Step by step guide making minimum wage to $1 million

**Jluke** · 08-15-2022, 03:43 PM

I don’t think a million is what it used to be as far as a goal.

I did it by age 43 (investments only; not home equity) and I only made just over 100k salary the two years before that.

**LivingAlmostLarge** · 08-15-2022, 06:35 PM

Without home equity it took us until 2016 to have $1m. But when we hit that we had almost $500k in home equity. So when we sold in 7/2015 we had $1.2 m in taxable/retirement then we put down a big chunk on the home and renovating. The years have been good to us and we have 7 figures in retirement and 7 figures taxable and 7 figures home equity.

Don't get divorced.

**kork13** · 08-15-2022, 06:51 PM

Besides random one-off gigs like mowing lawns/babysitting, I never really had a job in school -- my parents didn't want me "distracted" while in high school. I suppose that policy paid dividends, because for college I secured a "scholarship" (sold myself to the US Air Force Academy for free college & a job) that covered my education & living costs, plus a small stipend (up to ~$700/mo). I commissioned with the military in 2008. DW was a nanny during/after high school & college, earning slightly above minimum wage. She also commissioned out of college in 2012, and we met/married over the next couple years. 3 kids have since joined the party. Across the last 15 years & a few promotions, my income has ranged from $45k - $150k. DW's has ranged between $15k - $100k. Our total income peaked around $260k in 2018, just before she left the military. We crossed the line of $1M net worth in 2019 at just 33y/o. 3 years later, we're sitting around $1.5M.

The key take-aways: (1) Debt sucks -- avoid/escape it at all costs. (2) Live far below your means from the very start, then save/invest everything else. (3) Save/invest early, often, and consistently. (4) A solid job that pays well certainly helps, but following items 1-3 will get you there just fine. A higher income just does it faster. Detailed story is below... But that's really the important pieces.

Biggest things that got us to where we are:
- Getting through college debt free was a huge factor. Not being saddled with debt at the beginning jump-started my wealth journey.
- We've avoided debt like the plague. Never paid a dime in credit card interest... paid off DW's student loans as soon as we got married... mostly bought our cars in cash, most of them were not new, and we try to keep each car for at least 5+ years.
- From day 1, even when I only had a piddly $200/mo stipend in college, I started saving/investing no less than 25% of my income. Over time, we've averaged around 40%, but as much as 60% of our income. Because I never learned to live on my full income, it was relatively "easy" to keep our expenses under control.
- Our high savings rate is a function of living FAR below our means. Take out savings/investments, taxes/etc., and tithing/charity donations, we only actually spend $3600/mo (20% of our total income). But we're comfortable, and haven't followed a strict budget (besides planning out our savings) since our first son was born in 2015.
- We've never eaten out much... typically just 2-3 times a month. I love to cook, use inexpensive ingredients to make great food, and we bring leftovers to work for lunch almost every day.
- We never bought a home with less than 25% down-payment, and only ever on 15-yr fixed mortgages. We've paid down our homes as fast as possible, and now own both our primary & a rental home free and clear (zero debt). Not being saddled with a mortgage has freed up a huge portion of our income to super-charge our savings/investments.
- I started investing in simple, broad-market mutual funds in 2006... when I still had peanuts for income. Admittedly, the timing worked in my favor, since I started right before the 'Great Recession' and profited mightily by consistently buying into the market as it slowly but steadily grew out from the depths of 2008. I'll likely see the same result as we come out of the current market slump.
- .... There's probably other factors that I'll remember as I see others' stories.... But this is what sticks out to me most immediately.

Though I do agree with JLuke -- $1M doesn't mean what it once did. Adjusted for inflation, $1M in 1980 is today's $3.5M. But, $1M does still serve as a decent line in the sand to measure progress.

**QuarterMillionMan** · 08-15-2022, 08:46 PM

Currently salary $75,000 which isn't much but it's the highest in my lifetime. Max $7000 Roth IRA each year (over 50), and max $27,000 each year in a 457 plan (over 50). Been debt-free for decades. Very liberating not having debts which can be very burdensome. No child support, no alimony, etc. Freedom to live life. Currently in Las Vegas for my days off from work Sunday (after work) thru Wednesday. Gambling, drinking, lounging at the pool, worked out in gym, etc.

