A 19% increase in Net Worth! And reached my $100k goal :)
True Iโve had this goal for 2 years now, but still โ I accomplished it! I donโt place this out there to brag or show off or anything, but more to prove that patience and hard work really DOES pay off.
When it comes down to it, thereโs nothing all that complicated about it:
We save more, spend less, and we bank a $hitload into 401(k)s and IRAs. Itโs not the easiest thing to do at times, but itโs still simple.
If you were around for last monthโs update, youโll notice a rather large theme going on here with our 401(k)s. Some of this has to do with an issue of tracking this from months ago (now 100% fixed), but most comes from my 2 month challenge of setting the contributions to 90% of my paycheck! Iโll describe it more below, but unfortunately Iโve had to quit this as I ran out of extra funds ;) Next monthโs update wonโt be nearly as glamorous, but for now, Iโm flying high!
Hereโs how Julyโs net worth breaks down:
CASH SAVINGS (-$797.65): For the last two four paychecks Iโve been contributing 90% of my paycheck to my 401(k) in hopes of maxing it out while everythingโs still low. I had to stop contributing for a few months, so this is also making up for lost time. In doing this, however, I literally only got $69 per check and had to dip into my remaining $2.5k side savings to pay the bills and stay โon budgetโ.
As I mentioned though, I finally ran out of extra money and now itโs back down to 30% until I can finish maxing it out (which should be pretty soon). If at all possible, I highly recommend you maxing out yours too! Or at least up to the company match (3%, 6%, etc). Taking advantage of the perks given to you is one of the easiest ways to build up that net worth and invest in your future.
EMERGENCY FUND ($0.00): Our $10k is still tucked away (and left alone) in our Money Market account. Itโs mixed in with other funds so I canโt determine exactly how much interest is accruing on this Emergency Fund in particular, but itโs definitely adding up.
ROTH IRAs (+$2,056.14): I havenโt been able to blog about it yet, but I finally maxed out my Roth IRA! Iโve been slowly applying money made off this blog into it (as well as other funds, like the recent cashing of my bonds!), and Iโm happy to report itโs another goal to cross off the list. And since the economy is doing a lot better, along with Operation Buffett, I can already see some healthy upticks.
401(k)s (+$17,927.09): So thatโs what 90% of my paychecks + a happy market looks like ;) Thereโs nothing else much to say about it, so Iโll just reiterate what Iโve already been saying: Patience and automation pays off! Spend a few mins & consider upping your 401(k) contributions a % point or two.
SAVINGS BONDS (-$749.74): I finally did it โ I cashed in all my savings bonds! When it came down to it, I just couldnโt take the measly pennies accumulating every month so I used it to help max out my brokerage Roth IRA. Plus, I was afraid Iโd lose them one day (they were in paper form) and I didnโt feel like holding on to them any longer. Had I known it only takes 15 mins at a bank I would have done it much earlier!
AUTOS WORTH (kbb) (-$450.00): I always expect this category to go down, but the last too months have resulted in $350+ losses over the previous $50 amounts. Not sure whatโs going on, but itโs really out of my control anyways :) Hereโs how they line up this month:
- Pimp Daddy Caddy: $3,045
- Gas Ticklinโ Toyota: $10,185
HOME VALUE (Realtor) ($0.00): This will remain @ $300k (the price our realtor set it at) until I hit him up again later for another review. Heโs the master in our particular neighborhood, and has been selling (and living in) in this area for 20+ years. I keep an eye on Zillow & Redfin.com on the side too to see what else is happening out there. Zillow just fluctuates so much that it drives me crazy. It currently has our house estimated at $370k+?! Up from $340k last month. I donโt get it.
CREDIT CARD (car loans) ($0.00): Still at Zero! The previous debt here was an โauto loanโ that I happened to charge on my credit card โ effectively setting my interest @ 3%. I donโt recommend this for everyone, but the method works well if you know what youโre doing and donโt have outstanding debt lined up. Iโll leave this category in until Iโm tired of looking at it ;)
MORTGAGES (-$75.94): Weโre still eager to refinance our first mortgage, but unfortunately weโre still too under water to get on it. So in the meantime we chip away with any extra money we have left from our โhouse budgetโ. Hereโs how they breakdown:
- Mortgage #1: $287,150.36 โ 30 year fixed, interest-only @ 6.875%.
- Mortgage #2: $62,818.34 โ Maxed out HELOC w/ 2.8% interest.
Another month gone, another update done! Howโd you all do? Anyone come across something crazy last month? Whatever the case, remember to judge your success off of YOUR goals only. Itโs hard sometimes, but itโs really the only thing you have control of. If you donโt already, try tracking your progress every month and look back to see what works and what doesnโt :)
God Bless,
โโโโโโ
*My budget has now been updated.
*And so have my sidebars.
PS: If youโre just getting started in your journey, here are a few good resources to help track your money. Doesnโt matter which route you go, just that it ends up sticking!
- The "Budget/Net Worth" spreadsheet - the colorful Excel template I personally use.
- The "Money Snapshot" spreadsheet - a simple Excel template I created for my former $$$ clients
If you're not a spreadsheet guy like me and prefer something more automated (which is fine, whatever gets you to take action!), you can try your hand with a free Empower account instead (formerly Personal Capital)
Empower is a cool tool that connects with your bank & investment accounts to give you an automated way to track your net worth. You'll get a crystal clear picture of how your spending and investments affect your financial goals (early retirement?), and it's super easy to use.
It only takes a couple minutes to set up and you can grab your free account here. They also do a lot of other cool stuff as well which my early retired friend Justin covers in our full review of Empower - check it out here: Why I Use Empower Almost Every Single Day.
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