My First $1 Million: Industrial Cybergovernance Worker, 34, Cincinnati
"There is freedom in amassing wealth and comfort. However, you can always make more money, but you can never make more time."
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 34-year-old man who works in industrial cybergovernance in Cincinnati. He reports that his salary has ranged from $50,000 to nearly $180,000.
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.)
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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 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?
It was a slow, steady, calculated journey of about 11 years of investing, saving and keeping costs low and cash flow high.
Out of college, my wife and I prioritized paying down about $60,000 in high-interest debt (7% to 9%) from student and car loans, and we had a negative net worth at the time.
Once that was paid off, we started to slowly max out retirement accounts and to contribute to a brokerage account, investing in total market funds and other select individual stocks.
We didn't have any highflier stocks, but by letting compound interest and time do their thing, we amassed a $1.6 million portfolio while steadily increasing contributions over time.
It took us three years to save/invest $200,000, six years to get to $400,000, nine years to get to $800,000, and at 11 years, we are at $1.6 million.
What are you doing with the money?
Our wealth is mostly (about 80%) in stocks (total market fund), with the rest in high-yielding cash investments (Treasuries, money market, online banks, etc.).
We have increased our contributions to church and also take more vacations with our immediate family (wife and two kids under 10).
We recently went to Hawaii for three weeks, along with four other week-long vacations throughout the year.
My wife is a teacher, so we have the gift of a lot of time off built into the year.
The Fun Stuff
Did you do anything to celebrate?
We didn't do anything purposeful to celebrate. We have a disciplined approach and a respect of money and the time it takes to create wealth.
We may have gone out to a fancier dinner (about $250).
Other than that, we kept hitting our goals and ensuring we were enjoying our time along the way.
We prioritize travel, and the more wealth we are able to save, the more the playbook opens to go to nicer destinations (Hawaii, Greece, Italy, Germany, France, etc.).
But we always balance out the year with rustic old-fashioned road trips.
Our kids have been to more national parks by the time they were 5 years old than most people have in their entire lives. My wife and I have almost been to them all together.
What is the best part of making $1 million?
The best part is knowing you have the financial freedom to do what you want and not having to stress about how you are going to pay for unexpected expenses.
Did your life change?
Yes, I used to have a lot of anxiety about my job and would easily burn myself out trying to be the best in what I do. Having a huge cushion of financial assets and essentially zero debt, I am able to relax.
This has led me to spend more time with my family and make lasting memories with my kids and wife as we have enjoyed more travel and taken more time off work.
Does anyone know you're a millionaire?
No, we have not told anyone that we are millionaires because we don't want anyone to treat us any differently.
We have good friends and family. Some are not in the best financial positions, so we don't want to alienate them or make them feel less for not making the same decisions.
Ironically, many of them likely think we don't have much since our possessions are very modest compared to them (more-than-10-year-old cars, inexpensive and small house, etc.).
We splurge only on vacations, as we take four to five a year.
Any plans to retire early?
The plan is to retire early (around 45-50), but I will keep working for as long as I find joy in it and I am able to keep a work-life balance.
If I do work longer than that, almost all my income would be spent on luxury trips, giving back and setting up my kids for success, because there is no point in banking more than you need. A dollar brings diminishing enjoyment as you get older.
Looking Back
Anything you would do differently?
If I had the chance to do it differently, I would ensure I always stick to the predetermined plan. We have steady contributions, but in times of downturns, we start to burn down our cash reserves by increasing our investments in increasing increments. For example:
- $1,000 when the market is down 5%
- $2,000 when down 10%
- $4,000 at 15%
- $8,000 at 20%, etc.
During COVID, we invested $60,000 in total market funds and saw the value sharply rise afterward. But in subsequent downturns, sometimes we pulled the trigger late after the milestones were hit, and we missed huge upswings.
Make a plan and stick to it ... period.
What advice would you give to your younger self?
It's a slow and steady game. There are no quick wins for the vast majority of folks. There is nothing glamorous about discipline, but with time and compound interest, it's all but guaranteed you'll get there.
Did you read any books that helped you on your journey?
I have read many financial books over the years, but the book I enjoyed the most was Die With Zero (by Bill Perkins), which equates money to life points.
Helps you realize how you are trading time and life (experiences) for material purchases. Grounds us to what's important, such as buying experiences like travel.
Did you work with a financial adviser?
No, self-directed. I log all of our spending in a spreadsheet and ensure we are hitting savings and investing goals, but also allowing ourselves to have fun with going out to eat and spending on travel and activities for the kids.
Did anyone help you early on?
My dad was a good example early on. He always stressed the importance of saving and investing. He helped me open a brokerage account as soon as I could, which laid the foundation I built upon.
Looking Ahead
Plans for your next $1 million?
For our next million, we are planning to spend a little more on vacations and meaningful activities with family and friends.
We are starting to treat friends more to dinner, go to concerts, go on weekend getaways and picking up more expensive hobbies like golf.
Any advice for others trying to make their first $1 million?
Don't try to keep up with the neighbors and friends in material goods. Choose what's important to you and don't sacrifice time spent with friends and family.
There is freedom in amassing wealth and comfort. However, you can always make more money, but you can never make more time.
In your journey, keep everyday fixed costs low (home, auto, etc.), but spend on experiences and travel.
Those memories will pay dividends over your lifetime, especially the ones spent with your kids.
Not everyone needs a million dollars, but we can always use more time.
Do you have an estate plan?
Yes, we have a will, power of attorney and a living trust. All our assets will be evenly split between our boys.
What do you wish you'd known …
When you first started saving? You don't need as much cash as you think. Early on, I had enough to cover two to three months of expenses, but I would invest everything else.
When you first started investing? How the power of compound interest really works. It takes a long time to see money making money and it being a meaningful difference on the bottom line.
However, it becomes a force after having a stock portfolio of over $500,000, and in a single year, you can add another $50,000 in wealth just from returns and not counting contributions.
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.
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