Tag Archives: sacrificing to get rich

Our Net Worth Increased By 455% In A Ten Year Timespan

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From the year 2001 to 2011, our net worth has increased by 455%!

401k History

401k Performance History

 

Okay, first let me saying that any increase in net worth really depends on the starting amount and the ending amount.  It’s easy to be amazed by a percentage like 455% until you consider the starting amount.

For instance let’s look at a few examples:

If my starting amount was $100, that would mean that I have $555 dollars today, not so impressive after all huh!

But if my starting balance was $100,000 then I would have $555,000, that’s a much nicer chunk of change!

What I used to calculate our net worth:

  • Roth IRA (didn’t exist back in 2001)
  • 401k Balance (not to shabby even in 2001)
  • Home Equity (This is the biggest chunk of my net worth)
  • Checking Account Balance (stayed the same, surprisingly grrr)
  • Brokerage Account (big jump, yay).

So as I’ve said before, we’ve never had a year where our household income has exceeded $100,000.  But since my wife and I are frugal, and I’m investing a decent amount of our discretionary income, we were able to grow our net worth nicely.  While I won’t reveal our actual net worth number, I will say that it’s over $100,000.

Here are some random statistics about our change in net worth from 2001 to 2011:

  • Around year 2003, I started a Roth IRA
  • While my home value is the largest percentage of my net worth, my brokerage account had the greatest percentage increase (over 1000%) during the past ten years.
  • The amount in my checking account has remained at $5,000, but that’s because I have my money working for me.
  • My 401k has increased nicely too, over a 10% annual return since 2001.  Back in the early days, I had some great appreciation in certain mutual funds.

We were able to do the above activities because we sacrificed and saved like we were still in college.  Back then, we only went on a real vacation every other year or so.  Our house is full of nice looking but mostly used furniture and hand me downs.  We always looked for opportunities and took advantage of great values when we recognized them.

Hopefully for the next ten years, we can increase our net worth by 200%, I don’t think 455% is sustainable and not a realistic goal for the next ten years.

Do you frequently calculate your net worth change from the past to the present?

Bests,

MR