Net Worth Breakdown - From Real Estate to Retirement

Now that we are approaching a half million in net worth I have been asked the question of how do we calculate our net worth (i.e. what do we include).  So here is my stab at answering that request:

Total Assets: $641,676.80

$346,696.20 Retirement Accounts (401k, Roth IRAs, Pensions - age requirements)
$128,990.77 Cash, Savings, CDs, Taxable Accounts (i.e. Betterment and Individual stocks)
$123,000.00 Real Estate (primary house)
$  37,381.00 Personal Possessions, 2 vehicles, and 1 Boat (harder to access or liquidate)
$    5,608.83 Medical HSA [Health Savings Account]

Total Liabilities: $147,002.16

$54,018.78 Chapter 13 repayment plan
$92,983.38 Mortgage on Primary Home

Net Worth: $494,674.64

So that is our breakdown.  At one time, about 7 years ago, we had over $1 million in assets but over $700,000 of that was in Real Estate, since then due to the housing bubble, loss of jobs, we have had to file Chapter 13, and now we just have our mortgage on our primary home.  It was a huge shock to the system to watch our Assets go from over $1 million to less than $300,000 at the time.  Our Net Worth was negative due to the mortgages, which let to part of the reason we had to file Chapter 13.

Right now, we are probably a little heavy in cash/savings, which are only making between 0.5% to 1% on average but once the Chapter 13 is paid off we plan to increase our investments.

I don't include Life Insurance policies (no fun, since I won't be around to spend the money anyway!), and currently Baby Breeze's college fund is a part of our Cash/Savings category since it is pretty insignificant, but I will probably separate that out as it grows.

Ultimately if we are going to live off the dividends that our investments make, then we are really only looking at the top two asset categories, which are around $475,000.  Based on our spending needs, we need to double that number.  Our goal is to do that over the next 5 years.  This is where I got the goal to increase our Net worth by $100,000 each year.  I love playing with the numbers and hopefully we will blow this number away, but knowing that life happens, we are just going to track it year by year and continue to  . . . follow life's breezes!

Monthly Update - April 2014

 Time for our Monthly Update:


Here is our Net Worth Standing for April 1, 2014:

Assets: $641,676.80 - Liabilities: $147,002.16 = Networth: $494,674.64

Net Change = increase of $23,586.13

Thrilled to see an increase in our Net worth, especially since March was an expensive month.  Between both Baby Breeze and I being very very sick, and therefore not cooking the healthy meals we had planned, we ended up buying more food than planned and threw away a lot of food. Mr. Breeze ended up eating out a lot at work as there were no healthy lunch options for him.   Other than food, we really kept our spending to a minimum.  (Of course, being sick and not shopping probably helped that).

The big increase in our Net Worth has to do with the fact that I became vested in a third of the match the I receive for my retirement fund.  I haven't included this in my net worth until now since I wasn't really eligible to take advantage of those funds.  Now that I have 5 years in my current retirement plan, I am eligible to take 33% of the matched funds if I were to leave.  If I make it to 10 years then I get 66% vested match.

We also filed our taxes, and while we owe locally, we are getting a rather large return from our Federal taxes.  Our adoption of our little guy is a huge benefit to our lives and our taxes! ;)

This will allow us to pay more on our debt as we agreed that any return we would put towards debt, so you will probably see that next month when we get our return.

Here's to paying down debt and working towards that early retirement goal!

Must. Spend. Money.

The challenges of getting out of debt and becoming financially independent seem so easy when reading others' blogs, but occasionally I find myself being sucked in by that feeling of "must. spend. money."

It seems when things are starting to go smoothly, Mr. Breeze and I find ourselves getting that urge to go shopping.  For Mr. Breeze it might be going and picking up a new computer game for $20, or getting ice cream for a treat.  I unfortunately like to dream big, and some of those dreams come with a huge price tag.

For example, Mr. Breeze and I want to move before Baby Breeze starts Kindergarten (we are in one of the worst school districts, and many of the schools are in danger of losing funding or being shut down).  Now Baby Breeze is only 16 months old so we have at least 4 years before we need to move - and our home is very affordable and meets all our needs, but I find myself looking at real estate online searching for the next area where we want to live.  This is fine, and I usually start off with looking at reasonable houses (i.e. ones that we could pay off so I can still retire at 40).

But then I get those urges, and I think, why shouldn't I have a nice house or one that has a completely remodeled (kitchen, basement, theatre room, you name it).  Next thing I know I am looking at houses more than twice my original spending plan.  Or worse, I start looking at vacation or beach homes.  Seriously, I have a lot of conflict when it comes to wanting to retire early and being financially independent and wanting nice things (you know, the keeping up with the Jones - or in our case - all of our friends who have newer, nicer homes and cars).

