When I graduated college and got married to my wife in 2011 our financial life was pretty straight forward. We both had reasonably paying jobs that amounted to a total gross income of roughly $100k. Our only debt was my student loans and her auto loan which amounted to roughly $75k. With very little savings and us renting an apartment directly after we got married our net worth was roughly -$70k. At the time I wasn’t neck deep in personal finance blogs so this figure never crossed my mind.
One person that I was an avid fan of was Dave Ramsey. Because of that I was laser focused on getting rid of all of our debt. I put together spreadsheet after spreadsheet comparing different scenarios of how we should do it and eventually settled on a kind of a reverse snowball.
Fast forward a few years and our total auto and student loan debt is now a little over $20k which means we’ve made a ton of progress. However, we’ve been able to build up other assets to have our net worth much higher today. Our current net worth is $141k with our assets split up roughly a third each in retirement, home equity (20% down) and cash.
The exciting part is where our financial future is going. If I stick to plan and get the expected returns, our net worth should cross the million dollar mark at 43. That’s super exciting to think about. If things generally go the way I am planning (which they generally have over the last 6 years) we would have made a ton of progress in the net worth department. A simple way to look at it would be like this:
Net worth totals:
Age 22 : -$70,000
Age 28: +$141,000
Age 43: +$1,000,000
That’s pretty awesome to look at. I have a ton of work ahead of me but am excited about the future. I have found through the years that if I have a clear picture of where I want to go, I am much more hungry to get after it. More than anything I love the grind. I am excited to become a person that has a net worth of a million dollars. Not because I want to put it on a tshirt and show off but because of the person I’ll become along the way.