Excited: I have 1.3 million in assets, not inc. real estate!

[Anonymous]

Anonymous wrote:Well OP, it sounds as though you are a high earner as well as a hard worker and very frugal. Not everyone wants to live like you do - many people would find it ludicrous to pass up a $5.99 shirt when they have a big bank balance - but they don't have to live your life and vice versa, so that's OK. It sounds as though your goals and values are aligned. Nice job.

I suppose that is true...'to each his/her own' and all that. I guess it comes down to choices: we do spend a great deal on vacations, though I'm known to lug car seats and our own GPS to save $20/day as well as use discount codes and check lots of places for hotel/car, etc. discounts. So it isn't as if we are scraping by in some freezing home while my kids are in rags. We just don't live high on the hog nor do we flaunt our money.

It just goes against my grain to buy something for $20 when I can get it for $5. So yes, I wouldn't want a $5.99 shirt that we don't NEED when I know it might be on sale the next week for $1. This is true for me whether we have a million in a bank account or $100 in a bank account. Saving here and there really adds up, I feel.

[Anonymous]

Anonymous wrote:Well OP, it sounds as though you are a high earner as well as a hard worker and very frugal. Not everyone wants to live like you do - many people would find it ludicrous to pass up a $5.99 shirt when they have a big bank balance - but they don't have to live your life and vice versa, so that's OK. It sounds as though your goals and values are aligned. Nice job.

New question here: if someone said that your kids can dress in cute but thrift store name brand items for $1 each (or free from hand me downs) would you still buy at $6 shirt if you had enough shirts at home?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each propertgy, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

It's very nice that you were thrifty, but I'm more curious on the income side of the equation. B/C around here, your real costs will be housing, housing, and oh yeah, housing. Maybe it could be private school, but that is just a proxy for buying cheaper housing and sending your kids to good school (in some cases).

Even if I saved every penny I earned since college, I would not have $1M. I could have made serious money, but didn't make it a priority till too late b/c I really didn't understand how expensive just living was (I have simple tastes and where I grew up a nice house with a pool in an ok school district was $50k -- didn't really understand the cost of metropolitan areas until got married). Always curious what people do that can be so lucrative you can stay home and return part-time, that is the dream.

Yes, housing is exceedingly high...but we live in a moderate home in Oakton. As I mentioned, I started saving when I was 11 (birthday money) and have been like that every since. I worked as a kid (babysitting, helping someone in an office, etc.) and saved, saved, saved...just how I have always been. If I got a check from my mother in law for mother's day ($100, let's say) which said "massage on me" in the memo line, I'd instead put it into a college 529. As for my job, I'm an attorney by training, but I assist with conflict resolutions in the business setting.

Sorry. Nothing to see here. Another attorney, seems to be the only path to affording to live in DC. How did you manage law school without student loans? Even state schools are quite expensive. Husband is attorney too?

[Anonymous]

Luke 12:13-21
New International Version (NIV)
The Parable of the Rich Fool

13 Someone in the crowd said to him, “Teacher, tell my brother to divide the inheritance with me.”

14 Jesus replied, “Man, who appointed me a judge or an arbiter between you?” 15 Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”

16 And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. 17 He thought to himself, ‘What shall I do? I have no place to store my crops.’

18 “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. 19 And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’

20 “But God said to him, ‘You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?’

21 “This is how it will be with whoever stores up things for themselves but is not rich toward God.”

[Anonymous]

Thrilled for you, OP. Way to go!!

[Anonymous]

Anonymous wrote:Nice! I'm 34 kicking the tires at $1.4 with real estate - hitting $1M without would be nice indeed.

You can do it! I had my first million at 38, second at 44 and closing in on the third at 48.

[Anonymous]

Anonymous wrote:How old are your kids? It gets harder the older they get. Also, if they are around other kids with money (private school) they want more stuff.

Um, you introduce the kids to the word "no"? Of course it helps that their parents don't indulge ourselves and buy everything we want the minute we want it either.

[Anonymous]

The last time I saw a thread similar to this one it was totally a troll. Geez people.

[Anonymous]

So cute! I remember my first million.

[Anonymous]

Anonymous wrote:So cute! I remember my first million.

Me too. I have it framed over my chair at the barbershop.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each propertgy, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

I had an academic scholarship that paid for 60%. I babysat, substitute taught, worked in an office, worked two jobs every summer, etc. and saved almost all my money earned from college summers on to pay for it. I had a single loan from law school which I worked diligently at paying off and it was paid off in two years. (By diligently, I mean that I was working full time, and would then babysit in the evenings and also taught legal classes for not-so-great money ...but I put it towards that debt so that I wouldn't be burdened going onward.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

It's very nice that you were thrifty, but I'm more curious on the income side of the equation. B/C around here, your real costs will be housing, housing, and oh yeah, housing. Maybe it could be private school, but that is just a proxy for buying cheaper housing and sending your kids to good school (in some cases).

Even if I saved every penny I earned since college, I would not have $1M. I could have made serious money, but didn't make it a priority till too late b/c I really didn't understand how expensive just living was (I have simple tastes and where I grew up a nice house with a pool in an ok school district was $50k -- didn't really understand the cost of metropolitan areas until got married). Always curious what people do that can be so lucrative you can stay home and return part-time, that is the dream.

Yes, housing is exceedingly high...but we live in a moderate home in Oakton. As I mentioned, I started saving when I was 11 (birthday money) and have been like that every since. I worked as a kid (babysitting, helping someone in an office, etc.) and saved, saved, saved...just how I have always been. If I got a check from my mother in law for mother's day ($100, let's say) which said "massage on me" in the memo line, I'd instead put it into a college 529. As for my job, I'm an attorney by training, but I assist with conflict resolutions in the business setting.

