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Building Wealth through Saving and Investing

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5 Financial Principles from a 34 Year Old Millionaire Investor





I asked regular reader Philip to share his story of how he grew his net worth to over $1M before the age of 35.  Enjoy!

I was recently with a group of good friends out for a charity golf tournament, enjoying a nice day on the links instead of being at work.  As usual, I had a few amazing shots, but many more horrible ones that I just wanted to get out of my mind.  Despite my mediocre golf play, it was a great day to have fun and relax.     At the end of the round we grabbed dinner at the clubhouse and chatted about various things.

At one point during dinner, the conversation somehow turned to finances, where the majority of my friends were unified in complaining about taxes, the cost of life and the stress of debt.  Most of them are in the same stage of life I am: mid 30s, living in suburbia, 10 years into their careers and married with kids. From what I know of their careers, some of them make very good money, some of them have more modest incomes. Regardless of their incomes, they all seemed to give me the impression that things were tight and saving was a luxury most don’t have right now due to young children, daily expenses and big mortgages.

On the way out of the clubhouse and back to our cars, I couldn’t help but notice that most of them had really nice golf bags, filled with the newest and hottest wedges and drivers.   To match that, many of them headed back to newer SUVs and higher end sedans.   My walk back to the car was no different, with the exception of my old set of golf clubs and my 7 year old car.

I have been teased a few times about my old set of  “executive OSI” bi-metal technology wedges.  Yes, my golf clubs are 16 years old.  While I might play a bit better with a new set, but for me, my set works just fine.  I don’t seem to play golf much worse than my friends who buy a new set every year, so I figure it isn’t worth spending a ton of money just to buy something new.

My old golf clubs are a good representation of how I manage many things in my life.  I’m careful with my money, and I’m usually pretty happy with the material possessions I have.   I’m in a really good position, where I don’t have a lot of the financial stresses that my friends are facing right now.  I was lucky to get really good financial advice early in life, and I’ve followed it religiously through the years.

At this point, I’m 34 years old, married for 7 years and have a 4 year old child.  Our net worth is now $1.35M.  Our home is worth about $350K with no mortgage, and our other assets (RRSPs, TFSAs, and Non-Registered portfolios worth approximately $1M) I manage myself.   Both my wife and I work full time. We both earn about 100K per year individually which has been a big contributor to our savings success (note though that our salaries weren’t always as high as they are today).  We also have never inherited anything, so  we started from scratch early on and made it from there.

I think the biggest contributor to our savings and future savings is in our lifestyle, that’s essentially where we save the most money.

Related: 25 Ways to Save Money

Our financial strategy has been fairly simple, almost boring, but it has paid off for our family.  Yes, it means I play golf with older clubs and drive an older car.  But that’s a choice that I’m comfortable with and I’m happy with what I have.

The financial and lifestyle management strategy we follow is based on five really basic principles.  We don’t get much more complicated than this in our financial planning, and it works for us.

 1.      Geography

I am well diversified by geography, with no more than 10%-15% of my portfolio in Canada.

My rational for this is:

  • Canada is less than 3% of the total world stock market;
  • In the past 10 years, the Canadian market has only been the top world performer once; and,
  • Only 10 companies make up 41% of TSX exchange, so it’s pretty small:5 banks.  4 energy stocks.  1 rail stock.  More info:  http://www.world-stock-exchanges.net/top10.html.

2.      Asset Class

I carefully track what asset classes I invest in, with an overweight on stocks (instead of real estate, bonds etc).

My rational for this is:

  • Generally, since 1926 stocks have outperformed bonds and other investments by a factor of about 30:1   More info:  http://www.investorsfriend.com/asset_performance.htm
  • In Canada, the 25 year average house price gain is 5.3%.  Meanwhile, inflation was running at 3.03% over the same period.
  • Over the same period, the TSX composite would have returned 10.75% annually, bonds 10.9% and the S&P 500 13.5%.

3.      Portfolio costs

I’m very careful on my portfolio costs.  I do most things myself through self-directed accounts, buying ETFs or low cost mutual funds.

My rational for this is:

  • The “average” investor (like me) expects to earn (before fees) 6% per year on their portfolio of stocks/bonds/real estate – over a 25 year period.
  • If I am paying a 2% fee to someone who is managing this portfolio for me, it can cost me a large portion of my overall portfolio growth.
  • I also think most mutual funds are just enriching themselves and not their clients.  Therefore I stay away from most of these financial products.

4.      Tax

I think pro-actively about tax and what it means in my investment choices.    I always think about how to best structure myself for tax efficiency (see portfolio allocation).

My rational for this is:

  • Capital Gains tax: Basically, you’ll pay a max of 23% tax on these in most cases.
  • Canadian Dividends tax:  you’ll pay a max of 30% tax on these.
  • Income / Interest / Bonds tax:  you’ll pay a max of 46% on these.

 5.      Lifestyle management

  • I enjoy my life.  I invest in hobbies, annual vacations, and luxuries.  However I do this within the context of what I earn, so that I always can save a good portion of my income, aiming for 20% per year.
  • I learn how to do things myself (renovations, car maintenance, home maintenance).  If I need a new deck, new driveway, new bathroom, new flooring:  my first question is how can I learn to do this myself and get it done.
  • For any new purchase, the first thing I consider is if I can buy it used.  Most times I can and do. This saves me an incredible amount of money.  I rarely buy things new.
  • I really take care of my things.  I’ve had my golf clubs for 16 years; I’ve had my BBQ for 12 years, etc.  I basically just take care of things and give them the maintenance they need to avoid issues.  Overall I tend to save a lot of money here – I just don’t often find I need to “buy stuff”.
  • I have a wife who shares my values and we are both happy and comfortable with our lives.

So that’s my financial story in a nutshell.  It’s a bit boring, but somehow it’s working and we really find ourselves in a fortunate position.  We have a great life, we’re happy, and we have what I think is a good financial plan.

Thanks for sharing your story with us Philip!  Do you have a financial success story that you would like to share?  If so, contact me!





82 Comments, Comment or Ping

  1. 1. Ken

    You had me until “We each make $100,000″. Most young couples with $200,000 of income would be able to make ends meet. What about the people who make $50,000 a year with a wife who stays home with their children?
    These are the ones who need the most help balancing things, but they are also the ones who can’t afford to save 20% of their income.

    These strategies, though valid, will NOT work for someone in that position. I see it every day…..

  2. @Ken, note that the writer mentioned that they built up to a $100k salary each. I’m sure that they made career/education choices to ensure that their incomes increase every year.

