Tag Archives: networth

Why I want to be rich

When I was younger, being “rich” equated to buying stuff. Now that I’m older and wiser, I still want to be rich, but for different reasons. Sure, I still want to buy things, but the things I want to buy have changed substantially.

Having just hit the $1M milestone with my husband (with almost 90% of it being my savings), I am not rich yet, but feel finally on our way. Rich, to me, is having $10M in assets. This is what I would do if I was rich:

  • own a home outright and be able to comfortably afford taxes and maintenance on investments/interest (i.e. in Bay Area a $2M home)
  • easily afford college for all kids in full and leftover $ to help them get started out (but not to the point where they become lazy)
  • pass down some wealth to my children–enough to help them but not enough so they do not know the value of a dollar
  • “treat” friends and family to meals out, buy them nice gifts, even take them on vacations and pay for the trip
  • donate to causes that matter and/or put $ into trust for later donation after it grows to more substantial amount.
  • take time off to spend with family and travel
  • afford IVF if needed to have 2nd + 3rd kid
  • pay for kid’s extracurriculars, camps, pre college programs, etc, without worrying about $
  • have enough financial stability to start my own business (or non-profit) and it not impacting long term financial goals
  • not worry about retirement or long-term care or unexpected disability
  • hire household help to cook healthy meals, clean, personal trainer, etc, esp while working
  • buy my mother a home and make sure her financial future is stable
  • help future grandkids out as needed
  • take classes in art and photography, focus some time on my hobbies and see if I can get any better at them
  • write books or at least have the time to write them

I don’t think I’ll be “rich” ever but if I do get to $10M it will be after many years of working and I’ll likely be on my deathbed! But it’s good to have goals!

Will this be my $1M year? One million is just the start.

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It’s crazy how one turn of good luck (or perhaps a series of turns) can make such a huge difference in your net worth. As you can see from the chart above, my net worth has been gaining steadily since 2007 — but suddenly in the last year it has jumped from $625k in Dec 2018 to $884k in July 2019. That’s kind of insane.

How did my networth increase $259k in 6 months?

Well, it’s mostly paper gains at this point — and given we’re likely headed to a recession, I see the blip up evening out over time. Still, $259k in 6 months — seems impossible, except I have the data to prove it actually happened.

Between the stock market doing well overall and my company stock doing even better, I’m achieving some major milestones faster than I ever though I would. My goal of reaching $1M by 40 now seems like it might be achieved THIS YEAR. It’s possible, depending on when a recession hits. I estimate by the end of the year, I should have another $100k in my various workplace stock plans, which, if the market doesn’t drop, gets me to $984k. That’s close enough that I could hit $1M by the end of 2019 or even before my 36th birthday.

If you add in my husband’s accounts, our overall networth looks even better. Currently, our total net worth (we do not own real estate so this is cash/stocks/bonds only) is 130k (his) + 884k (mine) = $1.01M!!!

So, while I don’t count my husband’s $ in my net worth, if I did, this actually IS the month we crossed the $1M threshold. I feel like I should celebrate or something. I wish my husband was as excited as I am.

It’s funny because when I was 21, I thought $1M was completely unachievable. I also haven’t increased my lifestyle that much. After all, I’m still living in a one bedroom apartment with my husband and 1 year old.

Once my own networth hits $1M, I think I might be willing to move into a larger space. I’d like to get to $1.5M (doable in the next 3 years) before I purchase property. This way if I own a home worth $1.8M, I know I have the $ to pay it off (mostly) if I had to… that’s what financial security is to me. I don’t mind debt, as long as I have the money to cover it available and the debt has very low interest rates. Or, maybe we’ll buy sooner. I think once I get pregnant with #2 it will speed up the process. For now, we like our apartment a lot, and it’s hard to think about moving. Maybe an extra room would give us more quality of life, but it probably would just become a storage room (however, I would like if my husband moved his office/gaming computer out of our bedroom!)

