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Taking a Deep Breath ...

May 22nd, 2008 at 03:51 pm

DH thinks that we will need to be 2.12 times "expected net worth" (please see the formula on the left regarding "Balance Sheet Affluent" if you have no idea what I am talking about) by the time he is 50 in order for his dream of trying out for the Champions (formerly known as senior) golf tour to a be realistic possiblity.

We talked about this last weekend, but I stuck my head in the sand for a few days and did not blog about it. The thought of what it will take to reach this goal is a bit overwhelming.

Oh boy. I thought 2.0 times was setting the bar high, and last time I blogged about this I talked about maybe dropping the goal down a bit, perhaps to something like 1.8.

It's a hard number to nail down because there's no way of knowing what the actual out-of-pocket expenses will be if DH does make the tour. I still think that 2.0 is generous, but I guess that it's better to overshoot, and I'm sure DH has a better sense than I do of what is required.

So, 2.12 it is. Sigh. I can console myself a bit by thinking about what we will do with the money if we reach our savings goal, he tries out for the tour, and does not make it. (I'm sure that sounds downright evil, doesn't it?)

The new annual and quarterly goals are posted on the left. The annual goal is to move from 1.40 to 1.53 by 4/30/09. I'm hoping for a big increase the first quarter (due to DH's business), initially overshooting the goal, followed by holding steady in the second quarter, tapering off in the third quarter, and then taking a rather substantial drop in the fourth quarter (because we expect to buy a house and I have my own unique idea about how the value of a home should be calculated when calculating net worth).

At least we are off to a very good start for the current quarter (May - July). DH has been working hard and has expanded his business a bit; as a result his busy season started a bit earlier than usual this year. And I have been working steadily. Income is going to be key to reaching the goal.

2 Responses to “Taking a Deep Breath ...”

  1. boomeyers Says:

    Good luck my friend!

  2. merch Says:

    I saw your comment on BA's blog. I had to laugh, too funny.

    If yours and your husband's income spike up this year, it's going to be heard to hit that number. But good luck!! I beleieve everyone should have a goal that's slightly out of reach. It keeps you focused and on the straight and narrow.

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