  3. 3. James

    Regardless of bank account balance or “how I got there”, I’d be pretty carefree too if my wife and I enjoyed $200k+ in annual income. Try living like the rest of us and see how life goes for you.

  4. 4. Bernie

    I would like to know more about their portfolio, how it’s allotted and bond content, if any.

  5. 5. Richard

    Sounds like a good plan. Minimize expenses, maximize earnings, and let time do the rest!

  6. 6. Ash

    @James
    I agree that having earning more money makes it easier to save more. However, you would be surprised to know that it is not always true if you are not careful with managing the money as Philip has been.

    Even if a person earns a decent earning, there are always avenues to spend the money on things that are not really necessary and at the end, that individual is always poor :)

    Great going Philip and good luck !

  7. 7. Evan

    The two biggest factors in your wealth are your incomes, and point #5. The other points would mean a difference between a NW of 1.4 and 1.3million, maybe 1.2mil.

    We are in the same boat as you, same age, slightly higher income, but about half the net worth. I think the biggest difference is we’ve only been married for 4 years. Never underestimate how beneficial marriage can be (if done right). Paying for one home instead of two and having two incomes instead of one has an amazing effect on finances. Particularly if the two incomes are high and both people have the same financial mindset.

  8. 8. Goldberg

    My wife and I are both accountants so income wise we are in a similar boat as the author and on a similar path… and I would agree 100% with all the comments about being a different reality at 50k or less, like the vast majority of Canadians.

    FT’s answer is silly. No offence.

    For example, at 50k, maximizing your TFSA every year (as well as your spouse) is hard enough, it eliminates the need for #4.

    Geography is similar… in fact, if the author had considered correlation, he would realize that developed economies tend to move together over the long-term… at a factor of over .90. Only two funds/ETF, developed and developing, is sufficient to diversify geography risks.

    #2 about asset class is the same thing Ed keeps writing about on this board. However stocks may have return more than real estate, real estate is usually leveraged 5-1 or more… therefore a 10% gain in value after costs may be a 50% return for the investor, not including any rents.

    #3 and #5 are decent advice…

    Overall, this belonged as a forum post, not an blog editorial. The author clearly did not put much thought into it, has a very basic system that would not work if he did not have a very high income… and has a two high income.

  9. @Goldberg, what’s silly about it? Look at your career as an Accountant, did it not start off low then slowly you obtained pay increases until where you are today?

  10. 10. aB

    Author did well, congratulations to them.
    No need to measure yourself against them, or measure them to anyone else.

    Seems to me based on Lifestyle Management, the income levels just meant age 34, rather than age 45-50.

  11. 11. Dwilly

    Wow, interesting responses, not what I would have expected. Surprised that so many ppl are so angry that this guy makes a decent living. I certainly agree that higher incomes *should* make it easier to save more, and agree that it’s certainly not as easy as “well then just earn more”. But I challenge the assertion that someone earning $50k is in a hopeless position. There are folks who make $50k who manage to save more than those making $100k. How can that be? And people who earn 200k but “feel poor” as in the author’s post.

    The key here is Point #5, which is summed up by the Wealthy Barber as “I hate to break this to you, but you’re going to have to spend less than you earn.”

    Too often the “I don’t make enough” argument is used as a crutch to abdicate from making an otherwise difficult decision. Is 50k enough to have a 3000sqft house, a new car, a $100 cell phone bill, and go on vacations? Certainly not. So now you have a choice to make. You can either go without some of those things (note, those listed above are luxuries, nice-to-haves, not talking about food), or you can go without saving/investing in your future. If you choose the former, that’s fine – just don’t tell me you’re helpless and didn’t have a choice. I live without a cell phone. Try it…. strange as it seems, you won’t die. :-)

    Look I’m not unsympathetic to those with lower incomes, especially near or below the poverty line where necessities like food and shelter really are at risk. That’s not fun at all. But there is a big, fat middle of Canadians that think they “need” way more house, car, electronics, etc than they really do.

  12. 12. Daniel Fitzgerald

    Financial advise to those making <$100k yr (essentially everyone) tends to be condescending, uninformed and useless. Generally it assumes people are frivolous, wasteful, lazy, unintelligent and just don't understand basic math. Asset allocation, geographic diversity, etc. are all fun things to dream about. But when one only has, on a good month, $100 to save these are as useful as suggesting people "make more money".

    Write an article on how someone can have a secure financial future with that $100 a month to invest. That is useful. That is what is needed. Everything else wastes our time.

  13. 13. Dwilly

    #12 Daniel Fitzgerald – Exactly my point. On the contrary – I am not assuming for a moment that people making under $100k are bad at math. I’m suggesting many are refusing to face the realities of what the numbers are telling them.

    Give me the budgets of 10 people earning $40-80k (the “fat” Canadian Middle) and I will find from 9 of them anywhere from 100 to 500+/month in spending on CHOICES. An iPhone5 is a choice. More car than basic transportation is a choice. Many clothing purchases are a choice. Meals out are a choice. I could go on and on.

    So take that $100-500+/month worth of “choice” purchases, own up to the reality that you are not entitled to an iPhone, or a weekly golf game (as in the post), and that you do not earn sufficiently to have these things. Save the money instead.

    $500/mo for 30yrs invested (wisely, perhaps using some of the tips above), and you’ll have a happy retirement. There’s the useful advice you wanted.

  14. 14. Bernie

    #13 Dwilly,

    I totally agree with you! In almost all cases, its a matter of choices, sticking to a budget and living within your means. I don’t own a cell phone either and refuse to until its cheaper then a land line. I’ll dump the land line when that comes to pass.

  15. 15. Paul

    There is some good advice here but come on, with a combined income of $200k being a millionaire is a lot more attainable. Many Canadians dream of an income of $100k, let alone both partners pulling in that sum…

  16. 16. Evan

    Completely agree with Dwilly (#13). Following the points listed in the article is valid whether you have $100/mo or $10,000/mo to save.
    In my group of friends, my wife and I earn the most, and definitely spend the least. We have the smallest house, the oldest cars, no cable, a pay and talk phone and can count on one hand the number of times we go out for dinner.

  17. 17. Mike

    Philip, congratulations on getting to where you are today.

    I’m surprised at the level of hostility in the comments. Yes, 200K a year is WAY above the average Canadian household salary, but at 34 years old it is not unreasonable. He is probably 10+ years into his career.