Anyway, I’m celebrating our $1M here because my husband doesn’t care and it’s a pretty big deal. I certainly don’t feel rich at all, but I feel like we’ve achieved the first major milestone to wealth. Wealth to me is not buying things you don’t need or designer crap, but it is being able to spend freely on your friends and family without worrying about running out of money now or in retirement. I think about $10M is the amount needed for true wealth based on what I could ever want to spend in life (assuming its invested and about $2M of it is in a home and another $1M or so is paying for my mother’s home and life, since I do want to pay her back for all my parents gave me in my life and hoping I can do this before she gets too old!)

Well, we’re a long way off from $10M, but I finally feel like we’re on our way.

Q1 P&L Report

Better late than never.

This post is a P&L report on my Q1 profit and “loss.” It does not include my husband’s income or spending. (We split household expenses 50/50.)

Key Notes:

  • Maxed our 401k (so overall take home higher since $19k of it was pre-tax)
  • Includes one quarter of RSU vesting (on incredible, fairly life-altering vesting schedule for 3 years if I keep my job and my company keeps performing as well as it has.)
  • I also did not pay enough tax yet but my husband’s income is much lower so it might balance it all out. Making 2x last year at least so we will at least be safe harbor tax wise. Keeping a substantial amount in cash to pay taxes next April.
  • We have about $20k in my son’s 529 plan so have delayed monthly investing more in that, and considering skipping 529 going forward as its tax benefits in CA are not that great, and just keeping my investments in taxable accounts.

Q1 Profit Analysis

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Loss Analysis (Spending)

Notes

  • Household expenses generally split 50/50 – below notes my 50% of household spending + personal spending (i.e. 1/2 rent, food is not included here. Yes, we spend too much on food.)
  • I pay for any travel to visit my family out of my income
  • I pay $1200/month for “childcare” to my husband that he will put into a Solo 401k for his retirement (this includes that amount – since his father watches our son, I “pay” my husband 50% of what daycare would cost, plus $200 a month for doing my laundry… which hasn’t really happened yet. 🙂 )

Spending by Category

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Spending vs Saving

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Monthly P&L

  • Jan: +$29,215 (*includes annual bonus)
  • Feb: +$4,571
  • Mar: +$30,457 (*includes quarterly stock vesting)
  • Q1: +$64,243 

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As noted above, this does not include enough taxes being taken out, so my annual report will be more accurate. I am going to meet with my CPA because we now have the very nice to have problem of having no idea how much in taxes we will owe for the year, since it is all dependent on my quarterly stock vesting amounts. I can estimate but it’s really impossible to know what our stock will be doing in a week at this point, let alone December.

By tracking quarterly, I hope to achieve my goal of $1M in networth by 2020.

Networth Report ($833,655 Q1)

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Target networth rest of year:

Q2: $850,000
Q3: $875,000
Q4: $900,000
2020: $1M Year!!!

How many kids do you want? Two… and an accident.

EVERYONE seems to think it’s completely ok to ask a new mom of a 9 month old the question “so, how many do you want?” My favorite is when colleagues ask me this out. loud in a public area where my boss can hear… of course I’m going to respond “I want 8 kids in the next 2 years” so she can flip out.

I don’t actually want 8 in the next two years – but I do want at least one more and I’ve always wanted to have 3 kids, even though rational brain says NO YOU DON’T. So, my answer when friends ask me – how many kids do you want – is “two. And an accident.” My answer to colleagues is… “I’m not sure. Maybe I’m done.”

But my heart says I’m definitely not done. Even though being a mom is the hardest thing I’ve ever done (especially being a working mom), I absolutely love it. I no longer am searching for this greater purpose in life — I’ve found it in my son. I love being a mom. I don’t see how I can afford 3 kids but f it, who can? I can afford 3 kids better than most people with 3 kids…

Since I’ll be 36 in November, I don’t have a ton of time to have two more kids. It’s possible it’s already too late. At the same time, I have 2.5 more months of vesting my stock at my company, and while I am focused on doing my absolute best at work, it would be safer to be pregnant during some of this time. They COULD still fire me, but it’s less likely as long as I’m doing my work and the company is doing ok if they know I’m pregnant (**there are no legal protections for a woman who is pregnant outside of not being able to get fired because you are pregnant.) However, in order to get fired while you are pregnant you need to be doing a bad job, versus be doing an ok job but not an amazing job.

