"With an income that has hovered between $60,000 and $80,000 over the last 18 years, this Redditor admits they earn well below the average income in their area. In fact, they realize their income has barely risen, even as others around them have seen more significant financial growth each year. The caveat here for this Redditor is that they began investing from the moment they started working, all while living below their means."
"As a result, they have a $2.4 million net worth with $880,000 in ETFs, a Roth IRA worth $ 470,000, a Traditional IRA worth $540,000, $120,000 in cash, and an additional $450,000 in home equity. What's fantastic about this Redditor's story and the first thing I would say to them if I had the chance is that if they don't think they did anything special, they are wrong."
An individual earning between $60,000 and $80,000 annually over 18 years built a $2.4 million net worth before age 40 through early investing and sustained frugality. The portfolio includes $880,000 in ETFs, a $ 470,000 Roth IRA, a $540,000 Traditional IRA, $120,000 in cash, and $450,000 in home equity. The individual began investing at career start, lived below their means, and benefitted from employer 401(k) matching. Lifestyle choices—cheap hobbies, no children, and no spouse—enabled high savings, including saving $35,000 in one year on $60,000 income. Financial discipline and consistent contributions drove long-term wealth accumulation.
Read at 24/7 Wall St.
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