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.