We’ve Achieved A Major Financial Milestone
I don’t talk about our financial goals on this blog very often. Heck, aside from real estate and an annual net worth update, I try to keep our personal finances out the mix.
As funny as this sounds, I don’t like to talk about myself very often. I know I know, some of you are like “Whaaaaaaaaat” but it’s true.. I’m more of a show you through actions rather than tell you about it type.
Remember, the last net worth update. Well if you don’t remember you can read it here. I wrote about how we are 400k in debt and love it. Clearly this was an attention grabbing title. I had a few emails from people who only read the title and not the content of the posts assuming I was sad about my debt situation.
However, this time I will not use such trickery. I’m going to give it to you straight.
We had a goal of reaching 500k networth by 01/15/2014, which coincides with my 30th birthday…
Well ladies and gentlemen… We’ve hit that goal as of 06/01/2013!
What are our assets?
For the first time readers, I will define each critical term. So, what is an asset you ask? Good question Jane (Your name will be Jane for this exercise).
An asset is:
Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Our assets are:
- Cash which equals to $77,117.17
- Investments (Stocks/Bonds) which equal $177,330.75
- Other Assets (Cars) which equal $31,000.00
- Real Estate which equals to $732,497
Total Assets: $ 1,017,944.92
As you can see, a majority of our net worth comes from our real estate adventures. That’s the power of 1 primary residence, purchased at a significant discount and 4 kick ass rental properties.
What are our liabilities?
What is a liability you ask? Good question Jane!
A liability is:
Legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services. Also know as… shit you have to pay for…
Our liabilities are:
- Credit Cards which equal $8,259.46 (We pay this is full every month, 0 interest)
- Loans which equal $146,252.69
- Mortgages which equal $351,235.44
Total Liabilities: $ 505,747.59
What is our net worth?
What is net worth you ask? Good question Jane!
Net worth is:
In business, net worth (sometimes called net liabilities) is the total assets minus total outside liabilities of an individual.
So, all we have to do now is some simple math. We will simply take Total Assets and subtract Total Liabilities to achieve net worth.
Total Assets – Total Liabilities = Net Worth
$ 1,017,944.92- $ 505,747.59 = $ 512,197.33
Moral of the story?
It doesn’t matter how much debt you have, it doesn’t matter how much income you bring in, net worth is the measuring stick of financial success. I know a lot of people bringing in 200k per year and nothing to show for it. I also know tons of people with 0 debt and little to no net worth. Focus on the big picture.
Oh… and if you live on 50% of your net income, your wallet can take a big beating before you need to worry 🙂
Next goal… 1 million networth by 35!
Before you go.. I would love to work with you 1 on 1. Click the picture below to get started on building wealth