End of May Analysis – Mid year

Net Worth:  $1,128,606

All Assets:  $1,470,296

Assets (minus home, vehicles, college funds):   $751,359

Liquid Assets (Cash, Stocks):   $201,763

Liabilities:  $341,690 

Prime Metric (Liquid Assets – Long Term Debt):  131,227 

Okay compare the last number to 134K about a month ago.  Dropped about 3K in 1.5 months.   The goal  is to drop that number down to 118K by the end of December (so essentially save 13K before now and the end of year).

How I get there.  Stock:   5K (August, after tax).  ESPP:  1200 (June).  Bonus:  Util, 13K, CBI: 15K, Other: 18K = 46K, 30K after taxes.  Some of that will go to expenses.   Total ~35K after taxes so as long as 20K worth of expenses doesn’t show up…should be good.

Mortgage Payoff for the next 7 months with 800 contributed will lead to a 9K reduction.

June 331356
July 329716
August 328072
September 326422
October 324767
November 323907
December 322241


Best Case (Everything goes in to savings):

~35K reduction.  131K – 35K = 96K

Moderate Goal (halway between where we are and the best case):


Target Goal:


Worst Case :


If I were to guess, we will end somewhere between about 105K – 115K.   That would be about a 50K down (159K down to 109K).    If that could be repeated for 2 more years, goal reached!!!!

I’m rich, I’m not

In high income areas you tend to hear a lot of people say that they feel poor.  Poor because high cost of living (mostly from housing prices).    While I do very well, I feel like I’m in a process of becoming wealthy, but nowhere near poor.

The average married filed jointly income is 117,795 (From 2014 IRS Stats).    Our AGI  income exceeds this by roughly 110K.  This is on a single income.  I was chatting with a friend yesterday though who make a bit more than this with two incomes with his wife.   We are definitely among the wealthy, but neither of us lives in a huge house, or drives expensive cars.   He tends to take more extravagant vacations than I, but nothing too crazy.   Both of us are on a good track to be very wealthy in the future if nothing terrible happens health or job wise.   Part of that is because we have good jobs, and we don’t spend extravagantly.

A bit of analysis of income.   Anything over to 200K put you in the top 4.2% of earners in the United States.  Okay, WOW, we are in the top 5%.  That seems insane.   Going a little deeper, the DC GS locality adjustment is 27.1%, however the lowest is ~15.0%, and highest is 31.2% (New York).   So we are 12% higher cost of living than average.  Okay, so if I made 12% less (I’m really not thinking through these calculations bring us to about 200K.

So don’t get me wrong.  I feel fairly wealthy.  I’m comfortable, can buy what I want, and spend money on luxuries.  I will be able to pay off a mortgage.   I feel like I’m more in a process of getting wealthy.   I’ve always done better than average, and I’m in a process that will eventually lead to great financial security and wealth, but I’m not quite there.  Every year I get closer and closer to this goal.

Paying off the mortgage, paid off cars, paid off educations for the kids, those are the first signs of wealth.   I’ll achieve those goals in the next 10 years (before I’m 50), if nothing bad happens.   Then it’s a matter of accumulating more wealth and income producing investments to solidify financial security in the future.   Another 5-10 years (age 55-60), I can semi-retire, and begin to do something different as the kids complete college.

Would anyone love to have a huge windfall to accelerate these efforts (ie… start a small company and make millions).  Sure!  But stay the course and I can still project a very comfortable future.