Building an Empire

Every October I do my Monthly Net Worth, just like every other month for the last several years.

What makes October special is that I have kept a record of my Net Worth every October since 2006.

TWELVE years of data and a great way to gauge the progress of my financial empire.

Part of the reason I got into this blogging thing in the first place was to keep me on point. Watching this nest egg build year after year never gets old. You can truly see the impact of continuously compounding interest and new investment.

I can also start to play with some interesting math. My average yearly gain is % 42.26

If I take out my best and worst year, the number drops to  % 19.32, Probably more realistic.

Once the pile grows big enough, it starts to out earn your yearly income. This is the beginning of empire. The nest egg takes on a life of its own.

When this happens, it is Truly a Moment in our Financial Lives.

P.S. Screw October 1st and 2nd of 2019, they cost me over $13,000 bucks right before I take an official count. Boo! Hiss!

P.S. Watching numbers this closely really makes you realize how the timing of your retirement is both crucial and beyond your control. What if the economy takes of dive during the last five years of your earning potential? What a hit! Conversely, a nice big wave carrying right up to the moment you pull the plug really changes the numbers.

Try as we might, some of this empire building is just plain luck.

4 thoughts on “Building an Empire

  1. i wish i had data going way back. it really is incredible how this whole investing thing turns into a juggernaut. our assets this year have increased way more than our very best year of two of us working full time. i don’t know about you but it just kinda sneaked up on us that way.

  2. I believe I have data going back to 2007 but missed a few years around 2010 when I had my mind on other things because of the divorce I went through. Then I fell off until I started keeping tabs again. Unfortunately the period I have missing is when I finally became $0 net worth (from -$800k at my lowest) which would have been a nice data point to have.

Let's get things nice and sparkling clear