Here’s our latest interview with a millionaire as we seek to learn from those who have grown their wealth to high heights.
If you’d like to be considered for an interview, drop me a note and we can chat about specifics.
Today our interview is with Ms 99 to 1 Percent from 99to1Percent.
My questions are in bold italics and her responses follow in black.
Let’s get started…
How old are you and how long you’ve been married?
First and foremost, we want to thank you for giving us this opportunity.
ESI Money is one of our favorite blogs because we can really identify with what you talk about (Earning, Saving and Investing).
It’s also not surprising that our readers keep mentioning how ESI is one of their favorite blogs too.
Now, to answer your question, we are 36 years old and we have been together for 7 years, married for 5.
Do you have kids/family (if so, how old are they)?
We have a one-year-old daughter. She’s the life of the party, always smiling, and entertaining people around her. She enjoys being the center of the attention. Not sure who she got that from? lol
What area of the country do you live in (and urban or rural)?
We live in the suburbs of a major metropolitan city. It’s a HCOL (high cost of living) area but we love the opportunities it offers and the fact that we are close to family.
What is your current net worth and what are the main assets that make up your net worth? Any inheritance?
Our current net worth is about $2,031,000 which includes:
- Our house, we bought for a steal at $560K plus $40,000 upgrades, for a total of $600K, and we have had agents knocking on our door asking to buy it for $1.3M, but we are conservatively valuing at $1.1M. We are also aggressively paying down the mortgage. Starting off living in poor, unsafe neighborhoods with multiple roommates, has kind of made us paranoid, and made us want to secure our home first, before we move on to more interesting investments. Thus, we have been able to slash our mortgage in half and it’s now only $240,000, therefore the equity in the house is about $860,000.
- Our consulting business conservatively valued at $850K.
- Stocks valued at $160K. Once we pay off the mortgage, we will go full force into investing in stock markets and we hope to increase that to $1.5M-$2M by the time we reach 45 years.
- $100K emergency fund in short term investments. We haven’t had an emergency requiring to use this fund, however we have used it to fund some opportunities that have paid off big time, such as buying our house for a steal on a whim, and starting the consulting business. The fact that the fund is there allows to always look out for opportunities. And when we use the fund, we always make sure to top it up again.
- $50K in other assets such as our 2 cars and a $20K engagement (now worth $35K according to the latest appraisal) that was bought before discovering the FIRE/frugal lifestyle.
- $10K in cash.
No other debt, except for the $240K mortgage that we are hoping to get rid of by 2020. We avoid debt like the plague. 🙂
What are your jobs?
Ms99to1percent is a CPA in corporate finance at a Fortune 100 company and Mr99to1percent is a principal/expert programmer.
What is your annual income?
Our combined annual income is $400,000+ and we hope to double it again in the next 5 years.
How did you grow your income so high and what are your main sources of income?
Our income started low because we didn’t know we had to negotiate or ask for raises. It would have been great if blogs like ESI Money existed 10 years ago, we could have avoided that costly mistake. 🙂
We started realizing how underpaid we were and set a plan in a motion to increase our salaries.
Ms99to1percent realized how underpaid she was once she started filing taxes for her colleagues and realizing she was the least paid, even though she was the team lead and best performer. She was even the National Performer of the Year out of 3,000 employees.
Mr99to1percent also realized he could get paid more when HR sent him an email by mistake that showed the salary of a new employee that was going to be reporting to him. The new, less experienced employee was going to be paid more than him. That explained why HR never wanted to involve him in salary negotiations of his direct reports!
After these negative experiences, we set up plans to try to double our salaries within a short period of time.
Ms99to1percent got her employer to pay for her CPA; and then jumped ship to the best paying and fastest growing employer in the industry. She also has a tax prep side hustle that brings in income.
Mr99to1percent’s new plan was to become a contractor. He worked hard, asked for more tasks and more direct reports to build up his resume, and also networked a lot and then was able to jump ship and become a contractor.
