2022 is behind us and it's tax time, but you don't have to be as anxious at this kitten! I expect most people probably hate tax time. All that paperwork that doesn't feel like it does anything but suck up our time. Well I love tax time because it forces me to take account of the past year. I worked for 365 days, what did I keep after all of that noise? I know I packed over 500 school lunches this year, there's got to be something left over right?
It's not that I enjoy filling out tax forms, but rather I have an overwhelming sense of creating closure so it's not weighing on me for the rest of the year. Of course I was the guy in school who got all my homework done on Friday nights so I could play guilt free on the weekends. I guess this is the adulting (no that word is not in my spell checker either) version of the same neurosis.
Everyone's tax situation is different, but the one thing that is the same for those tracking and building their wealth every year which is to measure your net worth to see how much you grew or shrank. For extra kicks you can play with some compounding and estimate when you think you might be able to 'retire', change jobs, work less, or move someplace less expensive to stretch your savings into our golden years.
I use a spreadsheet (of course you do John) to track this and it's a bit of a ritual for me to fill it out every year to see if I am on track and fantasize about when this golden shift might occur. I give it away in hopes that it might be useful to anyone who likes to track such things.
I would love to know your thoughts and feedback on the sheet or what you are doing to build your wealth. You can be pretty sure I am using a lot of real estate in my plan. If you feel like talking, give me a call (512) 910-5315 or email [email protected].
