View Full Version : How is your net worth?
awakenedsoul
4-18-13, 8:15pm
I was filling out the forms today for my living trust. After listing all of my assets, I was happily surprised. Home values have risen in this area, and my net worth has grown! It's weird, I didn't realize it. By living frugally and reducing my expenses, I've been able to technically not touch the inheritance I received. It's kind of wild. Since I retired early, I have been focused on fixing up my home, building up my orchard, and doing as many things as I can myself. (Rather than paying someone else.) My brothers have corporate jobs and they work long hours. They bought expensive homes, and they both have a negative net worth. (They received $10,000. for their weddings, fully funded college educations, and some stocks.) I wasn't given any of those, but still have done better than I realized. I funded my own career training, haven't married yet, and sold my stock years ago at the height of the market. (I needed the money to fix my crumbling teeth and crumbling 1920 tile floor in the kitchen.) Reducing expenses and living debt free really has a magical effect over time. The other bizarre thing is that one of my brothers makes $100,000. a year. I earned only about $20,000. (on average,) each year. Here's to growing your own food and riding a bicycle!
What a great post. The older I get, the more I realize that most people just spend more when they make more...and so they get further behind each year. Sometimes when someone makes a large salary, it becomes easier to spend without a plan because their income seems so large. A couple of family members "bumped up" their houses when they got a raise, and that has greatly increased both their cost of living and debt load! They work extra hours merely to keep up their housing costs. It has put a lot of stress on their day to day lives. Keeping it simple really is the best way to go!
Tussiemussies
4-18-13, 9:12pm
Congratulations Awakened Soul, what a great accomplishment despite the point that you did not receive any help along the way. Very inspiring!
Life_is_Simple
4-18-13, 9:38pm
Very, very inspiring! This is so cool! :+1:
I like this sentence of yours:
Reducing expenses and living debt free really has a magical effect over time.
You are doing well and will have peace of mind as the bonus which is really priceless.
Keeping life simple and manageable is really a smart choice.
awakenedsoul
4-18-13, 9:54pm
Congratulations Awakened Soul, what a great accomplishment despite the point that you did not receive any help along the way. Very inspiring!
Thanks for all the replies. Actually, I did receive help, Tussiemussies. My parents gave each of us money for a down payment on a house. My brothers bought homes that cost $700,000.-$800,000. at the height of the market. My house cost $89,500. Nobody wanted it, but I saw the potential. It was an eyesore, but now it's a lovely cottage. It's been a great creative project.
The other bizarre thing is, my brother who makes $100,000. a year is married to a woman who makes the same amount. But, I guess the government gets half of that. I followed the guidelines in The Millionaire Next Door. I also read and listen to Napolean Hill. I'm still kind of blown away by it...my father was very frugal and he only spent the interest on his inheritance. Now I see how passive income works. Market timing has a lot to do with it.
iris lilies
4-18-13, 11:53pm
That is so great that you are preserving your capital!
We are doing well.
It is interesting that DH and I have, on average, made half what most of our friends have earned, but we actually do have greater assets than they do and have for a long time. Weird, that.
Also, I"d say that we have a higher quality of life even though we have less fancy 'stuff.'
I feel like people frugalize in the wrong places.
Example: I need to keep a strict budget, so I"m going to cut food costs. Assuming they've already paired back on dining out, etc, they then go to coupon clipping. Which might save several dollars a week -- say, $25-50. But, cutting the monthly cable/phone/internet bill back to the essentials might save people $300 or more.
It's a strange thing, that.
awakenedsoul
4-19-13, 12:10am
That is so great that you are preserving your capital!
My dad's from a family that taught him that you had a responsibility to do that, and keep up with inflation. He set goals with his money and achieved them with four children. He did the opposite of what so many people in my generation do. He lived off the interest from his investments, after selling his business. I think when I read Spartana's monthly expenses, that was a lightbulb moment for me. I thought, "Wow!" Maybe I could do that." It just sped up the ability to retire. I live in a very inexpensive area, too.
I am also inspired by you, awakenedsoul! Sounds like you've built a really lovely life.
On the balance sheet, still in the red. In my life, so very much in every other fabulous living color!
Our budgeting software shows us in a big hole because it lumps our mortgage and the mortgage for the rental property in with the rest of our holdings. But I'm not worried about that because we're not underwater on the house (never were, AFAICT) and we'll have enough passive income to keep up with that (in fact, pay it off early). So, that aside, we're looking pretty darn good considering I walked away from a low-six-figure income.
Honestly, that last fact is the most amazing part of this journey so far (that and the fact that it has come pretty much stress-free). I think Valley and awakenedsoul make valuable points about how much of that money you actually see after taxes (not a trivial point) and how easily the remainder can be spent because there seems to be quite a supply of it.
My net worth is good for me - although I imagine it would be considered too low to retire on by others outside this forum. Other than my paid off house I bought with my sister (bought for $300K last year - or $150K each - now worth more) I have cash (aprrox. $150K) in savings - which I haven't needed to touch since I turned 50 and was able to get a small government pension that covers my basic expenses. Once we sell the house in a bout a year and a half, then I plan to possibly rent long term rather than buy again - or buy much, much cheaper and probably out of state.
