Do I have to talk about myself today? OK, well, here goes.
I am one of those weird people stuck somewhere between Generation X and Millennial. What I claim probably has to do with how much I feel like working today or complaining about how our parents’ generation messed everything up.
I am a Southern Belle and over-college educated. I’ve got three degrees, all in various business areas. That’s one undergrad and two post-grad degrees. Single. No kids. One fur baby.
When I started tracking my personal finances in 2006… let’s just say I’ve come a long way, baby!
I didn’t start tracking net worth until 2008, when I saw it on a balance sheet at work and thought “hey, I should do that for ME!”
Hello, rude awakening!
I had $201,890.59 in assets. 93% of that was my new townhouse.
I had $229,994.72 in debts. That included the mortgage, the student loans, even some credit card debt.
Beginning net worth: -$28,104.13.
Based on what I measured, I was leveraged at 1.14 times. You’ll see that leverage number a lot in the coming posts. I see it as an easy measure of how much progress I am making. I am current hovering around 0.50, depending on the stock market today.
As I’ve made progress, the stock market has had more effects on my net worth on a month to month basis. It’s kind of annoying when it’s a bad market. It’s kind of awesome when it’s a good market. I try my best to ignore it though and not change my plan.
I was fortunate to have my first car gifted to me by my parents. But unknown to me back in 2008, it wouldn’t be too long until I needed a new car.
Now, let’s move forward to present day, basically a decade now that I’ve been doing this. My net worth just went over the half million dollar mark!
I’ve got a paid for vehicle. An awesome house, although I need to start some renovations soon (that will be fun). I’ve got a rental property that pays for itself and the rent on that is about to go up. I’ve got a good head start on my retirement funds. And I’ve got an emergency fund setup. I also have money left over, after savings, to have some fun.
I have a LONG outlook on things. I don’t plan on retiring for at least 20 years. And that would still be considered early retirement. But I like working and I’m good at it. I’m not looking to get rich quickly, even if it would be nice. And it’s nice to dream about the lottery. But not very realistic.
Now, for my philosophy on personal finances:
- I believe that if you cut all the fun out of your life that you won’t stick to the plan.
- I like measurements like Return on Investment.
- I buy based on quality and not price alone.
- I try to not sweat the little stuff. It is not worth the stress. Instead, I focus on the big things to make life easier.
- Work the long-term plan. Don’t focus on the short-term when you are working towards a larger goal.