Church of FI – Did I just hit $1MM in assets?

Do you see that?

My assets have officially topped $1,000,000! Even though this milestone is market dependent, it still feels damn good to have achieved.

If I sold all my assets today, I still would not have enough money to retire on since I still owe the bank some money, but it is still a good feeling.

I would like a little more diversity in my investments; more avenues of passive income to lessen the blow when a bear market emerges.

So, I am considering borrowing more money.

For the last couple of months, I have been throwing around the idea of adding a two-bedroom unit to the property and then renting out the main house. My preliminary calculations indicate that this would drop our monthly expenses by about $1,000. If we chose to rent out the two-bedroom unit to travel, we would have an extra $1,000 spending money to take on the road.

Our debts would increase by about $100,000 to $125,000 (that’s my budget, contractors have alternative ideas), but the renters would pay nearly all of the debt. That is something I might be able to get behind.

They say you have to spend money to make money right?

Truth is, I have been a little annoyed that I am not making any money off our primary residence. Every month I see the money going out; I know there is a way to leverage the equity in our property. All it would take is a little effort up front and a willingness to downsize our living situation.

Anyway, it is something to seriously consider.

 

Financials from the Web

I find it useful to compare my plan and progress to others on the same path. There is no doubt that we all have different incomes and levels of spending…there is no shame here!

Use what you find in these links to formulate a financial plan that is right for you, whether it be to reduce expenses or to develop a strategic savings plan for financial independence. If you know of any other updates I can link to here, let me know in the comments!

Expense Reports

The Jolly Ledger

Root of Good

Frugal Paradise

Northern Expenditure

Bayalis is the Answer

Slowly Sipping Coffee

Retire by 40

Frugalwoods 

Mr. Tako Escapes

Dividends Down Under (Savings Update)

 

Net Worth Reports

I have eliminated the next worth portion of the Church of FI, because I have been made obsolete by Rockstar Finance . They have an extensive directory of links to net worth reports. Go check them out and bookmark their site!

 

 

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9 Responses to Church of FI – Did I just hit $1MM in assets?

  1. J. Money says:

    You know what would be even better with our Net Worth Tracker? Having YOUR net worth on it! 😉 Heyo!

  2. Congratulations on hitting the milestone! Way to go

  3. That’s definitely a solid milestone. I’m in the same situation that you’re in – happy to be building assets and net worth, but not yet at the point where I could pull the plug and retire.

    Do you have “a number”?

    • ska@thejollyledger.com says:

      Hey MC! I do have a “number” based on a 3.5% SWR ~ $937,000. However, I have a stronger “FIRE date”. Since I suffer from extreme burnout already, I just can’t see working past March 2021. If we have to, we will find part-time work or income from another source. I think we will be close enough to our target, it won’t matter much. However, if the market tanks we will employ a slightly different strategy.

      • That’s a very exact number. If I have done the math correctly, that means you need $32,795/year, right?

        I’m a big fan of the idea of retiring right AFTER a downturn. One of the biggest risks to retirement is the sequence of returns risk where you retire and then the market tanks in the first few years. The good thing about your timing is that, assuming you retire in March, 2021, you’ll likely be retiring shortly after a downturn, which would be perfect timing!

        • ska@thejollyledger.com says:

          That’s what I’m thinking too! Hopefully the downturn will happen between now and then. Yes we will require 32k from our investments but we will also have additional rental income to pad our income. If all goes to plan we might even need less.

          • The inclusion of rental income is pretty key. Although I’ve found that my rental income is frighteningly variable (sometimes firing on all cylinders, sometimes significantly lower due to repairs or vacancies) I believe it will be largely independent of the stock market, which was my main goal.

            The BEST case scenario is that there’s a downtown and we can use our rental income to buy stocks on the cheap!

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