By being a contractor, he’s able to charge a high rate and for every minute he works. And due to his strong resume, network and reputation, he has never gone without a contract and he’s been doing this for 4 years.
We also have the consulting business that brings in some income. Some of the profits, that are kept in the company/reinvested, are not counted in our $400,000+ annual income.
We also developed a product under the company, and it took us a few years to bring it to market. But we didn’t do it justice by promoting it enough. We only promoted it on LinkedIn and to only people we knew and for a short period of time.
But after starting blogging and learning how to promote a blog from the pros like ESI, we have decided to re-launch the product and this time really promote it hard.
The product is currently being used by universities around the world for free but we don’t have a paying customer yet, and we hope to change that with the new marketing strategy.
Did you get any inheritance?
We didn’t get any inheritance at all; it’s actually quite the opposite. We started off very poor and had to fend for ourselves. We tend to be the ones to help out our parents.
For example, when in college Ms99to1percent gave all her co-op earnings to her mom to help her with a down payment on a house. Her mom also has very little saved up for retirement and we expect to help her once she retires.
We also help Mr99to1parcent’s parents with their medical bills and ad-hoc expenses.
What is your annual spending and what are the main expenses you have?
Our annual expenses are very low considering we live in a HCOL are.
Our biggest expense is daycare at $20K for our 1-year-old daughter. Our annual expenses total $56K/year, which is about 15% of our income.
The rest of our income goes into taxes (6 figures), investing, giving and aggressively paying off the mortgage.
What money mistakes have you made along the way that others can learn from (or something you’d do differently)?
We have made many mistakes along the way. The most recent one was this past spring when we tried to pursue our lifelong dream of starting a school for kids, especially underprivileged kids. We thought it was going to be easy; however, we ran into roadblocks after roadblocks especially having to deal with the government bylaws and bureaucracies.
We ended up spending/wasting thousands of dollars all for nothing. We decided to suspend the project and relaunch it again once we FIRE and have enough money and time to deal with everything.
The lesson we learned was that you really have to research, research and research some more especially when you are planning to start an expensive project.
What have you learned in the process of becoming wealthy that others can learn from (what can others apply to become wealthy themselves)?
It’s ok to try and fail but it’s not ok to fail to try. Every time you come up with an idea, write it down and go for it especially if it’s an idea that’s not going to cost you an arm and leg. For example, when the idea of starting a blog popped up, and we decided on the name, we set up the blog right away, and started writing and officially launched pretty quickly after publishing only 2 posts.
Start early. Start thinking about your future early. For example Ms99to1percent was able to pay off her $40,000 student debt before graduating. She did that by choosing her field and school carefully, limiting the student loans she took out, starting to look for a job (and getting one) one year before graduating, and thus paying off the $40K student loans within 8 months, 2 months before graduating. Mr99to1percent also graduated college with no student loans by choosing a good but cheap school, packing all his classes into 2 days, and working 2-3 jobs the other 5 days.
Another lesson we learned from Ms99to1percent’s parents is that marrying the right partner that you love but that also shares your vision is very important. When Ms99to1percent parents were divorcing, their businesses also went downhill. And the dad told Ms99to1percent “When you marriage fails, your business is bound to follow. Money might not buy you happiness but happiness and team work can bring you money and wealth”.
Do you have a target net worth you are trying to attain?
We are trying to reach $4M by 45 years old mainly because we want to leave a legacy for our child(ren) and don’t want them to go through the same struggle we went through.
And also, because we want to pursue our lifelong dream of opening a school for kids. We want to leave the world a little bit better than we found it.
What are your plans for the future regarding lifestyle?
Ideally, we would want to retire from at least our 9-5 jobs around 45 years old.
And hopefully our side hustles would have grown enough for us to pay other people (and pay them well) to manage the businesses.
And eventually, we would want our kids to get involved in the businesses, because we are really doing all of these for them.
