Total Savings/Net Worth Forum

[Anonymous User]

Checking in after 7 years of practice. 2016 grad. Here is where I started, and where I am currently:


2016 at graduation:
$0 savings/investments
$0 retirement
$0 home equity
$245K in student debt
Total net worth: -$245K

End of 2023:
$400K savings/investments
$300K retirement
$300K home equity
$0 student debt
Total net worth: approx. $1mm

One of the biggest realizations for me through all of this is how silly excessive budgeting/penny pinching is once you get your debt down to a reasonable level and build a nest egg up. My net worth can literally swing up or down $10-$20K in a day depending on how the markets are acting. Whether or not I get takeout for lunch five days this week has absolutely no material effect on my finances, but some of my colleagues at a similar level are still brownbagging three days a week “to save money.” Heck, whether or not I spend $15k on a vacation really doesn’t impact my financial projections much either. Get your money growing for you as soon as you can and your mindset will shift from budgeting your expenses to forecasting when you will have financial freedom.

[nealric]

Checking in after 7 years of practice. 2016 grad. Here is where I started, and where I am currently:


2016 at graduation:
$0 savings/investments
$0 retirement
$0 home equity
$245K in student debt
Total net worth: -$245K

End of 2023:
$400K savings/investments
$300K retirement
$300K home equity
$0 student debt
Total net worth: approx. $1mm

One of the biggest realizations for me through all of this is how silly excessive budgeting/penny pinching is once you get your debt down to a reasonable level and build a nest egg up. My net worth can literally swing up or down $10-$20K in a day depending on how the markets are acting. Whether or not I get takeout for lunch five days this week has absolutely no material effect on my finances, but some of my colleagues at a similar level are still brownbagging three days a week “to save money.” Heck, whether or not I spend $15k on a vacation really doesn’t impact my financial projections much either. Get your money growing for you as soon as you can and your mindset will shift from budgeting your expenses to forecasting when you will have financial freedom.

One thing worth keeping in mind is the importance of compounding. Over the course of 30 years, spending $15k less per year and putting them in the market may result in $3MM of difference in your portfolio (assuming a 10% annual return).

That said, I agree that if you are making biglaw level salary, brownbagging it is probably not moving the needle much. The key is that the primary risk for a law student is not spending too much, but not securing good employment as a lawyer. Even if you eat nothing but ramen during law school, you won't build much wealth if you don't sustain high income.

Personally, I just set a savings target and don't stress too much about individual expenses. That said, I've still never spent more than $5k on a vacation. But everyone has their priorities.

[Anonymous User]

Personally, I just set a savings target and don't stress too much about individual expenses. That said, I've still never spent more than $5k on a vacation. But everyone has their priorities.

But isn't that kind of the point? Some juniors spend twice that on clothing every two months; others spend twice that just on airfare for their vacations.

I get the need not to obsess with penny-pinching, but that presumes somewhat restrained spending across the board. If I like a good super lavish vacation every year (or go to Michelin-star restaurants with wine pairings and upcharges every month), I may need to eat ramen the rest of the time to offset those expenses.

[Anonymous User]

2015 grad, all biglaw. I don't "invest" in anything other than the S&P and crypto basically. Here is where I stand:

2015 Graduation:
$0 savings/investments
$0 retirement
$0 home equity
$250K in student debt
Total net worth: -$250K

End of 2023:
$1.2mm savings/investments (only S&P 500 or cash)
$500k Crypto
$250K 401K
$300K home equity
$0 student debt
Total net worth: approx. $2.25mm

The crypto amount does make everything else a bit hard to get excited about. I have made a couple hundred grand in the last couple months. I also put in most of my basis right before the prior peak, so I was down over 80% for a while (probably up 150% at this point). I don't really "count" on that money.

[Anonymous User]

2016 at graduation:
$0 savings/investments
$40k retirement
$0 home equity
$45K in student debt
Total net worth: -$5K

End of 2023:
$775K savings/investments
$25k Crypto
$295K retirement
$400K home equity
$0 student debt
Total net worth: approx. $1.495mm

I worked for several years before law school so had some retirement money and also had a good scholarship at law school. Otherwise most of the savings and investments have kicked in over the last several years. Agree with other 2016 grad, not much of a penny pincher anymore cause the markets change so much and still doing well. Also, was doing FIRE light as I was considering retiring early, but then had a kid so will keep working for at least another 16-17 years anyways.

[Anonymous User]

2012 at graduation:
$0 savings/investments
$5k retirement
$0 home equity
$220K in student debt
Total net worth: -$215K

2012 work, salary, spending:
Biglaw, $145K / yr
Hours: terrible
Spending: Didn’t track back then but likely around $40k/yr

2024:
$1.4M investments (taxable)
$525K retirement
$200K treasuries
$150K home equity
$0 student debt
Total net worth: approx. $2.275M

2024 work, salary, & spending:
In-house, ~550K (depends on stock price)
Hours: ~30 hrs/week
Spending: Varies around $53-$63K/yr

Likely going to retire early in the not too distant future. Realize I’m very fortunate with a high-pay, low hrs/stress job. I could really inflate the lifestyle if I stayed just 3-5 more years, but that’s also how perpetual one-more-year syndrome comes about. I have enough (could spend a fair bit more than I’m spending now) and tomorrow isn’t guaranteed. I want to enjoy life, and decide what I spend my time on. More travel, spend time with family and loved ones. Maybe work 6 mos out of the year on side projects that may bring in some supplemental income (but won’t be necessary).

