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I want to be a millionaire! 5 years later…

 

I stumbled across my very first post from this blog about wanting to become a millionaire. It was five years ago that I did that and it was fun to see how far I’ve come from there. I’ve written one post 2 years after that for a quick update. I wanted to see how I’ve stacked up since then and see how far I’ve come from there!

2013
Retirement accounts-goal to contribute 15%
Investments-goal to start investing with Betterment
Real Estate-saving up for the 20% down payment
Savings-Save tons of money

2015
Retirement accounts-maxed out my contributions for the first time
Investments-opened an account with Betterment and started putting 10% in
Real Estate-bought a house and put extra payments in each month
Savings-save tons of money

Today
Retirement accounts
Maxed out my contributions each year since 2015!

Investments
Continued investing with Betterment, and finally seeing it start growing and piling up! We’re going to pay off our car this next month so I’m thinking we could funnel that extra $416 every month into investments…a conversation to have with the hubs.

Real Estate
Bought a house and put extra payments in each month, we’re knocking down that principal. We’ve also done a lot of renovations to up the value of this house. We’re saving up for our next house downpayment to possibly relocate. We don’t currently want to move yet, but when we do we’ll have that down payment already! Ou house has also steadily risen in value even without taking into consideration our renovations. Just by comps alone our house has added a lot to our net worth.

Savings
Created mini goals for savings including one for a Tesla model 3 and the next downpayment on a new house! The interest rate on online savings accounts is also creeping up slowly. Yeah!

Millionaire status
Not there yet but getting there! All the habits I’ve set 5 years ago are still going strong and the money is starting to add up slowly. I’m always evaluating to see where we can do more and what else we can do to save money. It’s definitely a big give and take in my marriage as we have differing views, but we talk it out and see what works for us. There’s also all the earth-friendly things I’m trying to do to save the earth. Some of them end up costing more, while others save money.

Five years ago my husband and I were in intense, very intense, money saving mode. I learned to cut his hair to save $25 a month, we ate out only once a week (even though we love eating out), and many many other things we did to try to save up money. 2013 was the year we got married, bought a new car, and then bought a house! It was a crazy year where we were very frugal. Since then we’ve relaxed off that unsustainable pace but we’re still keeping our spending down.

We’ve also had some change in the way we think about money. I’ve always tended to be more the saver kind of person and my husband more so to save but enjoy life. With our goals set in place and steadily clicking along, plus some family medical issues we’ve had along the way, we’ve definitely re-evaluated what money means to us. We’ve taken some lavish (lavish to us) vacations and not felt guilty over any of it! Last year we went to Japan and this year to Hawaii and spent a good chunk of cash. This year we might get a Tesla model 3!

No matter what the future is pretty exciting. We’ve set up our finances well for the years to come and it’s moving along! How’s your financial journey coming along?

 

 

What are your Assets?

Hey hey, by assets I mean your properties, cash savings, investments, and retirement funds. This isn’t a dating site. Today’s post will be about the importance of tracking your net worth monthly. Budgets will help you control how you spend your money, net worth tracking will allow you to see how well you are doing, or not doing. It is a great motivator for you to do even better on your finances than you already are! On the flip side, if you aren’t doing so well, it’s a great motivator to straighten out your finances.

When I talk about net worth, the most basic definition is your assets minus your liabilities. Let me list out the most common ones.

Assets
Cash in checking and savings accounts
Investments
Retirement funds
House or houses
Cars

Liabilities or Debt
Student Loans
Car Loans
Mortgages
Credit Cards
Personal Loans

Everything counts when you’re calculating your net worth! Even though you can’t touch retirement money until you’re old, it is still an asset that is yours.

So why track your net worth monthly? If you’re serious about saving money, then this is one great way to track how well you’re doing! Month to month you can see how much total debt you have and how much your assets are. If you are paying down debt, then you’ll get to see that debt go down while your total assets rise. It’s a great snapshot of how financially sound you are. Hopefully you won’t have a negative net worth, in which case you will have to work on making that a positive!

I was tracking my own individual net worth for awhile. Now that I’m married, my hubby and I have combined our assets and liabilities and our net worth. It’s good to see how our decisions affect our finances. It feels great when our net worth goes up. We can check our progress and see how well we do throughout the months. Progress!

To get you started, here’s a basic net worth template for you to use:
Net Worth Template

With this template, I’ve set it up so you can see progress month to month for each of your accounts. How much you saved in the last month, how your investments and retirement accounts have grown, and how much debt you’re paying off!

Do you track your net worth? Why do you do it?