Author Topic: 100K of net worth increase in 12 months  (Read 3698 times)

clarkfan1979

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100K of net worth increase in 12 months
« on: March 21, 2015, 08:02:40 AM »
I joined MMM in February 2014 and opened up an account in mint in 2014. After about 6 months on mint, I created a secret goal of 100K in 12 months. My wife and I started at 162K on March 31st, 2014. Today we are at 275K, which is actually 113K. I was trying to wait until March 31st, 2015, but I'm going to be busy around that time, so I decided to post a little early.

I have always been frugal, but MMM helped me be more strategic. I wanted to share our numbers on how we got there, which I hope is helpful to someone else.

Income:
Me (50K) + 5.14% company 401K contribution = $52,570
Wife (60K) + 4% company 401K contribution = $62,400
Rental House: $6000 cash flow – $1900 in repairs = $4100
Total Income = $119,070

We got some deductions for the rental house and student loan interest, so our adjusted gross income was $94,600 and our taxable income was $74,300. We paid $10,281 in federal tax and $7236 in medicare/social security tax for a total of $17,751. No state income tax.


Assets         March 2014            March 2015           Gain
         
Cash                       7,000                30,000              23,000
401K                      49,500                70,500              21,000
Rental House    230,000               258,000              28,000
Primary House    138,000               169,000           31,000
House Principle Payoff                          5,000        5,000
Student Loans Payoff                      5,000        5,000
         
                                         total gain    $113,000


For 401K, we had about 16K worth of contributions and 5K of appreciation. We were a little low on cash in March 2014 because I paid for a new AC system and duct work on the primary house in early March 2014 for $5700. 

I switched from ATT&T to Republic Wireless in July 2014. We switched from Target to Costco in May 2014.

The biggest MMM decision that I made was purchasing a used car for $2500 in August 2014 (2003 Pontiac Vibe). If I didn't find MMM, I probably would have put $2500 down on a new Hyundai Accent for 16K. I would have had a $200/month payment for 5 years.

The best thing about this journey is that we don't feel deprived. It has been a lot of fun.  Our biggest expense is travel. We did 4-5 trips to Disney World. We have season passes and live about 3 hours away. We also flew to Denver about 4 times to visit family and snowboarding for me. I have a season pass and I usually get about 3 days of riding per trip.


ender

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Re: 100K of net worth increase in 12 months
« Reply #1 on: March 21, 2015, 09:48:36 AM »
awww yeah :D

Thedudeabides

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Re: 100K of net worth increase in 12 months
« Reply #2 on: March 21, 2015, 09:56:27 AM »
A 70% YoY increase is seriously badass. Congratulations and nice work!

Heckler

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Re: 100K of net worth increase in 12 months
« Reply #3 on: March 21, 2015, 09:56:36 AM »
Congratulations!  It's definitely a life changer for us too.

Discovered MMM/FI in July 2014 and have increased NW by 82k since then.  Mortgage free in Feb 2016, can't wait to really start saving!

Heckler

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Re: 100K of net worth increase in 12 months
« Reply #4 on: March 21, 2015, 10:01:40 AM »
Sorry to be a killjoy but how are you accounting the $59k increase in your two houses?  Reduction of mortgage, or theoretical increase in value based on other sales around you?

clarkfan1979

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Re: 100K of net worth increase in 12 months
« Reply #5 on: March 21, 2015, 10:24:19 AM »
5K of reduction of mortgage (3K for rental & 2K for primary). I also listed 59K of appreciation based on zillow estimates. Based on my own homework, the zillow estimates are fairly accurate. The zillow estimates of 1 year ago might have been undervalued and they recently caught up. 

clarkfan1979

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Re: 100K of net worth increase in 12 months
« Reply #6 on: March 21, 2015, 10:27:27 AM »
Congratulations!  It's definitely a life changer for us too.

Discovered MMM/FI in July 2014 and have increased NW by 82k since then.  Mortgage free in Feb 2016, can't wait to really start saving!

82K in 8 months is about the same rate as us, maybe a little more. I think it becomes more addicting when it adds up faster. When it moves too slow, I lost motivation. Pedal to the metal!

clarkfan1979

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Re: 100K of net worth increase in 12 months
« Reply #7 on: March 21, 2015, 10:29:33 AM »
A 70% YoY increase is seriously badass. Congratulations and nice work!

Thank you. I am proud of the YOY 70% increase, but I didn't know how to put it into words. Thank you for the information.

 

Wow, a phone plan for fifteen bucks!