I won’t suddenly stop working as hard once I notify work that I’m pregnant (I didn’t last time either) – it will just be a bit of a relief knowing that for a year (9+3 months) they’re slightly less likely to fire me in that time. So I have about 30 months left of survival here… 15 months “pure survival” (12 months until May, get pregnant, 3 months until notifying company – or maybe I’d tell them early?) then 12 months of slightly more security, which gets me to 27, then I just need to make it 6 more months until… some form of freedom. It’s not that long to make this all happen… so if I play my cards right, I can, in the next 2.5 years, have one more child, and hit $1.5M in net worth (which then opens me up to IVF for my final child at 39/40 and my husband would be a lot more open to having a third if I have $1.5M accumulated in the bank/stock market.)

I know I am a bit crazy about my planning but it seems to work decently to have goals and to go for them. After hitting this goal, I want to loosen up a bit. That $1.5M will be a huge milestone, as will having $1M before giving birth to #2. I think it’s very doable as long as I keep this job. That on its own is the single biggest challenge I have. I’m doing better than in past roles, but not perfectly at all. My MO has been staying up all night to get a lot of stuff done always and that doesn’t work anymore being a mom, so I need to figure out new ways to be productive during daytime hours. I already am in a bit of a low this year after a few communication fuck ups so I’m digging myself out one day at a time. I know I have a lot of room for improvement and I’m just hoping that my team sees I’m not only making an effort but actually being ON in hitting all my deliverables and communicating the right amount with clarity and purpose.

Now, in reality – do I think I will last at this company 2.5 more years? Probably not. Being as there’s already a bit of a record on my poor communication skills and missing a few deadlines, as soon as someone better comes along they can get rid of me. It’s just hard to find a replacement for me because I do all the crazy projects that don’t really fit a set job description… you could hire 3 different people to take over for the work I do, because the work I do requires 3 different skillsets, at least. Do I do all of these “jobs” perfectly? No. But when. you can’t hire 3 people, sometimes you settle for one person who tries her best and gets it all done. As I’ve learned as a manager and in my years in business, sometimes it’s better to keep on people who are loyal and who won’t be leaving any time soon by choice, versus hiring someone who constantly has one foot out the door. I’m sure my boss sees me as a bit of a necessary evil–which is NOT what I want to be, but it is better job security than I’ve had in a while. My goal is to, in the next year, really make sure the whole team appreciates my contributions. I think I have a path to get there but there’s a long road ahead. So I have one year in which to really kick ass (as much as someone with such horrible human skills as myself can kick) and then head into my second pregnancy as a worker that’s valued in the organization–not on a PIP or worse.

It could definitely go either way. I just need to get my act together… which is so so so hard on this little sleep. But… I can look at the next 12 months–the next 4 quarters–and within those 4 quarters figure out how I can make sure in each quarter I’ve delivered a few major high-value projects, and also didn’t totally fuck up any internal communication. If I can become the best project manager in the company that would be amazing but let’s be real – that’s not going to happen. I can, however, start setting realistic deadlines, and do my best to get everyone’s feedback on time on projects so we can hit them.

I’m definitely worried this is all going to go downhill fast, but keeping this “12 months of greatest” in my head feels more achievable than the 2.5 years of survival. I have no idea what I’ll do after those 2.5 years, but the more money I can save, the more doors that will open–whether that’s freelancing part time and staying home with my kids, getting a job at a startup that’s really helping the world somehow, or – who knows. There are a zillion things I could do… I just need the money to feel stable enough to take that leap. I’m so fortunate to be in the place right now where I have a winning lottery ticket in my pocket and all I need to do is just KEEP MY JOB.

For someone who has been fired 8 times in her career, though, that’s easier said than done.

 

Planning – Getting Ahead of Life Somehow

I’m looking at how to best manage the next 5 years of my life before I, gasp, turn 40 (holy crap, 40 – what on earth happened?) Anyway, I still have 4.5 years before that happens… which is so little time and yet these years will define the rest of my life in that I will either have achieved the final level of phase 1 financial stability, or not, and I will either have had one or more kids (to add to the one I already have) or not.

