How Imani Porter grew her net worth to $200,000 at age 25

  • 25-year-old Emani Porter raised her net worth to $200,000 through investing.
  • She automatically transfers 60% of her salary to her brokerage account.
  • Porter also automates 15% of her salary into an employee stock purchase plan.

After paying off $25,000 in student loans, 25-year-old Emani Porter started thinking about how to build wealth. “I’m a very frugal person in general, so I just started putting all my money into savings and not really investing,” Porter told Insider.

First, Porter started tracking her

net value

. “It’s like your personal scorecard,” she says, adding that keeping track of her net worth prevents her from taking on more significant debt.

Once she realized that savings alone wouldn’t help her build her fortune as quickly as she imagined, she relied on her peers in the fintech industry for solutions. Porter says, “I work with a lot of smart finance experts who have been saying to me, ‘No, you need to invest your money. This is how you will get rich. ”

According to records seen by Insider, Porter’s net worth is now $200,000. To make it as easy as possible, Porter automates its investments in three simple ways.

1. Employee stock purchase plan

An employee stock purchase plan (ESPP) allows employees to buy shares in their companies at a discount, usually up to 15% below market value. For example, if you are a 3M employee with a 10% ESPP discount, you can buy shares at $129.78 per share instead of the current market price of $144.21. If the stock goes up to $150 or $200, you will see a significant increase in your net worth even though you bought shares at a discount.

Porter told Insider that she opted to automatically deduct 15% of her salary to purchase stock in her company.

2. Retirement accounts

According to records seen by Insider, Porter contributes to a 401(k) and Roth IRA that takes full advantage of her company’s match. A 401(k) is an employer-sponsored retirement account where employees can contribute pre-tax income and allow it to grow over time in the marketplace.

A Roth IRA is an account that you can fund with after-tax earnings, allowing funds to grow tax-free without any additional taxes upon withdrawal. Porter’s retirement accounts combined are worth $78,000.

In addition, Porter contributes to a Health Savings Account (HSA) through her paycheck, a triple-benefit tax account that can be used to cover health-related expenses, such as over-the-counter medications and menstrual products.

3. Brokerage account

After Porter’s retirement, ESPP, and HSA contributions, her home pay is about $4,000 per month. Of that $4,000, Porter automatically transfers 60% directly to her brokerage account. Combined with her company’s holdings through ESPP, Porter’s investment accounts are worth $76,000, roughly 38% of her entire portfolio.

While this technique helped Porter build her net worth quickly, it also built a solid foundation in cash savings first. Her rent, car payments, and living expenses come to nearly $1,000 a month using a meticulously managed budget. She adds, “Of course, I have my six months of living expenses in the emergency fund, and I’m always looking for ways to increase the income.”

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