You Have More Than You Think

At age 35 now (as of December 13, 2012), I’ve felt the mid-life crisis bug starting to nip at my heels. “5 years to 40,” it says taunting me just enough to irritate me. Breathing in and out slowly, I control my stress and find time to take stock at what I have to show for myself at this time in my life. I look at all my money on Mint.com (I am also looking at Personal Capital as an option for this) as well as some other things to my name and I am pleasantly surprised.

I thought I would not have much to show for myself. After all, I’ve simply worked as an employee for about the last 7 years and only really started to think about money in the last few years. In fact, only a couple months ago I started to max out my 401K contributions. At first I thought I might have $50,000 dollars in total assets, including cash, to my name. But then I looked at the raw numbers and here’s what I have to show for myself (and my family) at 35:

Assets
Cold Hard Cash (In the Bank): $104,158.88
Stocks (employee RSU): $13,500.00
Home (from Zillow.com): $234,000.00
401K: $53,000.00
Honda Fit 2009 (Car): $10,000.00
Hond Pilot 2012 (Car): $33,650.00
Kids Computers: $200.00
Heidi’s (my wife) Computer: $400.00
Jeremy’s (Me) Computer: $1,500.00
Furniture: $500.00
Clothes/Accessories: $100.00
Appliances: $200.00
Dishes/Utensils: $50.00
Websites: $3,000.00
My Shoes: $75.00
Heidi’s (my wife) Shoes/Jewelry: [I’m not going to go there, these aren’t up for sale unless we’re starving :)]

Liabilities
Home Mortgage: $160,000.00
Credit Cards: $8,320.65
Car Payments: $32,789.40
Stock Taxman (one-time next year): $20,000.00

Total Assets: $454,333.88
Total Liabilities: $221,110.10

Net Worth: $223,223.78

Intangibles

I’m adding another section here called intangibles. There is something to be said for skills and ability gained as time goes on. For one, my skills in technology allow me to earn about a six figure a year income. And I could probably take this to multiple careers/companies if I needed to. If the current company I work for bankrupted itself, I don’t doubt that I could do some quick hunting and find another job that pays six figures with good benefits. Getting to this point has required hours on end in the classroom and at home programming and building things (since about 2001), so there has definitely been a time price to pay for this. My yearly intangible benefits (salary + benefits + bonuses + stock) is thus: $110,000.00.

This is simply a wild card number of what I feel I can command from the marketplace in total raw dollars as a senior software engineer with about 10 years experience, particularly in web development. I can build any website, small or large including enterprise class systems. This gives me great peace of mind and I really can’t say it enough, “Become a coder already!” – start now and build up that skill because there are gobs of jobs with not enough qualified people to fill them.

Verdict

I’ve listed everything under the sun I can think of as an asset. I’m sure I could find more if I really tried, but I think I beat it to death pretty good. I also will owe some higher taxes than usual due to selling some employee stock options this year. I sold some more recently and earlier in the year and I call it this debt the stock taxman – money I know I will have to pay and is a liability until it is paid next year.

I don’t like the cars for building wealth, but they do help our family get around. When a car is paid off, the money is gone and the car is worth much less, so they are not a good tool for building wealth.

I don’t own any real estate yet, which is on my list of things to do. I only have about $50.00 a month coming in from my entrepreneurial endeavors (websites). I multiplied that by (12 months) and then by 5 to get a potential sale price of those assets for $3,000. Either way, I have some work to do in those departments. Additional future steps to increase wealth include peer lending via Prosper.com and investing in Dividend stocks in Scottrade, along with building up a mobile app base. Funds from cash on hand will go toward all of that.

One Percent Net Worth is a fellow 35 year old male that has a standard for net worth that I’m still far behind. Though I am grateful to have what I do and am pleasantly surprised at what I have right now, I’m still far below the standard I am capable of. One Percent Finance’s net worth is over a million dollars and should only get higher with his high allocation into real estate. Still, I’m glad to see this standard and how he’s doing it and with some hard work and luck I hope to get to his level sooner rather than later.

What is your age and net worth? When did you start to get serious about it? Why do some people not pay any attention to their net worth or finances?

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4 thoughts on “You Have More Than You Think

  1. Great job and thanks for the link!

    FYI, I don’t typically include computers, furniture, and appliances into my net worth calculation as you will likely need these even if you’re in a bind and practically speaking, I don’t see you selling off your oven and dishwasher to make ends meet.

    I’m hoping your credit card balance is for the month and not something that you’re paying interest on. If so, you have so much in cash, you’re better off paying the credit card balance.

    Next, you have a lot in cash…you really only need 6-8 months in emergency. If you have more than that, invest the difference in a mutual fund or start a 529 for your children.

    1. Thanks Jake – noted about the appliances and what not, I will adjust net worth accordingly.

      Our credit card is paid off in full for what we owe each month, so we never pay any interest. It is a bit high right now due to holiday spending, a cruise for next summer, and some entrepreneurial expenses.

      For 6-8 months emergency in cash, we really only need about 15K in Savings. The rest is going to be put to work.

  2. Wow what great mini financial statement. Hope Robert Kiyosaki will not disagree to you, that you include furniture, clothes and other stuff in asset column.

    Anyway, I believe Jeremy you are in the right track.

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