Millennial to Millionaire

My mission statement for this Millennial personal finance blog is to prove to all Millennials that saving money and achieving wealth is not as challenging as most think it is. You don’t have to be a finance or accounting major or a CFP to pull off wealth either. I am a liberal arts major and my goal is to show you how any Millennial can achieve wealth.

If you make an effort to self-educate in personal finance, e.g. reading constantly and following this blog, all while saving diligently and living below your means, it is absolutely attainable. You don’t need a six figure income to do all of this. But, you have to pay yourself first and save early and often. The power of compounding interest is a Millennials biggest asset. More than any other generation because we have nothing but time before hitting retirement.

My Path to Becoming a Millennial Millionaire

To keep myself accountable, I will regularly track my net worth to prove to you really any Millennial can become a Millionaire. I am a digital marketer by day and my wife is a hairdresser. Together our combined income is really good, but not stellar. I would estimate that we make a bit more than the average household income and a decent amount more than most Millennials. We make slightly more than the average Millennial given that we are both on the older end of that generation. The first birth year considered “Millennial” or “Generation Y” is 1982 and the last is 2004.

The easiest way to track your net worth is through a personal finance budgeting tool like Mint.com (my personal fav). It will take into account all your cash accounts, investments, property (house, car, etc.), and subtract your debts/loans to give you an accurate net worth figure.

My goal is to have a net worth of one million dollars by the time I am 40. That is still a several years away for me…and I am sure most Millennial’s reading this are thinking that age is a LONG ways away for them as well! Well it is, but its a marathon not a sprint to achieving wealth. My follow-up goal after having a net worth of $1 million is to have a retirement account balance of one million dollars before I am 50 years old (cumulative from my wife and I). If I can stay on track and hit these goals then I believe my wife and I are well on our way to an early retirement at age 55-60.

Current Net Worth (June 2017) = $425,198

Apparently the Zillow “Zestimate” on my home has skyrocketed in April to May, because my net worth took a huge leap forward in the last 30 days. My net worth is was up more than $40,000 alone between April to May, which is incredible and probably a touch unrealistic based off Zillow’s “Zestimate” of my homes current market value. My goal alone for 2017 was to increase $60K overall in my net worth, but I was able to accomplish all of that in April practically. We’ll see what the rest of 2017 has in store for my home value and overall net worth. This is true…I am getting closer and closer to becoming a Millennial Millionaire.

Net Worth Year End 2016 = $372,507
Net Worth Year End 2015 = $260,791

Year-over-year from 2015 to 2016 my net worth increased 46%. I was able to achieve this by intensely paying off debt and sound investing. I was also aided by living in a great housing market that has been booming lately and continues to increase.

My Net Worth Goal for 2017

My goal for 2017 is to increase my net worth by $60,000 up to $440,000, which would be a 15% increase. Half of one million dollars is well within reach sometime in 2018. If my projections are accurate, I should be a Millennial Millionaire and have a net worth of $1,000,000 before the age of 40 (my estimate is sometime between 2024 or 2025).

PS – for those of you wondering, we have never received an inheritance or any amount of money for that matter from anyone to date. We bought our first house in 2008 with a down payment we saved ourselves. It was a modest starter home for us. We then upgraded houses in 2014 with the equity earned from the six years at our first house. We keep growing our net worth because we stick to a budget and save aggressively. I strongly urge all of you Millennial’s following this blog to do the same.

My Personal Performance

I manage mine and my wife’s retirement accounts through Vanguard myself. I own all index funds and one Target Date fund. Below is a recap of my last 10 years.

  • 10 years = 9.6%
  • 5 years = 10.0%
  • 3 years = 6.0%
  • 1 year – 12.6%