By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Finance > 5 Lessons Learned After Becoming A Millionaire Couple In Our 30s
Finance

5 Lessons Learned After Becoming A Millionaire Couple In Our 30s

News Room
Last updated: 2023/08/09 at 5:54 PM
By News Room
Share
7 Min Read
SHARE

Recently, my wife and I hit an incredible milestone that we’d been working on for a decade: We became a millionaire couple.

Contents
A Million Isn’t What It Used To BeA Lot Of Us May Need To Become Millionaires To Retire ComfortablyI Still Need to (and Want to) WorkCompound Interest Is Truly MagicalThe Journey Was A Lot Better Than The DestinationI’m Not A Self-Made Millionaire

Through time, patience and a strong partnership with my wife, our net worth went from -$50,000 to over $1,000,000. There were many ups and downs along the way, but at the end of the day, we were very proud of our family accomplishment.

After having some time to reflect on this seven-figure moment, I’ve come to realize some things about myself and becoming a millionaire in general.

A Million Isn’t What It Used To Be

Growing up in the ’80s and ’90s, when someone talked about being a millionaire, it was a big deal. Awkward yet watchable kid movies like “Blank Check” and “Home Alone” left me with a feeling that if you got a million bucks, you’d be set for life.

At 41 years old, I’m realizing millionaires aren’t so rare.

While becoming a millionaire is still an incredible accomplishment, it’s a lot more frequent nowadays. This is because one million dollars doesn’t go as far as it used to due to inflation.

The millionaire status I thought was so incredible as a kid is really the equivalent of multi-millionaire status today.

A Lot Of Us May Need To Become Millionaires To Retire Comfortably

Our family spends between $60,000 – $80,000 per year to live our comfortable lives. If we want to continue living this way in retirement (adjusted for inflation of course), we’re going to need a lot more than $1,000,000 invested.

To retire traditionally and comfortably, we’re aiming for 25x our annual expenses invested. For us, that’ll be around $1,500,000 – $2,000,000.

Using the same simple math formula, $1,000,000 invested at a traditional retirement age may provide around $40,000 of annual income per year. If you and your family need that amount or more to live comfortably and you won’t have other sources of income like a pension in retirement, then you’ll likely need to become a millionaire as well.

So in a sense, becoming a millionaire isn’t a monumental destination, it’s almost become a requirement for a comfortable retirement.

If you have a pension or other incoming producing assets in retirement, that’s a different story. But for the rest of us (including me), we’re going to need to keep growing our retirement portfolios.

I Still Need to (and Want to) Work

Even with a million dollar net worth, my wife and I are working to pay for our everyday living expenses.

My 10-year old self would be astonished. He’d wonder why I’m not sitting by the pool and ordering butlers around.

(Side note: There must have been a lot of butlers in ’80s and ’90s movies.)

Since most of our net worth is allocated for our future retirement needs, we aren’t touching any of it today. That way, time and compound interest can do their magic.

I see how comfortable my parents are with their pension and social security in their 70s and, since I’m not banking on either of those, we need to let our accounts grow for decades.

Also, I want to work. At least, I want to do work that I enjoy.

So even with a million bucks, the work continues.

Compound Interest Is Truly Magical

Since hitting the millionaire net worth mark, our net worth has grown substantially even though our income went down by half after we switched to a part-time work lifestyle. And it doesn’t appear like it’ll slow down either.

Let me give you an example.

We have around $600,000 in retirement investments today. If we didn’t contribute another dime to our accounts, our balance could grow to around $3 million (with an assumed 7% real rate of return) by the time we’re 65 years old. That is more than enough for us to have that comfortable retirement we’re looking for.

Compound interest is incredible; our money has the potential to make money. And then that money makes money. What a concept!

The Journey Was A Lot Better Than The Destination

Achieving a million dollar net worth was a big family win. But that awesome millionaire moment quickly faded and we went back to our normal life.

After that financial euphoria subsided, I had a realization that those other 22 million millionaires probably had as well. That’s recognizing the journey is much better than the destination.

Over the 13 years of our marriage, we’ve learned so much about how to build the kind of wealth that makes our family happy. That includes giving 10% in our own way, shorter-term savings for exciting home upgrades and working fewer hours each week so we have more time for fun and relaxation.

Those wealth-building lessons, and the trial and error we went through to learn those lessons, are the true reward on this millionaire journey.

I’m Not A Self-Made Millionaire

While I didn’t receive a trust or inheritance (the same as 79% of other millionaires), this millionaire financial position would not have been possible on my own.

My parents provided me with the knowledge, confidence and education to succeed in life. They also paid for my undergraduate degree. Given the massive student debt in our country, that’s something that I definitely recognize as a privilege.

I also married an amazing woman who has partnered with me on this journey. So her success is our success. And my wins are our wins. I’m grateful for her love and support in the good times and bad.

So to say I’m not a self-made millionaire actually fills me with more confidence than shame. I hope to fill my kids with the same confidence as they grow up and continue this legacy of generational wealth and happiness.

Read the full article here

News Room August 9, 2023 August 9, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Germany warns EU ready to retaliate unless US reaches ‘fair’ trade deal

Global stock markets were steady on Tuesday as investors awaited the next…

US contractors cut off by Doge given lifeline by private credit

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Private equity abandons early recruiting after Jamie Dimon fightback

Stay informed with free updatesSimply sign up to the Private equity myFT…

EU pushes to fill Ukraine’s $19bn budget gap next year

Stay informed with free updatesSimply sign up to the War in Ukraine…

UBS grants ‘goodwill payments’ to clients hit by Trump trading losses

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Finance

4 Ways To Avoid Fake Shipping Fee Swindles

By News Room
Finance

Dell Supports Endeavor Miami’s Quest To Empower Black Founders

By News Room
Finance

The World’s 10 Most Expensive Cities To Live

By News Room
Finance

Biden Sends Student Loan Forgiveness Emails To 800,000 Borrowers

By News Room
Finance

New Student Loan Forgiveness Application For Those With Medical Issues

By News Room
Finance

Who Really Owns Nursing Homes, And How The Feds Are About To Learn More

By News Room
Finance

Gone Are America’s Cushiest Federal Prisons

By News Room
Finance

Can You Still Get Insurance After A Cancer Diagnosis?

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?