How to Triple Your Net Worth in 6 Months
We talked to Taylor Y. about her life post-Circle and how's she's been able to triple her net worth in a matter of months. We're all about sharing the wealth, so we asked her to share how she did it—so you can too.
i Put a focus on investing and automated it
I used to only actively fund my 401k. Post-Factora Circle, on top of increasing my percentage that goes into my 401k, I’m also putting money in other investments automatically out of my paycheck. I realized that I would splurge on things if I knew I had the cash around, so "automatically paying myself first" increased my savings without making me feel deprived.
Now, I’m actually putting $500 per month in my robo advisor and I’m maxing out my Roth IRA, which was given to me by my grandfather. I was previously just letting it sit, but now I contribute $500/month.
Automating these transfers alone grew my net worth from $6k to $18k! That was almost a 200% bump from October to now, just from having someone to hold me accountable to automate it.
i got a 36% pay raise
I was already on track for a promotion before I joined a Circle. However, the Circle held me accountable for checking in with my manager and asking for what I deserved in terms of compensation. More importantly, because of the Circle, I knew how to handle the pay increase without lifestyle inflation. I leaned on my my money mantras and goals of what I was trying to accomplish to keep (and increase) savings instead.
i bought a house
This did have a huge impact on my net worth growth, but even without buying the house it would have doubled from the work I did in paper assets. Factora gave me the tools and confidence to set a goal to purchase a house. I honestly didn't think this would be in the cards for me until much later in life.
When I learned how to actually assess the numbers of a home, it seriously de-bunked a lot of the myths I had in my head around buying a house and how costly it would actually be. My partner and I also asked for help from our families (something I am not sure I would have done before Factora Circles), and we got the help with the down payment!
bottom line: start where you are
I think it’s also super important to acknowledge privilege when discussing net worth. I’m extremely lucky that I was given the opportunity to get an education without loans, and that put me in a very different position starting out than some of my peers. Same with the house: my partner and I were fortunate to have family that would contribute to the down payment.
However, I think Factora will give you the tools to start where you are and make improvements. Small decisions moved me to tripling my net worth (automation, small changes in spending habits, confidence to ask for a raise, confidence to go out and understand the housing market and get a piece of it)
Next up for me is starting to save for an investment property.