Two Months to a Quarter Million Dollars?

In 2007 I started tracking my networth when it was at about $25k. While that seemed like a lot at the time (my income was about $50k) the concept of saving anything substantial, like more than six figures, still felt so foreign. Six years later, I’m actually about to hit the quarter-million mark in networth.

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Even a year ago, it didn’t seem possible. Even now, it doesn’t. I’m at $244k as of Nov 1, which is still 6 months to my goal of $250k before 2014. But if the stock market / my individual stocks keep moving up, it is possible. What’s crazier to me is that if, somehow, next year, I can make a 10% return on my portfolio that is $25k in growth JUST from having $250k invested. Of course, 10% is not a sure thing and I could just as easily lose 10%, so I need to be careful. But I’m proud of myself — I’ll be 30 this month and I said by the time I turn 30 I want to have a quarter million dollars in the bank, and while it won’t be by the second I turn 30, it will prob be before New Years. I’ll count that. Plus, I even fit in a $3k, 2-week international trip without killing my goal.

The next BIG goal is $500k before I have kids. Well, that really depends on when I’m having kids. I still want to save $50k a year, but that means I won’t have kids until I’m 35 (I’d like to start earlier.) I want to start the kids thing at 32, I need to up the yearly saving. Really that’s three years of savings at an average of $83k per year. That’s a lot. I don’t think that’s possible. I mean, I could get another job and make a lot more money and then maybe it would be possible. But it is more likely I’ll make the same or less, and I’ll also end up moving in with my boyfriend and paying more in rent than what I pay with two roommates. So that goal is probably actually impossible. But I’ve hit my impossible goals before… three years of crazy frugality for $500k before kids? Well, it would be an amazing feat.

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5 thoughts on “Two Months to a Quarter Million Dollars?”

  1. 2 questions:

    1. “Kid” or “Kids”? I hate to bring it up but before the age of 35, complications and risks are higher for down’s syndrome etc. I am currently freaking out about everything with my pregnancy and I am only 30. (25 would have been better, they said)

    2. Why wait until $500K? What brought you to that number to have before you have kids? Just curious 🙂 Not judging. I didn’t really plan on a net worth before having kids, but I also knew my partner would have more than my current net worth saved as well, so together we’d be fine.

    1. 1. Kids. I know, 35 is late. It freaks me out also. I’m scared because I have PCOS and at 15 my doctor told me “don’t worry about it. You will be fine as long as you have kids before 30” and well, 30 is less than 20 days away. Yikes. I want 2 kids, maybe 3, probably 2. If I just have one then so be it. I would like to be married before I have kids, and the plan is get married at 32, then – if I can – have a kid when I’m 33/34 and one when I’m 36/37 if possible. See how that goes. I figure with in vitro which I’ll probably need the odds for twins are higher, so who knows. But honestly I’m terrified about having kids and how I need to do it soon.

      2. I really don’t HAVE to wait until $500k, but I like setting goals for myself and that seems like a good number. My partner will have very little in terms of networth when we start out, so I don’t want to count on him for anything. Figuring a basic house in my area is $1.2M-$1.5M, I thought $500M BEFORE buying a house would be reasonable. I don’t need a house the second I have my first kid, but would like one by the time they are 3 or 4. Anyway, I just feel like I’d be a lot less worried about taking time off from work to be a mom for a while or working PT if I focus on saving a lot in advance. Plus once that much is saved it’s easier for compound interest to work its magic over time. So that’s my logic. Who knows if it will stick.

      1. My doctor did not scare me into having kids before 30, it just kind of happened (happy coincidence) and I got pregnant just after I turned 30.

        But then I was thinking even before I got pregnant, that if I wanted 3 kids, and didn’t want them one after another, I’d have to leave at least 6 months in between each kid, or longer. It made the timeline too short if I wanted them before 35.

        Now I think I will be okay.. having my last kid at 35 would be risky but my doctor said it is better than after 35. 😐

        As for the house — you could always just rent until you have enough. I mean, time only ticks by and you can always make more money and make do.. I guess what I am trying to say is weigh the risk between having a kid and having problems with the baby because of a later age, and having “enough” saved for a home, etc.

        That’s the decision I made, or had to go through. I thought that I could just make more money later, but having a healthy child is harder due to sheer biological reasons.

  2. Nice blog. Just happened to stumbled upon it while looking for personal finance info. How will taxes fit into your net worth equation? If you’re invested in stocks, won’t federal and state income taxes take a decent bite once you decide to sell?

    1. Good question. I do not include taxes into the equation. I think that’s pretty standard for networth calculations. Any earnings on the stocks should be taxed at capital gains rates as I hold for one year or longer unless a stock I buy completely tanks. I think most people who have $1M in networth have less than that, even if they own property because they owe annual taxes on it even if they paid off their mortgage. I’m not sure the proper way to factor in taxes into networth, but I’ve never seen people attempting to figure out the amount in their account after taxes.

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