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.