Just did a new financial statement and projected forward for my Net Worth and the results are quite promising! If my calculations are correct, even though I currently have a net worth of -$20,000, if I continue at the same pace I am, I should have a net worth of $100,000 in 5 years. I know that seems unlikely, so let’s break it down.
120,000 / 5 = $24,000 per year. 24000/12 = $2,000 per month. I will have to save/gain $2,000 per month from now until September of 2016. That sounds very difficult I know, but in the financial statement I have put together, by that time, I would’ve bought another rental property, creating passive income, as well as gotten a new job and started a business. In my new job, I’m making $80,000/yr instead of $55,000 and my business is generating $1000/mo extra income. This is a super happy view of the future I know, but quite within the realm of possibility. So it gives me some goals to work towards. Furthermore, at my current rate of net worth increase, i should actually be at $100,000 by January of 2014, a cool 3 years from now.
You can see the tiny graph in the lower left of the actual values thus far. Assuming growth, on average, stays the same, this trend line will hold true and bu January 2014, my net worth will be $100,000. I still see it as a rather fantastically positive outlook, but the more I crunch the numbers, the more I start to believe. And if I, the cynic of all financial cynics, can believe I can reach this goal, then I will!
Main thing, just keep with the system! Keep saving! Don’t blow it on some company or investment. Use proper judgement and risk only what you are allowed to lose. It’s just like gambling in Vegas. Never bet the rent money.