On occasion, I review my net worth journey and subsequently, my money journey, going from being in debt to having a 6-figure net worth.
It’s kind of my only motivation not to spend all the money in my bank account just because I’m bored and am online shopping.
Anyway, this is what it looks like:
MONEY TIMELINE
Age 16 – 18: Started working and freelancing.
I worked at a fast food restaurant while starting a business on the side for freelance web consulting and playing video games for money.
Naturally blew all my earnings on crap.
Had no idea what saving was aside from short-term saving, and didn’t think about the future.
If only someone had pulled me aside and taught me money basics.
Age 19: Realized I had no savings to pay for college.
Although my parents had promised $10,000 from their lottery winnings to me, they ended up reneging on that promise.
Moved out to live on my own.
Started college with student loans from the government, while working 2 full-time jobs and attending school.
(One of those jobs were freelancing so my hours were very flexible and I could work while in class. With the other, I was a building superintendent which meant I could live at a subsidized rent rate and do work / clean the building at night.)
Was not frugal in the slightest.
Age 23: Graduated with $60,000 in student loans.
FINALLY realized that I needed to take control of this money situation with $60,000 in debt staring at me in the face.
Got kind of panicky just thinking about the interest I was paying each day on my loans.
Cursed myself.
Started on a personal finance rampage; read every article and blog I could find on money management and even started a blog chronicling my debt repayment (which I eventually sold).
Also started contributing 4% of my salary for a full 100% employer match on retirement savings even though I was in debt because a 100% employer match = 100% free money.
….which meant I was saving 8% in retirement each year.
I put my money into index mutual funds offered by the company. The MERs were killer.
Began to budget and track my expenses.
Age 25: Cleared $60,000 completely.
It took me 18 months from the age of 23 to 25 to kill that debt.
Cursed myself again for not having been more frugal during college.
By the end of the year my net worth was well into the black with $36,366.
Started investing my extra money into index mutual funds and maxing out my retirement funds.
Age 26: Took a year off to travel and relax.
Age 27: Worked 3 months. Hit $100,000 in net worth.
Took the rest of the year off and traveled.
Age 28: Worked 9 months. Hit $200,000 in net worth.
Took the rest of the year off and traveled.
Age 29: Worked 10 weeks.
Increased net worth by $44,928 after spending a chunk of it traveling.
Took the rest of the year off and traveled.
Age 30: Took a year off to travel and relax.
Started investing in individual stocks for fun but the majority of my money is in index mutual funds.
Somehow managed to increase my net worth by $17,000 anyway even without working, and traveling to boot.
Got pregnant.
SUMMARY
The pattern is that I am semi-retired. Sometimes by choice, sometimes not.
I seem to take a lot of time off in between projects because I can’t work for a year without taking a year as a break.
😛
Okay so I’m joking a little, but doesn’t it look like that’s the pattern? Work. Play. Work. Play. Work. Play.
I kind of like this lifestyle.
It’s a lot less stressful than having to work like a dog all the time, and even better, I get to enjoy my money while I’m young, knowing that my best years for earning money are still ahead of me.
It is a lot more fun to save money than to get out of debt.
I wish I had been more aware of these 3 things before I started college:
- How to be more frugal as a college student / understand why it is important to be frugal
- How much I was accumulating in debt for school — would have helped to have seen the number daily
- How to invest my earnings rather than saving it in a bank account and getting the itch to spend it
Basically I wish I had become a PF blogger in high school, not after college.
I’d be a good $50,000 extra ahead, I think.
Sometimes I kick myself thinking about that.
Other times, I think: Meh. Let it go. You started earlier than most folks. Better late than never.
I’m my own worst critic.
