37-year-old who ‘grew up poor’ reaches $1 million net worth in 10 years, shares stock portfolio and career tips: Top 7 stocks, ETFs
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The US stock market remains one of the most efficient ways to increase wealth, despite short-term fluctuations. Historical data shows that even at tough entry points like the 2007-2008 financial crisis, a $1,000 investment in U.S. stocks could turn into $1,765 within 20 years. The key here is, you guessed it, to stay invested for the long term.
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The miracles of the stock market are not merely hypothetical. They are evident in countless rags to riches stories.
Last month, an investor on r/financialindependence, a Reddit discussion board with 2.3 million members, shared how he went from $0 to $1 million in net worth in just a few years.
The 37-year-old investor wanted to celebrate reaching $1 million in net worth in just a few years through hard work, patience, wise investments and living below means.
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Working ‘paycheck to paycheck’ for five years
He started as a business analyst and worked paycheck to paycheck for the first five years. He took loans from friends because the banks wouldn’t give him credit. He had no money to repair his car. His net worth was $0 for almost a decade because he worked on a low salary and couldn’t save.
His big break came through career development.
“Once I became a Director in a Fortune 50, my salary exploded fourfold (now about 350-430K, depending on bonuses/stock performance). This year I invested $190K, which seems surreal to me.”
’10 years of groundbreaking work’
But like most success stories, this was not without struggle, hard work and patience.
“It took me ten years of grueling work to achieve it, but yes, once it happens, it’s easy,” he added.
The investor said he grew up poor but had “highly educated, great” parents.
“I know my parents went hungry for a few days, but I never did that. New clothes were birthday presents. I still remember the first time I got branded shoes,” he recalls.
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Career Progression and High Salary: Keys to Financial Success
Since career success and a high salary were key to his financial advancement, he was asked how he climbed the corporate ladder. Explained here:
“I first became a director at a startup where I could make a significant contribution. Then I moved to a Fortune 50 company and was able to keep my position (which is essentially a promotion). Now I’m in line for a Sr. Director I don’t think personal connections played a role (I don’t have contact with those who promoted me), but I did have to develop the skill of moving up (preemptively setting expectations for success and then exceeding them on objective measures). , especially in a larger company.”
He said he spent a lot of time over the past decade improving the “core aspects” of his work before “relaxing” a bit.
He also shared tips to increase visibility and success at work:
“From my experience, I then had to layer it on: have effective 1:1 conversations with my manager and use them as a series of events that actually led to a promotion, to ensure that my team and I are delivering hard results (managing team performance) and then making sure those results are recognized, and making sure my management understands what success is and that it shouldn’t change over time. The last part is probably the hardest part.’
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When asked about stock investments, he said most of his money was in broader market ETFs, but he also had some individual stocks in his portfolio. He said he started investing in October 2022, when the market was nearing its bottom. He mentioned a number of stocks he owned from October 2022 to January 2023.
Let’s take a look at the portfolio holdings.
Microsoft
Microsoft (NASDAQ:MSFT) was also part of the investor’s portfolio, which reached a net worth of $1 million in about a decade. In early October 2022, MSFT shares were trading near $235, while at the end of January 2023 the share price was around $247.
Amazon
The investor said Amazon.com Inc (NASDAQ:AMZN) was part of his portfolio between October 2022 and January 2023. Interestingly, Amazon shares fell about 10% during this period.
Spotify
Spotify Technology SA (NYSE:SPOT) was one of the individual stocks in the investor’s portfolio that rose from $0 to $1 million in net worth in about a decade. Over the past five years, shares of Spotify Technology SA (NYSE:SPOT) are up about 216%. Spotify recently said it expects to add 665 million monthly active users in the fourth quarter, compared to 660.7 million Wall Street consensus.
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Nvidia
The 37-year-old investor, who saw his wealth rise from zero to $1 million in about a decade, said NVIDIA Corp (NASDAQ:NVDA) was one of the stocks in his portfolio between October 2022 and January 2023. Before the stock split adjustment, NVIDIA Corp (NASDAQ:NVDA) was trading around $120. By the end of January 2023, it shot up to around $190.
Apple
Apple Inc (NASDAQ:AAPL) is another key stock in the portfolio of the 37-year-old investor whose net worth has risen from $0 to $1 million in about a decade. In early October 2022, shares of Apple Inc (NASDAQ:AAPL) were trading at around $138. The stock price rose to $144 at the end of January 2023.
Vanguard Total Stock Market Index Fund ETF (NYSE:VTI) was an important part of the investor’s investment portfolio. He said about 40% of his total investments were in VTI and VOO. VTI tracks the overall stock market and exposes investors to small-, mid- and large-cap stocks. About 69% of the fund is allocated to large-cap stocks. The portfolio includes more than 3,600 stocks. The ETF’s top holdings include Apple, Microsoft, Nvidia, Meta Platforms and Amazon
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF (NYSE:VOO) is another broader market ETF that was part of the investor’s portfolio worth about $1 million. VOO tracks the S&P 500 index and yields approximately 1.2%. It pays quarterly dividends. He said VOO and VTI represented about 40% of his investment portfolio.
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This article 37-Year-Old Who ‘Growed Up Poor’ Achieves $1 Million Net Worth in 10 Years, Stocks Stock Portfolio & Career Tips: Top 7 Stocks, ETFs originally appeared on Benzinga.com
