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Joining the Million Dollar Club

Today was a big day. I accepted a new job at a new company. This means I also gave notice at my current company (yay!). I’ve been less than thrilled with my job for a while, which ultimately lead me to find the Financial Independence (FI) community (so it wasn’t all bad).

I don’t know the average age of FI members; however, I am fairly confident I’m older than most. I’m 48. I enjoyed my job for the first 20 years of my adult working life, so it didn’t cross my mind I wouldn’t want to work until the normal retirement age. Now I want the option to retire early.

The new job brings new focus. It seems to me to be the perfect time to join the “Million Dollar Club” that J. Money from Budgets are Sexy founded. I’m joining nearly 200 bloggers in the pursuit of a seven-figure net worth.

In order to join, I pledge to do the following in the pursuit of a MILLION DOLLARS:

  1. Track my net worth monthly
  2. Be mindful of expenses
  3. Pay off my car loan and credit card debt
  4. After #3 is complete, pay off credit cards each month
  5. After #3 is complete, increase my savings rate
  6. Roll my 401K into an IRA and invest in VTSAX
  7. After #6 is complete, continue to add to my IRA  (See 11/24/2017 update below.)
  8. Continue to educate myself on personal finance
  9. Improve my health, to minimize future health care costs
  10. Keep getting better!!

According to CNN Money’s Millionaire Calculator, at my current savings rate and 4% average return, it will take me until 2029 to hit a million. That’s too long!  My goal is to have a million by the time I’m 55 (in 6 1/2 years). It’s time to make this a reality!

Update: 11/24/2017: While walking my dog this morning I listened to a Stacking Benjamin’s podcast. They pointed out the accounting will be tricky to open an IRA with pre-tax dollars and then add to it with post-tax dollars. SO – changed my mind on #7!  Thanks for not teaching me anything on your podcast Joe and OG!

 

8 thoughts on “Joining the Million Dollar Club

  1. Congratulations on the new job! That fact that you have a list with the right things and are blogging about it means you will no-doubt succeed. Keep at it, ignore the Jones’s, and have discipline and you’ll be there before you know it!

  2. Congratulations on getting a new job, I hope you enjoy it. Seems like you are going the right way in terms of how your plan is outlined. I wish you the best of success and will be following your journey.

    1. Thank you! I just checked out your blog – it looks awesome! It is so impressive you are interested in personal finance so early (I saw that you are a student). I will definitely be following your progress. Good luck to you!

  3. The option to retire early would be nice. The near option of that I wouldn’t mind either. Congrats on the new job and signing up for the club. You’re almost there! Glad to hear the kids haven’t moved far. My child is near adulthood and its Soooo bittersweet. The time flew…. to fast.

    1. Thank you for your comment. I agree, it’s bittersweet to see the kiddos grow up. It is wonderful to see them become self-sufficient and happy as adults. 🙂 I took a look at your blog. Good luck with your journey…looks like you are on the right path!

    1. Thanks for the comment. No matter what our goal is – the important thing is that we’re working on it, right? Checked out your blog – good idea of tracking your savings rate! Good luck to you!

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