I’m 21 yrs old, started new job at $40K/yr. Not the best salary, but keeps me afloat for now.
-Will be debt-free literally next week (yes!)
-I believe in investing as early as possible to take advantage of the power of compound interest.
-By my calculations, my estimated net worth in 10 months will be $10-$11K. Assuming I kept the same job, -by age 25, est. net worth will hover at about $50K. -by age 30, est. net worth will hover at $175K. ($110K in investments, the rest in IRA @ 8% interest annually)
I look at the numbers and they look a bit silly(a lot?) to the point of doubting them, hence, the blindspot issue. (forgive me, I don’t come from a financially well-off family) Those numbers are there even under the assumption that I maintain $40k/yr till I’m 30.. Recently, I came across this article, titled “How Age, Income, Degree, and Gender Affect Your Net Worth”*, and the data shown there says the average net worth at age 30 is about $10K. For ages less than 25, it’s -$8K (yup, negative/in debt.)
My question is, how come those numbers are surprisingly low compared to my own calculated numbers? Im new to all this, just want to make sure I’m on track. Perhaps I might have also interpreted data wrong. Its all that, or I’m doing ok. Maybe haha.
More info about me: -in my own apartment, no roomies. No plans for a house yet, and I’m still learning things about real-estate on my own. -Located around Seattle area. -no degree, thus no student loans. Future field I wanna get into is in commercial art, which does not require a degree (but instead, needs portfolio.) Classically trained, so I’m just working on polishing industry skills now. -no car, currently using public transport, all paid for by my employer. -I live frugally, I’m a minimalist, and single. I dont leave room for any unnecessary spending. -I use YNAB to track my finances.
Thank you! Im very eager to learn, so if you have any suggestions or tips please let me know and I will take them seriously.
*-https://www.earnest.com/blog/ranking-net-worth-by-age-income-degree-and-gender/
Submitted September 29, 2018 at 06:13AM by fieryskyes https://ift.tt/2R7J5LL