    The first three points are fair considerations for someone in his situation but the last 2 are key for everyone. Tax efficiency is key to growth. In Canada taxes are your single biggest expense. Find ways to cut back on the tax you pay and your savings should grow.

  18. I agree that your salary helps, but you have done a great job to get to that level of net worth without debt. Most people with that income tend to drive newer cars and buy new, new, new. They also tend to call someone to fix things, rather than making the effort to do it themselves. Kudos on a great job!

  19. 19. Al

    Philip – congrats on where you are, both in savings and in career development.

  20. Life is a succession of lessons which must be lived to be understood.
    Ralph Waldo Emerson

  21. 21. vicvip5r

    I have a question – $1.35M seems extremely high for two earning 100k incomes at your ages. (My wife and I are 31/34 and make about the same/ year after a 10 year ramp up in our careers and do all the same things you have done except buy a house (we are on the west coast where prices are just stupid). We save about 100k/ year after tax currently and our net worth is only about 400k.

    How much of your total wealth is from:
    1. Gains on real estate?
    2. Inheritance?

    With what has been happening in stocks worldwide over the last 10 years, I can’t figure out how you have accumulated that much wealth that quickly unless some of it was gifted to you or you were EXTREMELY lucky with your timing (i.e. your house cost 100k and all your buys in the stock market were very well timed (almost all in 2008)??

  22. 22. Dan

    Great information and an inspiration for anyone aspiring to earn a million.

    Would it be possible to elaborate on exactly how over $1M was earned? The article mentions saving 20% each year. With 2 incomes of $100k this would be $40k per year. If that was saved for 10 years that would be $400k and thats assuming two salaries of $100k.

    $400k in savings and a house fully paid for worth $350k equals about $750k, and thats completely ignoring any taxes or childcare costs (was there a period of one income?). Where does the remaining ~$600k come from?

    Perhaps more than 6% was earned, a significant real estate gain was realized, significantly more than 20% was saved each year – or a bit of all of the above – but it’s very difficult to tell with the info given. Any insight is appreciated

  23. 23. Roy

    This is a well written and personally open blog post. We should thank the author for sharing and learn from their experiences in a positive way. The 5 principles are valid and valuable, even though we might not all relate to certain aspects of them.

  24. 24. SST

    Hope the author returns to blast out a few responses to all commentators.

    QUESTIONS:

    1) What % of your $1M in investable assets has resulted from pure returns (capital gains, dividends) and what % is from savings (additional input)?

    [note: this is all I truly want to know...the rest that follows is just the usual BS :) ]

    2) Do you and your spouse have union/gov’t pensions?
    It does make financial life a whole heck of a lot less stressful when you know you don’t actually have to save any of your pay cheque and still be able to retire in comfort. I know a few couples who are in the same income bracket as you and have full 100% government union pensions.
    They save 0%.

    3) Any interest for introducing private equity into your portfolio?
    The returns are much higher than the stock market, the volatility is lower, the manipulation and fraud is all but absent, and there are some great tax benefits.

    4) Do you and your spouse have plans on retiring, living off your (partial) dividends and collecting low-income family government payments a la “The Idiot Millionaire” plan? If not, why?

    COMMENTS:

    “I also think most mutual funds are just enriching themselves and not their clients. Therefore I stay away from most of these financial products.”

    It’s quite revealing to see just how many true millionaires do NOT put money into mutual funds. I guess the unknowing Average Joe still gets sucked in by the industry pitchmen. Btw, buying mutual funds puts you even further away from the centre of profit.

    Asset Classes:
    1) I’m not sure why anyone even bothers to use outright incorrect information such as the “since 1926…” chart et al you provided. To believe in this, without question, shows an “investor” to be wholly naive and without any true understanding of the compared markets. Either that, or you have just been brainwashed by The Street, as pretty much most every other buyer of stocks has.

    2) Real estate is a bit off when you use simple averages. Just as your portfolio is positioned globally, RE has seen greater, or lesser, rises across Canada than the number you posted. I had a house in Alberta bought for $200k in 2002, sold for $400k in 2005 — gain of 26%/yr. Spread over 25 years, this equates to 2.8% annual average…but those gains were made in just three years…there’s 22 more years and the price of the house now only has to rise half as much as the average to come in at the 25-year average. I doubt RE in Alberta will be running at a 50% discount to the national average over the next two decades. Just one example, I’m sure pockets of similar found all across the country.

    [As a side note, there was a Scandinavian researcher a few years ago who took gobs of historical global RE data and found that across time RE rose an average of 1% annually.]

    3) One’s RE portion of net worth can also be boosted by living in a (much) less expensive geographical local. The equivalent of your $350k mortgage-free house may sell for $850k in British Columbia. Paying off a shrimpy mortgage with a high income is much easier than paying off a large mortgage with a high income (and impossible with an average income). But not all of us want to live in P.E.I.

    4) Inflation is wrong as well. If you believe “official” government reporting that is. People seem to forget that inflation is a rise in asset prices — including real estate, stocks, and wages. On one hand you state 25-year inflation ran ~3% yet RE rose ~5%, Canadian stocks were rocking ~10% per year, and your income went up…???
    Ask again, how much was REAL inflation?

    5) I find it interesting that most high-income earners make the broad “shoulda been an engineer” (or the ilk) argument in response to income. Perhaps they realize, perhaps not, but without two of the lowest income jobs in N. America, each and every one of us would most likely be dead within a month: farmer and long-haul truck driver. Just something to think about if you ever find yourself feeling overly important. :)
    (And if you’ve ever been in the midst of a garbage strike….let’s just say I’ll take a garbage man over a ‘white collar’ any day of the week!)

    Of course in a capitalist society, those who are currently winning are those with the most money, regardless of how it was accumulated, so congrats on getting into the Canadian 1% club!

  25. 25. SST

    Another question for the author:
    How did you and your wife finance i) your house purchase, and ii) your educations?

    And I just have to put this in here…

    From the author’s provided website link:
    http://www.investorsfriend.com/asset_performance.htm

    “The editor…has a SUPERIOR track record of stock picking and in his personal investments as detailed in our Performance page.”

    The editor’s (Shawn Allen) personal portfolio performance is 13.6% per year average (2000-2012).

    This MDJ article states the 25-year average S&P 500 return is 13.5%.

    Thus all the editor has done is match the long-term returns of the general market. Not superior by any measurement.

    The above is a perfect example of why you shouldn’t believe most of what you read, and even less when it comes to giving away your money.

    p.s. — totally missed it…as Goldberg pointed out (#8), RE is most often heavily leveraged as my example of the Alberta RE. I merely listed buy/sell prices and not the true cost/profit = $270k on $70k, ~57% per year. More if I factor out the ‘rent’ portion of the mortgage.

