"We talk about our financial decisions and we have a shared vision" + 15 net worth updates
Saturday Summary: 15 net worth updates (marketing manager, teacher, nurse, engineer and many others)
Weekly Summary - Net Worth Updates:
Each week, TenWilsons will publish two articles. First, on Wednesday, is one long-form detailed ‘net worth’ story. Second, on Saturday, is a weekly summary that is curated from reviewing hundreds of articles, personal finance blogs, podcasts and social network updates to find net worth updates posted in the last week.
This week we have 15 new net worth updates / stories. We show where each of these individuals are relative to the median net worth for their age. Most started from $0 net worth or a negative net worth due to student loans. Majority of them built their wealth simply by focusing on spending less than they earned and investing in their employer 401(k).
We have a wide range of net worth updates (from 13th percentile to 99th percentile). Our first update is from a 23 year old that recently graduated and is contributing 16% to their 401(k) and maxing out their Roth IRA contribution. We have 3 updates from young adults in their 20s on their way to their first $100K in net worth. There are updates from a marketing manager, a nurse, a teacher, an engineer and many others. We have 2 opposite examples showing the importance of couples having financial discussions. One where they discuss financial decisions and have a shared vision and another where they talk about their finances but they are not in agreement on saving/spending but don’t change anything. We have five multi-millionaires in their 40s and 50s and one with a net worth of $200 million+ that says you don’t need more than $5-10 million. See what all of them did to outpace their peers in building wealth.
The goal of TenWilsons and NetworthShare collectively is to provide the tools and community to educate and motivate others to make more "informed" or "intentional" financial decisions and minimize the use of consumer debt
Sometimes the best opportunity for individual growth is by finding, watching, and learning from those that are just ahead of you. It’s not about trying to recreate someone else’s path but instead finding that one part that resonates with you and helps you learn. We hope you use these stories to make more informed financial decisions and create the life you want. Maybe you have been tracking your net worth for years or maybe you just found this site and are calculating your net worth for the first time. Either way, talking about finances with others is not easy, in fact, it is often considered taboo in our society. Therefore, this is a community where anonymously you can share and celebrate your financial milestones! So much of our society is focused on visible wealth (homes, cars, vacations, etc.) but as you will see for those that are trying to build wealth, most of it is not visible (it’s in a 401(k), brokerage, or bank account).
Each of these short net worth updates are teasers of their net worth stories. We try to highlight 1 or 2 takeaways, anecdotes or ideas that will hopefully inspire you (to conquer debt, save for retirement, reduce expenses, etc.). Click on any of the net worth numbers below for a link to the source of the information. See you next week!
20s:
$82,000 - age 23 - 82nd percentile based upon age/net worth - ($36k in ETFs, $10k in Roth IRA, $12k savings, $18k 401k and $6k company benefit plan) - “Currently max out my Roth IRA and contribute 16% to my 401k” - TAKE-AWAY: only 23 years old but well on their way to saving for retirement already. That first $100K of net worth is the hardest!
$90,000 - age 25 - 69th percentile based upon age/net worth - “Earning ~$130k annually pre-tax. Saving about $1500 a month. Have ~$90k net worth across 401K, ROTH IRA, HYSA, and brokerage account. No debt but also no assets (no house, car, etc.). Saving is definitely a priority but I also want to enjoy my life while I’m still young!” - TAKE-AWAY: It’s usually good to have some balance in your goals - enjoy today and save for tomorrow!
$98,825 - age 29 - 69th percentile based upon age/net worth - Digital Marketing Manager living in Philadelphia, PA - earning $90,000 annually - renting for $1,825/ month - Net worth Composition—> bank accounts: $3,100; RSUs: $1,580; HSA: $14,750; Roth IRA: $20,195; 401(k): $46,000; HYSA: $13,200 - “We never talked about money growing up. My parents weren’t, and aren’t, financially savvy, so we didn’t have any conversations surrounding finances. I had zero to little perception of the actual value of money (I’d occasionally receive a small $10-$20 allowance for tidying around the house and think that that was a fortune). Growing up, I’ve had to learn by myself or with the help of my older siblings.” - TAKE-AWAY: One of your goals should include trying to be that financially responsible adult for the next generation (your kids, grandkids, nieces or nephews). Start by sharing this post!