Okay, so how do I get past this . . .  I tend to be very OCD when I get focused on something like this.  Which is probably why Mr. Breeze and I had to file Bankruptcy when the housing market crashed and we found ourselves with three homes and five mortgages.  I know I want to get out of debt, and I want more time to pursue my interest.  I do love my career, but it takes me away from Baby Breeze more than I would like.  It is not easy for me to just stop obsessing, and while that has helped me be successful in some areas of my life, it doesn't seem to help me financially.

So here is my plan so that I don't just take on more debt or require myself to continue working longer:

1. Review my list of Goals - these were the reasons I wanted to get out of debt and be financially independent.  They are a great motivator.
2. Look at my Net Worth.  One of the benefits of tracking it and reporting it each month on this Blog, is that I have an incentive to continue to make it grow - I don't want to see it go backwards, and that has helped me stop some of impulse buys.
3. Exercise!  I think part of the reason I am so hyper focused on looking for that dream home is because I haven't been able to get outside much because of this cold weather, and so I am spending WAY too much time searching the Internet.  Time to get out and get some fresh air.  Good thing Spring is just around the corner.

I would love to hear other suggestions to help keep those of us trying to get out of debt and someday reach early retirement and financial independence.  I am sure many people slip from time to time, and we just need to get back to what our motivation factor was that started us on this journey.

So long Million dollar dream home, I think I am going to go spend $1,000 and fix up the little thing around my house that are bugging me (like the patch in the bathroom ceiling that needs to be fixed, or the linoleum flooring that bubbles up in the middle whenever the heater is running ), its the little projects that are easily fixed but have me running for the dream home instead!

Okay, I have overcome the urge for yet another day.  Here's to Dreaming of Early Retirement!

No more Overtime!

"Seriously I have to work overtime again?  It is almost Spring time for us snowmen to go on vacation!"

I agree Mr. Snowman - you should go on STRIKE - no more snow storms.  Unfortunately we woke up to another inch or two of snow on the ground this morning!

The struggles of parenting

The Dreaded Ear Tubes

We have to make a decision, and one that I don't want to have to make.  Baby Breeze has had a number of ear infections during his first year and now we are being referred to an ENT (Ear, Nose and Throat) specialist to determine whether or not he needs tubes in his ears.

It was fascinating to watch them perform the hearing test on a 13 month old.  He was given a light up Tigger to watch.  Then as he heard noises to the left or right he was supposed to look.  If he looked to the left at the correct time a Minnie Mouse would light up and if he looked right a Winnie the Pooh would light up.  He did great, but eventually since Winnie the Pooh is his favorite, he would only look to the right, even if they didn't play a sound.  Test over!  Actually he did really well, and they were able to get a good reading.  Then also tested his ear drum and found that it did not vibrate as much as a normal persons, so the recommendation is tubes in the ears.  

Here is a great site for information: Ear tubes are plastic and shaped like a hollow spool.  Doctors suggest tubes for children who have repeat ear infections or when fluid stays behind the eardrum (our little guy has both).  A specialist will place the tubes through a small surgical opening made in the eardrum.  The child is placed under general anesthesia for this procedure. 

I don't like the general anesthesia part, but her should get through easily from what I am told, and it will help his infections and hearing.  So we have scheduled the surgery for March 26th.  Poor little guy, I hope this helps you.

Another year older

Well Mama Breeze is another year old, and a year closer to wanting to retire at 40!  Today is an amazing day for me - I actually get to celebrate my birthday.

Last year at this time, I was losing my hair to cancer and wondering if chemo was going to make a difference on my aggressive cancer.

Today I am completely done with cancer treatments!  Yippee!!  I am 36 years old and happy.  I have my wonderful son, my amazing husband and a loving family.  I have my career, and I am building our net worth and reducing our debt so I have even more time to spend with Baby Breeze while I am still on this earth.

I am excited to celebrate my birthday today, and I am looking forward to a new year - one with A LOT less doctors appointments!  (I had 109 doctors appointments last year!  Whew!).

Monthly Update - March 2014

Time for our Monthly Update:


Here is our Net Worth Standing for March 1, 2014:

Assets: $623,186.11 - Liabilities: $150,097.60 = Networth: $473,088.51

Net Change = increase of $16,705.26

Markets came back this month, which helped boost our numbers.  I got paid for my side teaching, so I was able to put some money into our savings account.  So we took a small dip last month, but have definitely made up for it this month.  Debt continues to go down by a little over $3000 each month.

