January Net Worth Update

2018 is finally here.  We’re approaching my favorite time of year from a financial standpoint.  In February my wife and I both get our annual bonuses and in March we get our raises for the year.  Along with those, we usually get some amount of money back from our taxes (although I try to minimize that) and we also get our credit card reward certificate from our Costco Citi Visa.  It turns out I’m a fan of easy money.

Our net worth continues to increase on a monthly basis and I continue to be absolutely amazed at how much it’s going up month over month.  I keep saying that this can’t go on forever and I truly believe that, but we’ll take it in the meantime.

Our new net worth figure is $1,645,008.  I really love using two commas!  That’s an increase of $55,887 in a little over a month.  (I think the Nov figure on the sidebar was late November).  I still can’t believe we’ve gotten our net worth to this level.  Not bad for a lower middle income kid who has paid his way through life with very little assistance. (Acknowledging I had a happy, safe childhood where we always had food on the table, even if it was hot dog casserole now and then.)  Looking back at January 2017, we had a one year overall increase of about $330,000. WOW That’s just crazy!  That’s far more than we made in the year at our jobs, that’s for sure.  Money really does make money.  No wonder the truly wealthy have it so easy!

Obviously the next milestone I’m looking for is the $2M in net worth.  That’s a ways off but it’s the next big one for us.  I’ll be 47 this year and so I’m thinking more and more about when I can pull the trigger on early retirement.  There are a few driving factors for this.  I want to have at least $2M in cash/investments before we pull the trigger.  I also want to have my daughter through at least her 4 year college degree (We’ve been saving in a 529 plan all along), and I want to make sure I’ll be eligible to take a small pension (About $1300 a month at 55) before I retire.  It makes the most financial sense for me to work until I’m 55 so that I can start drawing the $1300 a month in pension and also withdraw funds from my 401k account.  Our company’s plan is a qualified plan so if I separate from the company at 55 or older, I can immediately draw funds from it without a penalty.

I really don’t want to wait until I’m 55 to retire though.  The one other potential path to leaving before I’m 55 and still getting to draw the pension at 55 is if I’m laid off between the age of 49 and 55.  Since I work in Information Technology that isn’t really a far fetched scenario but I’ve been a high performer up to this point so I don’t think they’ll likely want to lay me off any time soon.  I suppose I could really start acting incompetent at about age 49 but I really don’t want to do that.

Anyway, lots to sort out over the next few years.  Until then we’ll just keep pushing along the path.  So far I can’t complain about the results.  Here’s to a happy prosperous year to all of you!


  • From one who was also raised in a lower middle income bracket, I salute you.

    I gotta ask, with your year-end bonuses, are you front-loading your 401k? Or do you continue to dollar-cost-average throughout the year with your regular payroll cycle?

    I am a front load guy which is why I am curious to see what others do. Thanks for sharing and, again, well done!

  • jack

    I actually get my bonus in the 1st quarter of the year in February. I have never front loaded my 401k although I do fully find both of our Roth’s in the first quarter. I also evenly contribute $1500 a month to our after tax account all that long as well. My company contributes their share on a biweekly basis so I don’t think I’d get all their matching if I front loaded because they match 75% of the first 8% each pay period.