While planning this type of stuff is hard given so many moving parts and possibilities, I have to say thus far I’ve been pretty good at hitting my goals. I saved $500k before having my first kid, and, with infertility treatments was able to get pregnant by the time I turned 34 (taking my pregnancy test literally on my 34th birthday.) So with a track record like that, I’m going to keep planning and attempting to hit these goals.

Today, I thought out how the next 3-5 years could work… will keep posting here to see if life turns out this way, or not…

  • Keep current job until March 2022 and save $400k (net worth $1.3M)
  • Potentially free embryos ~Dec 2019 (3 mo after finish breastfeeding)
  • Lose 40lbs by May 2020 (~3.5lb / month)
  • Move into 3br apartment or house (rent/buy) May 2020
  • May/June 2020 (age 36) – pregnant with baby #2 (due Mar/Apr 2021, age 37)
  • Maternity leave 4 mo ~Feb/Mar/Apr/May Jun 2021
  • Sept/Oct 2022 pregnant with #3 (after 5-6 months at new job!!!) – give birth June/July 2023 (age 39)

New Goal: $1.3M Networth by 2022 (age 38)

In 2008 or so, I had $29k in total net worth. Ten years later, my net worth closed out the year at $625k. Ten years ago I couldn’t fathom having more than $100k in a bank account. At age 24, I was just getting started in my career, making very little, and wondering how on earth to save money.

I started out ahead of many–a college degree with no loans. I’m not sure I’d be where I am today or even close to it if I had massive loans to pay back, because that would have not only cut into my savings, but also likely prevented me from taking some of the risks I’ve taken over the last 10 years that helped me save so aggressively. But, I do try to take a few moments to be grateful for what I have, and how much I’ve been able to save–despite not being able to afford the high cost of living in the Bay Area.

Today, I’m especially grateful that my current path has not only enabled me to hit my goal of saving $500,000 before giving birth to my first child, but also is looking to possibly support my second goal of saving $1M before my second–which was a long shot just years ago.

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The last few months have been especially fruitful, thanks to vesting stock–my first stock vesting period working for a public company–and selling it off immediately. I do not include any unvested stock in my networth calculations since if I lose my job that $ isn’t real. But it’s hard not to fantasize about it being real–even with it being not that much once taxes are taken out–it’s still a substantial amount and can be life-altering given my whole financial strategy is save as much as possible as fast as possible… not for FIRE, but for financial freedom (working PT, consulting, or pursing more risky opportunities, or those that don’t pay as well, in order to help others and/or just spend more time with my family.) And I won’t give up a decent lifestyle today to assume that I’ll have enough money for a frugal one “tomorrow” that doesn’t require working. I want to LIVE today but support a future where I’m not worried about money and can afford a decent lifestyle with a family.

I’m still uncertain what my “number” is. At last estimate it was about $4M-$6M, including a house worth about $1.8M. I still don’t think I’ll EVER get there, but as I set new financial goals for myself along the way, it helps to keep focused on these mini wins towards this major goal. Even if $4M is my “goal” that’s far off.

I had said I wanted to hit $1M by 40. Right now, I’ve sped up that goal to 38 (I’m 35 and a half now.) Within the next 3 years, I’d like to get to that $1M mark. A lot will depend on the volatile markets — if we have a crash, there is no way I’ll get there. If they stay stable or keep growing, there’s a good chance…

  • April net worth: $847k
  • Remaining 2019 stock value after tax: ~$92k
  • 2020 stock value after tax: ~$123k

With saving my stock amounts, and with the markets staying stable, it’s quite possible I’ll get to $1M even earlier… by 37… which actually is my goal since I want my second kid by 37 and I would like to get to $1M before I give birth. I won’t feel any richer for it, but I think with $1M in the bank I’ll start feeling ok about taking a few more risks when it comes to buying a house. Ideally I’d have $1M in the bank (investments) plus enough for downpayment and closing fees in cash. Perhaps I can get there in 3 years. That requires saving $500k in 3 years, or $150k per year.