I have submitted our taxes to the Accountant, and hoping we will actually get a little back, so we can pay down our debt even faster.  We have agreed that any extra money we will use to get out of this bankruptcy faster.  So we jut keep plugging along.

And Happy Anniversary to my wonderful husband - we are celebrating 7 years of marriage today.  I love this man for all the good times and bad times we have been through together!

Betterment - New Investment Account - Updated Monthly

One way that we are going to meet our financial goals is to reduce spending and save more.  I decided to try out a new Investment account through Betterment.com

You can check them out here, and receive $25 for opening through this link: Free $25 for Opening Account [Note: Betterment now requires a minimum deposit before depositing the $25; but still not a bad return on your investment with a guaranteed return!].

I was looking for a way to invest our Emergency fund, so it is easily accessible, but makes more than the 0.5% that my savings account currently makes.

I decided to start small with this account and see where it goes.  $250 initial deposit, and $100 a month auto deposit will fund this account.  

Why did I chose Betterment:

- They have extremely low fees

- The money is easily accessible

- The program helps me reallocate my funds easily

- The dashboard helps to show me if I am on track and the likelihood of reaching a certain amount over a given amount of time.  In fact the Dashboard is a great tool to play with different scenarios.

Other than Pensions and Retirement Funds (401k, Roth IRA), this is really my first dabble into the investment world where I control the amounts.  I am just dipping my toes into the water to see how I do.

I will track this account over time and see if we can grow that emergency fund.

Emergency Fund Tracker:

Month 1 [January 2014]: Initial Investment $250, Bonus $25 - Total Invested: $275.00

Month 2 [Feb 1, 2014]: Auto Deposit $100, Market Adjustment: -$11.47 Total Invested: $363.53
Month 3 [Mar 1, 2014]: Auto Deposit $100, Market Adjustment: $12.30  Total Invested: $475.83
Month 9 [Sept 1, 2014]: Auto Deposit $600 [$100 Apr-Sept], Market Adj: $38.22  Total: $1,114.05

Okay that probably wasn't the best month to start, since the market dropped in January, but I am still optimistic that I will earn much more than the measly half a percent that I would have in my savings account in the long run.  Should be fun.

Monthly Update - February 2014

Time for our Monthly Update:

Well, this past month has been tough - physically, emotionally and financially!

Here is our Net Worth Standing for February 1, 2014:

Assets: $609,576.66 - Liabilities: $153,193.41 = Networth: $456,383.25

Net Change = decrease of -$2,747.20

Okay, the markets took a dive this past month which dropped our total assets and affected our final number.  While it is not in the direction we want it to go, it is not too big a dip.  Our debt continues to be reduced each month, and we are still putting money into savings.

This past month, I have been going through radiation treatments every single day (with just weekends off). I have been so exhausted that just getting though each day has been my goal.  I have still been there to take care of my son, and I am still trying to work part-time.  But just getting to treatments each day, especially with this HORRIBLE weather we have been having [thank you Polar Vortex], I am happy to just be through January.

I have a few more treatments and then I will be onto healing.  It is nice that most of our finances handle themselves, so while I focus on healing our debt continues to be paid down, our retirement funds continue to grow (and shrink, but we have seen lots of growth in the long run).

So my advice . . .  don't be discouraged by this month.  The cold weather, bad markets, and many other factors have come into play.  I see more positive growth in our future.

Cancer Journey 1 Year Ago Today - "I'm 34, I can't have cancer!"

Today I celebrate the one year anniversary since I started on my Cancer Journey.  Last year, I was sitting in the doctor's office mentioning that my left breast felt "funny".  And the next thing I know I was hearing those dreaded words, "You Have Cancer".  What, I am 34 years old, I can't have cancer!!!

I still have more than I want to write about my cancer experiences (especially the surgeries, therapy, and radiation), but I needed to give myself a little chance to step back from it all and just absorb what has happened in this past year.

There is nothing you can do to prepare yourself to hearing the diagnosis that you have cancer.  At times it seemed everything was moving too quickly, and others that the doctors or results were not quick enough.  You go through the "why me" stage, and the "what did I do wrong to cause this" questioning.

The year has put me through so much, but it has also affected those around me as well.  It some ways it has brought Mr. Breeze and me much closer together, and in others we seem further apart.  Physically after going through chemo, surgeries, and now radiation, I could not stand to be touched, so we lost some of the intimacy of our relationship.  We learned to talk through things, and found that something a simple a little peck (kiss) on the lips or the top of the head has meant so much more during this time.

