About Me

scfr

Cool Quote: "The roosters may crow, but the hens deliver." (Ann Richards)
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Fun things to do before we leave Austin:
- Lunch at The Salt Lick (BBQ)
- Sunday Brunch at Fonda San Miguel (Mexican)
- Austin City Limits (try to score tickets)
- Bat Flight at Congress Ave Bridge
- Hike & Bike Trail (Town Lake)
- Cavern Tour: DONE!
- San Antonio (Alamo, Riverwalk)
- Houston (NASA)
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BA (Balance Sheet Affluent, as explained in "The Millionaire Mind"):

Age x .112 x Total Annual Realized Income = Expected Net Worth

If you are 2 times your expected net worth, you are "Balance Sheet Affluent"

My goal is for my household to be a bit over BA (have 2.12 times its expected net worth) by the time my DH is 50.

Starting Number (4/30/07) = 1.32 times expected net worth

First Year Quarterly Goals:
7/31/07 = 1.440 [Result: 1.510]
10/31/07 = 1.435 [Result: 1.569]
1/31/08 = 1.430 [Result: 1.541]
4/30/08 = 1.425 [Result: 1.400]

Second Year Quarterly Goals:
7/31/08 = 1.550 [Result = 1.515]
10/31/08 = 1.550
1/31/09 = 1.545
4/30/09 = 1.530

Journey to BA: Revised 1st Year Quarterly Goals

July 28th, 2007 at 05:12 pm

Well, I have worked out my new 1st year quarterly goals for my "Journey to Balance Sheet Affluent." It only took a minute to do them, but I put it off because I was 'scaird' Smile

I then did a rough calculation of where I think we will be at the end of the month, and was pleasantly surprised to see that we might actually still be a bit ahead of the game, even with the greatly increased target number. Frankly, we NEED to be ahead of the game this first year, because we cannot count on DH's business have such a good year every year.

Even if this Monday turns out to be "Black Monday 2007" I'm pretty confident we'll be ahead of the 1st quarter goal (knock on wood), because our investments are so conservative that we don't go on quite the rollercoaster ride that some folks do with the markets ups & downs.

Posted in Journey to "Balance Sheet Affluent" | 8 Comments »

8 Responses to “Journey to BA: Revised 1st Year Quarterly Goals”

Broken Arrow Says:
July 28th, 2007 at 08:38 pm

Hehe, for a split second there, I thought it had something strange to do with me.

How very vain I am.
Bookie Says:
July 29th, 2007 at 04:48 am

Funny how we misinterpret titles.
Carolina Bound Says:
July 29th, 2007 at 07:08 am

Actually, Broken Arrow, I thought it might be about you, too.
scfr Says:
July 29th, 2007 at 07:41 am

If someone wrote a title saying they "Wanted to be scfr" I'm sure I'd puff up like a peacock until I realized it had nothing to do with me!
If I had been creative enough to coin the term that describes my goal myself, I would have chosen something different to avoid any confusion. However, Dr. Stanley ("The Millionaire Next Door" and "The Millionaire Mind") came up with it.
annab Says:
July 29th, 2007 at 09:29 am

I love your color scheme!
Ima saver Says:
July 29th, 2007 at 10:22 am

Why do your goals go down slightly each quarter?
baselle Says:
July 29th, 2007 at 03:20 pm

I'm with Ima - did you reverse the numbers on your goals?
scfr Says:
July 29th, 2007 at 03:48 pm

Thank you, annab! I started growing vegetables for the first time this year, and that inspired me to make my color scheme kind of springy and outdoorsy.

Good question, Ima and baselle. It goes up a lot the first quarter (from 1.320 on 4/30/07 to 1.440 on 7/31/07) and then goes down slightly each quarter from there because:
- The peak earning period for my husband's business is in the first quarter.
- I'm closing down my business during the 2nd quarter. I'm planning to take a couple months off after we move and I'll do a bit of travelling during that time (that means no income from me and some extra spending). I don't know when I will either: find a new job, or get a new business up and running. I'm ready for a wee break, and my husband wants me to have one too. Because of my business (which I LOVE so this is not a whine), it has kept me tied close to home for the past 4 years, so except for a couple weekend trips to my mom's I haven't done any travelling and I'm really looking forward to it.
- We'll have the extra expenses of moving during the 2nd quarter.
So ... I set my year-end goal, made the 1st quarter's goal higher than the year-end, and am allowing myself to taper off until the end of the year.

scfr's Personal Finance Blog

Journey to BA: Revised 1st Year Quarterly Goals

8 Responses to “Journey to BA: Revised 1st Year Quarterly Goals”

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