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I think an important point on saving needs to be made here. Automatic savings is the best method. A major reason why a lot of people don't have much or any savings at all is because they prioritize it towards the bottom of their monthly financial decisions after all the bills are paid. If you automatically put money each month, you're already ahead of most people.

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This is pretty spot on. I have set up three different transfers to different savings accounts on pay day. It makes a big difference.

Of course, it does take a while if you start from nothing to get past the pay-check to pay-check routine. It would definitely help to have two incomes to supplement savings from the get go, but my wife has never worked (she stays home with the kids, which I find much more admirable than the 8-5!), so I can't speak for dual incomes. It took about a year or so of working before I felt I really eclipsed that mark. Once you get there, it makes it a lot easier.

Roycoy, the way the D was talking you up during Richards bachleor party your net worth must have been at least $10k higher prior to that trip.

Probably a little high and D exaggerating my Rep but honestly not that far off- that party was the beginning of a month long bender spanning from N.O to Austin to Dallas to Houston.

Back in savings mode now and I wish my project in N.O. would hurry up finish so I can get back to Houston and buy a couple houses to overcome my inappropriate March expenditures.

i did a bach party for my buddy in Vegas this past Feb and I have been out of control since. i think after tomorrow and I pay my taxes i will be in the clear for a while, I hope.

I've sure that D only exagerrated a little....

Not to derail the thread, but....

Roycoy - do you manage the rentals yourself? How much is your typical yield (net of expenses) each month compared to equity invested?

I've always wanted to get into rentals (or at least think I do) but don't want to deal with the hassle of the constant repairs/improvements and finding new tenants on a regular basis. I've been intrigued at how fast rental properties in the heights go and wouldn't mind diversifying into RE beyond the equity in my current home.


[This message has been edited by cab595 (edited 4/12/2012 3:49p).]

^^ I wouldn't either. I'd just find a trustworthy property mgmt company at around 8% and let them deal with it.

I agree. I live five to ten minutes north of downtown Dallas and pay less than half of that in rent. Time Warner cable/internet is only $70/month, and about $380 of that lunch budget can be cut real quick.

Agree with the 'better than most' comment. If there really are 20-somethings & early 30-somethings on here with $50k net-worth, you need to realize how extraordinary that really is.

I would've guessed that average NW of a 30-y/o is in the +5,000-10,000 range.

Though the data is few years old, this is a much better representation of average:

Link

Cab, Ill send you a PM

Still no advice on what I should be in or buying land?

is there anyone on here that I could have look at my portfolio for me and give me some tips/raise any red flags?

TIA

Im a 29 y/o teacher with a wife that has a similar income. We are probably slightly north of the 60k mark. We have no kids and no debt of any kind. We buy plenty of nice things but save for them first. We usually set up an ING account specifically for what we want to buy.

I would expect most people to pass me in later years because my income will hardly come up at all relative to inflation. I started at 40k and am at 42k five years later.

Hancock - you may want to start a new thread for those questions. Sometimes stuff will get lost in threads on different subjects.

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Agree with the 'better than most' comment. If there really are 20-somethings & early 30-somethings on here with $50k net-worth, you need to realize how extraordinary that really is.

I would've guessed that average NW of a 30-y/o is in the +5,000-10,000 range.

Though the data is few years old, this is a much better representation of average:

Link

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I don't think this is average at all. This is the median, which is a much scarier number.

under 25- $1,475
25-34- $8,525
35-44- $51,575
45-54- $98,350
55-64- $180,125
65 and over- $232,000

50% of americans are less than that number as of the 2000 census. I would guess the < 35 year old numbers are dominated by college debt.

I already find myself in the ~45 year old range at 25 and still feel like I'm behind.

I can't imagine what having less than $250k staring at retirement would feel like.

[This message has been edited by Wrec86 Ag (edited 4/13/2012 4:38p).]

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Agree with the 'better than most' comment. If there really are 20-somethings & early 30-somethings on here with $50k net-worth, you need to realize how extraordinary that really is.

I would've guessed that average NW of a 30-y/o is in the +5,000-10,000 range.

Though the data is few years old, this is a much better representation of average:

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I don't even know what to say.......

I would be so scared if I was 54 and had less than 100k net worth. With the inflation that is likely to happen in that 54 year olds life, they would be looking at working for another 20 years then living on what is left of SS, taking 1k of savings out each month, and hoping that it doesnt run out.

Wrec86 --

Dunnoh. I re-looked at the link and it says average, if it is median I guess I missed it.

Totally agree with the "I'm not where I should be" feeling. Throw in poor-performing economy, and stock market that is levitating due to 'extraordinary' efforts via the Fed and it is enough to make you want to cry.

I do think the average is probably worse, so many people are swimming in debt. I've had a number of conversations recently with folks about spending habits, credit cards, etc. and it is alarming.

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Still no advice on what I should be in or buying land?

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What specific questions do you have? TAMU real estate center has tons of information on historical land values, both nominal and real, for you to use in investment strategy planning.

As far as raw land performance against the stock market, there are quite a few variables such as duration invested and location that need to be considered.

I look at people's financial pictures every single day. I can't remember off the top of my head any 30 year old couple with a $100K combined income that had a net worth of $300K without really strectching home appreciation or something like that. In my experience, people that have a $300K net worth have closer to a $200K income.