  26. 26. Joe the pilot

    There’s a big difference between you and a lot of the people posting negative comments. If those people were making the same kind of money as you and your wife, I can almost guarantee they would be driving that new leased foreign SUV and swinging that new Callaway driver. You my friend are not. You could probably double your household income and your lifestyle would stay the same. Great read. Keep it up. This site is a gold mine and contains a wealth of information and the best part………you’re posting all this for FREE!

  27. 27. trevor

    I don’t really see a lot of hostility in the posts. Nobody is angry at Phillip for making lots of money. There just isn’t a lot advice to be had.

    I’d be more interested to read about his “lean” years. Paying for school, choosing a career, getting started.

    The post comes off as: “Want to be a millionaire? Make lots of money.”

    I glean more from FT’s monthly updates than this post.

  28. 28. Al

    @ SST

    You made a very astute observation here, and I am glad you noted it again.

    “4) Do you and your spouse have plans on retiring, living off your (partial) dividends and collecting low-income family government payments a la “The Idiot Millionaire” plan? If not, why?”

    If he comes back with a response I sincerelly hope the answer is a resounding ‘no’ and I suspect Philip has a better principles than abusing social programs and suckling on the teat of the state a la Idiot Millionaire (legal but reprehensible).

  29. 29. SST

    Which raises yet another question:
    Is your “overweight on stocks” portfolio geared more towards capital gains or dividends?

    Thanks!

  30. 30. Chris

    SST – your S&P time periods are different when comparing his return to the S&P. 25 years (in your stat) includes the roaring 90′s. His time period 2000-2012 was quite the opposite. If you are going to critique then get your facts straight.

  31. 31. Erik

    I enjoyed reading this article.

  32. 32. Father of Five

    I enjoyed the article. Author made choices like we all do, and seems like they are working well for him. I chose a career that is now paying $140k but started out at $27k. once I finished university. So FT’s point about income having to build up is valid. Plus in your 20′s and 30′s you will normally be in an acquiring stage when it comes to major possessions (furniture, appliances, car etc.). so to have a great net worth at the author’s age was not a foregone conclusion, he and his spouse clearly worked at it.

    FT you have been an inspiration to me to sharpen my pencils and look more closely at my finances and aim higher. Keep up the good work.

  33. 33. SST

    @Chris #30: “If you are going to critique then get your facts straight.”

    Dear Chris,
    Continuing to discuss another “guru’s” market returns within the context of the first author’s (Philip) article might be construed as a detraction, thus I will decline further comment.

    Besides that, the hilarity of you trumpeting for “facts” from the financial industry is great way to start the weekend! Have a read:
    http://www.labaton.com/en/about/press/Wall-Street-Professional-Survey-Reveals-Widespread-Misconduct.cfm

    Summary: 25-30%+ of financial industry employees are scoundrels.

  34. 34. BK

    Regardless of the blogger and his wife’s high salaries, his net worth is still quite impressive for a 34-y/o. If it was the same couple making a combined salary of $100k and having a net worth of, say, $700k, would y’all be more impressed?

  35. 35. BK

    BT, as a couple in their mid-30′s with a net worth of 700k, they’d likely still rank in the top 99th percentile of Canadian Households.
    http://www.moneysense.ca/magazine-archive/the-all-canadian-wealth-test

  36. 36. Philip

    Hi
    Thank you for all your feedback and comments. I will try to address some of the questions:

    1. Income
    It is a fair comment regarding high income, and i agree at lower incomes in my career it was much more difficult to save a lot of money.

    2. Lean years.
    I did indeed have tougher years – I worked part time through my entire education ( undergrad and graduate) and shared tiny apartments with many roommates crammed in. I think this gave me good work ethic, and it made getting a job upon graduation much easier given 6 years of work experience. I had some debt at the end but it was very manageable

    3. Work type
    Both my wife and I work in private industry – our workplaces match 4 percent of our rrsp contributions. This also had been a positive help. The work is tough and requires sacrifices, but overall it is meaningful work for us.

    4. Investments
    I have been fortunate to have good returns. During the market corrections of 2008 and 2011, I took the opportunity to buy many more US,EU and Canadian blue chip stocks by re-allocating most of my fixed income investments to equities and using all available cash and contributions I could put away that year to buy equities that later rebounded 20-30 percent. I essentially ” doubled down” when equity prices were depressed by emotion and uncertainty. I plan on doing the same should a correction occur with the US debt ceiling issue upcoming. This could be right/wrong in many eyes. I just believe strongly in the long term value of equities, so when they are on sale, I go shopping.

    Overall.
    I am by no means a sophisticated investor. I hope the main takeaway from my clarification comment is that education ( in whichever chosen field), work ethic, and most importantly managing lifestyle are foundations to financial health. Add in a little luck and hopefully good things happen. I am sad to see so many of my friends with opportunity and high income feel external factors are the cause of their financial stress, when they more than anyone should know better that they are squandering an opportunity that too few people get.

  37. 37. Philip

    Hi again
    I did forget to mention – this blog has been a great learning forum for me.
    It’s a great resource and has really helped me fine tune many elements of my
    financial and lifestyle management. So many thanks FT and all of you for sharing your insights and advice.
    Philip

  38. 38. SST

    Thanks for your your follow-up, Philip. Even though it lacks in specifics, you do paint a broad picture of your path to that cool million.

    Of interest is your first two Financial Principles: Geography and Asset Class.

    You state your portfolio is overweight on stocks but decidedly underweight on home soil stocks.

    Research has shown that most millionaires, regardless of country of residence, posses a portfolio which is underweight in stocks but overweight on “local” stocks — just the opposite of your strategy.

    Just to prove, as you stated, it’s income which makes the million, not the stock market.

  39. I didn’t get that it was just income. What I’m seeing is high income combined with high savings, and good control of emotions while investing in the market. I wouldn’t be surprised if a large bulk of Philip’s net worth is due to investing during the correction. Congrats Philip, your story is motivating!

  40. 40. SST

    I did put forth the question in #23: “What % of your $1M in investable assets has resulted from pure returns (capital gains, dividends) and what % is from savings (additional input)?”, but thus far it has gone unanswered.

    Assuming simple maths, I have to disagree with FT re: “a large bulk of Philip’s net worth is due to investing during the correction”.

    We could all try to suss out intricate portfolio details via his basic principles, but that would be almost entirely speculative.

