Thursday, July 11, 2013

July 2013: $95,251 (+$5,769)

Bank accounts$25,215
Investment account$110,663
Pension savings$8,540
Student loan$–49,167
Net worth$95,251
Burn rate5,62 years
Savings rate71,4 %
Millionaire month   March 2026

Another positive month after the small dip in net worth in June. About 70 percent of my assets are now placed in the stock market (index funds). The remaining 30 percent is in different savings accounts (mainly savings towards buying a home). 

How I keep track of my net worth and estimate future net worth:
I have a large Google Drive spreadsheet where have I put in all my income, expenses, assets and liabilities, with one row for every month since 2004 (more accurate numbers since 2010). Below are some diagrams made from these data (all should be self-explanatory):

In the same spreadsheet I also put in my expected future income, expenses, savings etc. for every month up to age 75. Given a reasonable rate of annual return (I now use about 5 %), my spreadsheet now shows me that I will reach:

~$110,000 by the end of 2013
~$150,000 by the end of 2014
~$220,000 by the end of 2015. 
~$280,000 by the end of 2016
~$350,000 by the end of 2017
~$410,000 by the end of 2018. 
~$480,000 by the end of 2019
~$560,000 by the end of 2020
~$630,000 by the end of 2021 
~$710,000 by the end of 2022
~$790,000 by the end of 2023
~$880,000 by the end of 2024
~$970,000 by the end of 2025

... and that I will become a dollar millionaire by March 2026. All these predictions are of course changing every time I change the numbers in my spreadsheet.