From $100k to $501k: How I Achieved My Net Worth Goal Before 30 – My Journey of Hard Work and Sacrifice

One of the things that everyone hopes to achieve at some point in their life is a net worth milestone. Whether it’s for retirement, to buy a home, or some other accomplishment, there is a number everyone hopes to hit at some point in their life. 

In the case of one Redditor posting in the r/Fire subreddit, the goal was to achieve a $500,000 net worth by the time they turned 30. Understandably, in the FIRE world, where individuals aim to retire early, there is a constant goal of saving as much as possible as early as possible. 

Setting Goals For Yourself

Turn back the clock a few years to May 2022, when this Redditor originally set some goals for themselves. At this point, they had a $100,000 net worth and were only 26 years old. Fast forward to today, and they had hopes of hitting a $500,000 net worth by the time they turned 30. The good news is that they are just 29 years old and have a $501,000 net worth, so they are doing very well. 

Out of their net worth, they have around $215,000 in index funds, $151,000 in 401(k), and additional funds split between an inherited IRA, bonds, cash, and a small Roth IRA. 

Of course, the real question isn’t where their money is split, but how they achieved this goal. Currently, they earn around $120,000, having slowly increased their salary over the last few years. They also added a second shift, so they would babysit during the day before going to work at 5 PM. 

Today, the Redditor works a standard 9-to-5 job, which, along with living with their parents and working overtime, helped them achieve this. No matter which source you use, the average net worth of someone under 35 is less than half of what this Redditor has set aside, so they are well ahead of the game. 

How to Set Yourself Up For Success

While this Redditor might be in rare air as far as hitting such a successful net worth, this isn’t to say others can’t do the same. 

Set Yourself a Budget

The single most important thing anyone can do is to set themselves a budget. This not only means tracking your savings, but also looking at where you can cut expenses. The hope is that by putting your expenses on paper, you can see where you are overspending. 

This could mean going out to dinner a little less or taking one less vacation a year. Anything you can do here will help put money into savings or investment accounts that can help increase your net worth dramatically over time. 

Diversifying Your Investments

It’s a tumultuous time in the investing world, and you have to be mindful of where you’re putting your money. This is what makes it so important to diversify your assets, just as this Redditor did. Not only do you want money solely in individual stocks, but you also want to hold onto bonds, ETFs, and set yourself up for balanced growth. 

How much you invest is going to be determined by your risk tolerance, but it’s critical to ensure that all of your holdings aren’t concentrated in just one or two stocks. This is why meeting with a financial advisor is highly beneficial, especially if you are not knowledgeable in this area. This individual can help determine where to best allocate your money based on your financial goals. 

Multiple Income Streams

Just as this Redditor did with multiple jobs while living at home, adding an income stream can be super helpful in getting to your financial goals. Let’s say your goal is to hit $1 million by 35, you might need to join the millions of people who are taking advantage of side work to increase their income. This is a fantastic way to accelerate your savings, as demonstrated by this Redditor as proof of concept. 

It doesn’t matter if you’re taking up work as an Uber driver, babysitter, dog walker, or setting up your own consulting business. The hope is that there is an opportunity to earn money that you can use solely for savings and investment. 

The post From $100k to $501k: How I Achieved My Net Worth Goal Before 30 – My Journey of Hard Work and Sacrifice appeared first on 24/7 Wall St..