Yup, you read that correctly… we now have a net worth of just over $1 million.
I logged into Quicken today, updated all my accounts, and was excited to see this:
Holy schnikes, a million dollar net worth! It seems so surreal to think that we’ve reached such a big milestone.
I’m really proud of how far we’ve come in our journey to financial independence.
By keeping our expenses low, saving and investing as much as we can, and creating additional wealth through side hustles and real estate, we’ve really made some major strides in our financial future.
Initially, we cut back on just a few things and saved the difference. But over time, we’ve found that as we eliminate a lot of the material crap in our lives, the happier we’ve become.
We’re far from minimalists, but we have gained a better understanding of what actually satisfies our desires in life. And that tends to be experiences more than possessions.
So we’re still taking our cruises and other vacations. We’re still camping and spending time doing fun things together. But we’re generally not buying the latest and greatest cell phones, cars, or whatever it is.
And, the best part is that it seems to be a big catalyst for growing our assets. It’s funny how wealth continues to build upon itself in a snowball effect.
With that said, it’s time to get some of this out of my system…
YES!!! AWESOME!! GO TEAM!! Um, woo-hoo! Uh, yay…
Ok, yeah, well, that was about as much fun as it looked. Onto more important things…
So what does a $1 million net worth mean for us?
Really, not as much as you might think.
Don’t get me wrong – this is a very exciting number for us to see, but we’re not where we need to be yet. This number simply tells us we’re on track and we’re definitely going in the right direction, but that’s about it.
First off, our net worth includes some things that need to be cleared up before we can call it quits. We still have a mortgage on our residence that we’re aiming to pay off close to or around the time I quit my job. That should be gone by 2027 at the very latest and is important to the success of our plan.
Second, if you’ve looked at our game plan before, you know that we need to build up our savings and taxable investment accounts more to be able to get us through the first five years of our Roth IRA conversion ladder.
Another part of that plan includes picking up two or three more duplexes… and banks no-likey if you don’t have a W2 income when trying to get a loan!
Finally, don’t forget, this number can change on a dime. In fact, it’s possible that right after I finish writing this, the stock market could easily take a swing downward and knock $15,000 off our net worth. Who knows?!
And to be honest… I hope it does. I’m excited to have reached the $1 million net worth because it is like a big ol’ pat on the back – a milestone that a lot of people shoot for. However, I actually am hoping for the market to tank right now.
I would much rather be buying low while we’re not drawing from it. Yes, I’ll temporarily lose that double comma club status. However, that would give us an opportunity to get more bang for our buck while we’re investing.
Once we’re ready to start withdrawing, then I would much prefer a resounding comeback! If you can figure out a way to guarantee that to happen, please tell me your secret! 🙂
The numbers are now out there on the Internet!
I contemplated for quite a while if I was going to share our numbers with everyone. There’s always the fear that some people will be displeased for one reason or another…
You only have a million dollar net worth at age 41?!
or the other end of the spectrum…
You must be getting paid too much at work to pull that off!
Then there are always the concerns that the few friends or family that read this might have some strong feelings one way or another on it.
But, the fact is, the pros seem to outweigh the cons. I want others that might not be as far along on the path to financial independence to know that it is possible to make this happen.
Although I work full time and make a pretty good (but not fantastic!) salary, Mrs. R2R is only part-time at a non-profit, and we have a daughter in the mix as well. In other words, the excuses about kids or needing high-salary jobs to make early retirement possible are complete crap.
If you truly focus and follow the Steps to Wealth, you’ll be well on your way to reaching financial freedom before you know it!
So now what?
We just keep going.
Most of you already know that I am so done with working the 9-5 it’s almost laughable. So, it’s not that I’m continuing to work just to work.
As soon as we get to the point along the way where I can jump ship… I’m out!
In the meantime, there’s also room for expediting the path to freedom. Our trip to Panama will help give us a better idea if we want to move out of the country and, in effect, speed up our path to retirement quite a bit.
If we come back from Panama and decide that it’s not our cup of tea, we then might look at other ways to get out of the rat race sooner. One idea might be downsizing to a smaller house in our neighborhood… we’ll see!
Then, of course, there’s a big unknown – health care. Although there will always be some unknowns after leaving a career, this one’s a doozy. What the current administration does with health care can affect early retirees dramatically.
Regardless, for the time being, we just keep on trucking. We’ll continue to live a semi-frugal lifestyle, save and invest a ton of dough, and try to enjoy the present without too much angst of not being retired yet.
High five with myself on the net worth milestone, but it’s time to get back to work and make the dream happen!
UPDATE: This post seems to have garnered a fair amount of attention since it was first published. I’ve decided to start publishing our net worth on a regular basis so you can see where we’re at now and see the ups and downs as we get closer to FIRE. You can check that out here.
Thanks for reading!!