Anyone who follows my blog knows that my FIRE numbers are somewhat arbitrary. Yet I know that if we have $5M we can probably take out $200k in perpetuity and be able to live on our savings, give or take. $10M and $400k a year forever. Sounds nice. Sounds like FREEDOM. It also seems quite impossible. But less impossible after a few really solid years of net worth growth. I made a lot of dumb financial decisions which limited the growth, but still it’s crazy thinking we went from $600k to $2.5M in net worth in just 4 years. It makes that $5M and $10M goal seem – well, possible.
The year isn’t over yet — one more day of market ups and downs — but I think it’s fair to say we’re wrapping up around $2.5M:
- $20k cash
- $870k stocks
- $35k bonds
- $638k – IRA/401k
- $152k – Roth
- $445k – home equity
- $293k – 529
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$2.4M, give or take
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So we have $600k to $3M.
While we increased our net worth by $600k this year, it’s highly unlikely that will happen again next year as I no longer have a lot of company stock to vest.
Here’s how it COULD happen…
planned addition…
- $20k cash
- $870k stocks + $50k = $920k
- $35k bonds + $10k = $40k
- $638k – IRA/401k + 4k +19.5k = $661
- $152k – Roth + $60k = $212k
- $445k – home equity
- $293 – 529
================$2.59M
+
3% growth average
= 2.65M
Well… that’s not $3M. Probably not going to get to $3M next year. Even average 10% growth would be “just” $2.8M.
So… never mind that $3M goal. I’m going to make goal for 2022 $2.75M net worth.
I’m probably going to change jobs next year anyway so who knows how much we’ll really be able to add. There are a lot of house projects we need to take on as well. AND my sister is getting married. I have another wedding to go to, a bit of travel back and forth across the country to help my mom prepare her house for sale, and a few late gifts I need to send out for weddings I didn’t attend this year.
$3M is a major stretch goal for next year. But you guys know me and how much I like my stretch goals! They keep me motivated anyway. And I’m going to try to stop spending so much on take out in 2022!