    As before, any you slice it, $1M+ was gained. Well done.

  41. 41. Mr. Frugal

    Some people seem to under estimate the value of hard work and savings. It may take a little bit longer but these results can be achieved even with lower salaries. My wife and I started out 20 years ago with salaries in the $40K range. We’re currently making about $80K each. At 45 years of age, we’ve accumulated in excess of $1M. We did this by living frugally and investing – primarly in GICs. We’ve only recently started investing in equities. To top it off, my wife took 5 years off work to be a stay at home mom. So, to all of the nay sayers I say “put that in your pipe and smoke it”.

  42. 42. KP

    Lee Cooperman said best

    North America used to be a place where a citizen could achieve
    It is now a place where we have learned to receive…

    The age of entitlement has created a bunch of whiners who complain that a couple make 200K a year and live frugally.

    This from people who clearly did little to better themselves by education, hard work, or discipline. No you chose to party in high school, get a job at grade 12 vs. going to university or college.

    Yes socialism/Marxism has taken over our society as politicians and gladhanders find ways to tax wealth creators and salary payers…..

    Don’t worry though, as capital flight occurs to save what little we have left after governments devise ways to steal it form us you too will find out how to live frugally like we have.

    You get rich by frugality and planning. Not taking a cheque….

  43. 43. Mark

    I just read this article (being referenced from the Globe and Mail) so my comments are late relative to when this article was published.

    First, congrats to Phillip. You remind me of my wife and me not only when we were your age but now as well. We’re in our early 50′s now. My wife is retired and I could be too, but I’m semi-retired instead. Neither of us have DB pensions.

    We live simple, modest lives for the most part and our enjoyment comes from being with family. My golf clubs are quite old (technology really doesn’t change that much despite what the marketing tells you) and our modest vehicles are 6 and 11 years old.

    I didn’t read all the comments but I think the key point is to control your spending. My favourite personal finance book is “The Millionaire Next Door” which advocates exactly what Phillip is doing. Play good offence (earn a good income) and good defense (be frugal). Not everyone can do the former but everyone can do the latter.

    The federal government has been considering how to increase pension savings, not for low income earners, but for middle income earners who don’t save enough for their retirements. That is telling.

    If MOST people took a good, honest look at their spending they could save more. Yes it would take some sacrifice but humans are wonderfully adaptive creatures and eventually you’d get used to the new lifestyle/reality. It’s all about attitude.

  44. 44. Joe Smith

    To my mind, most comments are missing Philip’s key point: Wealth creation is a lot about lifestyle. Most comments are going to income.

    Sure Philip and his partner make a good income. I wonder if it is their clear abundance of common sense that largely got them those incomes. To my mind Philip is talking more about what the commentators can be doing with their own lives: Get out of the cash flow mindset and more into cash retention. Buy wisely. Use wisely. Always.

    I was attracted to the article by a ’34yo millionaire with the 7 year old car’ line in the Globe and Mail. I too drive a 7 year old car. I bought it from a friend. Luckily, no GST there. It’s an IS 250AWD, with a somewhat smaller engine. Typically, only small minds buy big engines.

    I’m 56, been retired for over 3 years, and have a net worth of close to 8m. I can drive whatever car I want, but I take pleasure in not showboating, and practicing the same sensibilities that got me to where I am today. Of course that car has no collision insurance, and being 7 years old, nicks and the like are non concerns.

    I’m no miser. I have several things hanging on my walls that are each worth more than what is in most commentators’ driveways. I have a fabulous wine collection, hardly a bottle bought at retail. I own nice clothes, none bought at retail. In fact, I rarely go near a store of any sort. I take a perverse pleasure in not paying for parking: Imagine paying for the privilege of not walking an extra little bit!
    My cell carrier is discount, costs me $50/mo.

    For most of my life, I had a middle class income at best, but I was always frugal. I remember thinking 20 years or so ago, after I would carve $8-10/month out of say a phone or cable plan, that was another day’s income I just saved. In perpetuity.

    I bought a new Toyota pick up in my late 20s, sold it in my mid 40s. Good on gas those things, reliable, if prone to ‘skin cancer’. On the end, when I went out, I used to have to park it down the street a bit; I didn’t want my still working and mortgaged to this day buddies that were driving something shiny teasing me about my poor man’s ride. That truck saw me through my first two duplex buy and sells, a condo, and business start up when I was 38.

    That business was slow going for the first ten years. If I had to go to a convention, I stayed at a tertiary hotel and so on. Costs were always, always under control. Again, it’s more about cash retention not flow. Pay a little more attention to Philip’s stories of what he drives and play’s that silly game with, than his income. But do note, he still has fun playing that silly game, and isn’t shy to go out for a meal when done doing so. It’s about choices.

    Philip, congratulations on your and your partner’s success!

  45. 45. O

    This does not add up at all. Assume the couple has worked for ten years. Assume, although this is not true, that they made (combined) 200K from day one.

    20% of that is 40k a year in savings. At a rate of even 10 percent a year (every year) of returns they should have less than 700k.

    At the same time they were paying off a 350k house in ten years, presumably daycare, and some student debt. So that left them about 3000 bucks a month to live on (utilities, car, insurance, food, vacations, etc. – which they claim not to skimp on)- and this is all assuming that their incomes started at 100k each.

    If their incomes started lower and climbed, which is what Philip says happened, they should be even further behind these calculations.

    Philip claims they inherited nothing, so where did they extra money come from? I don’t think Philip is telling the whole story.

  46. 46. Erik

    The first comment befuddles me – “these strategies won’t work for someone in that position” meaning of a $50k income.

    Buying ETF’s? Yes, they can buy any financial product too, so that works.
    Buying things used? Yes that works.
    Having a spouse of the same vision? Yes, that’s possible.
    Take care of your things? Yes, that’s possible.

    The first comment makes no sense and validates the article, rather than invalidating it.

  47. 47. hazzard

    In the “Net Worth Update September 2013″ the breakdown shows a current net worth on September 30, 2013 of $792,100.

    http://www.milliondollarjourney.com/net-worth-update-september-2013.htm

    “Total Net Worth: ~$792,100 (+1.19%)”

    Now, 15 days later the author is claiming a net worth of $1,350,000. So Net Worth has increased by $558,000 in 15 days! That is quite impressive. Am I missing something? Have I read a post incorrectly?

  48. @hazzard, this article is a “guest post” from a regular reader. So no, my net worth did not increase by $558k in 15 days.

