Second Six-Figure Mark!
Crazy that I hit another big milestone on my stealth wealth path. I hit $200K in October 2019. Also here is my post on my First $100K that I hit in Jan 2018. It took me roughly 3 years to go from $20K to $100K. Yet this time around It only took me 1 year and 10 months to hit my next $100K. I think from here it will only get easier and faster to hit each next $100K mark unless a crazy market crash happens.
What If I Never Invest Or Save Another Dime?
How much wealth would I have if I never added to this stash…
- 5 years @ 8% = $293,000
- 10 years @ 8% = $431,000
- 15 years @ 8% = $634,000
- 20 years @ 8% = $932,000
- 25 years @ 8% = $1,369,000 (Hit FIRE)
- 30 years @ 8% = $2,012,000
Lets see how old I would be at these marks…
- $293,000 age 39
- $431,000 age 44
- $634,000 age 49
- $932,000 age 54
- $1,369,000 age 59 (Hit FIRE)
- $2,012,000 age 64
Pretty cool to think even if I never saved another dime I would still hit over $2million at age 64. Also, I would hit FIRE at age 59 without my pension or saving any more money. This is why it’s so important to me to get as much invested as you can early on. This was you can achieve CoastFI!
My Tips & Tricks
Here are a few ways I have not only accelerated my wealth stash but also helped me live a more fulfilling life.
- Cook at home
- Spend based on my values
- Buy used when possible
- Look at alternative living lifestyles
- Buy reliable used vehicles
- Optimize all living expenses
I know I know the above seems so simple and why are we not all billionaire then? The truth is they are very simple and the average American is so self-centered on their image, luxuries, current lifestyle, and status symbols that they can’t be bothered with doing simple things to build true wealth. The truth does hurt I get that and it seems tons of people have a fragile ego that they don’t want to admit they are their own worse financial problem.
Cook At Home
Simple enough the wife and I cook probably 98% of our meals at home. When we do eat out it’s typically covered under our CC hacking or it’s for a meaningful date. We don’t eat out just to do so or because we did not cook like most people I see. This honestly saves you a ton of money.
Spend Based On My Values
This sounds easy but is actually very hard. Even being on the path for about 4-5 years now I still struggle with this on days. I ask myself do I value these new $50 shoes more than “X”. Will I love them, wear them often and would I buy them again. Most of the time my answer is no so I just don’t buy that item. I have found that once I started to do this I spent very little in life.
Buy Used When Possible
I know most people are screaming at me right now! Yet really most things we use and buy can be had at a huge discount used. Is there a nice wealthy area where you live? Check out the thrift stores in those areas. Rich people are always upgrading so they tend to donate stuff to thrift stores.
Look At Alternative Living Lifestyles
Did someone say house hacking? An alternative living lifestyle is house hacking on steroids. So this can be the norm to buy a house and rent rooms out or even just rent a room. But why does the FI/FIRE community stop there? Shit, I don’t know but I’m here to show you more. Try RV living like me, live on a boat, van, shipping container house, house sitting, etc. There are endless possible scenarios to win and reduce housing costs. RV living has been insanely cheap and we love where we live for a fraction of what others spend… Check out my Monthly RV Costs.
Buy Reliable Used Vehicles
I know you don’t have to buy used. I get it but the math shows that if you buy used and reliable you will save money and that is more you can invest. My wife drives a 98 land cruiser, and I now drive a 2003 F150. Our newest vehicle is my truck that we need to pull our RV home. I just sold my 2006 Scion XB for $2,700. I bought that car in 2010 for $8K. Now that was one hell of a deal. You can find deals just like that all over.
Optimize All Living Expenses
No really optimize your living expenses. That $100 phone bill that you think is cheap because you use to pay $180 is stupid. I pay $240 a year for my phone bill. Because I research which allows me to optimize my expenses. This also ties into all of the above. As you go down this list you will automatically start optimizing all those living expenses. The end result will be more cash flow and more money to invest in. Check out how we live on around $30K a year in San Diego here.
What From Here?
I keep to my path so to speak. I just keep doing what I am doing and optimizing when I can. I max the Roth IRA, 401K, and invest a shit ton into my taxable account. When will I hit that next mark of $300K?
Well, I am aiming for Jan of 2021. By the looks of it, I should hit it by then. If not that is ok as I still have a shit ton of money. If I do that is also cool lol. Every new $100K mark I hit that just means I have that much more money working hard for me every day, every hour, and every minute so that I don’t have to.
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My favorite free financial tool to manage my net worth is Personal Capital. You get a $20 Amazon gift card for signing up.
My favorite free investing platform is M1 Finance. You get $10 for signing up. No trading or management fees plus you can buy fractional shares.
My favorite Credit Card Hack is American Express Platinum, Hilton Honors Aspire, and Bonvoy Brilliant AMEX. So far they paid me over $2,200 this year to use these cards.
My favorite phone service is Mint Mobile. You get a $15 renewal credit for signing up. I get a year of phone service for a rock bottom price of $240. As a guy who travels and lives in an RV full-time, this service has been amazing.