The average home price in the United States: $420,800
The average income required to afford the average home: $115,000
The problem? The average household income in the US: $74,580
Some people are asking about membership prices. This is the history of yearly membership costs:
1983: $25
1992: $30
1995: $35
1998: $40
2000: $45
2006: $50
2011: $55
2017: $60
Not bad IMO.
The average starting salary for workers who graduate college is $55,260.
That is $3,408 a month after taxes.
The average rent in the US is $1,702 a month.
That means the average college grad is spending 50% of their income on rent.
Something has to give. This is crazy.
Monthly mortgage payment on a $400,000 house in 2021: $1,529
Monthly mortgage payment on a $400,000 house in 2023: $2,528
$1,000 more a month for the exact same house. Crazy.
RIP Charlie Munger.
My favorite quote of his:
"The world is not driven by greed. It’s driven by envy. I have conquered envy in my own life. I don’t envy anybody. I don’t give a damn what someone else has. But other people are driven crazy by it."
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
Working it into existence every single day.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
I AM BECOMING A MILLIONAIRE.
Working it into existence every single day.
Today I turn 24.
I have built an investment portfolio of over $180,000.
And a passive income portfolio that pays me $10,000+ a month.
Less than 6 years ago this money didn't exist.
Here are 24 lessons I've learned from building it.
(thread)
At 22, most of my peers are
•Financing new cars
•Traveling every week
•Getting drunk every week
While I am
•Finding ways to increase my income
•Connecting with people everywhere
•Making smart financial decisions & still enjoying the present
Life is about choices🤝
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
Speaking it into existence.
I drive a 2015 car. My insurance used to be $59.59 a month.
I was just told they are upping my insurance to $149.35 a month.
No claims, no changes, no reason. Luckily I can afford it, but this is wild.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
I WILL BECOME FINANCIALLY FREE.
Speaking it into existence.
Monthly mortgage payment on a $500,000 house in 2021: $2,041
Monthly mortgage payment on a $500,000 house in 2023: $3,684
$1,600 more a month for the exact same house. Crazy.
Mortgage rates are 7%.
A monthly payment of $2,500 buys you a $375,000 house.
Same time last year, a monthly payment of $2,500 bought you a $600,000 house.
Crazy.
The "boring" 8% return in the stock market is only boring because you don't have a lot invested. Getting 8% on a $500,000 portfolio is a $40,000 gain. That is not boring. If you focus on a larger principal amount (aka investing more), the "boring" 8% becomes fun.
Charlie Munger was the right hand man of Warren Buffett.
Yesterday he passed at age 99. He was worth $2.6 billion.
In his honor, here are 15 of his best lessons on money & life:
In 1929, the stock market crashed.
In 1987, the stock market crashed.
In 2000, the stock market crashed.
In 2008, the stock market crashed.
In 2020, the stock market crashed.
In 2024, the stock market hit an all time high.
ZOOM OUT.
The US Government has given over $113 Billion in aid to Ukraine.
President Biden just announced a one time, $700 payment to households affected by the Maui fires.
Really frustrating paying taxes to a government who would rather send it to another country than help our own.
My net worth has increased from $40,000 to $524,492 from age 22 to 26.
My plan is to get to $1,000,000 by 30.
Here is the process I am going to follow to get there:
The "boring" 8% return in the stock market is only boring because you don't have a lot invested. Getting 8% on a $500,000 portfolio is a $40,000 gain. That is not boring. If you focus on a larger principal amount (aka investing more), the "boring" 8% becomes fun.
$100,000 in VOO pays you $1,600 per year in dividends.
$100,000 in SCHD pays you $3,590 per year in dividends.
$100,000 in JEPI pays you $11,370 per year in dividends.
If you could only pick ONE to hold for the next 20 years, which would you choose?
Charlie Munger was worth $2.6 billion at the time of his death.
A few years ago he answered a question about envy at the Daily Journal annual meeting.
What he said everyone needs to hear🧵: