March 16, 2013
by Joy
3 Comments

Is $250k Networth Realistic This Year?

In addition to tracking my networth performance on Mint.com and PersonalCapital.com, I also twice monthly track every single asset in one Google spreadsheet. I’ve been obsessively doing this for the past four years. It helps me keep a reality check on how my stocks are performing and if I’m overspending in terms of preventing reaching my goals. Every year so far I have met or exceeded my goals. This year, I’m concerned I won’t make it. And this is the biggie — $250k in networth by 30.

My spreadsheet basically adds up my total networth minus any debts and breaks down the amount I have to save per month to hit my goal. The good news is, I’m making progress. At the beginning of this year to reach my goal I had to save $9981 per month. Today, I only have to save $7,376 per month. This is largely due to the performance of my stocks as well as increasing my early contribution to my 401k this year.

But $7376 per month is still about $3000 more than my take home pay per month! That means I somehow have to make up for $27k in the next nine months, plus, of course, all the money I spend each month to live. So really I need to make up about $40k in the next nine months to hit my goal. Seems impossible.

Let’s see..

If I earn 3% return on my networth for the rest of the year that’s $6300
If I get my maximum bonus for the next three quarters, after taxes that’s about $9000
That still leaves a gap of $25k to hit my goal.

Basically, if the above holds true, I need to save an average of $3k per month for the next nine months to hit my goal.
Ok, that’s hard but doable.

But all of the above must actually come to fruition. Hitting my top bonus each quarter is very hard. And I’m not sure I’ll be earning a 3% return on my networth over the next nine months. At least I can set some goals for myself here, saving $3k per month to get somewhat close to my goal. My biggest challenge right now is what to do about my car. I want to buy a new (used) car but feel like I should wait until I hit my goal to do this. If the stock market performs well or suddenly AAPL takes off I can easily increase my networth quickly — but of course that means I can easily also lose it as fast. Last thing I want to do is get to the end of 2013, look at a networth of $200k with 0% growth yet plenty of investment over the year, and meanwhile I’m still driving the same beater. I’m tempted to sell 50% of my AAPL stock to cover a new car, but then there’s no way in hell I’m making my goal for the year.

 

March 13, 2013
by Joy
2 Comments

The Reality of Reality is Reality.

The first quarter of the year has taught me a lot about delusional thinking. I’m the type that easily gets carried away with my passions, and wants to believe that everyone is working towards a common good. However, that’s just not the case. Everyone has their objectives, both stated and unspoken, as well as deep-rooted ones that are buried deep in their consciousness.

It’s especially important to grasp this concept in business. If people work for a company, they have an objective. If people work for a startup, they may have a stronger objective. As that startup grows, politics come into play. The waters can become murky. There are no clear sides to take, but sides are being formed in top-secret meetings, and if you’re not high enough up you get left out of the key informative discussions, and are left guessing.

Business is just a microcosm of society. Even if we don’t want to admit it, the world is just one big game and while you can’t actually win it, you can get certain fun prizes along the way — a good job, a great husband/wife, travel to exotic destinations, the freedom to spend a day lying on the beach, reading a book… there’s no exact structure to this game other than that which we define ourselves based on our personal motivators. In business and life overall, we’re stuck in a massively multiplayer offline game where we can either help each other or try to succeed on our own. There are no correct paths to victory. There are no guarantees other than you own end of life.

I’m exhausted of questioning every single decision I make to the bone. I’ve been reading a lot on Sheryl Sandberg’s Lean In concept and it’s inspiring me. I can’t say I relate to her because I don’t have a Harvard pedigree and I’m no COO. But I do like that she’s raising the important topic of not being afraid to lead as a woman. I ordered her book and look forward to reading it to see what tips she has for not being so afraid of taking charge and getting ahead. Men seem to play this game so well, even if they can be cut-throat to get what they want. Is it necessary to play games in business? I don’t want to say “can’t we all just get along” but I’m learning that the businesses I want to work for in the future will be building products that have a very clear mission in line with how we’re changing the world.

I’ve made a few significant mistakes lately, but none I can’t recover from. I’m trying to distance myself from caring so much about my business tasks, because caring as much as I do adds stress that I have no time to deal with. I just need to focus on execution, not perfection, like the men in my business. I received some very valuable advice from a coworker today about leadership — if you want to lead, don’t ask to be a leader. Do it. I know he’s right, but it’s hard to put into practice. I come off young and inexperienced with the exception of when I write — I pretty much have a job and respect because of my writing abilities — and I’m trying hard to revise the perception of my professional persona, but it’s hard when people have such a clear vision in mind of the mistakes you’ve made in the past. I’m trying to dress nicer at work, as looks do matter, and I’m hoping to show that I can effectively manage without officially managing anyone. I’m not exactly doing the best at that right now. Take three or four, come the next quarter.

