| 6/19/2018 12:51:53 PM TripleA |
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| Nice profile. Whats the main reason for you and your wife doubling your net worth from sep 2013 - june 2018? Not sure if i will get a notification when you reply though haha. |
| 6/25/2018 6:45:36 PM JC |
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| Hello! Thanks!
I usually only log in a couple times a month.
The main reason was real estate. We bought at the right time, in the right places. We bought 4 properties between 2011 and 2014. One each year.
Then, from 2013 on, each place just about doubled in price. We sold 1 in 2016, and 2 in 2017. |
| 6/25/2018 6:47:29 PM JC |
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| You'll notice that our networth has actually gone down quite a bit recently. That's due to paying 1/3 taxes on the gains we made. We didn't want to 1031 (trade up) to larger buildings. Want more passive income as we get older. |
| 7/16/2018 9:47:53 AM JC |
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| Oh, and our 457/401K numbers also jumped significantly during that time. From $1M to nearly $2M. The rest was mainly due to REI. |
| 8/7/2018 5:36:36 AM TripleA |
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| Awesome, thanks for replying. Can you check out my numbers and tell me what to focus on? I'm 21 years old and currently my only goal is to buy an apartment. Obviously interested in making my net worth grow since I'm here. :) |
| 8/13/2018 11:03:10 AM JC |
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| You're 21, with a good size saving account. But, it's all in cash, which doesn't generate ROI.
I'd need to know your salary vs expenses, etc in order to suggest something to focus on.
Where do you live? Do you need that much cash in order to buy an apartment?
Wish there was a private message feature here. |
| 8/13/2018 11:07:15 AM JC |
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| The one thing I will say is, you need to just dollar cost average into an index fund.
Open an online account with Capital one or any other brokerage, linked to your savings or checking account.
Transfer money in and buy a low cost index fund. Keep doing it. Be conscious of the fees though. Buying $100 of funds at $6 fee is losing 6% automatically. So, perhaps buy in $1000 or larger batches.
Some famous advisors would say put all of your money in at once, not including your emergency stash and apt stash. But, I'm wary of putting such a large % of my money in the market all at once. |
| 8/13/2018 11:09:47 AM JC |
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| Other than that, keep doing what you're doing. Keep saving a large chunk of your salary. Get used to living on way less than you earn, and you'll be out of the rat race very soon!
And, within 10-20 years, your stash will be large enough to fully support your lifestyle forever :) |
| 9/5/2018 12:59:09 PM TripleA |
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| It's not all in my savings account. I live in Norway, and we have a "residential savings account" called BSU, which gives me a 3.2% interest, i can put a maximum of 3200 USD there each year, so i max it out. Here we need 15% saved up, so we can take a loan thats 85% of the apartment price. I wan't to live in the Capital (Oslo) so i need to save up like 55-85K USD to buy a nice thats not shit, because prices are high. I work crazy hours at an callcenter, kinda killing me but i wan't a fat salary. I got 5K net in cash last 2 months because i worked my ass off (20$ an hour). I need to google more on index funds, isnt there many to choose of? I find it hard to balance work/life balance, i never do anything fun because i feel guilty of spending money that i dont NEED to spend. I probably check here again when i enter my numbers for september. ;) |
| 9/7/2018 12:46:53 PM JC |
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| wow, that's a great rate for a savings account. The most we get in the US is about 2%. Most are well below 1%. basically nothing.
Keep maxing out your savings. It can get tempting to spend the money and have fun, but it'll cost you in the long run. You can have lots of fun now, or you can have even more fun 20 years later. You'll still be young, in your 40s. |
| 9/7/2018 12:49:41 PM JC |
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| Be careful of buying an expensive home though. You'll end up working your butt off the rest of your life just to pay off the mortgage.
In the US, banks say you shouldn't spend more than 30% of your gross income on housing. that includes all housing costs, including mortgage, taxes, utilities, etc.
I would say spend no more than 20%. That way, you can still save money and go out once in a while. It's no fun being house poor, constantly worried about whether you can pay your mortgage. |
| 9/23/2018 11:09:48 AM TripleA |
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| Why should i rent instead of buy? If i find a partner, this is my/our plan: 370K house, share 50/50. 150K loan each (85% of hosue total). Because we need 15% saved up as stated earlier. If we choose a 20 year payment plan, we each pay less than 800USD each month. Saleries are good here in Norway, imagine being two of us. I'm really not sure of the whole housing cost since i still live home.. House prices might increase after i buy too. The houseloan system isnt the same in USA and Norway i guess. I live pretty frugally now, 20-30% on housing sounds okay in the long run.😁 My life will change alot in 5-10 years damn.. |
| 10/13/2018 8:42:56 AM JC |
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| Not saying you should rent. Just be careful of buying an EXPENSIVE home. So, buy an affordable home. Seems like that’s your plan anyway. So, good! :) |