Building Wealth

[plato1976]

 

Net worth above 1m is the new normal in Bay Area

So just come here and leave with M(s) to retire...

 

For those on this board with a personal net worth > $1 million

 

What was your path to wealth (salary, bonuses, investments, etc.) and what are your general recommendations for those of us just starting our careers?

 

Thanks, and Happy Holidays Everyone!

[benchmark]

To add to what Scott and Nate have said, it seems that there is are two utilities to compare, that of your time, and that of the benefits of working/investing, which change depending on what stage of life you are in.

When you are young, there is a high value to working hard and saving, because from an investment standpoint you gain from future compounding of money earned now, and from a career standpoint, working hard can position you well in your career path.  As a young person, you are weighing these massive benefits largely against "leisure time".

Later, when you are older, especially if you get married and have kids, there may be less marginal payoff for working the long hours.  You already have accumulated some wealth, and likely have some status and experience in your job.  Any wealth you may gain from the additional hours spent now may add to your bank account but not in a way that would significantly change your lifestyle.  At the same time, the utility of your time has gone up dramatically because your children really want to spend time with you, and you want to spend time with them; you may be sort of a hero to them and that won't last forever.  Even if you don't have kids, you might realize that your days as a healthy active person are finite, and it would be cool to do some of the adventures like climb a mountain or whatever that would be better done while you've still got your vitality.

So I don't think it's black and white about living your whole life like a monk or not - the right balance will certainly change in different stages of your life.

 

well said

[Rainforesthiker]

For those on this board with a personal net worth > $1 million

 

What was your path to wealth (salary, bonuses, investments, etc.) and what are your general recommendations for those of us just starting our careers?

 

Thanks, and Happy Holidays Everyone!

 

I would say find a career where you can become entrepreneurial as soon as possible, and then start a new business in that career when you are ready.  I think the best path to wealth is to learn a skill or trade or line of business very well as a young person and then strike out on your own as an entrepreneur in that field as soon as practicable.  My path was in the legal field, and I joined up with a few other like-minded entrepeneurs to start a new law firm just a few years out of law school.  Best decision I ever made.

[valueinvestingideas]

For those on this board with a personal net worth > $1 million

 

What was your path to wealth (salary, bonuses, investments, etc.) and what are your general recommendations for those of us just starting our careers?

 

Thanks, and Happy Holidays Everyone!

 

I would say find a career where you can become entrepreneurial as soon as possible, and then start a new business in that career when you are ready.  I think the best path to wealth is to learn a skill or trade or line of business very well as a young person and then strike out on your own as an entrepreneur in that field as soon as practicable.  My path was in the legal field, and I joined up with a few other like-minded entrepeneurs to start a new law firm just a few years out of law school.  Best decision I ever made.

 

words of wisdom.

[Liberty]

This was my plan. However, I was derailed from the beginning because of one of the requirements. I was not single and had a girlfriend before I went on my assignment.

 

In the end I lasted about 2 years. Didn't get to the million but I got to travel a lot with my girlfriend. 40+ countries. Ended up with a pretty good net worth for my age. Now living semi retired in SE Asia with my gf. Have a lot more time to read. Loving it.

 

I came to realize though. Net worth doesn't mean much if your life has no mother meaning. You are just staring at some number on a computer screen and then just trying to compare it against others. Very unsatisfying.....

 

I much more enjoyed the travel. Probably sacrificed a potentional few millions in future net worth to travel as much as I did (I didn't just go to low cost countries) but I wouldn't trade it back for a second.

 

Then again I love to travel. Value investing has let me do a lot with my life. For me it is a means to an end, but it helps that I find it interesting and I love reading history.

 

Thanks for sharing. Instrospection is important to find the path to happiness.

[DanielGMask]

1. Save as soon as you earn.

2. Save at least 10% and more if you earn more than median income.

3. Invest your savings.

4. Don't lose money.

 

For those on this board with a personal net worth > $1 million

 

What was your path to wealth (salary, bonuses, investments, etc.) and what are your general recommendations for those of us just starting our careers?

 

Thanks, and Happy Holidays Everyone!

 

I would say find a career where you can become entrepreneurial as soon as possible, and then start a new business in that career when you are ready.  I think the best path to wealth is to learn a skill or trade or line of business very well as a young person and then strike out on your own as an entrepreneur in that field as soon as practicable.  My path was in the legal field, and I joined up with a few other like-minded entrepeneurs to start a new law firm just a few years out of law school.  Best decision I ever made.

 

words of wisdom.