The most famous crossover point has to be the one discussed in the book Your Money or Your Life. It’s basically the point at which your investments are producing more cash than your spending or the month you truly become financially independent.
Unfortunately that is typically a long way off, so having some other cross over points in the mean time can help with that every problematic motivation to keep going. So what are some other possible cross over points to help you celebrate along the way? Here’s a couple that I thought of:
- Positive Net Worth – Let’s face it, if you started from a massive point of debt in your life just getting to around even between debt and assets can be a huge feeling of getting somewhere. I personally don’t recall when I hit this point because I wasn’t tracking it back then, but if you are focused on debt repayment this one can help.
- Consumer Debt Free – Paying off all other debts than your mortgage can also be a huge feeling of accomplishment. I know when I finished paying off my last student loan payment I was extremely happy. My wife had a similar feeling when we paid hers off and we became consumer debt free as a couple.
- More Investments Than Debt – I’m looking forward to having a portfolio that is bigger than my mortgage. If things go remotely according to plan I should hopefully see this other cross over in about a year from now. I’m currently about $50,000 short of this other crossover.
In reality any time a line crosses another line (or even an axis) can be another crossover point. So if you track your progress at all on a graph you can pick all sorts of other crossover points to help keep your motivation going. What other crossover points have you celebrated getting towards? Or if you have an idea for another one please share with a comment.