If anything comforts me about my job today, beyond how grateful I am to work with a lot of really smart people, is that this role I can see as the defining position in my career. I was kind of traveling along jumping from opportunity to opportunity, but nothing felt right until now. This isn’t the last job description I’ll have on my resume, but it certainly is one that is preparing me for a future where anything is possible. So all is good in love, war and business. I may not like office politics but it’s part of life. Learning to successfully navigate this is a challenge I have now, and I’m not going to get it right the first time. I’ll do my best, take notes along the way, and prepare myself for my next company a few years down the line where I can start over with people who don’t know me, and make the right choices for a true professional.

February 26, 2013
by Joy
6 Comments

Romanticizing the Underdog No More: A New Approach to Turning 30

The other day, I was reading a blog post written by a 30-something about how being 30 means that you can no longer allow yourself to fail heroically. The author was not any 30-something 9-5 worker or woman spending her days sending out resumes while getting by on unemployment. The blog post was actually written by the beautiful, extremely successful Erin Foster, a television actress and writer on the site Hello Giggles.

Foster’s blog title sums up the feeling:
TotallyConfidentAndCompletelyInsecure.Com.

She writes in her post “Dirty 30: I’m Freaking Out” how she worries about getting her next written opportunity, about her next failure, even though she’s very successful for her age. “There is a period of time when we are allowed a free pass,” she writes. “We fail a math test because we’re in eighth grade and who cares. We sleep in until noon because we’re sixteen and just leave us alone. We get lazy at work because we’re twenty-three and it’s a job we aren’t passionate about. But at a certain point, we’ve run out of free passes and we have to be accountable for every single decision we make. There is no room for error. No one is asking you what you want to be, they are asking you what you are doing. Right now. What are you doing? Are you great at it? Are you making a difference? A lot of people are doing something important. Are you? Are you productive every day? Are you always working towards something bigger?”

Even Anne Hathaway, Oscar winner, who happens to also be 30, is quoted as saying she’s not impressed with herself, only what was created around her, and she constantly worries about where she’ll work next. “I’m still the underdog,” she said of her Oscar win. There’s something deeply romantic, falsely humble, and egregiously motivational about putting oneself in the bucket of never good enough which kicks our insecure yet confident asses into doing really great stuff. But it’s also kind of painful to the soul. It’s not a good way to live. Continue Reading →

February 22, 2013
by Joy
6 Comments

How Much Does It Cost To Learn How to Breathe?

Therapy is expensive, but sometimes it’s needed. After feeling so overwhelmed and unable to breathe, I finally made an appointment with a new psychologist. Her rates are reasonable – for $125 an hour I get to hear feedback on all the ways I view life incorrectly. The hour-long session was necessary. I was on the edge and needed to be talked down. I needed to be reminded that everything will be ok. Sometimes it doesn’t feel like it will be.

It’s not clear what mental health disorders I suffer with… and I hate being over dramatic… but the fact of the matter is that I have trouble dealing with emotions and conflict. Something that might not even phase another person can fling me into a deep depression. I swing between poles of security and insecurity, and no matter what success I have I feel like a complete impostor. The greater the success, the further one has to fall.

In my $125 therapy session, we very quickly got to the root of the problem — I really don’t like myself. I don’t even know who I am. My entire life has been defined by feeling motivated by fear of not being good enough – of having to prove myself. I discovered just how scared I am of the person I would become should I not feel like I have to prove something to the world. My therapist said – think about this for a second, what if you could love yourself for who you are, not what you do? Let that sink in. How does that make you feel? Continue Reading →

February 20, 2013
by Joy
2 Comments

America’s Most Stressed Generation

In today’s latest bit of depressing sociological discovery by The New York Times, reporter Catherine Rampell highlights what personal finance bloggers have been saying for years – college degrees are the high school diploma of years ago, but the cost for the degree isn’t fairly matched with the proper career and salary.

The article features a law firm in Atlanta that has a policy to only hire employees with college degrees, even for the $10 per hour “runner” job that really shouldn’t require a college education to perform. Due to diploma inflation and weak job markets, it’s easy to make the cut off for consideration in any role a degree. The firm agrees the education isn’t really necessary for the positions, but the social life gained in college to joke about school sports teams is. How sad.

In 2005, when I graduated college, the job market was better than it was today. I still had a very hard time finding a job, but refused to settle for an administrative position which took the four years of schooling I had just completed and rendered them useless. Luckily, I had the fortune of changing jobs frequently early in my career and moving up with each transition. These poor college grads working at this law firm are loyal to a fault, and are excited for small raises being promoted from one position that shouldn’t require a college degree to another. These are the same people who need to go back to school to get an MBA or professional masters degree in order to make any sort of reasonable living. The bachelors degree just gets them a very basic job. Continue Reading →

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