2012 $200k Networth Goal in Reach

The $200k in 2012 networth goal seemed impossible in January, but I’m inching closer to victory. It doesn’t hurt that I just received a $10k raise and now, for the first time in my life, am making six figures in a FT position (I was making more on an hourly basis at a contract job previously, but this is still a big deal as it’s FT.)

I just calculated my current networth, and according to my records it is $190,586.49 — which leaves $9.4k or $1.8k/month left to save for the remainder of the year to hit my goal. I’m a little hesitant declaring success as $20k of my networth is tied up in company stock (private company exercised options.) That said, theoretically that $20k is worth quite a bit more than $20k right now, if I am to believe what the exec team says about the current value per stock. In any case, I’m considering it an investment like any other, and I still don’t have all of my options vested anyway, so until they vest I’ll just count those options as $20k, which is exactly the amount I spent to purchase them (well, plus a few hundred dollars to repay the loan to purchase them.)

So the big question is, do I buy a car this year or wait until next year? If I don’t buy a car this year, I need to at least put $700 into my current P.O.S.mobile to make it save to drive.  I spoke to a car dealership and they said I’d get a whopping $400 to trade it in, so it’s probably not worth doing that. Maybe I’ll just donate it if I decide to purchase  a new(er) car.

Even though with my company stock and other savings I could theoretically be a  paper millionaire right now, I don’t feel like one. I’m still paying $650 a month in rent living with roommates and driving POSmobile. I wish my boyfriend made a decent income so we could move in together, but as of yesterday he quit his job and — although he plans to find another one — has not started to apply for anything yet. It’s a pain when a voice in the back of my head keeps telling me I’m stupid for committing to a guy who has $0 in savings and no job, but he makes me happy and if that isn’t worth more than a stable income and security, then, I don’t know what is…

That said, I still have my big $200k success to look forward to, that’s now within reach, as long as the stock market cooperates. With $50k of that in Apple, my networth value keeps going up and down and up and down. I still believe in the long run Apple will go up, but I probably should start to diversify a little more.

If I buy a car this year, I can either buy something cheap-ish… ie, the same car I have now but in much better condition with much lower miles for $7500… or a nicer car like a used Altima 2.5 or Mini Cooper or Camry Hybrid for $15k – $18k. In August, my insurance rates are going to spike thanks to that DUI I got last year — and I’m not sure how much that spike will be (I guess I’ll find out very soon.) So I don’t really want to get a nicer car because I’m thinking it would be smart to keep comprehensive coverage very low for the foreseeable future. I already cut my comprehensive so my monthly insurance rates went from $77 to $35. They’ll probably be back up to $77 or more without the coverage next month, but that’s my own fault. With that fault comes the reality that it probably doesn’t make sense to buy a car over $8k at this point.

Another option, which I’m considering, is moving to a place located on the local train line. My company is moving to a new office which offers a shuttle from the train station. Actually, that train station is my current local stop, but it would probably be easier to take a train from another station there then to take a bus. If I were to move by the train line I could get rid of my car entirely — which would suck because I like the independence of having a car — but would be great from a financial perspective. The train would also be free thanks to a company perk, so I could spend a little more on rent and still do better than having the car. I’d probably keep paying some insurance (since the SR-22 is a requirement for 3 years with the DUI on your record) but I’d pay the lowest possible since I wouldn’t actually be driving my own car.

Hmm. Anyway, lots to think about. Right now I’m so busy with work that I don’t have time to seriously contemplate moving and I’m struggling to find time to figure out what to do about the car situation. All I know is my current car is embarrassing to the point of I really shouldn’t be using it in professional settings, and that’s a problem, and that’s a problem I shouldn’t have when I’m making $100k and have $190k in networth, right? Still, I can’t bring myself to spend on a car when I know next year my goal is to have $250k networth by 30, and I’d prefer to get a head start on that if possible then buy an expensive item that will just depreciate in value.

 

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6 thoughts on “2012 $200k Networth Goal in Reach”

    1. Erin — re: dumping the boyfriend, not going to happen. As far as the car goes, if you saw my car you'd realize this is not an issue of being shallow. Currently the car is missing its front bumper and to fix it, it will cost $2700, more than the car is worth. As a professional who frequently drives to meetings, it is inappropriate to have a car that looks like this. I don't need to be driving a BMW, but I do need a car that looks like it's not falling apart.

  1. I've been following your blog for a while (don't remember how I found it) and would like to offer a little advice.

    You are a very goal oriented and driven person who plays her A game all the time. You would like to feel secure and at some point have a family and house. Yet, given the relationship you're in, you would be the only person contributing to your goals and the only person you could rely on to make sure your family financially stayed afloat. Please trust me that this scenario is not fun, is extremely stressful (more so with kids), and will cause you to resent your boyfriend. You will feel the weight of the world on your shoulders and he will be no help relieving it. I say this only because money and stability matter so much to you; and this won't change once you have kids, it will get worse. Your boyfriend is probably a great guy, but his values ate the polar opposite of yours. This may not matter as much now, but kids and a family changes things in ways you can't imagine. I was married for 12 years to a man who didn't share my values and we raised his three kids together. It was the most stressful and awful time in my life because I had to work 3-4 part time jobs while going to school because he didn't value or appreciate financial security. Thankfully I finally came to my senses, got out of the situation, and found a man whose values match mine. It's a huge relief to have someone helping you reach your financial goals and someone who is as secure or more than you are financially.

    Sorry to be so long winded, but I keep seeing the warning signs throughout your posts and I couldn't keep quiet any longer.
    Kona Jones recently posted..Seven Months

    1. Thank you for your advice and post. It's always nice to hear from my readers. To a large extent I agree with everything you say and I think I am putting myself in a very dumb situation, but the honest answer is that I am very flawed myself, and I find the greatest comfort and happiness in being with a guy who loves me for who I am. I know he will never be as driven as I am, but I don't want to be with someone who is — I prefer to be with someone who can support me emotionally and hopefully help provide some financial stability. I've told him that he should be a teacher because he's enjoy this and at least offer enough to feed us and provide health insurance, while I can work to pay for a house and any luxury spending income we may have. He's not a total bum, he's a smart guy with a degree in high honors from one of the top public schools in the country. Yes, his values are definitely less focused on money than mine are, but he does want to get a reasonably good job with a reasonably good salary to start his adult life. Yes, so he's starting it 10 years late, but I think he's getting there. It's not that he's changing — he'll never be the guy who is chasing after the $200k salary — but I see him working a stable job with a good salary. I'd like him to get to that point sooner than later, because it worries me that he's only worked part time through his 20s, but I believe he'll take the leap at this point because he wants a family and he knows that money doesn't grow on trees.

  2. Great job on the raise. I think you deserve it seeing how much effort you put into your career. I bought my second hand car for $10K and I think that's reasonable. Do what best suits you. I thought about just taking transit before, but then I realized I don't want to carry groceries and shopping bags around all the time.
    Liquid recently posted..Weekend Business and Blog Roundup – Aug 10th

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