tag:blogger.com,1999:blog-1275996914383242610.post2762174156143146290..comments2023-10-31T02:27:18.201-07:00Comments on Her Every Cent Counts - a quarter life crisis, and change: Follow Up to: Tips for Making More Money Long-Term for 20 Somethingsher every cent countshttp://www.blogger.com/profile/03559826632110489586noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1275996914383242610.post-44172649075114352822010-04-28T15:37:34.287-07:002010-04-28T15:37:34.287-07:00@Anonymous ok. I have no debts, so my networth is ...@Anonymous ok. I have no debts, so my networth is the same as my savings.her every cent countshttp://www.hereverycentcounts.comnoreply@blogger.comtag:blogger.com,1999:blog-1275996914383242610.post-54141578763280432082010-04-28T08:36:48.712-07:002010-04-28T08:36:48.712-07:00Let me rephrase that second sentence...
"Net ...Let me rephrase that second sentence...<br />"Net Worth is basically how much cash you would have if you sold EVERYthing today AND PAID OFF ALL YOUR DEBTS."<br /><br />sorry I forgot that part.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1275996914383242610.post-38036158400598581312010-04-28T08:28:16.118-07:002010-04-28T08:28:16.118-07:00net worth is, put simply, everything you OWN, minu...net worth is, put simply, everything you OWN, minus everything you OWE.<br /><br />Net Worth is basically how much cash you would have if you sold EVERYthing today. Technically, that would include stuff like cars, furniture, jewelry, etc, but I don't include that either (even though the cars are worth approx $20K and paid off). And I agree with you about the cars - We are not going to sell the cars - we run them until they die! The house, we could sell at any time if we need/want to move - but I estimate it's value very conservatively when calculating net worth.<br /><br />My (our) net worth at 30 consisted of about $90K equity in a house (the value of the house minus what we owed on it), cash accounts (mainly the Emergency fund), stocks, and retirement (and we had not been saving for retirement like we should have been!). <br /><br />So far THIS year (in the last 4 months) - we have increased our net worth by $13,700 (that consists solely of increases in cash & retirement accounts, and decrease in mortgage balance). That may not sound like a lot to you, but keep in mind that we are doing this on a FAMILY salary of $80K (still with a stay at home parent caring for 3 kids - and man kids are expensive! but again - totally worth it). And it's not like we're living in the backwoods either. We live in the state capitol with 3 colleges and lots of stuff going on. Maybe a part of me was jealous of the $120K salary. Oh what I could do with a salary of $120K!! Effectively, I traded that $120K salary when I decided to have kids (I would be making that or more now if I didn't take the lower paying job with fewer hours) - and I have NO regrets! I wouldn't trade my life for the world! Those kids may be expensive, and we've made tons of sacrifices for them already (and they aren't even teenagers yet), but life is so fulfilling with them in it :)<br /><br />But I understand your argument of needing to live where the work is. I am a CPA, so I can go anywhere. Apparently that's a huge advantage.<br /><br />But sorry - I still disagree with the importance you seem to place on setting a salary history. We've seen in the recent downturn that salary histories mean nearly nothing. There are loads of people (I know several personally) who would die to get back the same salary they had just 2 or 3 years ago. All the work they did to build up their salary history was squashed with one lousy recession ;) Not arguing that you shouldn't negotiate - I've negotiated my salary AND benefits at all my jobs (most people are too scared to do this). But I would, instead, argue that every one needs to learn to live BELOW their means - Pretend like they make less than they do (not pretend like they need more). Similar argument, but not the same. Cutting costs, IMO, yields a better result than "chasing a salary." It's something that most people have more control over - and can be done more consistently over time. If a person cannot cut costs, then by all means get another job - even if it's at McDonalds. Cut Costs and save save save! Especially when you are young! You are right - that compound interest is like magic ;)Anonymousnoreply@blogger.com