I’m updating my visual aid each month and here is where I stood at the end of October 2013 for my goal of financial independence. As soon as my monthly expenses line crosses my projected passive income line, I will dance a jig.
My passive income reflects growth in my net worth. Read my assumptions to get this figure here.
I am very excited to plot November 2013 on my chart. My expenses were down this month to a near record level and my net worth inched upwards by more than $14,000. The stock market keeps humming along and I keep cheering the investment returns. A thing is worth only what someone else will pay for it and this month the markets were optimistic. Here’s my pretty chart at the end of November.
Looking at this makes me happy! I think this will be a high point in my quest for a few months as I expect my expenses and passive income lines to grow farther apart and not closer together in the immediate future. I know December’s expenses will be higher, so the blue line will dart upwards. And while I can certainly believe a soothsayer who proclaims the market will continue to chug along with exuberance over the next few months, I could also believe the clairvoyant who see a market correction ahead and a decrease in net worth, causing the red line to slither downwards. If the soothsayer is right, I will celebrate the returns. If the clairvoyant is right, I will celebrate the sale on my investment vehicle of choice.