The big bumps in my networth have always come at times when other aspects of my life are completely out of whack. I am probably spending about 90% of my waking life on work right now, and that’s still not enough, but I’m really seeing successful growth in my personal networth, which will be very helpful later when I have kids and want more flexibility in life. Every time it gets really hard, I have to stop, breathe, and remind myself that there is an endgame to all of this.
The level to conquer this year is passing over $400k in networth. With this being my first year aiming to save $100k, anything could happen. For the last four years I’ve saved (with investment growth and actual savings) $50k per year, so this $100k savings is a huge leap – made possible only by that previous savings and investments, plus growth in my own career.
While I’m a bit OCD about tracking my progress, it helps to see numbers hit month after month. It’s quite motivating to keep focused on the long-term picture.
I have a google spreadsheet where I’ve estimated were I should be bi-weekly for my networth throughout the year to keep on top of my progress. The stock market is always going to go up and down and up and down, so I won’t always be quite on track, but if I do notice that my progress isn’t where it should be, I’ll be extra frugal and invest more of my paycheck that month. If the market is performing well, I’ll usually pick a few individual stocks to invest in that have strong long-term prospects but haven’t done well in the short term. Usually I’ll just invest in index funds or wait until my portfolio is down a bit more and then buy more index funds. I like Vanguard because I can dollar cost average there for free, and I like Loyal3 to buy stocks because I can purchase them for free as well (I need to try out Robinhood too.) No more Sharebuilder investing, $7 trades for me!
Today, my “actual” networth (not including my car but including about $16k in private company stock that will likely be worthless in a year or two), is $322.6k, which is slightly over the goal for 3/15/2015 ($320.8k.) I’m pretty much right on track (always like to be trending slightly above target than under if possible.) There is still a long way left to $400k, of course ($77.4k to be exact) but it’s achievable if markets perform well. If I keep my job for the remainder of the year, I can realistically save $5k a month, or $45k for the rest of the year, which brings me to $367, $43k short of goal. It will take strong bonus income and investment growth to actually hit this number. Yet I’m at the least tracking to goal.
I’ll be satisfied if I end the year with $375k in networth, but am pushing myself to get to $400k. At $400k, if I can see 5% growth in 2016, that’s $20k of my $100k savings goal for the year taken care of – and if I see 10% growth, then that’s $40k of it, which would be a huge help.
I’m not sure how the next two years are going to play out – everything is so shaky and uncertain right now. I feel confident that I’ll be able to get to $350k networth this year (tracking towards my prior goal of $50k increase per year) but there’s a chance I could go well over that. I’ve just given myself $400k as a stretch goal to see how far I can, well, stretch to get there.
One thing is for certain – when I do have kids, there is no way in hell I would want to do a job like this. My current role is perfect for people who have no kids and no life. I’m ok with that for a year, or two, but then I’m going to figure out how to transition to a role that will likely pay a lot less and require a lot less hours – so I can finally find some form of work-life balance, or just overall life balance. Sigh, that would be nice.