**Fishindude77** · 08-16-2022, 06:31 AM

Worked for $$ soon as I was big enough to be of much help doing stuff for dad.
By the time I was a teenager, I had a regular job both when school was in session, but more hours in the summer. Cutting grass, washing trucks, cleaning up the shop, you name it. Bought my own cars and always had spending $$.
Went to work full time in construction straight out of HS, worked a variety of industrial trades eventually job foreman.
Was offered chance to buy a piece of construction company at 25 and jumped on that deal with two partners.
Worked our butts off, countless hours but paid cash for everything, never borrowed after the initial purchase.
Started a 401k plan early on in our company and maxed it out most years while employed.
Married at 25 and have stayed married.
Bought affordable homes (first one $25k, second one $75k) and put lots of sweat equity into them remodeling, etc. to make them nice.
Paid cash for kids college.
Second home was a farm. Still live there and it has been spitting income to us for 30+ years.
As business grew and income increased, paid off all debt and bought lots of real estate. Farm real estate is significant part of our retirement income.
Got an opportunity to join board of a business and buy stock. Twenty years later still on that board, own lots of stock in the company and dividends create significant income. Stock has appreciated nicely also.
After a couple stupid deals we've always paid cash for automobiles, toys, vacations, major home improvements, etc.
Put together a plan to sell our business, financed the deal for some younger employees and sold to them over time doing quite well.
Leased our business building to new owners until they could afford to buy it, then sold it and came out pretty good.
Retired at 57. Not taking SS at 62, waiting that out a while to get the higher income.
Been loafing for almost five years now having fun. We don't live crazy expensive lives, enjoy lots of simple things.
Currently doing a $500k home remodel on 120 year old house which is about the most $$ we've ever spent, paying for it out of our savings account.

**ua_guy** · 08-16-2022, 08:37 AM

My advice is to keep playing bigger and better with opportunities and goals, and save some along the way. And that's it.

**myrdale** · 08-16-2022, 09:58 AM

Originally posted by QuarterMillionMan View Post

I'm not there yet at 56 but getting close (approx $800K)

I'm not there either, but heading in that direction. The road map is pretty simple though. To echo what Dave Ramsey says:

1) Graduate high school.
2) Wait till you're 20 or older to get married.
3) Wait till you're married to have children.

Those three, don't mean you're going to be a millionaire, but they almost certainly guarantee you will not be in poverty.

The step to reaching millionaire status is two parts.

1) Live within your means.
2) Consistently contribute to your retirement account.

As for a road map for my financial life so far:
- First job at 13, hoeing tobacco for $2 per hour.
- Started bagging groceries at 15 for $5.25 per hour.
- Would drive around the county mowing grass for anyone who would pay me.
- 18 to 22 would work 60 to 80 hr per week in a plywood / lumber mill during the summers.
- 24 (2005) graduated with a degree in Chem Eng, started at $55k per year.
- 25 (2006) Purchased house for $108k.
- 27 (2008) 401k became an option at work and started contributing 5%.
- 34 (2015) Paid off mortgage.
- 35 (2016) Started Roth IRA
- 2017 to present, currently at about $90k per year. Max Roth IRA past few years. Increased 401k to 10%.

**james.hendrickson** · 08-16-2022, 10:47 AM

I'm loving these timelines guys - its like a brief summary of how real money is made in the US.

**Fishindude77** · 08-17-2022, 08:31 AM

After further thought, I think the best thing my parents did was made sure that we all started working for $$ very young and made us all work and buy our own "luxuries" above and beyond the basic food, shelter and clothing that they provided.
Dad would never give us money, but he would give us all the work we wanted so we could earn money to do things / buy things, and he encouraged us working to get there, no matter how silly the particular activity or item at the time may have been.

**srblanco7** · 08-21-2022, 01:12 AM

Originally posted by kork13 View Post

The key take-aways: (1) Debt sucks -- avoid/escape it at all costs. (2) Live far below your means from the very start, then save/invest everything else. (3) Save/invest early, often, and consistently. (4) A solid job that pays well certainly helps, but following items 1-3 will get you there just fine. A higher income just does it faster. Detailed story is below... But that's really the important pieces.

This summarizes it pretty well. Only thing I'd add to the list is (5) being on the same page with regard to finances as your spouse.

It legitimately took me probably a decade post-college to get myself "squared away". Prior to that there's many bad decisions (e.g., student loans, buying new cars), but once investing became a focus and we got on the same page as a couple, things kind of took off for us.

Step by step guide making minimum wage to $1 million