June 2021 Net Worth
It’s been three whole months since the last net worth update. After my 1.5 year gap from October 2019- March 2021, I think this an awesome improvement. 🙂
I am not sure how often I want to do these updates yet. I used to do them every month in the BC times, but I don’t want to do them that frequently right now. I may stick to doing them once every three months (although I am writing this on June 1st). We shall see.
Alright! So let’s review where we were last time.
Then: March 2021: $340,000/$54,000
“What is this /$54,000 nonsense??!!??” you ask. A new mechanic. With the value of our home/without the value of our home. Going to be doing this going forward. I never liked including the value of our home in our net worth. Since we are not (and have no plans to) sell it, it has (to me) no immediate value. I know many like including it though, so this is my compromise. I refuse to add cars though; that just makes no sense to me.
Now: June 2021: $394,000/$108,000
Woah. Okay. Well, that happened. Three months to get to a $54,000 increase. This is awesome!!! 🥳
Since March, we got the mortgage under $190,000. My 401K increased by over $19,000 and is now maxed out. We were also able to invest more into VTSAX and get that growing. I left the value of the home alone this time. We are going to make the value of our house a quarterly adjustment and keep it at the low end of the market.
Financial Independence Milestone: GreenFI
This is a new section based on this awesome post by Darcy over at We Want Guac. In it, Darcy makes some new financial milestones on your journey to Financial Independence/FI. For this, we are only looking at what we have invested into our index funds and not including 401Ks, IRAs, etc. since we cannot touch them until we are older. That makes us GreenFI. The next step will be BennyFI (30K).
I had $450K at the stretch goal for net worth this year. Now, I am probably going to increase that to 500K assuming no huge shifts to the market. That was so crazy to think much less type out. Time for a drink. 😂
How are you doing on your net worth? Hitting your goals so far?
Congrats on maxing out the 401k!! It’s a great year – and only half over 🙂
Thank you and thanks for reading! 🙂
You’re making great progress, congratulations on hitting your 100k networth milestone. I totally understand not including the house in your networth, but like you’re doing I also track both numbers because although I can’t spend the money in my home, it is an asset that I was shoveling money into.
I know 59.5 seems like a long way off when you’re looking to retire early but I think you’re selling yourself short by not celebrating your FI milestones while including your 401k/IRA balances. You’re maxing out your 401k and that money is an important part of your journey for the 2nd half of retirement. Have you read Tanya’s post about looking at your savings in two phases? The second phase is “traditional” retirement, or starting at 59.5 when you can access those funds, and the first phase is your early retirement.
Her post really helped me set better savings goals looking at my funds like this, and figure out how much I should be investing where each month/year. And those traditional retirement accounts will get you to Coast FI, which it seems like you’re on track to hit in record time.
How We Calculated Our Numbers for Each Phase of Early Retirement
Thank you, Thomas! I do consider retirement in two stages. 🙂 We have a number for Phase 1 and a different number for Phase 2. We’re going to have at least 20 years before we have access to the 401Ks/IRAs, and we plan on saving more than most so we can travel without worrying too much about anything.
I did read that post you mentioned and it is very helpful! 🙂
Thanks for reading!