Updated Net Worth
Time flies when you’re having fun and apparently money piles up too. We have seen some very good gains in our net worth over the last 10 months. Overall it was an increase of over $150,000. That’s more than $15,000 a month, which is more than we make by far. We are starting to see the rewards of compound interest for sure. I’ve also been keeping an eye on dividend income. I don’t know why I never spent more time paying attention to dividends but now that our balances are larger, it’s awesome to see that money paid in to our accounts every quarter. I’ve been aggressively transferring excess income in to our brokerage account by using automated transfers. It’s much easier to pay yourself first consistently when the transfers happen automagically!
I’m starting to think more and more about an early retirement. While I won’t be setting any records in that territory, it’s starting to look more and more like I’ll be able to check out of the rat race at around 51 years old. I’ve chosen that as my target because my daughter will be heading off to college (using funds from a 529 account we’ve been building for years). I expect my wife will work a few years longer than me since she’s a bit younger and that will help us continue to compound our investments that much longer. I’d like to get our net worth as close to $2M as we can before I retire but I’m not going to make that a mandatory requirement.
I’m also spending a lot more time on our after tax investment accounts. Looking back, this was the single biggest mistake I made during all of our years of saving and investing. I had always been somewhat scared of the tax requirements on after tax accounts but it’s not nearly as tough as I thought (especially now that brokerages have to track my cost basis).
Anyway, that’s the quick update on our net worth. I’m hoping to get to $1.25M by the end of the year. We’ll see how it goes.