  • 2019 (35): $92k (stock) + $25k (interest) + $35k (income savings) = $152k
  • 2020 (36): $123k (stock) + $25k (interest) + $35k (income savings) – $50k (IVF) = $123k
  • 2021 (37): $123k (stock) + $25k (interest) + $35k (income savings) – $20k (preschool) = $153k

Total end of 2021: $1.275M. Not quite $1.3M, but close. Close enough where at that point I’d be willing to put $300k down on a $1.5M house and have $1M in the bank as a safety net.

Past 2021, my savings will go down again… my stock will be vested and it’s unlikely I will find another job where I make anywhere near this much. If I can keep this job until the end of 2021, I just realized… I’ll be really close to my goal–my new goal– $1.3M by the end of 2021.

BUT – big but here – is that to do that, we need to stay living in our 800 square foot one bedroom apartment rental for the next 3 years/until I have my second child. Maybe that’s crazy–but it won’t be that bad. If it means in 3 years we can buy a house and feel financially stable (ish) then it’s worth it, right?

Never Enough Money But Always Too Much of It

Meeting with CFPs feels very adult and yet very depressing at the same time. Too much shit has gone on in the last few months to handle, and on top of all that I’m turning 35 next month which seems like a substantial age which no longer has the veneer of youth on it at all. Thirty-five is, if you live to 70, middle age.

I’ve spent the last decade-and-a-half obsessing over money in somewhat nonproductive ways. Twice a month I’ve typed my networth calculations into my trusted google spreadsheet that goes back to my early 20s when I had about $20,000 or less to my name (that’s now over $600,000.) I know I spend too much on things I don’t need still, but spending is the only thing that makes me feel in any control in this crazy world. Of course that sense of control is not real and fleeting.

My question du jour is if I should pay a CFP $5000 a year or ~1% of my portfolio ($6k and growing) to help manage my family’s finances, or if I can (and should) do this on my own. I feel like even though I’m probably much more fiscally literate than most people my age, I’ve gotten to the point it’s time to bring in the experts. No more randomly buying Vanguard funds and individual stocks… I don’t even know if I’ve beat or lost to the S&P 500. And I don’t have life insurance. Or a will. Or an estate plan. Or an open dialogue with my husband about money.

The keeping our finances separate plan works well until it doesn’t. I realize that right now as the person who makes more money he’s allowing me without guilt to spend as I wish with the money I earn–but one day the tables may turn and I may choose to or no longer be able to work… what then? Perhaps I can save enough to “early retire” but in reality that doesn’t seem possible. I mean–maybe, if his family really contributes $1M to our joint housing in the near future–and we find a cost-effective duplex for something like $1.5M, and I pay the mortgage off as quickly as possible so our fixed expenses are very low… then, perhaps my expertise in my industry can garner me a few freelance contracts a year that will cover maintaining my lifestyle and also getting my car fixed every once in a while.

I just hate this suffocating feeling of locking myself into anything financially. I called a loan agent at a bank to learn more about mortgages and get a sense what we’d qualify for. He went through some basic questions and when he got to the part about debt he didn’t believe me that we have no debts. He asked me about 10 times… “you sure you don’t have any debts” and he was shocked. I told him there’s about $1000 on the credit cards and that gets paid off monthly. We drive used cars, paid in cash. Our credit scores are 755 and 800+. I guess we’ve had the privilege to avoid debt and beyond that neither of us believes in spending more than we have.

So why, after 35 years of that working, change that now?

I’m not so sure. In theory, owning property and not having to pay for a chunk of it (since his mother WANTS to gift us that money and she’ll be living there as well) is smart financially. Even with her $1M in cash we can’t get a place for all of us… we’ll need to spend $1.5M to $2M. And the $1.5M options will likely require either a lot of work, a huge commute, or both.

