A year ago, CNBC shared the behind the scenes of my budget and investments with my goal to become a millionaire by 45. They created a new tv show called “Millennial Money.” I’m pinching myself because I’ll be featured on, Sunday 11/17 at 4 p.m. central. Be sure to tune in. If you’re in Austin, then join me for a watch party + happy hour (details here)!
Since the show’s airing on national TV, now’s a great time to check-in on my net worth and progress to reach $1 million.
I’ve officially reached half-millionaire status and I’ll breakdown exactly where my money is.
Before we dive into the numbers, what exactly is net worth?
Net worth is the total of your current assets (everything you own like a home, car, savings, and investments) minus the total value of your current liabilities (everything you owe like a mortgage, car loan, credit cards, or student loans).
To avoid getting too emotional if (and when) the stock market temporarily dips like it did a couple months ago, I recommend tracking your net worth quarterly.
Net Worth Update (My Exact Numbers)
Personal Bank Account: $1,276.70
I usually keep a little over thousand in my standard checking account.
Business Bank Account: $1,513.89
My business and personal expense are kept separate, but I do include this account for my net worth. I also don’t keep a lot of extra cash in the account.
Emergency Fund: $37,644.34
My monthly expenses are usually less than $2,500. For me, this is over a year’s worth of expenses in the bank for a rainy day. My emergency fund is in a high-yield savings account with Discover.
I was previously saving to buy a classic home (versus a RV) and had over six-figures in this account for a large down payment. Seeing how much time it takes to maintain my small RV, I’ve decided to not pursue homeownership for at least the next 3-5 years. This year, I transferred the funds into a taxable brokerage investment account.
I’ve earned $2,552 in interest from my emergency fund this year.
Total Cash: $40,435
Investments
IRA: $247,961
This account is what I’ve contributed to the longest and most consistently.
Solo 401(k): $63,958
Since I’m self-employed and a one-woman business, I opened a Solo 401 (k) plan.
Brokerage Account: $126,209
When I decided to wait on homeownership, I opened this account.
All my investments are in a Vanguard Target Date 2050 Index Fund! I pretty much own the entire stock and bond market. Within this one fund there are thousands upon thousands of US and International stocks and bonds.
Total Investments: $438,127
This year my investments earned $58,311.
Car Value: $16,500
The stock market is up this year, but the used car market is down! Cars are never investments and the values drastically depreciate. The used car market was inflated when I bought my car, and prices are now calming down. The value on my car has declined over $5,000 in just a year and a half.
RV Value: $22,000
I’ve completely remodeled my RV to look more like a tiny home. This is what I expect the market value is now.
Liabilities: $0
I’m 100% debt-free. I bought my RV and SUV with cash. My student loans are long-gone! Not having debt feels freeing and makes life a lot less expensive. When I graduated, I was paying around $700 a month to debt, or $8,400 a year.
Total Net Worth: $517,062
In total with my high yield savings account, I’ve earned $60,863 in interest this year. This is over two times what my annual expenses are.
Right now, with $438,127 invested I’ll have $3.2 million at the standard retirement age of 65 (even if I don’t invest another dime) with 8% interest. I’ll reach millionaire status in ten years too. Investing more monthly will allow me to reach my first $1,000,000 earlier, by 45!
You can pay off debt and retire a millionaire too!
I don’t earn a high income or spend hours trying to pick the up-and-coming trendy stocks to invest in. I recommend creating a budget you can automate by investing a little every month. Tracking your income and expenses monthly will keep you accountable with money. I’m making it my life’s mission to teach people how with Best Money Class Ever. I’m so excited for the next class in January.
❤️ Carly
P.S. If you’re in Austin, then let’s meetup for the Millennial Money Watch Party + Happy Hour. We’ll meet at Hopsquad Brewery on Kramer at 3:30 pm this Sunday 11/17. I’ll order a couple of pizzas and have some pitchers for the first guests! The show will air at 4pm central. RSVP here so I can get a headcount!
P. P. S. As a heads up, I’m not affiliated with Vanguard or Discover. This is simply where my money is and for educational purposes only. I’m not licensed to sell investments or insurance. What I invest in (and the stock market in general) has no guaranteed returns.
