I HIT $100k NET WORTH!!
In case you couldn’t tell, I am SUPER PUMPED I hit the 6 figures milestone.
$100K! I just can’t believe it’s actually here!
I started out in 2014 at the age of 23 with a net worth of $10k. In 2.5 years (or 30 months or 900ish days) I accumulated an additional $90,000 dollars! Or, added up, I saved just over $100/day for the last 2.5 years. Thank goodness that was automated or else I would’ve snorted and told you I didn’t have enough money for that. In the immortal words of Sweet Brown, “Ain’t nobody got money for that!!” But I did!
Let’s take a closer look at the numbers.
My total income for that timespan was roughly $125k after taxes, so that means my savings rate was almost 75% of my after-tax income, or 54% of my total income. Stupid taxes. That means Uncle Sam has gotten almost $40k in taxes from me alone. Yikes! [Note: That’s an estimation. I don’t have my W‑2’s sitting in front of me.]
A reader sent me an email inquiry asking how my net worth is allocated. Is it all cash, all investments, some property?
Behold! A break down of all my accounts. I made sure to make it another super fancy Paint graphic too 🙂
$100K NET WORTH:
86% of my $100k net worth is various investments in a few different accounts (401k, Roth IRA, taxable, etc). This comprises the vast majority of my net worth, as I have the easiest access to my investment accounts. Not even seeing the money makes it super easy for me to save so much. Otherwise, I’d just spend it all on various stuff. See the other super awesome graph below for a better breakdown of my investments.
9% of my $100k net worth is cash. I have a fair amount of cash on hand for a few different reasons. One, I like to have the relative comfort of seeing large numbers in my checking and savings accounts. Growing up poor means I still get a thrill out of having that much cash on hand. I’m also saving up for my house down payment fund, and I have a fairly decent sized emergency fund as well.
The last 5% comprises the Kelly Blue Book value of my 2005 Pontiac Vibe. Whether the car is actually worth $4970 is another matter entirely. I like to include my car in my net worth as it is an asset (albeit a depreciating one). IF something went drastically wrong and I needed cash really fast, I could sell it. The Pontiac Vibe is a very popular car due to being almost exactly the same as a Toyota Matrix on the inside. Not to mention, it’s a great little car!
69% of my investments are in my 401(k) with my current employer. We have a Fidelity 401(k) with some very nice options. For instance, 98% of my contributions go to our S&P 500 index fund that only charges .01% ER! That’s amazing! The other 2% go to bonds that also have a very low ER.
21% of my investments are in my Roth IRA. I intend to do a Roth IRA ladder when I’m done working, so this sets up a good base for that. I also want to fill my Roth to the max while my income is still low enough to be under the limit. I will also be able to use these contributions to tide me over until my Roth IRA ladder kicks in if my taxable investment account gets too low.
Speaking on taxable investment accounts, that makes up 6% of my investments. I originally started it when I received a VERY small trust from my grandma when she passed away a few years ago, since I didn’t know what to do with it and didn’t want to waste it at the time. I took a chunk out of it to fund part of my Roth IRA last year. Unfortunately, I just don’t make enough to be able to put a whole bunch in here, although any windfalls I get go straight into this account. Hopefully in a few years I will be able to throw a lot more money into this account, as I will need it for the start my Roth IRA ladder.
The last 4% of my investments are in my HSA. I have a qualifying insurance plan through work, so I put a bit into it each month. Maxing this account for the year is my next goal. I currently contribute $100 a month, so I have a bit more to go before I max it out. Afterall, according to the Mad Fientist, this account is the ultimate retirement account!
I am now 17% of the way to my FI number! It’s my hope my contributions will have less of an impact and market gains will have more of the impact on my net worth as time goes on. I’ve heard that’s a thing that happens as your investments get bigger, so I’m excited to experience that momentum for myself 🙂
Before I end this, let me also insert a caveat on all this. I expect my net worth to fluctuate over time. I was stuck at $80k for a few months when we went through the correction at the beginning of the year, so I’ve had a taste of what that feels like and am better prepared to handle it should that happen again. I mean.… when that happens again. I am well aware the possibility/probability of a market slowdown/crash exists and will do my best to stay the course and continue with my investing plans.
Now.….. onto $150k! Onwards and upwards!!
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