Now that I realize that net worth is relatively meaningless as a measure. I find it less necessary to keep up with these updates.
But since the last update 3 months ago my net worth has increased by about 70k which I find incredible, which is considering that I have done nothing except just keep my money in the market, and work I guess.
Why is net worth meaningless though?
It doesn’t tell you about your relationship to the money. More important is where you have your money and what income you can generate. I can have it all tied up in a house and have a great deal of debt and be in a world of pain… or I can have a healthy and predictable cash flow and be happy.
What I really need is to:
Buy more income generating investments like stocks
Do not buy unnecessary debt - eg buying less house
Stay frugal or become more frugal except when it comes to education for kids
Not much else. I have a downpayment already for a house.
I need to adjust my measures in order not to include my primary residence in my calculations anymore. Or, just to calculate : 1) total net worth; and 2) investment portfolio which are two different things.
My investment portfolio is currently about 540k, not counting my pension pot nor my downpayment for the primary residence. So... that's pretty good? This means I can retire, spending 40k per year, in 2031-2032 if I keep putting 40k a year into the retirement portfolio (above my spending and mortgage expenses).
But is very early retirement what I want? Turning into a vegetable isn't really living my best life. I think I just really want a break, but I know work is extremely important for two things: 1) intellectual/social stimulation, and 2) having dental insurance for the kids!!... so I think that's something to consider. If I can hold out another 12 years or so there's also the advantage to pay for Emilia's university education, if she needs it.
Looks like I'm in it for another decade, then.
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