Tag Archives: increasing net worth

Aggressive Financial Plans For The New Year

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This New Year, my plans are different than in previous years.  I’m going with aggressive financial plans for the New Year!  This is really a part of a five year plan.

Hong Kong Chinese New Year Fireworks

Aggressive Financial Plans

  1. In 5 years, double my net worth.  This plan might not sound that aggressive, but I’ve done a fair job of accumulating net worth already.  So when you are starting out, it’s a much easier goal to accomplish than when you already have 10+ years of growing your net worth under your belt already.  So how am I going to do this task?  By increasing my Savings Delta!  It’s worked thus far, so why not push it a bit harder!
  2. Possible going into debt?!?  Sounds counterintuitive huh, or does it.  It’s pretty obvious that borrowing rates are incredible low right now, and house prices are still pretty reasonable.  So why not?  The worst that could happen is that I would own another house, but with one house totally paid off, it’s not much of a stretch buying another one.
  3. Expand and create new financial experiments.  I’m planning on continuing my lunch experiment, but actually it hasn’t ever stopped.  I’m just going to write about it more often.  I also have plenty of new financial experiments that I’ll be writing about too.  I think these ideas are what will expedite my wealth accumulation process.
  4. Control financial creep.  I’ll admit, in small ways, financial creep has gotten out of hand for me.  While I’m not buying a Lexus (yet), but I go out to eat way too much!
  5. New technology strong sites?  I know I have the technological abilities to create some interesting and beneficial sites and can do things that haven’t been thought of.  I’m hoping this year I just do it.  Barring health issues, I don’t see why I can’t…  time is ticking…
  6. Innovative Ideas?  I know that I’ve been sloppy.  I think of ideas but don’t follow them through because of time constraints (and health).  This year I would like to explore how far I can go.

 Aggressive Financial Plans Counterpoint

While I’m planning on being pretty aggressive financially next year, I’m not going to sacrifice my lifestyle in a too restricted way.  Life is short and if I go too restrictive with my finances and life, I lose the entire purpose of having money.  I have to remember that money is not the end goal, living well each year is…

 

Here’s to a Great New Year!

Don

Our Net Worth Increased By 455% In A Ten Year Timespan

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From the year 2001 to 2011, our net worth has increased by 455%!

401k History

401k Performance History

 

Okay, first let me saying that any increase in net worth really depends on the starting amount and the ending amount.  It’s easy to be amazed by a percentage like 455% until you consider the starting amount.

For instance let’s look at a few examples:

If my starting amount was $100, that would mean that I have $555 dollars today, not so impressive after all huh!

But if my starting balance was $100,000 then I would have $555,000, that’s a much nicer chunk of change!

What I used to calculate our net worth:

  • Roth IRA (didn’t exist back in 2001)
  • 401k Balance (not to shabby even in 2001)
  • Home Equity (This is the biggest chunk of my net worth)
  • Checking Account Balance (stayed the same, surprisingly grrr)
  • Brokerage Account (big jump, yay).

So as I’ve said before, we’ve never had a year where our household income has exceeded $100,000.  But since my wife and I are frugal, and I’m investing a decent amount of our discretionary income, we were able to grow our net worth nicely.  While I won’t reveal our actual net worth number, I will say that it’s over $100,000.

Here are some random statistics about our change in net worth from 2001 to 2011:

  • Around year 2003, I started a Roth IRA
  • While my home value is the largest percentage of my net worth, my brokerage account had the greatest percentage increase (over 1000%) during the past ten years.
  • The amount in my checking account has remained at $5,000, but that’s because I have my money working for me.
  • My 401k has increased nicely too, over a 10% annual return since 2001.  Back in the early days, I had some great appreciation in certain mutual funds.

We were able to do the above activities because we sacrificed and saved like we were still in college.  Back then, we only went on a real vacation every other year or so.  Our house is full of nice looking but mostly used furniture and hand me downs.  We always looked for opportunities and took advantage of great values when we recognized them.

Hopefully for the next ten years, we can increase our net worth by 200%, I don’t think 455% is sustainable and not a realistic goal for the next ten years.

Do you frequently calculate your net worth change from the past to the present?

Bests,

MR