Is there any advice you have for ESI Money readers regarding wealth accumulation?
Just hustle and hustle hard, if not for yourself, do it for your kids, grandkids, underprivileged kids…Try to leave the world a little bit better than you found it.
The Physician Philosopher says
Thanks for the inspiration! Impressed at your numbers at such a young age! Makes me realize how much it cost me to be in school for so long and how much I left on the table with poor decisions before I found my way financially. It kind of surprises me a little bit that you are attacking that mortgage so hard with most of it already paid off and the amount you could be putting into the market, but I understand… I am pretty risk averse with my student loans (which certainly don’t earn as much as the mutual funds I could be putting it into).
I hope that your school works out in the end, it sounds like a great thing to do.
Keep up the good work!
Paper Tiger (aka MI 27) says
Great point on paying off the mortgage. I’m in the middle of deciding for myself what to do here. I have 7 years left on a 15 year fixed rate mortgage at 3.5%. I ran an amortization schedule to see how much interest vs. principal I would pay over the next 7 years. My initial thought was to pay down some principal so that my mortgage payments could end in 5 years instead of 7. To make this work, I would need to increase my monthly principal payments by 3K per month over the next 60 months.
Running the amortization schedule really opened my eyes. In total, if I do nothing, I will pay 12.6% in interest over the next 7 years or ~1.8% per year in interest. After taking into account our mortgage deduction, the effective rate drops to ~1.3% per year. Pulling money out of mutual funds generating significantly higher returns just to shorten my mortgage term by 2 years may not make sense. Granted, there are no guarantees on future returns but I could have a 5 year CD paying north of 2% that would still be better off than the 1.3% annually I am paying on this mortgage.
I’d suggest they run their own numbers and see what makes the best sense for them.
The Physician Philosopher says
All about people making individual decisions as long as it is intentional and tries to make both the head and heart happy.
Paper Tiger (aka MI 27) says
I agree. Hard to calculate the true value of peace of mind.
JEFF B says
$3K a month extra to pay off 2 years sooner?
Paper Tiger (aka MI 27) says
Or, a one time payment to reduce the principal by 150K and continue the same monthly payment for 60 months.
Ms99to1percent says
Thanks Paper Tiger. The initial plan was to invest the money, but we ended up spending it instead. Paying down the mortgage is better at keeping us frugal 🙂
Ms99to1percent says
Thanks Physician Philosopher. The initial plan was to invest the money, but we ended up spending it instead. Paying down the mortgage is better at keeping us frugal 🙂
The Physician Philosopher says
I hear ya! Either way you are building wealth, and setting a good example all the while!
Laurie@ThreeYear says
It’s great to read your story here, 99to1Percent! I love to read stories of immigrants who have achieved so much. And how incredible that you’ve been able to build up your incomes so high by creating your own consulting business. You’re also hedging that with a more “stable” corporate job with benefits as well, which is probably a good idea even with Mr. 99to1Percent’s success. I hope that you get to see the success of your school in the next few years. I have no doubt you’ll be able to achieve your goals for net worth in the next nine years. After the school, what do you imagine you’ll do after you achieve FI? Will you keep working, dedicate all your time to the school? It seems like you’d get bored without at least one project!
Ms99to1percent says
Hi Laurie,
We would probably relax for a little bit, and then start coming up with additional projects every year or so 🙂
Mike H says
Hi Ms99to1percent- great interview. You both are doing fantastic and your savings rate is just great. I am sure you will get to 4M or higher in the next 9 years. As someone who is 8-9 years older than you and at your target wealth, you may find that your motivation to keep the same pace of working dips a bit when looking at the other trade-offs.
Enjoy the journey- it’s really fun and goes by quickly.
Best,
Mike
Ms99to1percent says
Hi Mike,
That’s what we are hoping for. We hope to eventually slow down one day. Life is too short!
