I guess if you are going to write about money, you at some time have to be transparent with your finances. So, as I was sitting down and doing my taxes, I decided to look at what my net worth is and where is it all located. I haven’t done this is in a few years mainly because I don’t care because I want to retire at 52 from teaching, a job in which I love doing and isn’t seen as a burden, and it gives me stress to look at my investments on a monthly basis. I usually look over my accounts a little during the summer months in which I get 9 weeks off!! Its a lifestyle thing that I can’t give up. But, over all I don’t keep a running tally of my net worth because at 52 I get a TRS pension based on my top 5 pay years averaged out. So, the reality of my situation is that my net worth doesn’t matter because I’m set for now thanks to teacher retirement. I only save because I’m not that consumeristic, and I plan as if I have no retirement from TRS. I’m paranoid I guess.
So, my numbers are not that advanced because I try to keep it simple.
403b (on hold): $21,086.52
My Roth IRA(maxing out): $39,255.68
Wife’s Roth IRA(on hold): $3,824.84
Savings Account/Emergency Fund (Never higher than $15,000): $13,214.01
Checking Account (Bill Payer): $4,124.64
Kids College Fund (3 kids combined): $35,383.97
TRS Cash Value (only if I opt out of the system): $62,643.67
Home Value+5 acres (Zillow est.): $368,980
Mortgage left: $148,245.76
Total Net Worth: $400,267.57
Well, I’m not sure what to say because I am 36, with only my mortgage left on my debt, and I plan to work at this point for another 16 years. I am putting about $3500 a month into the mortgage right now, maxing out my IRA, forced to contribute to my TRS account(yeah pension), and putting $4800 into the kids college yearly. My wife’s IRA is on hold for now, because of the mortgage payoff plan, and the 403b is also on hold too. After the house is paid off, and it should keep going up in value due to the land values alone (we live on acreage), we will have the $3500 a month to invest and save for our next big venture of adding a few rental properties to our income stream. This is the long range plan and we know with kids things could go wrong, but having a plan is better then running around spending freely.
So again, these are my numbers after working as a teacher for 12 years, with a single income (my wife just started teaching this year), and we have a family with 3 kids. We feel pretty normal in every way except we budget a lot. I feel these numbers are pretty good for my point in life, but as a coach and a competitor, I know I could be doing much better. I try to not go extreme, by living in a van with no possessions, although I dream of it all the time (if only I was single). I also have some vices such as $1.95 for donuts each week and $5000 a year on vacations!! I do have weaknesses and a life, but everything is budgeted in and we stick to the budget as a couple. I’m not sure I want to keep doing my numbers every quarter or anything like that, but maybe once a year around tax time is alright. So, for now enjoy and hopefully all the accounts keep going up with our great market situation. I hope to inspire more of you to just keep saving and keep the bills low.