Quarterly Net-Worth Update #2 is posted below! I’m right on the doorstep of entering into a new 6-figure milestone.
Why do I publish my financial reality on the internet? Because I want to show a real-life example of how real-life people can succeed with money. I want to inspire as many people as I can become wealthy, because it’s one of the best feelings I’ve ever had. There’s a bliss that comes with not having to stress about money.
The truth is, you don’t have to make millions to become a millionaire. Millionaire’s are made $10 at a time. This is my story of becoming a millionaire so I can achieve my dreams in life. So let’s jump into quarterly net-worth update #2. I use the free Net-Worth tracking software, Personal Capital, to track my money. Try it here, it’s fun.
It’s been a nice 3-month stretch as you can see. The market bounced back after an ugly December. My sales business has been busy, which have helped make my paychecks solid. Rent checks have cleared. And compound interest is really starting to make an impact on my investment accounts.
Think about it: I’ve had a +$27,159 net-worth increase since my last net-worth update (A 4-month period) and I’ve only had to save around $15,000 of that from working. Proof that my investment income is starting to create crazy money. Especially since I’m still a humble guy who thinks $100 is a lot of money.
6 years ago, I owned 2 assets worth $10K each. I now own 6 assets worth $20K-$70K each. “It’s the compounding of assets, not just money, that creates true wealth.” – Robert Kiyosaki. Compound interest is real if you keep making, saving, and re-investing.
The other cool number I’m looking at in this update is our potential down payment for investment property #2. We combine our emergency fund and VTSAX accounts for down-payment money since we can access those funds at any time without paying a penalty.
Those accounts equal $46,000 right now. That’s almost a 25% down payment on a $200,000 investment property, which is what we’d be targeting. That means we can at least afford to buy another one. We’ve even gotten pre-approved for mortgage #3. Now we just have to find the right deal that will cash-flow, and be a perfect long-term, buy-and-hold rental. (In the next few weeks, I’ll write about the criteria we’re looking for in our next rental property. The last property worked out so well for us since we didn’t compromise on any of our rules, so we’re not going to sacrifice on these rules on the next property either.)
Looking at this net-worth update, cash flow is also looking great. $3,463 in totally passive income over a 4-month periods is pretty sweet. My goal is to cover half of my annual expenses (around $16,000) with passive income, so I can further my goal of reducing financial stress in my life. I’m getting closer.
First-quarter (Jan-Mar) will always be a higher than normal cash-flow numbers, because our retirement accounts pay out their annual dividend on December 31st once per year. Of course I’d have to pay a 10% penalty to access those retirement dividends before age 59.5, but it’s still real money and a cool number to monitor.
I invested my first $1,000 into a retirement account 6 years ago in 2013. My first dividend from that $1,000 was like $10. I’ve come a long ways from that first $1,000 investment, and it’s a pretty awesome feeling to see that Amanda and I have built our retirement accounts to $50,000+ in only 6 years. It’s even cooler to see that those accounts are starting to pay us $1,137+ in dividends every year. I can’t wait to see what my retirement dividends will look like at the end of 2019 after we invest another maximum investment of $12,0000 into our tax-free retirement accounts this year.
Only downside to report, is that our wallets are going to be $3,500 lighter by the end of the day, because… taxes are due. It’s April 15th today. Don’t forget to get your taxes paid if you owe like we do this year.
$6,500 to go and we’ll climb into a new 6-figure net-worth into the $300,000 range. What’s our plan to get beyond the $300K milestone? Our plan is to just keep doing what’s got us this far:
We’re going to keep seeking happiness on as small a budget as possible, and aggressively saving and investing the rest of our money.
It feels good to be wealthy, because we can accomplish any dream that comes to mind. Anyone can do this.
So many people want a different life than the one they’re currently living. The biggest thing holding most people back from living their biggest dreams is their financial reality. I write this blog so that you can see the steps one needs to take to improve the financial reality in their lives. Become a millionaire $10 at a time, and go on a mission to achieve the purpose you were created to live.
STUFF WE LOVE:
Personal Capital is a net-worth calculating tool that turns your finances into a puzzle that’s fun to solve. It’s free and makes monitoring your money easy.
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