Lily | The Frugal Gene says
Yes, hustle hard for the kids! That’s my primary goal although my husband isn’t that into it. I always figured it’s an Asian feature and mentality. I’m still trying to convert my husband along but his family culture is to do good but not go beyond or push for things.
Chris @ Duke of Dollars says
Eric Thomas talks about this too – his family is his why, and really drives him to grind so hard because they are depending on him!
Ms99to1percent says
Hi Chris,
Yes, kids kinda give you extra motivation to provide and protect!
Ms99to1percent says
Hi Lily,
Sounds like you complement each other well. Need that balance 🙂
The Grounded Engineer says
Inspiring story, Ms 99to1percent. I’ve battled going out on my own for quite some time. My wife stays at home with our 16 month old so I’m nervous to make the leap. I’ve had some interesting opportunities present themselves recently that may push me into the entrepreneur world… Time will tell!
Paper Tiger (aka MI 27) says
My best advice is to go in with your eyes wide open. It is not as glamorous and lucrative as it might seem. For every success story, there are 100 failures. Most successful entrepreneurs failed 3-4 times before they finally made it work. It can be a very exciting and financially-rewarding path if you get involved in the right opportunity but that road also has many potholes and bumps to navigate along the way.
Just be prepared to give everything you’ve got if you make that call and don’t look back once you decide to plow ahead. I left a 36-year corporate career to pave my own way. Time will tell if I made the right call but I also had a significant financial safety net in place if things don’t work out. For me, that was very key in my decision. Everyone is different and every situation is different but I think it is good to consider all sides of the equation, not just the sides that appeal to you 😉
Ms99to1percent says
Yes, it’s riskier to do on one income family. Maybe a cushy emergency fund will help ease your mind. Or wait till your kid is 6 and in school and your wife goes back to work?
Siva says
Thank you very much for sharing your story Ms99to1percent, that was inspirational. Especially the last lines sums up everything why we do all these stuffs. Whats you have said is like we do plant a seedling and water it daily, care for it. But the fruits may be or may not be for us but certainly our kids and grand kids will enjoy them and they will remember us with gratitude.
Ms99to1percent says
Thanks Siva. Yes, it’s all about leaving a legacy for our kids, grand kids,…
Sean @ Frugal Money Man says
Great interview!
I had no idea the both of you have a goal of opening a school for children. You definitely have the mindset of giving back, and of leaving the world a better place. I find this to be the best quality among anyone, especially those in the FIRE community. The wealth we obtain can benefit and touch the lives of so many others in a positive way.
Keep up the great work!
Ms99to1percent says
Thanks Sean, yes that’s our dream. We want to give back since without education we would probably still be in extreme poverty.
Mike at Balanced Dividends says
Great interview, Tina!
It’s great to continue to find out more about your successes and plans – a lot of good, helpful info for so many to consider and apply.
Thanks for sharing. – Mike
Ms99to1percent says
Thanks Mike. Glad you enjoyed the interview.
Carlos says
Thank you for sharing your inspiring story.! I was very surprised to find out how young you are since your other comments demonstrate wisdom beyond your years.
I have no doubts you will reach your milestone by 45… and just as you compare your mortgage payoff snowball, if you miss it by a year or two … are you really going to be disappointed?
Congratulations again.!
Ms99to1percent says
Thanks Carlos. We won’t be too disappointed especially if it’s because of a new baby 🙂
Bernz JP says
Combined annual income of $400k a year and looking to double that up in the next few years. such an amazing accomplishments. Any plans on having another child? Might be a good time to think about a baby brother or sister to your one-year-old. A very inspiring story indeed.
Ms99to1percent says
Hahahaha, you read our mind. We hope to have a second this year or next year 🙂
Chris says
How did you come up with a value of 850k for the consulting business? If it’s an owner operated business which rely heavily on the skills of a single person, the normal business valuation multiples don’t normally apply and they are not very saleable.
Ms99to1percent says
Hi Chris, we do have a few clients and employees/contractors.
