Welcome to Kiplinger’s My First $1 Million series, in which we hear from people who have made $1 million.
They’re sharing how they did it and what they’re doing with it. This time, we hear from a married 58-year-old man who works in the entertainment/gambling industry in New York. He reports his annual salary is $150,000.
See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.
These features are intended to provide a window into how different people build their savings — they’re not intended to provide financial advice.
To learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They’d Known Before They Retired.
And to hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:
The Basics
How did you make your first $1 million?
Technically, I made my first million from paying off my house early and savings. We were fortunate to make a profit on the sale of our first house, broke even on the sale of our second house during the 2008 downturn and became mortgage-free in our third house that we currently live in.
(Image credit: Getty Images)
Our second million came from investing in our company 401(k) plan. Each time I started a new job, I rolled over the balance to the new job plan and resisted the temptation to cash it out.
I made sure my contributions were enough for the company 401(k) match plan, and as my salary grew, I contributed more until I maxed out to the federal tax limit.
All of this took 30 years of daily financial discipline of learning to live within my means.
One simple example is I figured out early that if I brought my own lunch and morning coffee from home instead of going out each day, that was equal to a car payment each month.
What are you doing with the money?
I am still working and have almost two more years before I can withdraw from my 401(k) penalty-free, so I am sticking with the same plan of investing in the company 401(k).
With no mortgage, we were able to pay for my son’s college and, as a graduation gift, assist him with a down payment for his first house.
(Image credit: Getty Images)
We spent years paying rent and saving for our first home, so it is personally gratifying to see the next generation benefit from our hard work.
The Fun Stuff
What is the best part of making $1 million?
I don’t worry about money. I continue to live a middle-class life but don’t have the “end-of-the-month bill-paying worries” I had when I was younger.
Did your life change?
Making $1 million did not change my life. I made a conscious effort to make sure it didn’t. I continue to work and save.
I will admit it did allow for better family vacations.
Did you do anything to celebrate?
Went to dinner with my wife.
(Image credit: Getty Images)
Does anyone know you’re a millionaire?
I told one co-worker who I have worked with for almost 20 years. He knows the humble beginnings of my career and could appreciate the hard work it took to get there.
Any plans to retire early?
I do not plan on retiring early. I enjoy what I do, and I am fortunate enough to keep doing it.
Looking Back
Anything you would do differently?
When I graduated high school, I had no interest in pursuing higher education. I think that was a mistake. Instead of being an electrician, I could have been an electrical engineer. Who knows?
What advice would you give to your younger self?
That you can do it. I never thought a blue-collar worker could be in the financial position I’m in.
(Image credit: Getty Images)
Did you work with a financial adviser?
I did not use a financial adviser. I had a few consultations but saw the fees and risks as too high for me.
Did you read any books that helped you on your journey?
I mostly read books on compound interest.
Did anyone help you early on?
My brother. He pushed me to pay attention to my future financial well-being by investing in a 401(k) and living within my means. Once you do that, everything else falls into place.
Looking Ahead
Plans for your next $1 million?
I will probably be retired and spending before I reach another million, which is fine. Life is about living, not making money.
Life is also better with money. Balance is the key.
(Image credit: Getty Images)
Do you have an estate plan?
I do have an estate plan. Mostly to keep the next generation out of probate court.
Any advice for others trying to make their first $1 million?
First lesson is to learn the power of compound interest. With a small starting balance, it looks like nothing. Over time, it grows into something.
(Image credit: Getty Images)
Second lesson is cash is king. Paying interest on credit cards or car payments is hurting you more than you think.
If you take the time to save for what you want and buy what you can afford, you will be far better off in the future.
Third lesson is patience. Lessons one and two do not pay off overnight.
What do you wish you’d known …
When you first started saving? Saving is simple. Pay off debt first, then add to 401(k).
When you first started investing? I took me a while to figure out my comfort level in risk. What helped me was tracking my contributions vs what I earned in investments each month.
Anything you’d like to add?
Money is not complicated. You either have to work more, make more or spend less. It’s that simple.
If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.
Related Content
TOPICS
