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by blankcheque
2469 days ago
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I was able to amass ~$500k+ in liquid assets before 27 with a combination of attending a top college, not having any college loans when I graduated (worked hard all through college to make sure this was the case - parents are not wealthy), working at a startup that grew significantly for several years (significant equity upside), and investing everything I possibly could into the stock market over the past few years (greatest bull run in the country's history). I also paid <$1500 a month for rent in SF for many years by living in converted rooms or having room-mates to keep costs low (relative to market rates). Many of my peers were paying >$2.5k-$3k to have their own spot. I was keeping expenses low and aggressively investing the difference in companies whose trajectories were all but inevitable in my opinion (+ some broad market index funds which have also done extremely well). The weird thing about money is that once you get the flywheel turning (not easy), it compounds like magic given that you've made some good decisions. My intent here isn't to boast. I figured you might appreciate a specific example of circumstances leading to building a modest level of wealth as a 20-something software engineer. Involved was a lot of hard work, luck, timing, right place (SF), right company, good decisions, help from others, sacrifice, obsession, and a bunch of other things but I'll spare you the boring details. You could boil it _all_ down to luck if you'd like - but that's a bit too cynical for my tastes. |
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My story isn't far different from you. It just lacks the happier parts. Just want to show how similar we are and how much those happier parts matter. Which some could perceive as luck. I attended a "top college" (by program at least). I worked through college on top of having a full ride (government). After college, I slept on an air mattress to save $$$ (don't do it) and then a 25 year old one because I got it for free. I chose the cheapest possible everything forever. Drove my $4000 car into the ground until it was crashed into. Never paid more than $50 for a piece of furniture. I spent maybe $100/month on food. I lived very cheaply for 8+ years with minor splurges on things. (I still live in a 400sqft in-law unit that used to be a workshop ffs - I definitely don't live lavishly) But - in the end, I can't save enough because my income isn't high enough. I gave up on penny pinching because I realized it was futile for this area. No one is buying the <=$1m homes that I could afford with years of penny pinching and saving and then living in them. (It's all investment property) Therefore, the neighborhoods never gentrify and are crap. My SO says even if I buy one - she won't move into it because we'll get stabbed, robbed, or, worse, have to live there without it gentrifying. So, homes that are actually gentrifying or nice are closer to $1.5m+. Therefore - I'd have to save about $700k+ in order to be able to qualify for the mortgage (decade+ of penny pinching saving then). It doesn't take a rocket scientist to realize that's a terrible move financially. (Putting basically all of your money into a house - not a very diversified portfolio...)
But ya know what - I see my peers who are living lavishly (buying brand new Porsches - living in luxury 2-bedroom apartments by themselves - buying all the new things - going on ski trips and whatever vacations)... It doesn't affect them. They're still buying the damn house! It's cause they're at $400-500-600k+ and not the <$200k I'm making.
Gotta join FAANG or some startup that's about to go public. The income disparity is just massive.