Hi! Thank you so much for listening to my story on the Fire Drill Podcast.
First of all, it’s great to e-meet you and thanks for coming over to check out my site. I really appreciate it and hope you can find value here.
I wanted to quickly link you to some of the articles that were mentioned in the show.
Here are some of the articles we discussed:
Free Stuff!!!
Free e-book on Selling Printables on Etsy
Free e-book on How to Drive Traffic to Your Blog
Personal Finance Articles
How to Become Rich: A Look at the Journey Behind my Current Net Worth
I Want A Bigger House But I’m Not Going To Buy One: Here’s Why
Blogging Articles
A Completely Honest Look at My First Month of Blogging
A Completely Honest Look at My Second Month of Blogging
Gold City Venture’s Blogging for Profit Course Review
If you have any questions please ask away in the comments below.
I look forward to hearing from you.
Rachel
I listened to your story on Fire Drill. Thanks for sharing your financial adventure. I was intrigued to hear that you think your net worth will hit $1M next year. Currently, it’s $650K and your monthly investment is $3K, i.e. $36K for the next 12 months. So, your base will be $686K. To get to $1M it needs to grow by at least 46%. How do you plan to get that kind of growth?
Hi John,
Great questions. My FIRE number is sitting around $650k without including the equity in my home or other physical assets I have. So my total net worth next year will hit $1 mil, but that will include equity in my home (around $300k) and other smaller physical assets. A fun number to hit and “officially” be a millionaire, but it’s a pretty arbitrary number since those assets won’t help me retire early unless I sale them which I don’t plan on doing.
Also, we save $650 per week after tax, but we also max out our IRAs every year, save 11% of our income before tax and have an employee match of 10%. So, before tax, we save at least $44,000 per year, plus the $33,800 per year after tax. On top of that, we invest our money (Vanguard index funds) so if the market does well we have compounding interest working for us. On top of that my husband and I both have side hustles that bring in extra money and grow our net worth.
Let me know if you have any other questions. Hope this clarifies some things for you. Definitely wasn’t trying to say I’d grow my net worth by over $300k next year with some “get rich” secret or risky investment. Thanks for listening to my episode on the podcast 🙂
Makes sense then if you include your house. It’s good to have a ‘fun’ net worth or what I call plan B net worth. It’s plan B because it means I sell everything and retire overseas, something that I usually think about when I come back from vacation! In my plan A net worth I exclude the house and 529. Can you talk a bit about your asset allocation and your plan in case of a market downturn. I’m significantly older than you and have experienced the market downturns of 2001 and 2009. So, in my mind another market downturn is bound to happen.
Yeah. I like that you call that your “fun/Plan B” net worth. So true… yeah, I usually think about that after traveling abroad as well. I’m mostly in the SP500 for after-tax investments and target-date funds for pre-tax investments. My plan in case of a market downturn would be to keep working and keep investing (everything would be on sale, right!?) I agree that we’re due for another downturn. In some ways, I’m hoping housing prices go down again so I can buy a bigger house without having to pay the crazy high prices. But then, if my investments (and thus my down payment) would be worth less it’d suck to pull out the money to buy something. What did you do when the market went down in 2001 and 2009? What would you recommend since you’ve gone through both of those?