Sept 2017 Net Worth Overview
We had a lot of green this month and just barely bumped up over $700k. Our expenses weren't too high for the month, but October expenses will be much higher. We got the backyard patio installed and bought a new car.
Our cash balance crept up at about the rate of growth I would expect from a normal month without any big expenses. We had a quick trip in September to visit family, but those expenses were minimal.
We've been building up our cash for a new car, but as of the end of last month, we still hadn't found the right thing. I've been looking for the right deal and found something today that checked all the boxes (including price).
Say hello to our new addition. I upgraded the 2005 Corolla with 209,000 miles to this 2012 Lexus with 50,000 miles. I was looking at Toyota, Lexus, and Ford sedans and was looking for a deal. More details to come, but suffice it to say I'm pleased with how it worked out and will miss my old Corolla (I traded it in).
Yet again, we didn't really do anything exciting with our investments, yet they managed to grow (including our contributions) by almost $10k. For the year, just my 401k is up over 16%. My return assumptions for long-term growth are much lower than this and market growth is the main reason that we have reached our net worth goal this early in the year.
Like normal, we paid extra on our house and knocked down the mortgage by another $1,100. We've been holding off making larger payments until we bought a car so next month we will start paying even more towards the mortgage.
Our neighbor finally has his house up for sale and is asking $420k. His house is smaller than ours and needs some updating, so I still feel pretty good about our $450k assumption. Another slightly larger house down the street just went up for $485k, so we're right in the middle.
Our next door neighbor is in his 50s, divorced, and an empty nester. He was waiting to move until his kids were all out of high school, and it turns out the reason he waited so long to sell is that he had to sue his ex-wife again to take her name off the deed. They've been divorced for at least 5 years. He already paid her everything that was owed in the divorce, they just hadn't officially taken her name off the house.
Divorce is a terrible thing. I've got a few friends and family members in various stages of divorce and it's just sad. In The Millionaire Next Door, a lot of time is spent talking about how divorce destroys wealth, and that you are more likely to accumulate wealth if you get married and stay married. Money isn't everything though. Even without the financial impact though, it's a devastating thing to have to go through.
In recent years, we've added ~$100k to our net worth each year. An increasing portion of that growth simply comes from our staying invested. I guess the next big milestone from here is $800k but really, we're getting excited about closing in on $1,000,000.
Setting a goal of $700k for this year was very achievable. I knew what needed to happen and none of the assumptions were that aggressive. It's extremely unlikely that we'll get to $1M in 2018, but with some aggressive assumptions, it could happen in 2019. That's crazy. It's right around the corner. We'll have to do some goal setting as a couple in the next few months and this will definitely be part of that discussion.