Numbers
At the end of the third quarter of 2024, my wife and I crossed the $200,000 net worth threshold for the first time. We ended September with $200,732/€180,352, corresponding to a quarter-over-quarter rise of 10.3%/6.63%.
I figured that we'd reach this point sometime this year, but the speed at which it happened has nevertheless surprised me. This has not been an awe-inspiring year of savings, and I feel like our money has just been going on a ride of its own making.
Accounting
One accounting change: I've included our rental deposit in our assets under the heading "Other Long Term Assets". Technically, it should function on our balance sheet as a long-term asset and for my landlord as a liability, even though the money is currently in his possession. This is similar to how customer deposits are liabilities on a bank balance sheet. It also remains an asset despite the risk that the deposit will be lowered upon moving out.
Taxes
I struggle with estimating and including tax liabilities in our accounting. Therefore, I simply haven't done it, although it's a major factor. For example, we had to pay a large estimated tax payment in September, most of which will almost certainly be returned to us. How do I include that? Most of it will be returned, but not all of it. And how best to include any accrued tax liability?
So should I throw up my hands and give up, as I've done, or make a lazy estimate?
Your Money or Your Life
Last month, I purchased Vicki Robin's Your Money or Your Life on Audible and listened while walking around the park. I won't write a big review at the moment, but there's a lot that's very good in the book.
What she does especially well is connect money with time. She frames the trade-offs in our choices very starkly, and I've been forced to reassess some of my lifestyle. That's especially true because I had some health scares during the last few months. Although those scares didn't add up to anything significant, I had to confront my fears about life and death.
Anxiety
I walk around with a lot of anxiety related to my economic success. This is true despite the ongoing success of my investment choices. Anxiety is, by its very nature, not happiness. What choices am I making, or better yet, what do I believe that provokes so much latent stress?
There are two avenues to disentangle:
- The fears about my "hopes and dreams" career field, which feels fundamentally precarious.
- My need to be perceived as successful, whether that translates to actual financial betterment or not.
I don't have answers at this point, only hunches. Under the first category, there's some reality underlying this anxiety. I work in a field full of economic uncertainty. My wife and I visited a friend over the weekend who's currently unemployed and on unemployment despite being respected in the field. A local employer is currently undergoing a change in management that will likely lead to a lot of employee turnover. Those employees may not be able to find new employment in this field.
Under the second, I do want to be seen as successful. It's the truth, but I don't know what the balance between being "seen as" and just "being" is, if that makes sense. In many senses, within my field, just going by the numbers, I am extremely successful. However, because I exist within this "hopes and dreams" world, my position does not confer great status on me.
And therein lies the tension. By the numbers, I should chill out and enjoy my life. By my nebulous sense of social status within my field, and my fear that my entire field might vanish, I can't.
Forecast
I suspect the next few months will be very good earning months for us both. Neither of us is going on any vacations, and there shouldn't be great expenses befalling us. We will have to pay some taxes, but we may also have some taxes returned to us.
Whether I can resolve these tensions in the next few months is uncertain. But I'll let you know my progress in the annual update. Until then, stay sane and healthy.