On the balance sheet, still in the red. In my life, so very much in every other fabulous living color!
You are very rich indeed!
awakenedsoul
4-20-13, 3:41pm
My net worth is good for me - although I imagine it would be considered too low to retire on by others outside this forum. Other than my paid off house I bought with my sister (bought for $300K last year - or $150K each - now worth more) I have cash (aprrox. $150K) in savings - which I haven't needed to touch since I turned 50 and was able to get a small government pension that covers my basic expenses. Once we sell the house in a bout a year and a half, then I plan to possibly rent long term rather than buy again - or buy much, much cheaper and probably out of state.
How much do you think the house will be worth in a year and a half? They're going up fast here. My neighbor got his as a foreclosure for $250,000. It's already woth $350,000. He's in construction and did a ton of work on it.
I've been looking at small homes on line in Big Bear. Looks like you can still get a cute tiny house for $89,000.
How much do you think the house will be worth in a year and a half? They're going up fast here. My neighbor got his as a foreclosure for $250,000. It's already woth $350,000. He's in construction and did a ton of work on it.
I've been looking at small homes on line in Big Bear. Looks like you can still get a cute tiny house for $89,000.
I don't know but I think it's probably gone up by around $30K. I'm not so sure prices will keep rising but it would be nice. I don't know where I'll move to afterwards but probably not Big Bear again - probably not even Calif. Have no idea.
iris lily
4-22-13, 11:52am
The stock market run-up has been fun! I will check my 401k equiv once or twice in a six month period, but don't dwell on it because--it will go down again!
Gardenarian
4-22-13, 2:29pm
Net worth is looking fine. Amazing what not spending money can do!
awakenedsoul
4-22-13, 2:43pm
The stock market run-up has been fun! I will check my 401k equiv once or twice in a six month period, but don't dwell on it because--it will go down again!
I haven't had the guts to invest in the stock market. I called one of Dave Ramsey's endorsed local providers, but then I canceled the appt. He sent me this weird ambiguous email about daylight savings time, and I got a bad gut feeling about going. Do you have any bonds?
awakenedsoul
4-22-13, 2:44pm
Net worth is looking fine. Amazing what not spending money can do!
That's for sure! I may spend a small amount more on fruit trees, since they give me a nice return.
awakenedsoul
4-22-13, 2:46pm
I don't know but I think it's probably gone up by around $30K. I'm not so sure prices will keep rising but it would be nice. I don't know where I'll move to afterwards but probably not Big Bear again - probably not even Calif. Have no idea.
I've thought about New Mexico, Colorado, or Oregon. I loved Washington state, too. But, my fruit trees and cottage are really nice here. I may just travel to those places.
Gardenarian
4-22-13, 3:09pm
That's for sure! I may spend a small amount more on fruit trees, since they give me a nice return.
:) +1
Better all the time--in theory. House prices are on the rise again, and my finances are in reasonably good shape. Similar to Iris Lily, I like watching my house appreciate on Zillow, knowing that what goes up often goes right back down. It's happened before.
I've thought about New Mexico, Colorado, or Oregon. I loved Washington state, too. But, my fruit trees and cottage are really nice here. I may just travel to those places.I'll probably end up travelling to places too rather than living somewhere permanently after I sell. Will probably just be a "wandering waif" as my friends call me and not put down roots for awhile. Once I'm ready to settle down it'll be by a coast - New England or Washington most likely but have to take high utilites and property taxes as well as housing (own or rent) costs into consideration too so may end up somewhere very unexpected. So really no idea. Cost to buy or rent will be a big factor along with having everything I want like ocean, rivers, forests, mountains, etc... Personally would just love to wander for a few years (maybe 10 or more) and rent in various areas of the world for months at a time and settled down once I'm older. That's more or less the plan as of now. The homeless wandering waif life is something I like alot :-)! OK maybe not homeless, but not tied down to one place permanently. 6 months in Paris? Yep! 6 months in Prague? Yep! 6 months in Alaska? Yep! the life for me. Althougjh I do have one of those boy friend thingies so maybe I can get hom to retire early and come with me.
I haven't had the guts to invest in the stock market. I called one of Dave Ramsey's endorsed local providers, but then I canceled the appt. He sent me this weird ambiguous email about daylight savings time, and I got a bad gut feeling about going. Do you have any bonds?
I do have bond funds, municipals bonds for the public library. Otherwise we probably have at least one bond fund, don't really know. I don't pay attention that closely except to know that we are diversified.
In the stock market we have mostly stock funds but DH bought a few individual stocks recently. And then, we used to have a fairly high % of our net worth in his former company for a while, but we sold off some of it and just have a reasonable percentage in it. It still does ok though I don't think anything great.
I'm not looking for big returns, and I'd be happy with a few index funds, really.
awakenedsoul
4-23-13, 9:16pm
Spartana,
I loved being a gypsy. When I was a dancer, I was on the road for 15 years. So, I know what you're talking about...
iris lily,
Bonds for the public library sound good. I'd feel safe with something like water or power companies. There's also a small piece of land for sale on my street. I'm considering buying that at some point...
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