Sunday, 8 February 2015

Paper millionaire … or homeless millionaire

Millionaire on Heels - Paper millionaire … or homeless millionaire
How many bundles of these does it take to become a paper millionaire?

Those of you who are close followers of the MoH will know that the Millionaire by 2020 Plan is based on investible assets – i.e., excluding the house, Lamborghini, etc.  In December 2012, I had an initial stash of super, shares, and cash accumulated over 15 years, and each month since, I’ve been adding to the total, with the aim of reaching $1 million in investible assets by the end of 2020 (now 2019!).

In addition to my progress against the Millionaire by 2020 Plan, I also like to periodically track my net worth.  Net worth includes all of your assets, less all of your liabilities.  I tend to ignore depreciating assets like my Lamborghini-masquerading-as-a-VW, home contents, etc.  My main assets are my house, super, cash, and shares.  And my liabilities are my mortgage and margin loan.  I don’t have credit card debt, personal loans, etc.