Mr. Shirts (MI35) says
Love the interview, congratulations on the victory in the housing game. Keep up the earnings, great job of recognizing your value and being paid appropriately!
Ms99to1percent says
Thanks. Hopefully we will stop ironing shirts soon 🙂
Mrs. Groovy says
Great interview and great takeaway line: “It’s ok to try and fail but it’s not ok to fail to try.”
Lots of inspiration here. Too bad about the school Ms99to1percent. It’s a shame that some government agencies make it so difficult to move forward. Keep the idea in your heart and you’ll find a way.
Ms99to1percent says
Thanks Mrs Groovy. For sure we will find a way!
Jason@WinningPersonalFinance says
Your accomplishments are amazing. I’ve been following your blog from the beginning and you seem to do everything right. In fact, I look forward to each of your monthly blog reports to figure out how to grow my own readership. Imitation is the sincerest form of flattery. Keep up the good work!
If I may ask, what metric are you using to value the consulting business at $850K?
Ms99to1percent says
Thanks Jason, glad to hear you like our blog reports 🙂
To answer your question, the valuation is a result of a few things such as:
– EBITDA
-Growth trend
-A product attached to it (Huge potential here. Product is being used for free by universities all over the world including Harvard, and feedback has been great. And now the product is being tested by a potential paying multi-billion dollar client. If all goes well, the valuation might jump 10x or more.).
-What a business acquaintance who had a similar product (but with less features, less positive review, and less market penetration) sold it for to a competitor.
-Etc
BK says
What about planning vehicles? 529 Plans? Retirement Plans? Do you skimp on car, homeowners, liability insurance? Life Insurance? Your daughter is your life, do you purchase disability or life?
Ms99to1percent says
Hi BK,
Of course we have all of that: 3 life insurances, 2 car insurances, home insurance, disability insurance, business insurance,…
We also max out all tax advantaged education and retirement funds.
JS says
Great job, very impressive! The one thing that jumped out at me was your annual spending amount. If you back out daycare, you’re saying that you live on $36K per year in a high cost-of-living area? I’m sure this could make for a whole other long post, but how on earth do you spend so little?
Ms99to1percent says
Hi JS,
The average household income is about $75K. Remove taxes, retirement, education contributions, daycare expenses, and they are probably left with less than $36K, and yet they are able to manage.
If they can, so can we. We just have to make sure we avoid lifestyle inflation.
JoeHx says
This was a fun read – I really enjoy Mr + Ms99to1percent’s blog, so I really appreciated this interview!
Ms99to1percent says
Thanks Joe. Love your blog too 🙂
Michael CPO says
Yes an emergency fund is a good idea no matter what is the size of your portfolio. I have seen this is very true from my life while overseas for almost 20 years. CPO, From the Far Side of the Planet
Ms99to1percent says
Hi CPO,
You are so right. Emergency fund is a must. Have fun for all of us over there 🙂
Jens says
Very inspiring!
Low annual spending – it is very typical among people with a lot of money that they have earned themselves… It took me a while to learn…
Thanks sharing!
Ms99to1percent says
It’s so true. The more we make, the less we feel we need to spend. In contrast, when I was a student, some of the student loan went into retail therapy 🙂
GYM says
This is a great interview!!! Thanks for sharing your details. I don’t count my engagement ring as part of my net worth though because I wouldn’t sell it. It is in the five figures as well. Is your ring a name brand ring?
I find that after you purchase it and get it appraised again the value actually lowers (but that’s just my experience and I have never gotten my ring appraised).
Ms99to1percent says
Thanks, glad to hear you liked the interview.
About the ring, it’s the number of carats, plus all those other c’s that make it expensive. It also costs us a lot of money insuring it (the monthly ring insurance premium is higher than the house insurance premium!) , so we might as well count it towards the networth 🙂
The high insurance premium is also the reason we re-appraise it and look for cheaper insurance every few years. Insurance companies always insist on an appraisal not older than 6 months.