Sorry. Nothing to see here. Another attorney, seems to be the only path to affording to live in DC. How did you manage law school without student loans? Even state schools are quite expensive. Husband is attorney too?

[Anonymous]

Anonymous wrote:Luke 12:13-21
New International Version (NIV)
The Parable of the Rich Fool

13 Someone in the crowd said to him, “Teacher, tell my brother to divide the inheritance with me.”

14 Jesus replied, “Man, who appointed me a judge or an arbiter between you?” 15 Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”

16 And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. 17 He thought to himself, ‘What shall I do? I have no place to store my crops.’

18 “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. 19 And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’

20 “But God said to him, ‘You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?’

21 “This is how it will be with whoever stores up things for themselves but is not rich toward God.”

Um...huh? Religious or not, we all need money for things to survive...and we all wish for enough money to not be a burden to others.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Besides being frugal and saving - how did you do it? What has your income been the last several years (i.e. how much have you needed to save of your income to achieve this)? Very impressive. Lots of property too! Amazing.

Any advice? What happens if you don't have renters for your properties? How does it all work?

I maxed out retirement every year since I was out of college: 401ks, iras, pension and profit sharing. This never changed.

3 properties are vacation homes (no renters). One (commercial) has been rented by the same company since before we bought the building. We only own a sixth of the building. The renters are a large(ish) solid company and just resigned another 10 year lease, the rent for which exceeds the mortgage. Two properties (rentals) have rent that exceed the mortgage and all proceeds are used to pay down the mortgages (extra principal), after about a 5k cushion develops. When vacant, the re rental us swift...but of course causes expenses. The last rental was a great investment. We owe 40k only and it rents for 2100/mo. We pay off a ton monthly (double payments) early to pay this down. All rentals as personally handled because a mgt company charges excessive fees. With a 5k cushion for each propertgy, we have plenty extra if one needs money over another one (I didn't include these funds in my 1.3 million. I think of them more as company funds since we created a bus entity for the rentals...but they are ours, so the do,last could have been included too I guess.

My income for the last few zeros was zero...I was home with kids. Before then it was 200k, of which 45k went off the top to retirement. My income now will be quite low this year...as my youngest was at ho e still until sept.

Please don't discount being frugal. I have not paid a dollar for student loans, credit card interest, late fees to a bank, etc. that counts. I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

It's very nice that you were thrifty, but I'm more curious on the income side of the equation. B/C around here, your real costs will be housing, housing, and oh yeah, housing. Maybe it could be private school, but that is just a proxy for buying cheaper housing and sending your kids to good school (in some cases).

Even if I saved every penny I earned since college, I would not have $1M. I could have made serious money, but didn't make it a priority till too late b/c I really didn't understand how expensive just living was (I have simple tastes and where I grew up a nice house with a pool in an ok school district was $50k -- didn't really understand the cost of metropolitan areas until got married). Always curious what people do that can be so lucrative you can stay home and return part-time, that is the dream.

Yes, housing is exceedingly high...but we live in a moderate home in Oakton. As I mentioned, I started saving when I was 11 (birthday money) and have been like that every since. I worked as a kid (babysitting, helping someone in an office, etc.) and saved, saved, saved...just how I have always been. If I got a check from my mother in law for mother's day ($100, let's say) which said "massage on me" in the memo line, I'd instead put it into a college 529. As for my job, I'm an attorney by training, but I assist with conflict resolutions in the business setting.

Sorry. Nothing to see here. Another attorney, seems to be the only path to affording to live in DC. How did you manage law school without student loans? Even state schools are quite expensive. Husband is attorney too?

H is not an atty. He is an accountant.

[Anonymous]

Anonymous wrote:I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

An awesome deal - you saved $13K by limiting your kids to the used clothing and toys throughout their entire childhood. If they were dressed nicely and played with the new toys, you would have had only $1.287M in savings! When your kids inherit all this money saved on their clothing and toys, they'll be excited.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I figure by using hand me downs or thrift store purchases, we save 1,000/yr for kids' items x 7 years is a big deal. That means if I am at a thrift store and a cute shirt is 5.99...I won't get it. It would have to be a dollar AND we would need it before I'd buy it. I buy the kids' Xmas presents all year round at thrift stores making sure games are complete...sour Xmas may cost 100 total for kids' gifts and others may spend 400. Over a kids'childhood that is close to 6k. So again, those things majorly add up.

An awesome deal - you saved $13K by limiting your kids to the used clothing and toys throughout their entire childhood. If they were dressed nicely and played with the new toys, you would have had only $1.287M in savings! When your kids inherit all this money saved on their clothing and toys, they'll be excited.

Um, not quite. The way I think of it is this: Is my elementary school aged kid going to care if the 500 piece complete puzzle was bought used for $.50 15 years from now or will he be happy his college is paid off? It is not just clothing and toys. It is the cumulative effect of clothing, toys, discounted movie theaters, some coupon usage, buying gifts on sale, etc. that ends up saving thousands and thousands of dollars over the years. You also make it sound like my kids aren't dressed nicely. They are in clean, good condition, name brand clothing and the second another child opens a toy it is used. What the heck does it matter if it is used if it is complete? We are a big game-night family...so instead of $15-$20 for games each time, I get them in perfect, complete condition for $1 or less...and that's a bad because...?? Do you really think my kids give a hoot if it is used or not when we're all together playing?