$100,000 - age 27 - 69th percentile based upon age/net worth - Marketing Manager in Des Moines, IA - earning $71,000 annually - mortgage $771/mo - Net worth composition —> Home Equity: $12,000; Roth IRA: $38,000; 401(k): $36,000; traditional IRA: $6,000; HYSA: $16,000; checking: $2,000 - “I took advantage of some neighborhood-based and income-based home buying programs that my city offers, which also helped me purchase my home. The total was about $12,500 in forgivable loans and $15,000 in 0% interest loans.” - TAKE-AWAY: Government assistance in home buying is an option. Educate yourself on any local incentives.
$110,000 - age 26 - 70th percentile based upon age/net worth - net worth composition → 20k liquid, 10k car, 55k in stocks (IRA, individual ETF’s, and 401k), and 20k in company RSU’s - “My main goal right now is to invest between $3-5k / month into basic index funds until I hit the 100k mark and then reevaluate my investment strategy from there.” - TAKE-AWAY: investing early allows for more compounding over time. Learn about the exponential effects of compounding.
$220,000 - age 26 - 84th percentile based upon age/net worth - net worth composition —> $140K in our investment accounts (401K, Roth IRA, IRA, Taxable Brokerage, HSA, 529) - “I’m (26M) getting married this Fall to a wonderful woman (23F) who is very aligned with me in terms of spending habits, paying down debt, etc.” - TAKE-AWAY: Ensure money doesn’t destroy your marriage. Talk about money issues early and often in a relationship (don’t avoid the topic).
30s:
($2,500) - age 30 - 13th percentile based upon age/net worth - earning $60,000 annually - $850/mo rent - Net worth composition —> $3,500 in 401k, $5,000 in HYSA, $50 in Roth - “My plan is to first build up my emergency fund. I'd like to get to around 12 months of living expenses, so $25K.” - TAKE-AWAY: Save. Just save. Savings of any type will decrease money stress and create future optionality.
$117,441 - age 35 - 47th percentile based upon age/net worth - Full-time high school biology teacher and she is a part-time intermediate care nurse in Arlington, VA - earns $90K annually - “My family and I didn’t often talk about money. When I started my first job in high school, my dad took me to the bank to open my first checking account and put me as an authorized user on his credit card, which ended up helping my credit score a bunch (highly recommend!). Aside from that, everything I know about finances (which is low to moderate), I learned through my own reading and listening.” - TAKE-AWAY: Educate yourself on personal finance.
$299,030 - age 37 - 68th percentile based upon age/net worth - married for 10 years with 2 kids - podcast/youtube interview on their money view - like many couples, they have different outlooks towards money. Paul is optimistic, always assuming that the future will bring more money and stability. On the other hand, Morgan worries about their financial future, particularly regarding retirement and their children's needs.they often discuss financial management but struggle to make significant changes - "I guess I always had this view or fantasy, I’m always going to be making more money. I’m just going to get more money. As I get older, I’ll get more raises. I’ll do this and that, and I’ll be fine.” - TAKE-AWAY: This couple highlights the importance of open communication, understanding, and compromise in managing finances within a relationship. It also underscores the need for a clear financial plan that considers each partner's perspectives and priorities.
$1,200,000 - age 31 - 97th percentile based upon age/net worth - moved from the West Coast to the Midwest - wife is still working and likes her job - “I retired back in May of 2021 as a software engineer at a large tech company. My NW was about $1.3m through a combination of ridiculous tech salaries, getting lucky with a few investments, and general frugality and simple tastes.” - TAKE-AWAY: Early retirement for 1 spouse can be trouble - Couples needs to continue having conversations to ensure no animosity develops if there is only one working spouse.
40s:
$1,500,000 - age 40 - 91st percentile based upon age/net worth - couple in Colorado with no kids - she and her husband began saving 50 to 60% of his $110,000 a year salary - with the money they saved, they invested heavily into real estate, acquiring 19 units between 2016 and 2019. They have $1.1 million of real estate (with mortgages that tenants are paying). They currently have $540K in retirement accounts and will continue to building more equity in the real estate over time. - "I began to realize that I'd been working for a retirement I may never get to enjoy," - TAKE-AWAY: A high saving rate (%) will certainly create future optionality and limit financial stress in your 40s and 50s.