  49. 49. Ken

    @Erik
    Not even close. The fact the the author is well off is great, good or him. HOWEVER, he more than likely got started long ago, before he had huge amounts of debt, before having children and probably after getting great advice from a parent or family friend.

    In the average readers life, they start too late, they already have debt and they need to get out before they can accumulate.

    Income – Expenses = Surplus / Surplus x Time = Wealth

    If expenses are anywhere near income, you’re not going to get rich at any age.

    I am a successful financial planner with a wife, a house, and 4 kids. Even I have difficulty increasing the surplus every month, and sometimes, not at all. I’m just tired of these kind of posts and articles that show off the success of the few, even though the many have no chance of coming close these numbers.

    Just sayin…

  50. 50. Dwilly

    @Ken,

    Agree with your equation. The issue here, that the more enlightened folks on the blog are trying to point out, is to question the second term in your equation: expenses.

    I said it before and I’ll say it again. Give me the budgets of the 10 people who have posted on this blog, who make a “median” salary (likely less than yours, if you are a CFP) and complain of no surplus, and I will easily find on 9 of them HUNDREDS of dollars in monthly “not required” expenses. Cell phones. Cars. Entertainment. Clothes. It’s just too easy.

    I will now make an incendiary comment and suggest that even CHILDREN are a voluntary, choice expense, not a “requirement”. If you only make $45k/yr and have elected to have 4 children, then yes, I will bet that you are stretched. But nobody made you have those kids. If you decided to have them, despite your low earning power, then you made an implicit decision to increase your expenses, reduce or eliminate your surplus, and therefore your future wealth.

    Now again, I am not unsympathetic with those who really do have a tough time making ends meet. What the folks on this blog are suggesting is that far more people are far more capable of creating a surplus then they would have you believe, if they can just bring themselves to sell the BMW, cancel the satellite TV, etc.

  51. 51. skeptical

    Something doesn’t add up.

    Starting at $0, If you save 50,000 a year – making monthly contributions of 1/12 of 50 and get a return of 10% a year – it would take 11 years to get to a million dollars. This presumes 0 taxes.

    Now a 10 percent return in a period where stock markets haven’t returned anything near that would be rather remarkable. Throw in paying for a house along the way.

    Colour me skeptical.

  52. 52. Dwilly

    (To be clear, I am not suggesting that someone who earns $50k after tax, and spends $30k – leaving a $20k annual surplus – will accumulate millions in his lifetime. But someone who has become accustomed to living in that manner does not need millions in order to retire and live happily. “Wealth” is a relative term.)

  53. 53. Con

    This article is highly unrealistic, lets assume the couple both started working 10 years ago with an income of 50k each and have had 8 increase in pay annually to the present, with an after tax rate of 70% they would have earned 1 million dollars between the two of them, lets assume they invest all there money and have no living expenses and get 10 % per annum, thats another 100K before tax, even with no expenses and 10 percent return the couple could only accumulate 1.1 if all they did was invest thier money.

    I just dont believe the senario he’s described, something extraordinary must had happened to advance the couple’s financial fortunes

  54. 54. Mark

    The message from The Wealthy Barber is that even people of modest incomes (e.g. a barber) can become wealthy if they are disciplined enough to adhere to a forced savings plan. Those savings, over time with the magic of compounding, can grow to make you wealthy (a relative term for sure). Start too late and you forgo that magic.

    As for the Idiot Millionaire referenced above, I just realized that that’s Derek Foster. He’s the guy that got lucky early playing options to gain a good sized nest egg and then goes on to recommend stable dividend paying stocks using that nest egg. Talk about irony (hypocrisy?) He’s also the guy who bailed at the market lows after the 2008 financial crisis and recommended that others do the same. He’s just a salesman selling books instead of snake oil and gaming our social system at the same time. Can’t respect a guy like that.

  55. 55. Philip

    Hi skeptical

    Thank you for your comments. The answer on
    our returns is related to what we did during market dips in 2008 and 2011
    We essentially doubled down, using any available cash
    and or fixed income investments during the dips to buy equities at bargain
    prices. In 2008 our equity purchases were overweight on US and canada ( mainly canadian banks), in 2011 we purchased a lot of EU equity at bargain prices. This gave us excellent returns boosting our portfolio in a short time span.

  56. 56. Morty

    Hi Philip

    Sorry dude, still not buying it.

    As everyone else has said, you are leaving out key information.

    Nice try though

  57. 57. O

    This still does not add up. Assuming you started 10yrs ago with a household income of 100k and got a raise every year until your current salary, and assuming you saved 20% of your gross income every year, in 2008 you would have had about 200k saved – and that is assuming 10% return every year.

    That means you would have had to, say, double your money in 2008 and then get almost a 50% return in 2011. All the while maintaining 10% returns along the way, and avoiding any loss in your existing investments in 2008 through 2012.

    All of this sounds unlikely. However, if that is generally what happened, then it is disingenuous to say that your financial situation is due to cutting back on expenses.

    Your situation, in this case, would be based on taking a lot of risk, and beating the market by massive margins for a long period of time – which is not really advice that is useable.

    I would love to believe your story, because it would be great to know that it is possible to save 1.35M in ten years just by cutting back on lattes – so please enlighten me as to the specifics if I have got them wrong.

  58. 58. Evan

    O, why do you make the assumption ‘save 20% of your gross income’? why not 40 or 50%? And that’s at a starting salary of 50K/person. As that increases, the percent that you can save goes up too as the bare minimums to live on don’t increase that much.

    If they could live on 25-30K, while making 50Kea, that would allow 50%gross savings. and then increase that savings rate to 50-70% of gross when making 100K each.

    So then, it is a matter of controlling spending. But it sounds like a lot of people are just looking for a reason to not take a hard look at their expenses.

    There have been lots of stocks that have returned >10% on average for the last 10 years, particularly when you include dividends. Look at the BNS 10yr chart for example, and factor in a double down in early 2009

  59. 59. O

    Hi Evan,
    he said “I invest in hobbies, annual vacations, and luxuries. However I do this within the context of what I earn, so that I always can save a good portion of my income, aiming for 20% per year.”

    So maybe some years it is higher, but it seems his general approach has been 20%. Since he claims to have vacations and luxuries, I don’t get the feeling that he is investing 50%.

    I don’t disagree that cutting expenses is important, but I don’t think it is the secret to Philip’s success.

  60. 60. Sjr

    The numbers don’t add up, with average market gains over the last 10 yrs being basically flat… Paying off the mortgage, then accumulating that much… Highly unlikely, even if they saved like mad… Sounds like bs!!

