Now every time I do these things I think of Hank! :)
Darn you buddy!!! Haha…
But wow, what a month! Going on back to back ups here – love it. Even though I really only worked hard at 1/2 of this $11k increase ;) As always the rest was left up to the stock market Gods…
But the parts I participated in >>>> Cash Savings & Mortgage shortening<<<< were super successful. Which is good because I’ve been staying up late working my a$$ off lately! (and by lately I mean every single day for the past year – the true meaning of hustling ;)) But if I’m not looking out for #1, who is? No one. Well, maybe the wife. And my cats – and maybe my mom, but when it comes to hitting that $50k “I’m Outta Here!” mark it all lands on my shoulders, and my shoulders only. So we press on! And I keep in mind that I’m 80% there :)
Net Worth break down: October, 2010
CASH SAVINGS (+$6,081.99): The month was good in this department! We were able to hold on to much more than we were last month (by over $5k I believe) so I’ve got no complaints at all :)
EMERGENCY FUND ($0.00): The same boring as ever $10,000 just sitting there, waiting to be woken up with an emergency! (which let’s pray never happens)
ROTH IRAs (+$834.35): Another day in ROTH paradise ;) We don’t add anything in, and yet it magically rises. Haha… of course it magically falls on plenty of occasions too.
401(k)s (+$4,579.34): Same with this guy. I maxed it out earlier in the year and now just watching it bob up and down until I can start contributing again. Which at this point could be never, seeing how new management at our company CUT the benefit completely!! Wouldn’t even leave it open so we can contribute on our own dime… Oh well, not my problem when I leave ;) Plus I’ve heard I could contribute to a similar fund when I’m working for myself. Just gotta dig up the details first.
AUTOS WORTH (kbb) (-$50): Better than the $400 lost last month!
- Pimp Daddy Caddy: $2,695.00
- Gas Ticklin’ Toyota: $9,390.00
HOME VALUE (Realtor) ($0.00): Still @ $300k as our realtor set it at a while back. Our neighbor’s house had an offer of $297k a few months ago on their house, so this should still be fairly accurate.
CREDIT CARDS (+$193.28): This was the only department we failed at. I’d like to say it was on purpose since we paid so much off last month (Over $800!), but really it was just me not wanting to dip into our savings to fend it off… it’ll be cleared out in a bit though, nothing to be concerned about.
MORTGAGES (-$131.41): Still going strong here too! I just keep rounding up the mortgage payments so it’s nice and even – tricking myself to pay more, while at the same time making it easier to budget :) Might go back and edit the rest of my category numbers too later. I like super easy numbers!
- Mortgage #1: $286,660.17 – 30 year fixed, interest-only @ 6.875%.
- Mortgage #2: $62,450.38 – Maxed out HELOC w/ 2.8% interest.
That’s it for this month. Hope you all fared sexily too! Remember to keep that end goal in mind if you’re saving up for something big, or trying to drop a lot of debt. The more you can envision it and stick to your guns, the smoother the process will be! Even if it’s boring and you wanna shoot yourself in the face ;) You can do it though, I totally believe in ya.
PS: My personal budget has also been updated, and you can download it (and others) here.
PPS: Is it Friday yet?
PS: If you’re just getting started in your journey, here are a few good resources to help track your money. Doesn’t 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 Personal Capital account instead.
Personal Capital 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 Personal Capital - check it out here: Why I Use Personal Capital Almost Every Single Day.
(There's also Mint.com too btw which is also free and automated, but its more focused on day-to-day budgeting rather than long-term net worth building)
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How come your emergency fund never goes up? Isnt earning some type of interest?
Hey J. Money, How do you get your savings up by 6 g’s Is that mostly from blogging money?
Also If you cancelle out the mortgages and car loans your liquid networth is actually more to the tune of 231K! Nice figure almost a quarter of a million.
I’m shocked to hear your company won’t leave the 401K open for you to contribute too. What’s the reasoning behind that?!
Isn’t it boring to have such a high net worth? Wasn’t it exciting to be digging out of debt and barely having a positive net worth? I think we should trade financial lives so you can have some EXCITEMENT again.
Ahhhh the question everyone keeps posing to you!!! The cash savings! My guess is that you are moving olive oil up the east coast with the Godfather’s nephew or something!
Good for you man. I was literally going through my own bi-weekly budget and I barely save anything. I think they true solution is building the income streams the way you have.
@Kevin I agree. I would not mind it if J. wanted to switch with either of us, it would make for some entertaining content!
I’m always confused by your emergency fund thing too. Is it just that your checking + savings accounts have a combined balance of $66,742.77 and you’re just considering $10k of that your emergency fund?
J Money you devil – where did you get $6k this month if you only bring in $4k? I need to know!
