I looked at my net worth through the years yesterday -- I've only been keeping track since 2008. Well, I actually have kept track longer, but I lost all my data in computer crash. Anyway....
In 2008 my NW was $184,222. The following year it sank to $146,707 -- that reflects the hit my retirement fund took after the economic downturn. In 2010 it rose to $160,214, then to $178,681 in 2011. In 2012 I had almost recovered -- $182,030. But then I bought my condo, which took it down to today's $172,546.
It is not much, not at my time of life. But I know the reasons I ended up this way. I was divorced when I was a stay-at-home mom, and it took me years to recover economically. My ex paid me $100 a week in child support and that was it. The first job I got, I remember that the salary was $11,000. About ten years after my divorce I had finally worked my way up to a job paying $40,000. (I also wasted money on taking classes toward a teaching certificate, which I did not complete -- long story). And I had a debt problem -- not so much from frivolous spending, but from hand-to-mouth living.
I decided along the way that the solution for me was to share housing with my cousin, which turned out to be a big mistake, financially as well as emotionally. She lived in a different state, and I sold my house and took early retirement in order to move in with her. Then the economy crashed, and suddenly I was decimating my meager retirement fund just to live. I wasn't able to find a job in the new area -- not even temporary work.
So I made a cross-country move to take the job I am in now. It only pays $40,000. I have had either no raises or minimal raises in the five years I've been here, because the College is struggling financially. At my age I am just glad to have a job.
But I do worry about the future. I'm going to be very dependent on social security. My plan is to take my ex's benefit for the first four years and then to switch to mine when I am 70. The first four years will be very lean. At age 70, I won't be rich, but my income will be fairly close to what I am earning now, and it will be doable.
When I look at the net worth of others, and read the articles about retirement, I feel like a failure. All of the articles pretty much say my net worth is not nearly enough.
I keep telling myself that at least I don't have any debt -- other than my mortgage. My mortgage payment is low and the interest is only 3%. And I have frugal skills and self-discipline that I have learned through the years that will help me stretch what I have. But is it enough?
I will soon see. I am retiring for the second time in two years. I am not going to attempt to work any longer than that at this job, for many reasons. The long commute, for one, my aging brain in a youth-oriented profession, my general disenchantment with the work. I hope, after retirement, I can find a part-time job close to home that will give me a little income stream. But I am not counting on it -- I see how many people are looking for the same thing. It's not an easy market, not yet.
On the lucky side, I bought my condo at exactly the right time, and it was in move-in condition. I will be secure in this home as long as I can pay the mortgage, assessment fees, and taxes. I have easy access to incredible public transportation, so when my car dies, I won't have to replace it. My son is close by, and so is a nephew. I'm in good health.
I hope all of you will be around, because I'm going to keep on blogging about it! I can't even express how much help it has been to me to be able to talk about money with like-minded people, and to take advantage of your sage advice!
My Pitiful Net Worth
October 18th, 2013 at 02:12 pm
October 18th, 2013 at 02:22 pm 1382106169
I think I'll be around for a while, so I'll be cheering you on in your (next) retirement!
October 18th, 2013 at 03:26 pm 1382109984
A lot of us here on the younger side aren't counting on social security and are trying to make up for that.
I don't think most people know or understand that my primary motivation to "take care of myself" is due to watching several of my very "domsestic" aunts devastated by divorce. That's been a very huge force in my life as to my own financial and career decisions. That, and I have a sense that it is an extremely rough road - so I admire you for coming out the other end as strong as you have.
October 18th, 2013 at 03:30 pm 1382110221
October 18th, 2013 at 03:44 pm 1382111093
Life threw your some curveballs, but you persevered anyway.
If a regular part-time job is not available, perhaps you could look for temporary sitter type jobs. My mom did that for a few years, she signed up with a service. They called her when they needed her, and she had the option to accept or reject each assignment. Mostly she would work as a babysitter for doctors who were on call. Sometimes the doctors would never leave home, but they needed to be able to leave immediately if needed at the hospital. She was paid pretty well, sometimes for sleeping in guestrooms.
October 18th, 2013 at 04:13 pm 1382112832
It really is easy just keep house safe and neat and animals fed and happy. It has also cut down my own expenses because i dont have to run ac or heat at home when i am gone.
October 18th, 2013 at 04:14 pm 1382112868
October 18th, 2013 at 04:23 pm 1382113417
October 18th, 2013 at 04:29 pm 1382113765
Divorce is a big financial hit, but sometimes it's a hit we can't avoid. Sometimes when I can't sleep fretting over something, my ex's hijinks during our divorce and how much they cost me haunts me.
I like Kiki's ideas--especially in your Chicago neighborhood. I also think I'd hire you out as my Goodwill personal shopper!