  61. 61. Evan

    O,

    You are correct, I forgot about the 20% comment. I don’t doubt that the numbers are correct, but it would appear that the success was more a result of a timely gamble, rather than living well below one’s means. For sure, that would give a solid foundation, but it was probably something a la Derek Foster which created the majority of the wealth. Perhaps heavy use of margin at the downturn, or options. Or both. It is conceivable that this could be achieved without those things, but he would have to be a pretty astute trader to achieve it.

  62. Remember that cash savings provides opportunities. The difference with the writer is that he took action when everyone else was fearful in the market. Not many of us have the same conviction in the market.

    As well, note that there are other variables. Savings before his 10 year growth plan, and increased savings as their income increased. I’m guessing that 20% was just a ballpark average over the years.

  63. 63. Stats

    STOP COMPLAINING!

    Jeez – the commenters here must be a ton of fun to hang around. Nit-picking at every single detail from this guy who clearly is saying a positive message of “be frugal, practical, and balanced”.

    Yes – he has above average income.
    Yes – he took advantage of a once-in-a-decade market opportunity.

    No – 99.9% or more of you will not follow this type plan to get to $1.3M… but that’s not the point!

    The point is: match your lifestyle to your financial plan. That’s it.

    Is that an offensive message?

  64. 64. Stats

    And – the numbers do add up.

    Let’s say that this couple had a $300k portfolio and $300k house in 2009.

    Then – let’s assume in 2009 that the $300k was invested 100% in the S&P 500 in 2009… maybe when the S&P was around 700-800.

    The S&P today is at 1730, making the $300k worth say $700k in 2013.

    Then, add in the house ($350k) = $1.05M

    Then, add in another $40k a year in savings for 2009, 2010, 2011, 2012, 2013 = $200k… assume some investment gains on that money, and you get say $250k-$300k.

    And, voila, add the $300k to the $1.05M you get $1.35M.

  65. 65. BadCaleb

    Pretty sad that so many took out calculators to question this guy’s story. Forest for the trees…..

  66. 66. SST

    On the contrary, it’s called being skeptical.

    Capitalist society has set the psychological bar of $1,000,000 as the baseline standard for being “rich”. Since there are so few millionaires — 1% of Canadians — when one of these rarities shows up, we question the existence (and it’s creation). And when it’s about money, it becomes a pure numbers game, thus the calculators. The questioning nature here is actually quite logical.

    People visit this site to glean info on how and where to put their hard-earned money, so when a completely anonymous poster (perhaps known only to FrugalTrader, yet another completely anonymous figure) espews his path to riches with over-used generalities sprinkled with exceptionally few specifics…eyebrows raise. “This guy’s story” is an empty set of empirical data thus application of scientific method is left filling gaps.

    Perhaps the true sad thing is that the world of money has become so rife with corruption and distortion (perhaps always has been?) that speculators are left holding big bags of mistrust and disquiet instead true knowledge (and big bags of cash!).

    The most sad thing is people soaking up whatever they read on the internet hook, line, and sinker. :)

  67. 67. SST

    @Stats: “And – the numbers do add up.”

    No, they don’t.

    Applying maximized/omitted assumption still leaves a $200-$300,000 short-fall in this version on the story.

  68. 68. RG

    A house at $350k? Sure I would’ve paid mine off 7 years ago but obviously the author isn’t living in Vancouver or Toronto and I’m in a field of work whereby living in some small hamlet is out of the question. Having said that, our initial $50k down payment on a condo 16 years ago in a depressed Vancouver market has mushroomed into $850k of equity in a detached house in a maturing, desirable neighborhood with awesome views. Still, paying that biweekly mortgage negates alot of luxuries but life is comfortable yet and, oh, my car is 16 years old and still drives like new because I do all the maintenance on it and the lack of salt on the roads preserves cars in the lower mainland. After all of that, its the damn taxes at all levels of government eating us alive, slowly.

  69. 69. Cold Truth

    I am not surprised by the emotionally negative comments. Anybody not living at the poverty line has the ability to save *something*. How much you could *possibly* save depends on your income. How much you actually save depends on your lifestyle.

    If you lived in low cost housing, took public transit or drove old inexpensive vehicles, purchased only lowest-cost nutrional from scratch food ingredients, and limited children to one or none…

    ..you *could* save a significant amount on 50K/yr household income. But that’s not a very enjoyable life!

    So you upgrade your standard of living. But, you can’t own a family sized home, have 2-3 kids, own two vehicles < 8 years old, buy high priced food, spent money on stuff and activities for you and your kids, AND maintain that lifestyle in retirement with 50K/yr.

    Your expectations are unreasonable. I bet your grand parents were closer to the poverty line than you, and had some savings because they lived to lower expectations.

  70. 70. D2cold

    I would like to say to him congrats on his savings and that i think it is possible!

    My own networth would have been vastly different had i made a few different decisions in 2007 and 2008.

    https://www.networthiq.com/people/d2cold

    I have a similar income to his (and have for 10 years). Been married for 8+, 3 kids, bought 3 brand new cars in 10 years and don’t save much more than my 18% (rrsp contributions of which 7% is company infused). Wife spends lots and has been on mat leave 3 times. If we had one kid and wife was similar to my spending, and had not bought new cars we could easily be 1 million plus.

    My only question is his comment on taxes in #4 on dividends. If you quit working and your stocks were non registered Canadian companies your tax would be near zilch! Key is to have no T-4 income and find a good mix 10-20 companies with 3-4% dividend. Food for thought as your networth grows and you move closer to “early retirement”

  71. 71. Dwilly

    69. Cold Truth – Agree totally. I think this is just a thinly-veiled version of the same argument. Although I think the problem here is that we all need to challenge the belief that “life wouldn’t be very enjoyable” if we spent less. It’s tantamount to rolling over, and accepting that you need to have everything TV tells you that you need. For all those who whine about how “hard it is now” and how much “better it was for your grandparents”, I’ll tell you about a couple things about how your grandparents lived.

    For one, they didn’t all have an iPhone. Or 300 cable channels. They had a Chevy, not a BMW. They lived in an older house, with older stuff. They cooked their own meals. And for fun, they went outside. To parks. Or any of the innumerable FREE places that still exist today, that people have seemingly forgotten about. And neither did they feel they had a “bad” or “boring” life, nor did they believe they were entitled to have any more.

    This generation (and before you accuse me of being a rambling old guy, I am 30) needs to man up, and stop feeling sorry for ourselves and entitled to more than we are.

