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Goal Made...

October 17th, 2007 at 01:00 pm

Well, as of today my net worth looks like it will be up around $33k for the year. My goal was originally $25k and then I adjusted it to more like $25k-$30k. More like my goal is $30k and should be for the long-term, but wasn't sure I would make it this year.

Woohoo.

It is probably best in a good stock year that I would overshoot a bit, as I am sure it will be much harder to reach in a bad year. I guess I am going for an annual average more than anything. & why I Was happy with the range.

The year is young. I don't want to get too ecited yet. Anything can happen, right? But regardless of the stock market it looks like we will meet our goal.

I read that your net worth should increase by 1/2 of your living expenses annually, by the time you hit 40. Being an over-achiever I was trying to hit that at 30. We'll see how sustainable it is. I figure we could live on $50k pretty easy but we have been living on closer to $60k, so kind of went with the $25k-$30k range, accordingly (being 1/2 of what we live on).

It is a lot tougher these days as most of this comes from savings and paying down the mortgage. In a few years time a lot bigger chunk of this will come from investment returns. This year alone we are looking at around $5k in returns, which certainly helps. But that should grow substantially in the coming years, all the same... I look forward to the point where more comes from investments than income and debt payments. Big Grin But I got a long ways to go...

I really like using this way to track progress. I may have to tweak it a bit with time as the stock market fluctuates. But our problem has never been saving. Our problem is we invested terribly in our 20s. Trying to make up for lost time. Being able to achieve this goal is a sign that we are much more on track with HOW we manage our money. I have since learned saving is only 1/2. Maybe only 1/4. As it does little good to have an IRA that has not grown int he last decade. As we would never make this net worth goal if we were not managing our money better with higher interest rates on our cash and lowering the fees on our investments, etc.

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