Every three months, I post my net worth on this site. This has proven to be a hotly anticipated post by readers. While I considered squashing it at two years, the outcry from readers was loud enough to encourage me to keep posting these numbers publicly.
There are a few major reasons for these updates. First, I want to dispell the myth that money is a taboo topic that we should not openly discuss. This is important in my roll as an educator of future medical professionals. Second, posting net worth updates holds my family and me accountable. Third, it proves that you, too, can make financial mistakes and still obtain your financial goals.
Each update starts with a summary of the previous updates and then we dive into our assets and debts as they currently stand. Finally, the newest updated networth is posted at the end.
- This post discusses some of my numbers and goals when I first started this site in November 2017.
- Here is my first quarterly net worth update written six months after I started my job as an attending (numbers from January 2018)
- Second Quarterly Net Worth Update (4/27/18)
- The One Year Out from training Quarterly Net Worth Update (7/30/2018)
- 15 Months Out from training (10/2018)
- 18 Months from finishing fellowship (1/2019)
- 21 Months Out (4/2019)
- Two Years Out from training (07/2019)
- 27 Months after finishing fellowship (10/2019)
The Last Two Years in Numbers and Pictures
If you don’t feel like clicking through those, our net worth started at negative (-) $208,000. This is how our net worth has changed at each of those time points:
- Six months out, it had improved to (-) $78,819.
- By 9 months out we were at (-) $40,270
- We finally had a positive net worth one year out at +$45,000
- At 15 months, we had reached $73,000.
- It took us 18 months to get to a six figure net worth: $107,718
- After 21 months, we were sitting at a net worth of $150,820.
- With the 24 month update, we shot up to $252,974.
- At 27 months, our networth was $287,155
In graphical form, it looked like this for the past two years:
Where are we now? Read on to find out.
30 Months After Fellowship: Assets
Since the release of my book (which you should purchase, by the way), I have been non-anonymous on this site. I have always found that transparency is helpful. So, I hope as we progress with this series, the following is seen as encouragement that you can do this, too.
Here are my assets and the dollar amount for each category. All of this is as of 2/1/2020.
Comments on our assets
We finally cracked $300,000 in assets this quarter. Assuming that we don’t experience a bear market, we should crack $500,000 by the end of the year, which is insane.
Because we spend less than we make each month, we are getting a little heavy in liquid assets. However, we have a couple of big trips coming up this year, including a family reunion to Disney World and a destination wedding to California in July. In my mental accounting model, this money has already been spent for those trips, even though that hasn’t actually happened yet. This explains why our cash in savings is much higher than in times past.
Our Annual Savings Goal
Our annual investment goal remains between $115,000 and $125,000 with a goal of having around $2.5 -$3.0 million in assets by the time we are 45. This doesn’t include any “passive income” we have coming in through The Physician Philosopher or the Money Meets Medicine podcast.
We get to this annual savings number by investing in the following accounts:
- $45,000 in my 403B
- $12,000 in my non-governmental 457 (though I may increas this to $19,500 given our increasing cash flow)
- $19,500 in Kristen’s governmental 457
- $19,500 in Kristen’s 403B/401K (we will max this out in 2020 for the first time)
- $12,000 in our Backdoor Roth IRA (here is a tutorial for your first Backdoor Roth IRA, if you need it)
- $3,000 required pension for Kristen
- $3,550 Health Savings Account (plan to spend half each year, which is conservative)
- $6,000 in a brokerage account
Adding this together amounts to $120,550, which is within our target annual savings rate. All of this is automated out of our paycheck each month outside of the backdoor Roth IRA, which happens in a single transaction in July when I receive my annual bonus.
If you add in the $1,250 we put into our kid’s 529 plans each month, our total annual savings is actually $135,550. With our current assets, and assuming a conservative 6% average annual growth in the market, we should crack $1 million in assets by age 37, and we will reach $2.5 million by age 43.
Debts: 30 Months Out
Here are my family’s current debts.
|Class||Amount of Debt|
|Home Mortgage (~$446,923)|
|Total Debt (excluding mortgage)||$0|
Some Comments on Our Debt and Spending
Being debt-free outside of our mortgage has been simply amazing. We are crushing our financial goals.
Given that our monthly spending is always less than what we bring in, spending money is guilt-free at this point. I no longer scrutinize every single dollar that comes into our bank account. This led us to buy a trampoline for the kids, a peloton for my wife and me, and we also expanded our kids extracurricular activities as my oldest has really jumped into gymnastics with both feet.
Given that we are automatically saving more than our annual savings goal, I plan to take square aim at paying off our mortgage early. We currently owe $447,000 on the mortgage. If we put an extra $50,000 towards our mortgage each year, we would pay the house off in only 7 years after purchase (or 6 years from now). At this point, that seems like a pretty reasonable goal.
Net Worth = Assets – Debts
$382,058 – $0 = $382,058
**For the purest out there, if we were to include the house in our debt, we would also include the full value on the home on the assets side. This would result in the same net worth.
Our net worth continues to rise consistently. Here is how that shakes out in the big picture.
- We improved our net worth by over ~$94,903 in the last quarter! This is despite Christmas spending, but largely due to market gains, increasing our emergency fund, and appreciating equity in our house as we pay down the debt.
- Since I finished training (when our net worth was -$208,000), we have improved our position by $590,058 in only 30 months.
- If we keep this pace up, we will be sitting at $1,000,000 in net worth by age 36 or 37. We will hit our FI number at age 43.
- We no longer “live on half” as Physician on FIRE prescribes. That said, we are still putting away around 30% of our gross base salaries. With out debt gone, we will probably do the same with any bonus money or side hustle money from this blog.
This should serve as proof that living like a resident after training works if you make a plan and stick with it!
Going forward, our goal will be to find contentment in our current life. We are now in the steady stages of wealth accumulation. Though this is automatic, our focus is on the path to financial independence. We want to enjoy this journey along the way through Partial FIRE.
Share your awesome financial news! What goals have you accomplished this year? How did you do it? Leave a comment below.