My net worth estimation as of July 31st is as follows:
- Checking accounts: $8,400
- Savings: $26,100
- Taxable investments: $10,400
- Tax-advantaged investments: $52,200
- Condo equity: $86,700
- Total: $183,800
A friend threw out the question “Would you take a job you hated for a few years if the base salary was $200,000? What if it was $300,000?” These numbers seem super unrealistic to me (or maybe I just underestimate how much companies will pay), but I thought it was an interesting exercise.
So, I made a spreadsheet! I took into account the increased taxes, hitting the social security tax earlier, and still maxing out my 401(k). For the sake of this exercise, I used 2012 income tax rates since I don’t have any future tax tables available.
$200,000 base salary: Throwing everything at the mortgage, it would be paid off by May 2015. After that, building up my taxable investment account such that 4% of the value would provide me with $30,000 per year would take until December 2021.
$300,000 base salary: Throwing everything at the mortgage, it would be paid off by April 2014. My taxable investment account would be sufficiently large in December 2018.
Estimation with my current salary including bonuses: Mortgage would be paid off by June 2017. Taxable investment account would be sufficiently large by 2025.
Would being financially independent, not needing a salary anymore, 4-7 years earlier than at my current income level, be worth giving up the reasonable work/life balance that I have now? I’m not sure that it is, considering how young I would still be in 2025.
Maybe it would be worth it to do that now, put in a few years at that level of commitment. But honestly? That’s what I did in college. I took a heavy course load, working 70 hours/week on school for 4 years. I’m not sure that I have that level of commitment in me anymore. I know that I burn out quickly and need time to re-group before I can go back at it again.
So I feel like now is the time to take a slight step back (only slight really since dating happens mostly outside of normal work hours) in my career and put more of an effort on dating. Since graduating from college, I haven’t made a huge effort towards dating or finding a relationship. I feel like my social life has dwindled mostly down to my coworkers and I’ve been going on pairs of dates endlessly. I’ve finally gone on more than two dates with the same person and I’m dating someone :) That’s why I’ve been a bit less active around the blog and commenting elsewhere.