When I look back on my journey with my finances, there are specific moments in time that stand out. I consider these my financial milestones.
First, I have milestones that I don’t enjoy remembering: the day I totaled my husband’s car, which I still consider the first day of my financial awakening. I also distinctly remember the feeling of dread that gripped me when I read the letter telling me the final tally of my student loans. Of course, I also can’t forget the nerve-wracking weeks of navigating the scary waters of car shopping as a recent graduate, culminating in another $12,000 of debt.
Then there are the good milestones, which, happily, outnumber my bad milestones. The day I made my final student loan payment, the day I paid off my car loan and could officially call myself debt free. Then there are the early days of becoming a saver when I hit the $10,000 mark on my emergency fund, and when I put away my first $5,000 into my retirement fund. I remember all of these milestones with such clarity, it’s as if they happened yesterday, which makes the milestone I just hit yesterday all the more baffling to me.
In October 2014 I hit the milestone of accumulating $25,000 before age 25. Saving this much cash seemed like a big accomplishment at the time, and now, just five months later, I’ve hit the $30,000 net worth mark.
Taking Advantage of Windfall Money to Boost Your Net Worth
There are two main sources of income that allowed me to boost my net worth $5,000 in five months: my income tax return and my freelance income. I consider both of these items windfall money since I’m not guaranteed to receive them every year or month. I put 100% of my income tax return into savings. I also put as much of my freelance income as possible towards savings, with the occasional $100 held back here and there to use for fun money.
Using my windfall money to help me reach my goals is how I stay motivated to keep striving. This money helps me reach my goals faster, which helps me stay excited about my money. If I were just making the same transfers every single week, I’d get bored, and fast.
The Next Financial Milestone: $35,000 Net Worth
I’m going to continue to increase my net worth as much as possible this year, with a goal of hitting $35,000 before the year is over. I’m pretty confident I can accomplish this with some hard work, some hustling, and a little more windfall money.
Here’s to only positive financial milestones from here on out.
What’s the biggest financial milestone you’ve hit recently? I want to know!