The missing networth goal

My 2014 report contained a small section about goals for 2015. All three dealt with expenses. I didn’t have a networth goal; and this was okay for me.

But a few days ago, I had a revelation. In 2012 our networth grew by 20k, 2013 30k and in 2014 40k.

Disclaimer: This is my internal networth number (including our house and mortgage). The difference for 2014 is our mortgage payment (principal) or almost 900 Euros a month. When I started the blog the difference between the two networths was very small, but later I realized it will be growing every month… I don’t know if/when I fix that. For now I keep two separate numbers and my internal networth number will be higher each month.

But back to my revelation. When I project this “every year 10k more” into the future, the goal for 2015 will be a gain of 50k and 2016 +60k. The million milestone would be reached at the end of 2023. As 600k is a number were I would think about quitting my job, this is a more interesting milestone for me: end of 2020. This means 6 more years to work!

But I didn’t stop here. How can the goal be reached? We usually save 20k each year (from our income). For the 2015 goal this leaves 30k to investment gains. If I wanted to achieve that with my brokerage account (roughly 100k), I would need a 30 % return. That is not impossible, but not very likely. A solution could be to increase the account size – with 150k only 20 % would be needed. Unfortunately, my wife is against that (which I understand given my wild swings.)

So, no happy end yet. But I will figure out ways to achieve this 50k gain. In my spreadsheet I even have a “diff” column. I hope to fill it with positive numbers… 😉

PS: I think about quitting my job almost daily, but with 600k I could really do it, maybe, eventually.