I wish I was more excited about this, but in reality it didn't make me feel much of anything. I didn't rush out to celebrate or buy anything; this blog post is about the extent of my recognition of this milestone.
The truth is that I've had a roller coaster of a relationship with money lately. I had one financial emergency after another last year and depleted my savings. Then I found out I was going to lose my job. Then I negotiated an amazing severance package and a great new compensation package at a new company. Then I got a huge financial gift at the end of the year. Then I bought a pricey new car. Then I lost the severance package. Now I have some rental vacancies, and I just found out there was a fire at one of my rentals last night.
It's never ending. I've managed to keep my net worth going up by maxing out retirement accounts and from normal mortgage amortization, but my ability to save outside that has been eaten up by rental issues over the last 12 months. This year I am making a lot more, and SURELY I'll have less going on with the rentals, so hopefully I'll be saving a lot more this year in addition to retirement.
Here's my net worth breakdown:
- Cash - $26K
- Investments - $8K
- Retirement - $122K
- Trust/LLC - $223K
- Real Estate Equity - $118K
- Car Equity - $5K
- TOTAL - $502K
I plan to add at least an additional $50K to my net worth during the remainder of this year. Here are a few ways I'll do that:
$17,000 to new 401k (1700 per month starting in March when I'm eligible)
$5,000 from tax rebate to savings
$10,000 more to savings from monthly contributions
$13,000 in mortgage reductions from regular monthly payments
$4000 - my share of LLC interest/growth
The rest will have to come from increases in market value of investments, additional savings, gifts, or other income sources.