Back from Hiatus

Major events in life have kept us busy and away from this blog for quite some time. Things are finally settling down now and I’m happy to report that we’re back.

Our first big news is that Nomnomhead and I are expecting a baby in a few months. As first-time parents, we are naturally excited but also terrified. Besides changing the landscape of our lives, this little one will also be changing the course of our financial future. We’re now scrambling to redo our budget, get additional life insurance, and learn the basics of estate planning.

Rorschach has been busy exploring further options in his career. While he continues to work hard at advancing in his current company, he is also looking into migrating to a different country to pursue greater opportunities.

ShowMeTheMoney is about to graduate and will soon be job hunting in the Philippines. His days of living with his family (free rent and food) may soon be over if he decides to work in the metropolitan areas.

Financial Goals Update

When we started this blog a year ago, we set for ourselves goals to achieve within the next ten years. Looking at these goals now and our progress so far, I feel the need to make some changes.

My own personal goal was to reach a net worth of 800,000 USD in ten years. I had based this on our savings rate in 2011 and 2012. When I reviewed my progress at the start of the year, I was surprised to find that I was already significantly ahead of my estimates. Our portfolio, under Nomnomhead’s watchful eyes, has flourished in the past year. In the meantime, even with plenty of large surprise expenses in 2013 and the weakened yen, the new budget I put in place allowed us to continue to set aside a significant portion of our income into savings. The addition of a baby in the family will most likely make saving an even bigger challenge but it still looks like I will be able to reach my initial goal with time to spare.

I love goals that stretch my abilities, so I’ve decided to revise my goal to achieve a net worth of 1,000,000 USD instead. I’ve run the numbers through my spreadsheet and it is fairly possible assuming the following:

  •  I continue to be employed in the next nine years and receive  the same salary adjusted for inflation. Salary increases will of course speed up my progress.
  • There are no major disasters that will require a large outflow of cash not covered by insurance.
  • Any stock market crash in the coming years will be followed by a recovery similar to what we’ve seen in the past decade.

A US millionaire by 2023! It feels like a daunting task. I’ll hope for the best and plan for the worst.

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