Over the weekend, I updated our net worth numbers and we finally passed $600K!!! It took a little over 12 years but the milestones are happening faster and faster. Only eight months ago we achieved half-a-millionaire status.
It’s hard to see these milestones and what they look like from a previous vantage point, i.e., $300K looking out to $600K. In certain regards, they’re uneventful and just like $589K was or $742K will be or any other arbitrary number that’s not $2.4M (i.e., my FIRE number) or the “Wealthy/Financially Comfortable” number. But in other regards, we’ve made it! Millionaire status seems right around the corner. In fact, we’re doing far better than the majority (if not all) of my high school peers (we went to public school with other low to low-middle income families). And far better than the median net worth across the US. The average is skewed by the super wealthy, but I still showed it anyway for ships and giggles. See some stats below:
Image may be NSFW.
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Source: MarketWatch
Just like at $500K, it’s worth celebrating these mini-milestones at $600K. They represent accomplishment through some sort of diligence or luck or both. As I reflect on our mini-feat, I realize that few things: first, that I’ve sacrificed a good amount over the years. While I didn’t track my savings rate, I generally remember my lifestyle. The early years reflect a lot of party-time, going out, and traveling. The later years reflect a more measured approach to saving and spending. The same can be said for my wife except switch out traveling for buying shoes/clothes. Secondly, I’ve been fortunate enough to have a great job with generous pay, save during a 9-year bull market, and suffer no catastrophic events. Lastly, I believe my outcomes are a result of hard work ~75% and random events ~25% (or you might call it luck). It’s hard to be in a rewarding situation if you haven’t put in the effort to get there. A few days ago, my boss called me and gave me a raise out of the blue. This will undoubtedly help in the future and likely contribute at about $250K in earnings over the next 18 years (when the boys get out of school). Diligently saving and continuing my diligent work ethic will put me on a better path with more opportunities just like this one.
Looking ahead does not require a status quo mentality. I realize I not only have to adhere to the 50% savings rate I’ve mentally committed to, but also to keep grinding at work in order to keep growing our net worth. Our lives are getting more comfortable thanks increases in income. We hired a lawn guy. We hired a maid. We almost always buy organic. We go out to eat whenever we want – and that’s often. We’ve got local Broadway tickets. These are all luxuries we’ve welcomed in the past $100K of net worth which happened while maintaining a 50% savings rate.
So pause, reflect and celebrate at each mini-milestones. You/we deserve it. And keep up the diligence, luck will find us.