[woopig2017]

2012 at graduation:
$0 savings/investments
$5k retirement
$0 home equity
$220K in student debt
Total net worth: -$215K

2012 work, salary, spending:
Biglaw, $145K / yr
Hours: terrible
Spending: Didn’t track back then but likely around $40k/yr

2024:
$1.4M investments (taxable)
$525K retirement
$200K treasuries
$150K home equity
$0 student debt
Total net worth: approx. $2.275M

2024 work, salary, & spending:
In-house, ~550K (depends on stock price)
Hours: ~30 hrs/week
Spending: Varies around $53-$63K/yr

Likely going to retire early in the not too distant future. Realize I’m very fortunate with a high-pay, low hrs/stress job. I could really inflate the lifestyle if I stayed just 3-5 more years, but that’s also how perpetual one-more-year syndrome comes about. I have enough (could spend a fair bit more than I’m spending now) and tomorrow isn’t guaranteed. I want to enjoy life, and decide what I spend my time on. More travel, spend time with family and loved ones. Maybe work 6 mos out of the year on side projects that may bring in some supplemental income (but won’t be necessary).

When did you move in house? How many years have you been there? would you mind sharing what level of position you are in (i.e., is this a GC spot)? This seems like a dream outcome.

[jdoe12345]

Wow is this just you, or with a spouse?

[Anonymous User]

Wow is this just you, or with a spouse?

With $5k a month spend its for sure just poster (no spouse).

[Anonymous User]

Wow is this just you, or with a spouse?

With $5k a month spend its for sure just poster (no spouse).

[Anonymous User]

2015 grad. Biglaw for 5 years, bounced around a couple in-house jobs since.

2015 Graduation:
$0 savings / investments
$0 retirement
$0 home equity
$300K in student loans
Total net worth: -$300K

September 2024:
$1.4M savings/investments
$400k retirement
$0 home equity
$0 in student loans
Total net worth: approx. $1.8M

I feel like I've done pretty well financially, even relative to peers who started off with no loans, and I've done it without sacrificing too much along the way (lots of travel, lots of hobbies). I'm planning to FIRE when I get to 3M or so, which should be within the next three years.

[Anonymous User]

C/o 2017 in biglaw

$240k in house (down payment, not counting appreciation since then)
$50k cash (soon to be converted to mostly I-bonds, ETFs)
$50k broad market ETFs
$175k retirement account (mix between regular 401k and some mega back door Roth)
$12k Roth IRA (backdoor)
$9k HSA
Total: $536k

I hoarded cash for a down payment on a house until this summer and I'm now really regretting not getting in the market sooner. But my house has appreciated over $120k in the last six months, so at least I have that.

Figured I'd update from 2.5 years ago since this thread has been necroed.

$515k in house (zestimate minus mortgage)
$60k in bonds and cash (I-bonds, various ETFs)
$217k broad market ETFs
$425k retirement account (mix between regular 401k and mega back door Roth)
$30k Roth IRA (backdoor)
$30k HSA
Total: $1.28m

Goes to show that (1) it pays to start investing ASAP (many of my investments from after buying the house are up 30%+) and (2) sticking it out for the extra couple years as a senior associate can give you a really nice cushion.

I get a lot of investment anxiety. To avoid that, every month or two I throw most of my cash into VOO (and/or bond ETFs if the market seems really really high). Is that the best strategy? Absolutely not. But time in the market >>> timing the market, and in biglaw it's hard to pick and choose investments anyway.

[RedNewJersey]

2018 Graduation:
$10k savings / investments
$0 retirement
$0 home equity
$180k in student loans
Total net worth: -$170K

October 2024:
$185k savings/investments
$265k retirement
$320k home equity
$0 in student loans
Total net worth: approx. $770k

[Anonymous User]

2018 Graduation:
$10k savings / investments
$0 retirement
$0 home equity
$180k in student loans
Total net worth: -$170K

October 2024:
$185k savings/investments
$265k retirement
$320k home equity
$0 in student loans
Total net worth: approx. $770k

Congrats.
Did you arrive here financially from standard biglaw?

[RedNewJersey]

2018 Graduation:
$10k savings / investments
$0 retirement
$0 home equity
$180k in student loans
Total net worth: -$170K

October 2024:
$185k savings/investments
$265k retirement
$320k home equity
$0 in student loans
Total net worth: approx. $770k

Congrats.
Did you arrive here financially from standard biglaw?

I'm not technically in biglaw anymore, but I've had the same total comp so financially it's equivalent.

[jotarokujo]

2018 Graduation:
$10k savings / investments
$0 retirement
$0 home equity
$180k in student loans
Total net worth: -$170K

October 2024:
$185k savings/investments
$265k retirement
$320k home equity
$0 in student loans
Total net worth: approx. $770k

This is an incredible saving rate, congrats!

[BasilHallward]

2018 Graduation:
$10k savings / investments
$0 retirement
$0 home equity
$180k in student loans
Total net worth: -$170K

October 2024:
$185k savings/investments
$265k retirement
$320k home equity
$0 in student loans
Total net worth: approx. $770k

Similar path, mid-law compensation.

2018 Graduation
- $0 savings
- $0 retirement
- $0 home equity
- $110k student loan
- $15k CC debt

October 2024
- $270k savings/brokerage*
- $400k 401k/roth/529/HSA
- $150k home equity
- $18k student loans

Total NW: approx. 800k

*150k profit from sale of first house