I go back and forth on what to do. My latest and greatest idea is to rent a house or townhouse with his father that’s much closer to my work. We pay $2400 a month for our one bedroom and his father pays $1800 for his tiny apartment, so together we’d have $4200 without changing what we’re paying to rent a house. There isn’t much you can get for $4200 that would work for us, but bump that up to $5000 a month and there are some reasonably nice houses near my office that we can rent. The price will go up annually, and we’ll lose our rent control, but realistically how long can we last in our one bedroom apartment with a child anyway? The plan was one year…  but I’m starting to think six months, max.

I don’t know. I want someone to come in and provide all the answers. My father seemed like the type of person who would do that in my life, but we never talked about money. He didn’t understand how I managed my money, or why I chose to rent a small apartment, or perhaps he didn’t care. All he cared about was me getting married and having children… and not needing him to fund my life, I guess. I’d like to ask him what to do still, but he’s gone, and I know I never could ask him about finances because he’d make some snide comment and make me uncomfortable–either saying I’m rich and expect me to pay for everything and judge my semi frugal lifestyle choices, or he’d be concerned about my finances and offer to provide support even though, as I now know, he didn’t have the resources to provide at all. But, I wish I had a father who I could talk to about money, especially since that’s what he did for a living. I thought about telling him what I had in the bank… I wanted, more than anything, for him to be proud of how well I’ve saved, how smart I was with my money… but he’d just think I was a failure for not being able to afford a home, or a failure for being able to afford a home and choosing not to.

It doesn’t matter now since he’s gone, dead to cardiac arrest and a host of suspicious medical decisions and actions and non-actions that will haunt me and fill me with guilt until the day I die. One day I need to write all that out, but it’s much too painful right now, and I’m spent. I’m petrified of this horrid negotiation with HR and my boss about my maternity leave that has gone on far too long, I’m reeling in PPD-tinged grief and a lifetime of depression raging through my veins and causing daily meltdowns, gasping for air and unable to find any in a fully-oxygenated room.

And I try to tell myself, hey, dad lived to 67, that’s really good–that so many people lose their lives much younger. That tsunamis and mass shootings and disease take so many far too soon. He lived his life and made many decisions that led to his passing, though it’s unclear if he could have lived longer if the doctors didn’t completely mess up and fail to communicate or provide him proper care.. but how can one cry over 67 when so many fail to make it that far?

Still… I cry. I mourn the loss of my father, as confused and complicated as our relationship was, and how sad I was for him as he lived his life with so much anxiety and feeling like he could never fully provide for a wife and family that overspent left and right. I keep thinking this is just a nightmare and I’ll wake up and he’ll still be there, and we’ll still be figuring out how to navigate the healthcare system and get him the care he needs all while he makes it through one delirious episode after the next, and we wonder how far gone is his, but surely he’s not all gone.

He is. And that’s life. I sit in my rocking chair and stare at the little person I’ve created now 8 weeks old and am in awe of how fast he’s grown. I know the coming years will storm by and I’ll be left on the other side of them, wrinkled and grey, still wondering what happened. I can’t believe how slow childhood goes and how fast adulthood shoots by. I’m fighting my mind that wants time to disappear so everything hurt less and my heart that wants everything to slow down even if it hurts more.

So here I am, on extended disability leave and counting the days until I have to go back to work… to a job I don’t feel confident in (though I actually like, mostly)… to one I must keep in order to provide for my family. I understand what my father must have felt like as the breadwinner although as a woman and one who has a husband who has a job I’m not in this all alone–but still alone in being capable of earning enough income to create the life I want for my family (although to be fair my husband’s future inheritance is maybe worth equal or more than what I’m capable of earning in my lifetime.) Still, that’s a long time off and today I’m looking at this life and wondering what it is I want, because it’s becoming more clear with the passing of my father, the birth of my child, and my own aging officially to my mid 30s. I know I want a sizable family–2 to 3 kids–and a home large enough to accommodate us all, and the funds to travel on occasion to trips to local camping grounds and distant adventures. And I want time–which seems to contradict all of that–time to see my family and not have the years pass by and before I know it I’ve afforded a decent house and a few vacations and other than that I’ve never seen my kids (that’s what life was like for my dad… maybe he liked it that way… but I don’t want a life like that.)