OOoooh all good questions! I should probably make it more clear I suppose in these updates, but I like answering this stuff :) Gets me to re-think and make sure I’m still doing things the way I want on purpose. Makes sense, right?
@RT – You’re right, it does actually go up but I just don’t calculate the amounts since it’s intermingled with a bunch of other savings funds. Plus, I like categorizing it as a flat $10k in my head so I know that’s all we have to play with there. All the interest accrued would be moved into another fund anyways so that I could put that money to work elsewhere ;)
@Uncle El – I know!! Isn’t that hot??? Just goes to show that owning a home isn’t necessarily the best way to accumulate wealth! At least in the short term… we don’t have any car loans, those are paid off in full.
RE: $6k cash – you are right, part does come from this blog, but a majority of it actually comes from the handful of other online projects I have up simultaneously (a “portfolio” of online assets, if you will). This is why I am constantly working and up at all hours of the night :) All with the understanding that soon I’ll *just* be working on my projects and won’t have to work for someone else again….it all takes time.
@Molly On Money – In a word? Cheap. In a sentence? They’re trying to revive the company and using all the cash to bring in new business – which makes sense (even though it’s frustrating). But probably more frustrating than that is the fact no one CARES enough here to fight for it. Just me and maybe one other person.
@Kevin @ Thousandaire.com – HAH! You act as if I’ve never had to start from ground up ;) The beauty about all this is that the more you accumulate, the more exciting your options! And right now w/ all the new projects and hustles I’m doing it’s enough to last me for 20 years, haha…. I can’t even remember what it’s like to just sit in front of the TV and do/think about *nothing*. But it’s all worth it!!!
@Doctor S – It really is about new streams and just adding on top of that as time progresses. I was the same as you just a few years ago (having all of my paycheck budgeted out before I even got the money! and then left w/ $0.00 at the end. Which is better than going negative every paycheck, but still – you can’t do that forever). So you know what you gotta do now right? Gotta either get to hustlin’ or find a job that pays more! :) Or just hang out w/ the new wifey and enjoy life, either way :) haha…
@J – Kinda sorta – it’s a few of our savings accounts all mixed in with our Emergency Fund (our checking accounts and others are all separate) So some of the stuff we’re saving for college, and others for my “big move” out of the 9-5, etc. So yeah, it gains interest I just don’t calculate it out because for me the E. Fund is just the flat $10k. Even if it was a separate account I’d xfer out all the gains into another savings account to be used elsewhere :)
@ Sallie’s Niece – Read up to my response to Uncle El ;) In a nutshell – I hustle. A LOT.
I find it pretty awesome that you have such a nice cash savings. It kind of validates my PF style. Regarding your side hustles, WHEN it becomes a kick-ass-money-making company which will need many employees to realize it’s full potential, I would like to work for you because I know you will provide an awesome 401k plan :) I want a boss that has a mohawk too.
Why on earth would you not pay off your credit card balance with part of your cash savings??! Aren’t you paying a hefty interest rate on that CC balance?
J. Money teaches us to build an online portfolio….. I smell a post topic coming up from him as a “HOW TO!!!!!!” #justsaying of course.
How much money do you make to be able to save $6000 in cash a month? It seems like you would have to make a LOT of money!
Hey J, it’s definitely not Friday yet. Sorry to let ya know. In any case, congrats on the increase of your net worth. How the heck did you manage to SAVE $6,000?! Tell me all of your secrets, please. At this point, it just seems plain impossible.
When you answered Kevin’s question you mentioned how you had to start from the ground up too. I’ve been looking through your older postings trying to get a better idea of J. Money before the money. As a poor, first year grad student, making close to nothing ($26,000), with a life devoted to getting out of credit debt from under grad, it seems like I’ll never get a net worth anywhere near yours. So it would be cool to know your financial situation before the big bucks started rolling in.
With no money going to retirement or investments, credit card increasing, and an interest only loan, I can see how you could get the $6000 in cash savings. Don’t get me wrong, the number is definitly high, but that puts it in some perspective…..Congrats on the monthly increase!
@StackingCash – HAH! I’d totally hire you too :) But only if you milk me for all my matches like the smart woman you are!
@Ed – Nope, unless you count 6% hefty? We could pay it off 1-2-3 of course, but then we’d have to take it from another of our funds which are set up for other areas we’re working on. And right now, those are more important than nixing the little debt we have. Plus, it’s a little reminder to make sure we quit dicking around and going over budget here and there! ;)
@Doctor S – OooooOOoo that would be a good one, wouldn’t it? Too bad I don’t know where I’d even start! Everything is so mushed together that it hasn’t even hit me yet that I’m an online nerd! :) As soon as I get more sleep I’ll try and make some outlines for ya.