At the risk of sounding like I read too much Kondratiev, anybody using the millionaire next door as a guide to wealth expectations needs to remember the times in which the people described in the book were building their fortunes. The book came out in 1996. If you were 30 in 1996, you probably entered the market in 1988 at 2000 and rode straight to 5000. It's easier to be a genius in a sustained bull market.

Bluto,

What do you think a 30 year couples Net Worth is with a combined income of 100K? (College educated with no Grad School loans)

This thread is hard to believe- Assuming(big assumption), that your house and car aren't upside down and offset eachother, that leaves CC vs. Savings. And that nets a positive 8K for a 30 y/o.

Fiscal responsibility really needs to start being taught beginning in 2nd grade. America is in trouble.

I wish I could count (or over evaluate) home appreciation. We moved bc of a job change in 2007. Sold 1 house making a profit, but bought another house upon moving.

If we sold tomorrow we'd lose ~20-30k although we owe ~20-30k less than the depreciated value,

Roycoy.. I don't understand your last post. If your car and house were both upside down...how would they offset.... wouldn't that create a sizable negative in regards to networth?

Wouldnt one " break even" if they had both depreciated to what was owed on each?

[This message has been edited by edwardsk2003 (edited 4/17/2012 9:52p).]

Aren't upside down- meaning value is what is what is owed on the loan for both car and house

Resulting in neither a gain or loss.

Poor wording on my part.

[This message has been edited by roycoy (edited 4/17/2012 10:17p).]

An upside down loan is a situation where the loan balance is greater than the purchased item’s value. This happens when the item loses value faster than the loan balance decreases.

Usually upside down is used when the loan is noticeable or substantially more than value.

What you described is "breaking even," but I (and most probably ) wouldn't call it being upside down....

Go back and read my post, I said assuming you AREN'T upside down on your house and car which would be the number one factor drastically reducing net worth for a 30 y/o.

My bad brother... my apologies!

That formula is insane.

I save a lot, have a few expensive hobbies, live cheap with respect to things like car payments, and am well above the norm and some of the reasonable numbers thrown out above, but no where near the amount in that formula. I would have to save A LOT and life wouldn't be much fun at all if I tried. Maybe if the market was awesome I would be close. Seems kinda dumb of your income has increased at a good rate.

[This message has been edited by txagfan (edited 4/18/2012 1:06a).]

[This message has been edited by txagfan (edited 4/18/2012 2:06a).]

You can't make assets appreciate. All you can do is make sure that saving & investing happens every month. Time takes care of the rest.

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I already find myself in the ~45 year old range at 25 and still feel like I'm behind.

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Running from the sound of your own footfalls is a great way to win the race.

I consider myself behind in the game. I didn't graduate college in early 20s like most. I quit, and went back 5-6 years later, and took 1.5 years to finally finish. Graduated a week or two before my 30th bday.
During those ~8 years, I starting from simple drafting, into design, and now project management, all oil and gas. Wife works in public school. So both of us are on modest salaries.

At this point, I'm 31, and our 401K + savings + ira + house equity (which we're about to realize) then - our only debt; car loans, we are a bit over $100K. School loans were about $38K for wife, and that's recently paid off.
I feel if I graduated on time, I could have been further along and at a higher salary right now, but regardless, I don't think we're in bad shape. During this time, we haven't been exactly frugal either. I've got $10K tied up in guitars/drums/gear, I home-brew, (and along with that, buy expensive beer, and a lot of it), both of our cars were brand new when we got them, we pumped $20K into our kitchen/dining and deck we've got nice furniture, we've taken several trips in the last 3 years (2X CO, FL, CA, Vegas, WA/AK, and UK/ireland/scotland).. so we haven't by any means cut out all fun/big spending at the expense of trying to grow our net worth. We just make sure saving comes first.


Something of note though, going back to just Jan. 2009, at 28/29 yrs. old, our net worth at that time was a mere ~$20K or less. So 80%+ of our worth has been obtained in just the last 3 out of 9 years.

[This message has been edited by 62strat (edited 4/18/2012 4:40p).]

32, little north of $225K

My wise cousin once told me "If you are not making 100k by age 30 you need to be doing something else." Live by that and it will be ok.

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value is what is owed on the loan for both car and house

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If you don't have the financial sense to put a large chunk of money down when buying a house, then I agree that the formula won't work for you. There is no way (at least in Texas) that you can put 20% (or probably even 10%) down on a house and still owe what the house is worth. The last few years haven't been the best for the housing market, but they haven't been THAT bad.

[This message has been edited by agstudent (edited 4/19/2012 9:07a).]

Factor in closing costs and Realtor fees and many people are in the red. And yes Texas values aren't as volatile as other markets but there have been changes of 20K-30K in the 100K-150K price range in the past 12 months in Houston--as high as a 20% drop mainly due to appraisers factoring in forclosures and being overly conservative on upgrades. I would imagine higher end homes have had comparable drops.

And by the median Net Worth on the prior link, most people are not putting down 10% much less 20%.

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There is no way (at least in Texas) that you can put 20% (or probably even 10%) down on a house and still owe what the house is worth.

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Unless you buy a HUD foreclosure POS like I did. Then it's much easier.