I am going to expand on my Financial Timeline series here. This post will be about my Earnings Timeline and Net Worth to date.
So, I got my Social Security Statement in the mail this week and I always check it against my earnings for the year to check for accuracy. I believe that everyone should do this as part of getting your financial house in order.
Look at the three columns on your statement when you are checking for accuracy-
1. Years You Worked 2. Your Taxed Social Security Earnings 3. Your Taxed Medicare Earnings
Here are my taxable earnings since 1995 (I rounded numbers for privacy reasons):
1995 - $1,500
1997 - $2,000
1998 - $2,000
1999 - $700
2000 - $2,000
2001 - $200
2002 - $400
2003 - $10,000
2004 - $35,000
2005 - $45,000
2006 - $54,000
2007 - $64,000
2008 - $81,000
2009 - $86,000
Over a 15-year period I earned $386,800 of taxable income. But once taxes are taken out I probably brought home $193,400 during that same 15- year period.
I calculated my January net worth to be $90,579.44. Therefore, from my earnings I "spent" $100,000 dollars during that 15-year period. Honestly, I don't know where that $100,000 dollars went. I know $26,000 plus interest payments went to the credit card companies. I had a wedding, went on a honeymoon, purchased a car during that time period too. This was an eye-opening experience for me. It has made me want to pay more attention to my spending especially what is coming in and going out (cash flow).
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I do have a word of caution about this post. I live in an expense place in this country so please don't compare your earnings to mine. I do have a college education and I am a tough negotiator which has increased my earnings. If you are interested in my negotiating skills please leave a message below. I will be happy to devote a blog post to negotiating skills in a job and in life.
P.S. You have come to the right place if you are looking for information about getting out of credit card debt, paying off credit card debt, money tips, or for a friendly place if you are struggling with getting out of debt.