October 18th, 2013 at 04:30 pm 1382113844
October 18th, 2013 at 05:59 pm 1382119156
October 18th, 2013 at 06:22 pm 1382120529
October 18th, 2013 at 08:50 pm 1382129427
Sure, it's not liquid, but it's part of your worth. And every time you pay over $700 a monthon it you're increasing your net worth again and again.
Right now go add the value of your condo, subtract what's remaining on your mortgage, and report back.
You're doing great!
October 18th, 2013 at 08:52 pm 1382129543
It's making your net worth look worse. At least use a conservative estimate of your home's worth and take another look.
October 18th, 2013 at 10:12 pm 1382134331
October 18th, 2013 at 11:57 pm 1382140637
The economy is due to take off after this political bump and you'll see the value of equities go up. Love the idea of house sitting as a retiree. What do you think?
October 19th, 2013 at 01:32 am 1382146349
October 19th, 2013 at 03:34 am 1382153649
But...If you were interested in learning more about the house sitting/pet walking-sitting possibilities let me know. I'd be happy to send you to some resources and ideas for starting. You even have an advantage over me as you own your own home. Many homeowners see that as a plus. And I think you are doing really well!
October 19th, 2013 at 04:43 am 1382157805
The other issue is that if you are a free spender, you could have many millions and it wouldn't be enough. If you know how to live carefully with a budget, you can mostly make it work.
And remember that you can't take it with you.
October 19th, 2013 at 04:07 pm 1382198827
You know how to live well on your income, and I think you'll make it just fine no matter what may come.
P.S. To add on to Kiki's suggestion - if you are interested in house/pet sitting, be sure to check out sittercity . com/org (can't remember which) You do have to pay a $10 fee for a background check every year, but in a large city like where you are, you'd probably find lOTS of opportunities.
October 19th, 2013 at 10:56 pm 1382223375
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October 28th, 2013 at 04:31 am 1382934679
And i am always happy to give information! My aim for 2014-2015 is to make enough to pay my rent and utilities every month. That means i need about $920 a month.
October 28th, 2013 at 11:31 am 1382959868
However, I AM a little concerned. Although I'm no math whiz, I'm looking at your $73,000 mortgage. I don't know your monthly expenses, how many years you have before you can collect Social Security, or your age, exactly, but I'm thinking you're about my age, in your 50s? How will you pay that mortgage with just a p/t job?
I completely understand about not liking the long commute (been there, done that!) and the work, but there are other jobs you could pursue. I just think it would be highly preferable to pay off the mortgage, even a relatively "small" one like yours, before you quit f/t work. What seems manageable now, even on a modest income, will not seem so doable on a p/t income.
I am glad that so many people are supportive of your decision, but I'm surprised no one has asked the hard questions.
October 28th, 2013 at 04:10 pm 1382976616
I will not retire until I can collect SS. That's two years away, when I am 66. And since I can collect on my ex's benefit until age 70, mine will accrue till then. (And my ex has the maximum benefit, which will help.) Still, it's those four years between age 66 and 70 I'm worried about.
My mortgage is only $321 per month. I'm making more-than-double payments right now, but when I retire I'll only pay the $321. I can pay it even without a part-time job. I've done a budget, and yes, it's lean. It will be hard, but not impossible.
As for my current job -- the commute aside, it is a field that is changing dramatically with changes in technology. I am doing my utmost to keep up, but it is taking its toll on me. I am aware all the time that my employers would prefer someone younger and more techie. It is a young office, and I'm the dinosaur. And fundraising is extremely volatile -- I've seen entire staff replaced because dollar goals weren't met. I just don't see working here till age 70 as a reliable option, even if I could physically and mentally survive the schedule. And as for other jobs, never say never, but I don't think people in their mid-sixties get hired very often! It may be illegal to discriminate, but that only means no one can say out loud that age is the reason the application is put aside!
October 28th, 2013 at 05:20 pm 1382980839
My thought on the pet sitting - or babysitting - is that it sounds very physically demanding. (I found it exhausting in my 20s!!). Maybe temp office work may be a better solution for those few years. Regardless, I am sure you will get many ideas here to supplement your income.
October 28th, 2013 at 09:35 pm 1382996105
And many of my clients with animals, for short weekend stays, say don't bother with a walk just give him/her some love. I still usually do a walk because their energy could be higher or they dont sleep or digest their food as well. Certainly with the Illinois winters it would be much different if there is snow on extreme cold.
October 28th, 2013 at 09:39 pm 1382996359
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October 30th, 2013 at 06:32 pm 1383157927
I also don't compare myself with others or look back with regrets. There are people who do everything right but make the wrong investment or get sick and can lose it all or a substantial amount in a flash. I always keep that in mind and plug forward.
October 31st, 2013 at 08:50 pm 1383252601
As many others have already said; you have a plan and the will to carry it out. I say that alone is better than half the population (Sad, but true).
Sounds like there have been some rough spots, but instead of giving up and playing the victim you worked through it.
SO I say keep up the good work!