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 xâ€™s. Thatâ€™s our financial net worth, not including our crapâ€¦furniture, jewelry, cars, etc. We didnâ€™t inherit anything. We donâ€™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 donâ€™t live in a residential housing bubble part of the country.
Hereâ€™s the secret(s):
- live below your means
- donâ€™t buy new cars all the time
- have a ginormous emergency fund
- have some insurance in case you get sick, canâ€™t work, or â€¦ DIE
- donâ€™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
itâ€™ll happen automaticallyâ€¦
I couldn’t have said it any better myself!