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A story like this https://news.ycombinator.com/item?id=21358531 could be a case study.
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
Earlier quoted context omitted.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
Thanks I’ve been watching videos on YouTube about becoming a millionaire in retirement. They say mortgages and car payments are bad in any form. To them any debt is bad no matter what it is and drags down their calculation of becoming a millionaire. Their calculation for net worth is all savings minus any form of debt.
There are a lot of variables in play, but buying a house with a mortgage can end up being better financially than renting. There are a lot of factors to consider. If renting is worse than home ownership, and you hold off buying until you can do it without a mortgage, you may lose out. Additionally, if you can get a really low fixed-rate long-term mortgage, but you invest in long-term total market index funds, historically, you'll come out on top over having paid cash for the house.
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
over time, some of your income will be diverted to reducing the mortgage so that your net worth grows (rather than being spent). this is why houses are seen as piggy banks--they act like forced savings because the asset has relatively stable value (and can even appreciate).
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
For software engineers, who easily make six figures a year, I’d say you should shoot for having a million in net worth by around age 30. This would mean you have good cash flow and smart investments.
A home does not inherently decrease your net worth. When you buy, the value of the home is added to your net worth minus however much you owe in mortgage and whatever your downpayment and closing costs were. If your home appreciates in value a lot it can increase your networth powerfully, but it could also just decrease and cause you a lot of pain.
Goes without saying your credit score should also be maxed out by the time you hit 30 to get the best interest rates.
After the first million you should aim to reach the next million by about your mid to late 30s I’d say. Not sure of the trajectory beyond that.
Earlier quoted context omitted.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
Thanks I’ve been watching videos on YouTube about becoming a millionaire in retirement. They say mortgages and car payments are bad in any form. To them any debt is bad no matter what it is and drags down their calculation of becoming a millionaire. Their calculation for net worth is all savings minus any form of debt.