Milestone Achievement #2-Crossing over


Recently we wrote a blog post detailing milestones that we want to check off as we progress through our journey towards financial independence.  Well we are glad to announce we are already checking off a 2nd and very historic milestone:

On February 14, 2016, we crossed over the…$100,000 net worth mark!

That’s right folks, after all the struggling, saving, investing, debt eliminating and expense cutting, we are very humbled to say we are now a part of the “Hundred Thousandaire Club”!  We have moved from a 5 figure net worth to 6 figures!  This is a Valentine’s Day gift that is much better than chocolates, teddy bears and roses!  The numbers break down as follows:

$6,947.52  Cash:

$3,952.62  New Life Portfolio

$26,625.00  Cars

$115,171.60  Home Value

$9,203.15  Leave/Vacation Hours

$60,571.49  Retirement Accounts

($91,555.14)  Mortgage

($28,316.31)  Cars

($1,725.00)  Credit Card 2


$100,874.93 Net Worth

I won’t get very deep into the details of the numbers; we will save that for our monthly Net Worth updates.  What I will say is Mrs. TOL had an extra retirement contribution account that we realized we were not accounting for in the past.  How cool is that, to find over $3,600 you never knew you had!?  I would advise you all to go check the cushions of your couch and under the driver seat of your car, you may have a couple thousand dollars hiding somewhere, lol!

Another boost to get us over the hump was our home continuing to appreciate in value.  As we’ve stated before, businesses are springing up all around our neighborhood and I really believe it is giving a boost to home values.  Several well known franchises have been built in the past year, as well as a nationally known grocery store currently under construction within walking distance from our home.

Net Worth means a great deal to us as we haven’t seen many who are Financially Independent with a negative net worth or a net worth of only a few bucks.  What our number means to us is that we are on the right track of reaching FI.  We have eliminated nagging debts and built up income-producing assets.  I remember reading about the net worth’s of other bloggers and someone stating that the equity in your home should be no more than 25% of your overall net worth; otherwise, you are “house poor”.  As you can see, our home equity of about $23,600 is 23% of our net worth, and that’s AFTER a 15% haircut on the valuation (based on Zillow).  We plan on reducing that ratio as we increase our net worth by debt elimination, savings and putting capital to work in our New Life Portfolio.

Another key calculation is our DEBT to ASSET percentage, which currently hovers around 54%.  Our ultimate goal is 0% (of course), but ideally, the max would be 25%.

We are very excited at the growth we’ve experienced on this journey.  There was a time when we had a negative net worth, meaning a new born baby was richer than we were.  This is a very humbling experience, and we are far from done.  We are just getting started!  See you real soon…

2 thoughts on “Milestone Achievement #2-Crossing over

  1. […] we increased our Net Worth by over $11,500, a whopping 12% increase!  We even crossed over the $100...

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