Every good dragon has a hoard. You know. The collection of gold, jewels, and other valuables that the dragon guards in his or her cave. For me, The Hoard is what I call my assets. The collection of stocks, bonds, and other income producing assets that Mrs. Dragon and I have collected thus far.
Mythological fire breathers have to protect their hoard from knights seeking glory, wizards wanting power, etc. Real-world FIRE breathers have more mundane, but very real dangers to their own hoards: the tax man, the cable company, lifestyle inflation, high-fee brokers, and many more.
This is one post in a series that documents my progress towards financial independence.
You might recall that I don’t include our primary residence in the assets (it doesn’t produce income) and I don’t include our primary mortgage against the assets. If we had a rental house, I would include it in both parts of the equation, but I’ll address the primary residence in a separate category.
I do not differentiate between tax-advantaged accounts and taxable ones in the number for The Hoard. Assets are assets.
We use the excellent (and free!) service Personal Capital to keep track of how The Hoard is coming along. It lets you view all your accounts on a single homepage for a convenient snapshot of your financial life. It is a top-notch service. Highly recommended.
Mrs. Dragon and I want $600,000 in liquid assets and a paid-off house to consider ourselves financially independent. We’re hoping to accomplish this by February of 2025.
How are we currently doing?
The current market value of the hoard is $201,517 (vs $197,338 last month). This is about 33.6% of our $600,000 goal.
Primary residence: The mortgage is $93,637 (vs $93,891 last month), which means it’s about 4.45% paid off.
Woo-hoo! We broke the $200,000 mark!!! This puts us over one third of the way to our investment goal.
Looking back, I wrote this little tidbit in October 2015 when we broke $100k for the first time:
They say the first $100k is the hardest and I certainly hope they’re right. It took thirty years to get the first one, and I’m hoping for more like 1.5 years to get the next one.
Turns out they were right (they always are). We got the second $100k in 11 months, which absolutely exceeded my expectations in the best way. As you can see from the above quote, I wasn’t expecting us to hit this mark until about March of 2017.
Racking up $100k+ in networth in the course of a year is killer progress for us. I don’t anticipate that we will continue at that rate. This year, with the birth of Baby Dragon and Mrs. Dragon taking some time off work, I expect our reduced income and increased expenses to slow financial progress a little bit. However, any time spent saving that aggressively pays off in a big way.