I was going to title this post “How I accidentally hit a 6 figure net worth.” While not exactly an accident, I hadn’t set that as a goal and it wasn’t something I was actively working towards, so it is quite the happy coincidence to end the year.
It sort of started last week when I was putting together my December update and year in review post (to be published next week) and was looking at how far I had come in the past 12 months both financially and with my other goals. I started to crunch some numbers and play around in excel making pretty charts – a great way to look ‘busy’ at work (shh ;))
It sparked a flame
As I was checking balances across my array of accounts, I started to get a little excited as the numbers added up. What’s this? Only a few short leaps away from hitting a 6 figure Net Worth – surly this can’t be true??
When I realised I wasn’t all that far off hitting a prior unrecognised goal, I started looking around for anything I’d missed;
How much cash do I have under my pillow – add that!*
How much can I make between now and the end of the year? Get hustling!
Being so close made the fire within me burn even brighter.
*note: dear neighbourhood thieves – it isn’t really under my pillow – this is a euphemism 😉
Why was it an unrecognised goal?
At the start of 2017 when I was setting goals I didn’t understand the importance of Net Worth. I was still a relative newbie to all the lingo of the personal finance space. I did have a plan to have 6 figures of ‘savings’ in about 3 or so years, but Net Worth wasn’t really on my radar.
It was thanks to reading more and more and seeing regular updates from other bloggers on their Net Worth that really started to get my attention.
With new knowledge comes new understanding (and new goals)
It has taken me a while – almost a whole 12 months from first hearing about it – to even think about looking into my own Net Worth. Why so long? I’d say it was probably for fear that my figure was too low.
‘I’m so far behind’
‘I’m too embarrassed to know where I’m at.’
Although I seem quite confident in most things, I am still susceptible to feelings of inadequacy from time to time.
Luckily for me, I have a small number of cheerleaders who always have a positive spin when I’m feeling like I haven’t hit the mark. It is thanks to these encouragements that I even looked at my seemingly small numbers in the first place. A very big thank you to all the cheerleaders in my life – you really do make a difference.
So with this new knowledge of how to calculate a meaningful personal finance number, and my newfound confidence in my progress no matter how small compared to others – I am now excited about setting a Net Worth goal for 2018 and beyond!
It is important to recognise the small wins
While my goal will be considered minor by some, and laughable in comparison to many other bloggers, I feel as if it has given me a little extra spark and motivation to keep going.
I finally have the courage to share my Net Worth and would like for this to be both as a celebration for myself and also as a reminder to those that may be just starting out. Every small step is worth celebrating 🙂
You don’t always have to know where you are headed
And so, all my ramblings aside, I wanted to post to acknowledge that you don’t always have to have a clear destination in mind. What is really important is that you get started.
I didn’t understand what Net Worth was, or why it was important, but I knew that I needed to start saving for my future. Therefore, I set a goal of increasing my savings rate. For those who’ve been following along you know that I planned to start at 48% savings rate and increase my goal each month by 1% until I maxed out at 60% in December. If I achieved this I would have an average 54% savings rate for the year (stayed tuned for next week’s post to see if I hit that goal).
I was aiming for something else, and stumbling upon my new Net Worth was a pleasant surprise I wouldn’t have had if I I didn’t start any plan at all.
Just get started
I didn’t have – and still don’t – have an exact plan for every dollar I save. I don’t understand every financial topic, or investment option available, but I’m glad I didn’t wait to start saving.
At the end of 2017, you too might still not have a solid plan either. But would you rather have savings by your side when you do learn something new or start from scratch when you’ve finally figured it all out?