Tuesday, June 25, 2013

What is my "number"?

Today's post at "Punch Debt in the Face" made me think about my Net Worth calculations.

I do not include the value of my residence, my rental property, my car and my retirement account when I am looking at my Net Worth. May be I shouldn't call what I calculate my Net Worth. 

At the end of each month, I calculate my liquid assets: TL Cash, USD Cash, Gold and Individual Stocks. There has been a slow yet steady growth since September 2011. I was sitting on a large chunk of liquidity prior to March 2011 when I purchased my rental property. I lived in it for about a year and a half then I moved back to Istanbul to my primary residence and the day I moved out, my tenant moved in. I paid somewhere between 65-70% down and borrowed the rest on a 36 month loan. By May 2014, my debt will be gone. I am itching to close it now, but since I am going to re-do the bathroom and have the apartment painted, I do not want to be cash short.

I keep looking at my numbers and I still do not feel comfortable about them. How much of a stash is enough? When can I be more lax about spending money? When can I take my dream vacation? I guess before May 2014, I will not be able to answer most of those questions. 

Whenever I think of "the" number my mind starts telling me: What if a big health problem occurs either with me or with family members? What if a disaster strikes and insurance will not be enough? What if this, what if that?


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