from the horses mouth) which is why they look so happy when they’re boating !!!

To your point about getting older and moving slower, people should consider there is financial net worth and personal skill-set net worth.

Throughout life individuals need to learn skills to work with their minds as well as their bodies. So when we slow down, we can as individuals continue to earn without having to break our backs.
 

GRADS

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I was a millionaire by the time I was 35...by the time I was 41 I had a net worth of $35. Yes, I had $35 to my name. Shit can change quickly. These days I don't care what I'm worth, it's more about living life comfortably.
 

707dog

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Some of my friends are saving for retirement and some aren’t.
They ask me how much I’m saving and when I tell them 15% per week they think I’m insane. I then told them yes I know I need to up it more they look at me with blank stares. I also put $100 into each kid’s account per month.


1 friend is saving 7%
The other has about 30k in his 401k.

Both the same age as me.

More people aren’t saving than are for sure.
im about in line with what you have going on I'm at 14.0% and have a auto increase of 1.5% every year had a big $$ amount roll over from my last job which has nad some nice + years since. have 15 yrs left on my house and up until January i didn't have any payments but the house( some jack wagon bought a new truck). keep small balance on my credit card just to let them know I'm alive. all toys i own out right and hope to have enough to tap out at retirement or if something happens to me my family is taking care of. have some close friends who bust there ass on the clock and bring home big checks but not much going into retirement.
 

GRADS

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Karma ...is a real Bitch
I'm not sure if Karma is the right word. I didn't fuck anybody on my way up, I worked hard and everyday that I did have money I asked myself "how did I get so lucky?" or "what did I do to deserve this?". The economy took a hit, I was young and naive and thought it would last forever.
 

LargeOrangeFont

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Net worth is just a dick measuring contest. It won't matter when you're dead.. Live life, enjoy, and do what makes you happy.


I agree, but I don’t want to hear complaining about how you have to work until you die because you were so consumed with “doing what made you happy” yore whole life.
 

2FORCEFULL

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You’re on the right track, and having a friend or two with a similar mindset will help you strategize and work toward your goals.

You brought up another good point too, 401k, USE IT, do your best max it out every year. Do this before looking for other investment opportunities. Think of it as investing in yourself.

Kids, if you have them, make them a priority too.
Setup a 529 college savings account. Make small monthly deposits. It’s amazing how these will grow, and you won’t be stuck looking to deplete your own savings to fund there education when the time is right.
my wife did that, it's 7 figures now.....
 

LargeOrangeFont

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I'm not sure if Karma is the right word. I didn't fuck anybody on my way up, I worked hard and everyday that I did have money I asked myself "how did I get so lucky?" or "what did I do to deserve this?". The economy took a hit, I was young and naive and thought it would last forever.

Failing to plan is planning to fail.
 

DWC

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Most millionaires are living in an average house (paid for) driving a well used car ( paid for ) and all their toys are cash purchases. They sleep pretty well, haven’t been to any of the cool restaurants, but enjoy eating at home. I know it’s hard to see all the DCB guys looking like $ doesn’t matter, but they’re like pro athletes - DCB sells 13-16 boats/year - there’s 310,000,000 of us in the US. I can tell you the 40’s and 50’s go by quick, and suddenly, your 60, starting to hurt, moving slower, and thinking about how you go forward w/o working income. My advice to my kids is 15% is a minimum, w/12 months expenses in CASH.
This ^^^ Save early and often, early being the key. Put the money in diverse accounts and forget it’s there. Follow the 2ff motto and put your name on a mortgage as early as possible. Pay it off and don’t use the equity to buy toys. (Learned that the hard way).
 

Havasu blue label

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Correct everyone is different keep building that 401 son if that’s works
 

Havasu blue label

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And then what talk about on the boards , someone on here said they millions in the bank and couple months later they where looking for a loan guy for there son to buy a house
 

Your ad here

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I've had a 401K and similar accounts since I was 18, 31 now. Its the best thing anyone can do and I shake my head when someone has an excuse to not have one or set one up.
 

Dettom

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I don’t have a lot of accumulated wealth. But what I do have is a bitchin pension, thanks to all you guys in California. I had to dodge some bullets, but it was worth it. So, thanks fellas!!
 

Rajobigguy

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Here is the thing. I have managed to acquire a pretty fair amount of net worth but rarely have more then twenty bucks in my pocket. Now with retirement just a few months away I'm trying to figure out how to keep what I've built without getting raped by taxes. I own two houses in SoCal that I would like to sell but if I sell both in the same year I'm going to get taxed up the ying yang. I can't even sell off my primary residence this year because the gains on the property plus my salary from work will make it look like I'm making 400k and we are already paying estimated taxes because of the sell of a property in Az. that we didn't do a 1031 exchange on (we didn't know that all the paper work for that has to be done prior to sell). Then the following year when I sell the rental it's going to be another 400k income. The point is that even though I've built pretty substantial "net worth" with minimal debt it doesn't really feel like I'm wealthy by any stretch of the imagination.
I know it may sound like first world problems but honestly I feel like I'm working harder to keep what I've earned than I had to when I earned it in the first place.
I need a financial advisor!!!
 
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