Tips From a Reader

October 31, 2006

A reader named Bryan left the following comment just a little while ago and I thought I would share it with everyone:

My wife and I are about 5 years from the upper end our our age bracket and exceed both the median and average net worth, the average by almost 4 x’s. That’s our financial net worth, not including our crap…furniture, jewelry, cars, etc. We didn’t inherit anything. We don’t make exhorbitant amounts of income. We have a financial advisor. We systematically save and invest into managed mutual funds across multiple categories. Only about 30% of our net worth comes from our home equity, we don’t live in a residential housing bubble part of the country.

Here’s the secret(s):

  • live below your means
  • don’t buy new cars all the time
  • have a ginormous emergency fund
  • have some insurance in case you get sick, can’t work, or … DIE
  • don’t ever put anything on a credit card or any kind of financing or delayed payments through any retailer
  • put 15% of your income into a 401k or IRA and fuhgit aboutit

it’ll happen automatically…

I couldn’t have said it any better myself!

One response to Tips From a Reader

  1. JLP – Do you have this “the median and average net worth” by age bracket posted somewhere? I’d be interested to see where I fall.