What Helped and Didn’t Help Me Reach $100k at 25

Obviously, this is a massively unusual accomplishment, especially for someone that did NOT grow up rich or otherwise lucked into a windfall. In roughly three years’ time I grew my net worth to 10x what it was getting out of college, which you can read about here. However, even those with my income aren’t anywhere near this net worth. It could be the result of several things that I won’t get into in this post, but there are several things I could have done to make me in the same boat, i.e. not worth six figures in my mid twenties.

What Would Have Made It Slower

Ubers anytime I felt lazy

My main methods of transportation are public transit, biking, and walking. There were several times that taking an Uber or Lyft would have been much more convenient and quicker. Still didn’t do it; at a minimum of $20 per ride (with tip) that adds up FAST. It’s also the worst option for the environment when I could have either reached my destination via exercise or on a bus that would’ve expended the same amount of gas either way.

Eating out twice a week instead of twice a month

Similar to the Ubers, taking this option instead of eating in translates to long-term finances for short-term convenience. I made the choice in my budget to rely on my groceries for most of my meals and that was the correct decision to make. Not only is my bank account bigger, but my waistline is smaller and my cooking skills are better.

Purchasing a car when public transport is RIGHT THERE

That car’s purchase price is only the start to its expenses. Maintenance, repairs, insurance, registration, and more leaves a perpetual drain on your bank account. There was exactly one time I needed to drive and that was to visit a friend a state over. Everything else is taken care of with a bus or the subway. Does it save time to drive? Yes, at the cost of reaching your financial goals sooner and contributing further to traffic congestion/greenhouse gases/risk of accidents. I bucked up and improved my time management skills to make public transit a viable option. Not buying a car when there’s public transit available is 100% the way to go.

Going nuts with buying hella furniture

Look, new furniture is expensive. I knew that when I moved into my current apartment and had to buy furnishings for the first time ever. Instead of dropping thousands on sofas and tables and dressers galore, I got everything secondhand that was still in excellent condition. Sooooooo many people have too much crap already they want to get rid of. You can definitely furnish an apartment with stuff people are just giving away, which I know because that’s what I did.

Knowing nothing about investing

The stock market is one popular celebrity, with millions celebrating or bemoaning when it’s feeling high or low. I understand why, when it gives you double-digit returns in the right index funds. If I didn’t know how to properly invest my money I’d either have less money or, worse, have lost money from choosing the wrong investments.

What Would Have Made It Faster

Not we examine the other side of the coin, as you’ll always think you could have done better. Being invested this early in your life means every year could make a massive difference. With a 10% return YOY that means, if I reached my $100k milestone a year ago, I could have made an extra $160,000 before my 65th birthday. That is not small change. Because I didn’t hit my $100k milestone last year I’m now effectively leaving a six-figure payout on the table. Let’s take a look as to what I could have done to hit that a year ago.

Keeping a second job

I had a waitressing job on the weekends that helped me get through 2016’s tight constraints, which would get me at least $100 most weekends. I only quit it in early 2017 once I got my first raise to $20/hour at my full-time gig. If I would have kept that second job I would have reached this milestone sooner, especially if I took more leftovers to lower my grocery bill.

Having a roommate or remaining in my old apartment

My current rent is $1800/month including all utilities. Having a roommate would halve that to $900, giving me over $10k a year extra for investing purposes. That would also dramatically lower my current expenses to $21k per year, giving me a lot more wiggle room in case of an emergency expense or an outrageous vacation.

Alternatively, I could have stayed in my old apartment with a weird roommate and no heating, which was $600 a month or $7,200 a year. That would have lowered my yearly expenses to under $20k even with some very extravagant purchases.

Not paying for someone else’s groceries

My fortunate financial position is far outside the norm. No one really knows I’m doing so well because I never bring it up in real life, meaning I could theoretically get away with doing nothing for others money-wise. I have instead chosen to give back; sharing the wealth is important to me so I make room for it in my monthly budget. Not everyone feels this way and that’s fine. If I didn’t feel this way I’d have a little more coin to do with what I please.

Fewer vacations/treats

In the last year I’ve been to Nashville, NYC (twice), DC, Philly, Concord, Maine, Vermont (twice), and various places around Massachusetts. I spent money for these experiences and  would also pay out for fun things like street food, gift shop items, and show tickets. Furiously slashing these expenses would have gotten me there maybe a year earlier at 24 years old. I was mindful about the cost of these experiences and decided they were worth it anyway.

More Extreme Measures

I could do something crazy to get more money, like that lady who makes slimy YouTube videos. Or that couple who used statistics to hack their state lottery. Or that guy who sold his kidney. I could’ve followed in any of their footsteps to hit my mark earlier, even if it caused me grief.

I bring this up because there’s always going to be someone ahead of you with these things, and you shouldn’t get discouraged if you’re not up there with them. If I moped about someone being richer than I was in 2018, maybe I would have felt discouraged from going for $100k.

We tend to think in a deadline-mindset, where, if you don’t hit some life target at this-or-that age, then you should never ever attempt to try hitting it at any other point. That thinking would have derailed my work to get here before it even began. So it doesn’t matter where you are. Now that you know this is possible for you, you can soon join me.

Do you make your financial health a priority? What are some of the things that does and doesn’t help you with your goals?