It was a struggle to manage day to day activities, and I was devastated when I couldn't hold my son for almost 3 months.  But I saw how children adapt, and he and I found other ways to bond.

The side-effects have caused me to slow down, and really look at what is important to me.  It was during this time that I started reading blogs, and learned of others who have struggled through cancer.

There was a beautiful young girl named Talia (she was even on the Ellen show) who at 13 and struggling with cancer, had a much more positive outlook on life than I did, and she showed me through her blog how to draw my eyebrows in when I lost mine.  Unfortunately she lost her battle during 2013, and it was a crushing blow for so many.  I felt like I needed to take advantage of the time I have here on Earth and use it better.

That is when I started reading financial blogs like Mr. Money Mustache and Pretired.org, I wanted to retire and stay home, but I was in Debt [who can think about retirement or quitting early when you are in bankruptcy].   These blogs made me realize it was possible, and I could do it in a short period of time.

No matter what happens, I am living my life to its fullest.  I am making sure money is put away for Baby Breeze and Mr. Breeze should something happen to me.  It is wonderful that I had the opportunity that I did to slow down and realize I was just running the rat race, and not even enjoying it anymore.  More stuff, more money, more spending, for what???

Now I look forward to the time I spend with my son, and I maximize how much we are saving so that I can continue to spend more and more time with him as the years go by.

Yes, I am a Cancer survivor and I am going to LIVE my life each and every day.

Monthly Update - January 2014

Time for our Monthly Update:

It is 2014, time for a new year.  A year of frugal living, and of maximizing savings!

Here is our Net Worth Standing for January 1, 2014:

Assets: $615,419.04 - Liabilities: $156,288.59 = Networth: $459,130.45

Net Change = increase of $21,172.54

Wow - what a jump!  I wish every month could increase by over $20k.

First off, this month is unusual, as we were given $10k by our VERY generous families to put towards our Roth IRAs.  We planned to put money towards our Roths ourselves, so that money is now earmarked for next year.

Second, the markets ended on a great upswing in 2013, so they helped boost our retirement.  They say it takes money to make money and in this case we saw the benefits of it.

Looking at my overall Retirement portfolio (not including my Pension, which I don't control), we made approximately 21% on our market investments in 2013 (which equated to about $36k). Over the past 10 years I have learned to diversify and absorb risks.  My worst year was a loss of 35%, and my best year was a gain of 32%.  On average, over the past 10 years we are seeing a return of around 9%.  Pretty close to what we would expect on a historical average of over 100 years, so we will keep plugging away.

So we have our Baseline for the beginning of 2014 - By next January 1st - I want to see that Net Worth over $559,000 . . . stay tuned.

New Year's Anti Resolutions

I do not make New Year's Resolutions.  It seems like anything that I plan on January 1st, last about 1 week.  For some reason there is something in our society that encourages us to create resolutions that are set up to fail.  Not sure how this came about, but found that it does not work for me.

However I am always making goals.  Goals can be adjusted (I know, this is probably just my warped sense of thinking, to some of you these might be the same thing, but this works for me).  I set goals throughout my life, some are short term, some longer term, and all get adjusted as time goes by.

So before 2014 officially get here, I decided I would set some yearly goals for next 12 months.  One thing I have continued to  used since Business school is setting SMART goals.

Smart Goals for 2014:
- Spend more time with my son [each day set down the electronics and get down on the floor and play for a minimum of at least one hour - this might be tight during the weekdays, but I am going to make the effort]
- Increase Net Worth by $100,000+ [through reduced debt and increased savings]
- Establish Healthy Habits [focus on healthy eating more healthy dinners at home and eating out less than 5 times a month, lose 25 lbs. by January 2015 and getting out and moving for at least 5 hours each week]

That's it, just three goals.  Yet these goals, will give me a sense of purpose, help me sleep at night, and allow me to live a long happy life.

I have read that by telling others your goals you are more likely to achieve them.  So maybe I will have to do a goal update each month to see how well I am achieving my goals, and to have everyone hold me accountable.  We are already tracking the Net Worth, so maybe I need to add Healthy Living and Time with my son as well.

Okay I am ready to bring on the New Year!!!  Here's to 2014!

Monthly Update - December 2013

Time for our Monthly Report.

I am excited as this is our first report since we started our Baseline in November.


