This is a big year in my networth saving. I hope to have $200k in all of my accounts by Dec 31, 2012. This will have me on track to $250k by 30; and $500k by 35. Somewhere between 30 and 35 I plan to get married and start having kids, so that will change the story a bit, but I don’t want to get married and even think about having children until I have $250k across my various savings and investing accounts.
Since graduating college in 2005, I’ve increased my networth from $10k to $145k. On average over the last six years, I’ve saved (or earned interest on my savings) an average of $22.5k per year (my income for the past 6 years has been $15k, $25k, $35k, $55k, $65k, $85k, and now $90k.) My goal these days is to save $50k per year, but that remains a difficult feat on my $90k salary. Lately I have been eligible for a bonus of up to $20k, and I hope to hit my objectives in order to achieve a $110k per year salary including a bonus.
In order to reach my $200k goal in 2012, I will have to be very strict with my spending. I’m not sure that amount of saving is even possible (unless the stock market rebounds) but my plan of income vs spending below will need to be followed spotlessly if I am going to achieve my goal in 2012.
INCOME: $4200 / mo
AVERAGE MONTHLY SPENDING FOR 2012:
– $650 / mo rent
– $70 / mo electricity, tv and home bills
– $90 / mo phone bill
– $75 / mo DUI fine
– $50 / mo DUI class
– $200 / mo gas & auto
– $80 / mo car insurance
– $300 / mo food
– $300 / mo doctor-related
– $100 / mo entertainment
– $50 / mo grooming
– $100 / mo shopping
– $200 / mo travel
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$1615
$4200 – $1615 = $2585
$2585 * 12 = $31,020
The above spending plan is not excessively frugal, but it still only gets me $31k when I need $50k to hit my goal. Somehow I need to come up with another $1581 per month and stick to this plan to achieve the $200k networth in 2012. How on earth am I going to do that?
The above calculations did not account for my potential bonus, which is $20k per year before taxes, or the $4k advance for my book deal (that I get after writing the book). So the only way for me to hit my goals is to earn my bonus every quarter and successfully complete and publish my book. And also stick to the relatively frugal (for me) operating plan of my life above. Wish me luck, I am going to need it.
Good luck! I'm sure you'll reach that $50K
Michelle recently posted..Life and Income Updates… 12/26/2011
I love how you are so focused. One way to potentially meet your goals is to explore ways to earn additional income rather than thinking about how to cut your existing expenses even more.
Pam recently posted..How To Be A Smart Blogger And Save Money On Books – Use A Kindle
Good luck with saving $50,000 to hit your net worth goal! It sounds tight, but who knows, it could end up happening! That potential $20,000 could make the difference.
Leigh recently posted..2011: The Year of the Growing Nest Egg