Next year COULD be a really big year for us. I’m estimating we can take our net worth from $2.2M to $2.75M by the end of the year. I would love to see us go to $3M, but I think $2.5M-$3M is within striking distance if I keep my job until Jan 1, 2022.
If you haven’t been following — the majority of this expected growth is from company stock which has increased a lot since I started the job. I am in my final year of vesting and each quarter I should get a chunk of change (and then some) which is the only reason I’m able to save so much next year. If I lose my job all bets are off. I’m trying really really hard to not lose my job.
These net worth goals are now family net worth goals. I continue to track my “own” net worth for comparison to my numbers since I started blogging in 2006, but the numbers presented here are family net worth numbers. When I refer to my “own” numbers I consider cash in my personal checking account, my IRA/401k, the full value of 529 (since I fund this directly), and half of the value of home on sale (even though I pay a larger percentage of the mortgage.)
I’ll be blogging my $500k-$1M net worth growth over the next year, so if you’re interested in seeing if we can hit these goals follow me at @everycentcounts on Twitter.
Numbers Below = [2020][2021]
- Emergency Fund (Cash) [$65k][$72k]
- FIRE Bucket 1 (2030) [$1.1M][$1.4M]
- FIRE Bucket 2 (2050) [$428k][$746k]
- 529 (2-3 Kids) [$99k][$249k]
- Home Value (On Sale*) [$493k][$505k]
Total Networth (Pre Tax):
- 2020: $2.2M ($4.4M age of use value**)
- 2021: $2.7M ($5.2M age of use value)
* house value on sale = value of house – 10% of house value (realtor and fixing up fees) – what is owed to bank – any taxes owed (actual cash in hand estimate after sale)
**age of use value = I focus on “age of use value” in my net worth calculations, which is the value of each bucket * 5% YoY interest growth for my interest-earnings accounts and 3% for home value, for expected length of ownership. Ie the 529 accounts are considered 17 yr average investments (and each year that goes down a year.)
