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Do everything you can to invest $100,000 by the time you hit 30.
MONEY THREAD
- Live below your means
- Don't buy new cars
- Skip the designer clothes
But why, what makes $100,000 so special?
Let me show you
MONEY THREAD - Live below your means
- Don't buy new cars
- Skip the designer clothes
But why, what makes $100,000 so special?
Let me show you
"But Dean, how can I possibly invest $100,000 by the time I'm 30. That's so much money"
To that I say,...Is it really?
The median household income in the US is $61,000.
You only need to invest 17% of your income annually to hit $100k in 10 years.
To that I say,...Is it really?
The median household income in the US is $61,000.
You only need to invest 17% of your income annually to hit $100k in 10 years.
Let's look at your other expenses.
As a percent of your income you currently spend:
30% on housing
20% on essentials
15% on a car
That is only 65% of your income.
As a percent of your income you currently spend:
30% on housing
20% on essentials
15% on a car
That is only 65% of your income.
Even with the 17% you need to save, we're still only at 82% of your income and we've covered:
investments
housing costs
transportation costs
essentials to love
That still leaves you plenty of money for incidentals
investments housing costs transportation costs essentials to loveThat still leaves you plenty of money for incidentals
So why did I pick $100,000?
If you invest $10,000 per year through your 20s...
By the time you hit 30 you'll actually have $151,000 due to the growth of your initial investments over those first 10 years
If you invest $10,000 per year through your 20s...
By the time you hit 30 you'll actually have $151,000 due to the growth of your initial investments over those first 10 years
Now you're 30 and its time to let that $157,000 go to work for you
You never add another dollar for 30 years until retirement
What happens when you hit 60?
You now have $1.2 million in your retirement account.
And that $1.2 million only cost you $100,000
You never add another dollar for 30 years until retirement
What happens when you hit 60?
You now have $1.2 million in your retirement account.
And that $1.2 million only cost you $100,000
I'm currently at $75k in stocks at 29
So I'm not quite on track to hit $100k by 30
But I want you to learn from my mistakes:
- Start saving earlier
- Start investing earlier
- Stash that money away so it can get to work for you
So I'm not quite on track to hit $100k by 30
But I want you to learn from my mistakes:
- Start saving earlier
- Start investing earlier
- Stash that money away so it can get to work for you
Do everything you can to have $100k invested in broad market index funds by the time you hit 30
And you'll be a millionaire by retirement age without adding another dollar
Also think about the freedom this will give you from age 30 and up
(calculations assuming 7% returns)
And you'll be a millionaire by retirement age without adding another dollar
Also think about the freedom this will give you from age 30 and up
(calculations assuming 7% returns)
@MilesLongstreth here’s that thread I was talking about homie 
