Fun With Projections

It’s really interesting projecting how much my net worth will be in N years. In the Net Worth worksheet in my main financial spreadsheet, I have monthly projections for the next 4 years and then yearly projections after that, to see when I will reach various large milestones.

My current projections indicate that I will have a net worth of $100,000 by the end of this year, $250,000 in 5 years, $500,000 by age 35, and $1 million by age 51. These projections leave out a lot of human variables like whether I will get married, the financial health of my future spouse, whether I will have children, and they assume that my salary will stay at its current level for the rest of my career. They also assume no growth or loss of any assets (both of which are quite unlikely!)

I enjoy playing with these projections even with the number of variables that they ignore.

The biggest part of these projections is how much I save every month (about 50% of my net pay) and how much of my bonuses I save (100%).