@D*Rockafeller – I def. hustle, let’s put it that way :) But then again a good 1/3 of this is due to not spending so crazily like I used to and really learning how to manage my money. W/out the financial gameplan I’d probably only be banking $2k instead of the $6k.
@Briana @ GBR – Anything and everything is possible my dear, you know that! :) You just gotta put the hours in and work it a bit! (check out my previous comments to find out where the $6k is coming from…)
@C Ann – Awww well hang in there!!! I’m telling you, everyone really does start from the bottom and figures it out over time. You’ve already gotten a GREAT start too a) being in grad school (congrats!) and b) searching online here for financial goodness! I literally started paying attention only 3-4 years ago – no joke.
Before that, I was just hovering around break even point and not really going into debt, but also not really saving anything. It wasn’t until I started realizing that every damn paycheck I get was pretty much spent before I got it, that I realized I needed to start ACCUMULATING wealth. You could have paid me $100,000 instead of the $40,000 I was making and I’d still be left w/ the same $0.00 at the end of the year ;) Once you figure out that you need to save $, and NOT TOUCH that money, every single paycheck it all becomes easier. Even if that means $20 or $50 here and there instead of $500 or $5,000.
So hang in there my friend! Keep reading online and looking for motivation, and everything will come together for you. But only if you work hard at it and consciously pay attention. I’ll see what I can do about writing up a more detailed post about my past.
@Deb – Hah! So maybe I shouldn’t have maxed out both my 401k ($16,500) and my Roth ($5,000) so quickly this year? :)
The reason we have so much cash saved up every month is because I work my a$$ off and learned how to manage my money better. Yeah we have a few hundred in c/c debt (which could obvi be paid off asap) and an interest-only loan (which could also be paid off heavily if need be), but I can guarantee you 100% that it is not the reason we have $$$ leftover every month.
If I’m being honest, I think you might be saying that to make yourself feel better. Validating this extra $ by saying these other variables are coming into play rather than all the hardwork being done (40+ hours on top of the 40 hour 9-5) is a much easier way to justify things. Anyone can really make this money if they work hard enough and enjoy what they’re doing.
Your cash saving is huge! How come you don’t put some of that into an individual investment account?
I have a difficult time even Imagining a net worth of that much with all this debt!!! I sure hope I can do that one day!
@retirebyforty – Because I’m getting ready to go out on my own soon ;) Gotta keep those cash reserves on hand if I wanna try this this full-time!
@Cat – You most certainly can :) Just takes time and patience my friend… and a butt load of hard work.
Thanks for the shout out and so prominently in the opening line too! I had no idea when you mentioned it to me on Twitter that I would be in the first sentence. But, what can I say other than….. You make me sick! No….really, that’s awesome that once again you are raking in the dough. I’ve actually stopped looking at my own net worth updates every month. Instead, I just recalculate it all quarterly. Watching the change quarterly makes me feel better deep down inside because the increases are much larger that way! Anyway….keep up the great work. You’re still my inspiration.
I did not mean what I said as a knock on you or to make me feel any better about anything. I was just saying that once you break it down, people commenting on here that say they could never save that much may also be saving 4, 5 or 6K in another fashion if they think about it. It was more to make everyone feel good about their saving too.I also said that was a very high amount and that you did a great job. You did not choose to read that part I guess. I guess I won’t bother with any analysis to your blog anymore. Just keep in mind that your not the only one “hussling” and working your ass off.
@Hank – Haha… well, now I can’t help but think of your name every time I sit down to do these :) We gotta get together again sometime soon… maybe at a military blogging conference/show?
@Deb – My bad! Sometimes it’s hard to tell via text if someone’s being sarcastic or not – and I had been getting a few negative hits on the side so it must have stuck that way to me. Sorry about that.
I did like what you just said though – “It was more to make everyone feel good about their saving too.” That’s a great point! Since I’m not investing right now I have much more in the cash savings department, which others should keep in mind when comparing. Hope you have a good weekend over there :)
Great, now I know who I need to rob on payday LMAO! Seriously, very impressive!
Was just updating my budget (recently moved and I’m having to alter some things) and I remembered you post about your net worth. Just realized mine right now is almost exactly what yours is. It’s off by about $12. Kinda funny. :)
@Blue Spyder – I don’t carry it on me ;)
@Alex – HAH!! That is awesome! Man, just $12??? haha…. we’re cool like that ;) Let me know how close November’s gets… just posted those today. Hope all is well with ya! Coming back to DC anytime soon?
Not sure when I’ll be up in DC, but I’ll let people know. Maybe February or March. :)
And that was my NW this week, so I’m still behind you. Also, I’ll have to take a loan out next semester for some things, so I’ll probably lag behind for awhile. Still, I thought it was funny it was only off by a few bucks.