$4,700,000 - age 46 - 97th percentile based upon age/net worth - married with 2 teenagers - net worth composition below - $1.575 million in retirement accounts and $1.4 million in home equity - long-form interview on salary/career progression, savings and investment strategies - “We drive our cars for at least 10 years before replacing them. Keeping our expenses mostly stable and not allowing lifestyle creep allowed us to push more of our savings into building our net worth.” - TAKE-AWAY: Newer cars are always more expensive (depreciation, interest, insurance). Avoiding lifestyle creep can help you reach financial independence sooner.
$225,000,000 - age 45 - 99th+ percentile based upon age/net worth - fascinating podcast/youtube interview of a business owner with a philanthropic view of the world - says after $5-10 million there is marginal utility and prefers to drive a CRV - He is giving away 50% of his annual income and allocates 10% of company profits each year to charitable causes - “the marginal utility of another million dollars if you have $20 million liquid is basically zero”. “I'm really after what brings me quality of life and I think kind of the purpose of your show is like how do you make money turn into quality of life. For me relationships are such a big part of quality of life.” - TAKE-AWAY: More isn’t always better (even when it comes to money). Like anything, earning more money usually comes with tradeoffs of time, relationships, or health. Know what is most important to you and know what your enough is.
50s:
$2,000,000 - age 50 - 87th percentile based upon age/net worth - $1.2 million in retirement accounts - $557K in home equity - “I’ve been running on autopilot, but now I’m 50 and I’m being to think how I wrap this up to actually retire. Stretch goal: retire at 55 Likely goal: retire at 61 (aligns with youngest graduating college) - Worst case: retire 65.” - TAKE-AWAY: Knowing your financial number for retirement is one aspect of early-retirement. Often the non-financial components of an early-retirement are even more important - what is your life’s purpose?
$2,000,000 - age 50s - 87th percentile based upon age/net worth - married in their 30s - podcast discussion around last 20 years of savings and plans for early retirement - started saving in early 30s - It took 25 years to get to the first million and 5 years to get to the second million ~75% of wealth is in his 401(k). He has worked for the same Fortune 500 company most of his life - “We are blessed to work for companies with pensions when we retire” and “we talk about financial decisions and we have a shared vision and what are the steps we need to take to move in that direction” - TAKE-AWAY: There are many like James that start saving early and accumulate millions after decades of saving in their 401(k).
BONUS: Unlocking financial freedom through early investment - entrepreneur magazine
The article emphasizes the importance of early investment for financial freedom. It's not about amassing extreme wealth, but securing enough savings and investments to support a desired lifestyle. The strategy involves starting to invest at a young age, being disciplined, patient, and consistent. The power of compounding is crucial to this process. The concept of early investment is a proven strategy towards financial freedom. The earlier the investments start, the more time the money has to grow.
BONUS: Three Gen X Retirement Mistakes for Millennials, Gen Z to Avoid - Kiplinger
The article emphasizes the importance of prioritizing retirement planning, particularly for Millennials and Generation Z. It highlights the struggles of Generation X, many of whom are unprepared for retirement due to lack of planning and sufficient savings. The article suggests that younger generations avoid these mistakes by implementing strategies such as maximizing 401(k) contributions and saving in a health savings account (HSA).
BONUS: 5 professions to have “best shot” at becoming a millionaire - Moneywise
A 2023 Ramsey Solutions survey of 10,000 millionaires in the U.S reveals the top five careers (Engineer, Accountant (CPA), Teacher, Management, Attorney) that create the most millionaires are engineering, accounting (CPA), teaching, management, and attorneys. Contrary to popular belief, physicians didn't make the top five, despite earning high incomes, due to poor money management. The survey also busted the myth that one needs a high income or rich family to become a millionaire. Instead, the key to wealth accumulation was found to be consistent investing, avoiding debt, and smart spending. Most millionaires (89%) didn't inherit their wealth but built it, primarily by investing in their company's 401(k) plan and home ownership.
What is the meaning behind Ten Wilsons?
The $100,000 bill is the highest denomination ever issued by the U.S. Federal Government. Woodrow Wilson is the president on the $100,000 bill.
In theory, if you had 1 of these $100,000 ‘Wilson’ bills you would have $100,000 net worth. If you had 2 Wilsons you would have a $200,000 net worth. Therefore, if you had 10 Wilsons you would have a $1 million net worth. Therefore TenWilsons = Millionaire
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Our weekly net worth story in case you missed it!
Saturday Summary: 18 net worth updates from last weekend!
