At it again... one month later :)

Well, look how long that PF ban lasted... just over a month. 

Part of it is that I just got a large infusion of $27,000 post tax (ok it's not that big, other people earn this in a normal month) and I am trying to figure out if this changes anything. Short answer, given the falling markets right now, it doesn't. 

I think around the time I hit 1m NW, I will change the way I do my accounting. 

As I started to spell out in my last post, I need to start thinking of things not just in terms of overall net worth, but in four chunks: 

1) Whether I have a primary residence paid off 

2) Whether I have enough retirement funds (separate from emergency funds) 

3) Enough emergency funds 

4) Continued savings for 2 children 

Whether I have a primary residence paid off 

This goal is going to take a long time, given I don't have a primary residence at all and have just most of a downpayment saved up. I estimate between 10-20 years. I do still believe that it is important to purchase a primary property, to help with wealth accumulation and financial security. 

This goal will probably require around $1 million in capital overall for my share (given a split with my husband). I have about $100k towards a downpayment. 

Whether I have enough retirement funds 

Given annual expenses around $40k in current terms, I will need $1.3 million at a conservative 3% withdrawal rate. I have about 500k towards this now if we count the rental apartment and pension. I should still try and put additional money into paying off the property when possible. 

Emergency funds 

Will need to cover a year's worth of living expenses, so around $40k. I currently don't have this separated from my regular accounts but have around 30k that I could immediately liquidate for living expenses. However my job is at least guaranteed till January 2024, so this is not the most essential part. 

Savings for two children

Should cover their university education expenses. If I keep working at my current job this will likely not go over $80k each (so $160k for both). I currently have $20k set aside for Kid 1 and she still has about 10 years to go, so about $6k per year into her account. 

In total, it means I should have $2.5 million minimum as net worth. It does look like I will only get there around age 55 or so barring any increase in fortune or otherwise. I will have shaved 10 years off my working life this way. 

I still have my BHAG of $20 million - but no plan to get there yet!!

ALSO - the huge point that my own finances cannot realistically be separated from that of my husband. We are a family unit now.