I’m continuously terrified of trying to make this work. I am a mom now and that’s really all that matters. Time will disappear if I let it, or if I don’t, but maybe I can grasp it tightly and try to slow it down a bit–cherish every day, every moment, every baby freakout and future temper tantrum and teenage meltdown… and the sweet moments as well. I’ll try to avoid this crippling anxiety… the spinning in circles about every what if even if one may eventually be the what if that pans out. And, I’ll see what I can do about making the money situation be ok… enough ok that it won’t be a disaster for my family if I lose my job or just can’t work due to my mental state. I’ve got a long way to go, but I think I at least know the road I ought to take.

 

June Networth Check-In: $612,000

I haven’t written on here in a while, so I thought I should check in on my networth goals for the year. Things are looking strong for the year thus far, with $612k in networth hit June 1. The goal for the year is somewhere between $650k-$700k, but I’d really like to hit my stretch goal of $700k by Jan 1.

This seems somewhat doable if the stock market continues to perform as well as it has for the first half of the year. I’m likely going to see about $50k-$55k from stock before the end of the year as long as I keep my job, which leaves less than $40k to make up to get to that $700k goal. Of course, maternity leave is not going to help me achieve this at all, but that is what it is.

I’m still very confused as to how maternity leave will impact me financially. I have some idea on this, but there are so many nuances to the rules it will only make sense after the fact. I know that for my disability leave I get a percentage of my pay for six weeks, but it’s pre-tax, so maybe it will be somewhat close to my total salary. I also know I won’t be eligible to contribute to my ESPP when I’m on leave, which is crappy but makes sense since I’m not actually earning income during that time.

At this point, to minimize the hit on my financial goals for the year, I’m planning to work up until my due date and then to take the 12 weeks off that are semi paid and deal with the losses from those weeks which hopefully won’t be too bad. I can take another 6 weeks protected unpaid, but I’ll prob save those weeks until 2019 and decide if I want to take them then, since if I manage to keep my job all 2019 I’ll be in a higher tax bracket then and the loss of income will be less noticeable, maybe. Still, may decide not to take that time since it’s unpaid and I can’t contribute to the ESPP again then.

Really, my #1 focus is on keeping my job as long as possible. With my stock (which is RSU not options) at this point my networth is really ~ $892k+, but I’m not counting the stock that isn’t in my back account yet since I don’t actually get it until I get it. But, seeing $892k as my approximate networth feels good and makes me think that $1M goal before kid #2 is achievable. After all, I’m $112k over my goal of $500k before kid #1. So grateful for saving throughout my 20s and focusing on savings. Once I get to $1M, I’ll feel a lot better about my life stability.

April Networth Check-In: $575k

For a bit of a belated April networth checkin, I’m happy to report my networth is ticking upwards slowly, despite the stock market doing eh.

Given the larger gains of past months, it still feels flat, but at least it’s up. I started 2018 out with $544k in networth, and am now at $575.6k–so I’m up $31.6k of my $100k goal for the year, leaving $7.6k growth per month to hit that goal (or 5% growth for the rest of the year including saving additions and gains.)

Screen Shot 2018-04-14 at 8.32.48 AM

The plan is for about $40k-$50k of that to come from after-tax stock vesting before the end of the year. If I don’t keep my job until then for any reason, then I don’t think I will be hitting the $650k goal for the year. But, with that extra $50k, it should be doable for me to save $25k for the next nine months, even with my maternity leave. Continue reading

My Legitimate Path to $1 Million Dollars

My $1M networth goal is far away, yet also, it appears, achievable. “All I need to do” is keep my job. That’s it. It helps a lot if my company continues performing strongly, but I don’t need to get a raise in the next four years. I just need to remain employed at the same exact rate. Based on my calculations, if I do just that, the following is a reasonable outcome:

Year AGE Networth Increase
2017 33 $423,000
2018 34 $565,000 33.57%
2019 35 $685,374 21.31%
2020 36 $813,785 18.74%
2021 37 $945,160 13.63%
2022 38 $1,097,934 16.16%

Continue reading