Here is our Net Worth Standing for December 1, 2013:

Assets: $597,360.05 - Liabilities: $159,182.14 = Networth: $437,957.91

Net Change = increase of $6,334.80

December 2013

Yipee!  This is moving in the right direction.  Even with some market fluctuation we are seeing a positive trend.  Time to get some goals in terms of numbers in place (other than our save $1 million by April 2019 - who knows maybe I don't need a million to retire).

Can we keep this up . . . I sure hope so.  I have doubts that each month will be this easy, but this gives me the energy to keep trying.

*You'll notice that the November number is different from my previous November Monthly Update Post.  This is due to the fact that I am posting on the first of the month, and the numbers continue to change as money is spent or earned. The net change is from last month's post compared to the current months post.

Best Black Friday Savings Ever

Okay, I have to share my best Black Friday Savings . . . I spent nothing!  We had already bought all our Christmas presents (well I have one more to go, but I can pick it up anytime), so I had nothing I needed to buy.

Of course, I checked my email Thursday night, after our wonderful family dinner, and was bombarded with Black Friday Ads and savings.  I started looking at them, and my thoughts started wandering:
"oh, that's a cool gadget"
"Baby Breeze needs one of those"
"What a great deal, I should buy one now and save it for later"

Get my drift.  I actually started putting items down on a list, with their store locations and prices.
When I finished checking all my emails, I looked at my list.  Then I did the smartest thing I could have done, I pulled out my Goal Sheet (I have since pinned it to my wall).  The one that says, "Retire at 40 so that I have more time with Baby Breeze."

It was then that I looked back at my Black Friday shopping list, and realized that Baby Breeze doesn't need more toys, Mr. Breeze doesn't need any more clothes, and I don't need any more gadgets.  My Black Friday list was going to cost me $458 dollars (but save me over $1,000 dollars).  Sure we have the money for that, but there was nothing on the list we NEEDED.  So I took the list, and tore it up.  Then I went back to my email and deleted every Black Friday AD I could find.  I even removed my name from some of the email lists, as I have found I am very susceptible to a "good deal." What did I spend, NOTHING!  But I gained the freedom of finding that best deal.   Cost: $0

So what did I do on Black Friday . . .  I got up and spent TIME with Baby Breeze, rather that getting up early to go from sale to sale.  We made breakfast at home, and played with his many toys. And instead of being tired that night, I got to take Baby Breeze along with my parents, and Mr. Breeze and go downtown to watch the tree lighting ceremony and watch Baby Breeze's first parade!  Cost: $5 (for parking).

We made memories, enjoyed time together (the whole reason I want to get out of having to work), and spent only $5 dollars, and honestly it was the best Friday that I have had in a long time.  I can't tell you what deals I have gotten in past years, but I will always remember my son's face as he saw the tree light up, and watched the parade go by.

Hoping you all have a wonderful holiday weekend, and if you spent less that we did - Congratulations, if you spent more - - look over those "savings" and decide if the really got you closer to your goal.

Today I am thankful . . .

Things I am grateful for this year.

1.  I am thankful for my son, who I have gotten to watch experience life through his fresh new eyes. Thank you for letting me be your Mommy.

2.     I am thankful for my husband.  He amazes each and every day, you are a wonderful father and husband.

3.     I am thankful for my family [including my husband’s family] – their unconditional love and support, has helped me in more ways than I will ever be able to repay them for.

4.     I am thankful for my co-workers and boss.  Their support this year, bringing dinners, and cheering me up was more than I could ever ask for.

5.     I am thankful for my friends (close and far).  From cards and emails, to Facebook posts, to the occasionally phone call, thank you all. And to those that just posted adorable pictures of their children or pets, thank you, as your posts helped get me through a lot of sleepless nights and cheered me up while battling cancer this year.

6.     I am thankful for my neighbors, who stopped by to check on us, or cheered us up whenever we were out and about.  Thank you for being there.

7.     I am thankful for the Doctors, who helped both my son and me this year.  Each day you have given us is a precious gift and I am thankful for the opportunity to watch my son grow.  And my therapist who has given me hope that I will have full range of motion in my arms again some day, and has given me the chance to start becoming self sufficient.

8.   I am thankful for my iPad, as it was my constant companion while others were sleeping, and when my range of motion in my arms would not allow me to do anything, I was always able to use the iPad! J

9.     I am grateful for the ability to sleep in my bed again.  After sleeping in a recliner for much of this year (due to nausea, surgeries, etc).  I am happy to be sleeping in my bed again.

10. Truly I am thankful for each and every morning.  I wake up knowing how today is another gift, and our time here is unknown.  I am grateful that I have today!

Happy Thanksgiving Everyone!