  72. 72. SST

    This has taken a weird turn towards the emotional.

    I would argue lifestyle is the basis of savings, but not the basis for wealth.

    If Philip and his spouse were making $200,000 right out of the gate (@23) and saving 20% in cash, they would have accumulated ~$450,000 (this being a maxed out amount).

    Thus, lifestyle paints only half, or in this case, less than half of the picture.

    Having intelligent and lucky investment choices seems to be the the real driver of wealth.

  73. 73. Dwilly

    @SST, I think it again depends on how one defines “wealth”. If you define wealth as 99.5th-percentile, mid-seven figures, living on a yacht sort of wealth, then yes, I would tend to agree with you that few people that get there get there on savings alone. They are more likely risk-takers, entrepeneurs, or otherwise “lucky” investors.

    But if you define “wealth” in more modest terms, maybe mid- to high-six figures, such as “a pool of money sufficient to allow, when coupled with social programs, a middle-income earner in Canada to retire comfortably – if not excessively”…. then I think the story changes. I think you do not need risky or “lucky” investment choices, and systematic saving coupled with moderately intelligent investing can accomplish that.

  74. 74. Harry

    I don’t see anyone having questioned the obvious flub, “Over the same period, the TSX composite would have returned 10.75% annually, bonds 10.9% and the S&P 500 13.5%.”
    Whether Philip is talking about a 25 year period or since 1926, how do these numbers support the statement that “stocks have outperformed bonds and other investments by a factor of about 30:1″ Is it a typo? 10.9 is higher than 10.75 duh.

  75. 75. SST

    @Harry: one comparison is for stocks vs. bonds over 25-year period, the other is ‘since 1926′ (“30:1…”).

    I questioned it in #26.

  76. 76. jungle

    Wow how did I miss this one? lol

    Cangrats Phillip, you have my support all the way. I too face the pressure of not buying new stuff, having the latest gadgets, etc.

    STATS posted some obvious things above about the market returns above since 2008. Not hard to believe for someone who doubled down when markets were on sale.

  77. 77. Skeptical

    Mathematically your story does not make any sense. As others have stated, based on the assumptions your provided relating to income and savings rates, there is no way you would be anywhere close to a net worth in that range. I guess it helped the story?

  78. 78. guppsala

    I think it is possible to achieve what Philip did, although it would be interesting indeed to know how of his cash came from savings and how much from returns. Timely and Lucky cash reallocation must be part of the equation, as most of us lost money during the crash, and used the market recovery of 2009-2013 to recoup our losses.

    I am 36 years old and have a net Worth of around 400K. I have a 250K portfolio and the rest is equity in my home (using purchase price not current market price). I started investing in 2007 (bad timing!) and after being in the red for 2-3 years, my average annual return is now 6.15%. I am self employed (incorporated) and my net business income before taxes is around 140k. My wife is also self employed but makes around 35K before taxes. We have one kid (4 years old). My savings used to be around 25k per year but a jump in my income saw my savings grow to 60k per year.

    Since tax is the biggest expense in Canada, I decided that it would be much easier to achieve wealth by being self employed / incorporated. Yes the first years are not easy and demand work, but I love the lifestyle and the tax choices it gives me. Basically, my company pays me a 30K dividend and 30K to my wife, we pay no personal taxes on that (the taxes are paid at company level, 19%). The rest is invested by the company in the stock market and various Financial instruments that are tax efficient. I try to live frugally on the income the company gives us.

    There are many ways to achieve Financial independance! Botttom line is find what makes you happy, and design a Financial plan that allows you to do that as much as possible, as early as possible.

  79. 79. Al

    There’s nothing wrong with making over 200K a year. I’m not really sure what the author in the post does for a living but rest assured he’s worked for it. Building up that degree of net worth in your young 30s is impressive 200K salary yearly or not – I make more than him and there’s no way I can catch him.

    I finished dental school at 29 with 150K in debt and my girlfriend finished optometry school with 150K in debt at 25 – that was almost 3 years ago now and we’ve just managed to crawl from -300K in net worth to +45K. It’s very hard to do when you start off with such massive debts even when you factor in we made over 325K as a household last year.

  80. 80. Debbie

    I’m pretty tired of the haters! What Philip has done however he’s done it is amazing! I have been privy to couples making more than $200,000 a year and being in debt! They have every gadget, every high end thing they can get their hands on and buy and their kids are down right spoiled! They have credit card debt up their ass! People, it is a lifestyle choice!!!

    It doesn’t hurt that Philip and his family have a wonderful income but I’m more than positive if their income was lower they would be saving money anyway!

    14 years ago I went through a bad divorce and my net worth was down to $3,000 dollars, it’s now $300,000 and growing and I live in New York. I read finance blogs like this to get tips and read success stories and give me ideas how to live a better lifestyle, save and invest my money, and learn how to grow my wealth. What I don’t do is feel sorry for myself by putting down successful people and blaming them for my lot in life! Take responsibility for yourselves, your all adults! Philip does not need to justify himself to you!

    Philip — great job! Keep up the great work!

  81. 81. SST

    Addressing the “hater” meme, again, pretty sure no one here is against savers, frugalists, the rich, or high-income earners. What people are opposed to is incongruent story lines, insubstantial “facts”, detail skirting, etc. to support the presented claims.

    Perhaps Philip does not need to justify himself to the readers, but it’s a two-way street — the readers need not believe everything put forth on the internet.

    For all we know, FrugalTrader and MillionDollarJourney could be completely make-believe. He is, after all, completely anonymous. Start a blog about money, but not just any money — $1,000,000! Make some stuff up for a couple years, get some press, then let ‘Guest Bloggers’ write the bulk of your blog while you collect the ad revenue.

    Worse (and more corrupt) business plans have transpired in the world of finance for which people have fallen hook, line, and sinker.

    Happy long weekend!

  82. 82. Ella

    Just read this and just want to say that you are an inspiration. My husband and I are both in our early 30s and have net worth of $650K. Granted, we have only been living together for a year and half months total and just began earning the same level you guys have this past several years. Living together with significant other since you are young definitely saves a lot of $ in the long term (we still rent and don’t do stock etc) and I imagine that had we met and get married earlier, we would have been in the same boat you are since we do save over 50% of our income. Don’t worry about justifying yourselves; in the end, your worth is for yours to keep. Others can question is but as long as you know you have it, you are well on your way, Thanks again for the inspiration =)

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  • Pierre Fregeau: Continuation of post 208 For those of you worrying about the value of the Canadian Dollar. There was...
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