WordPress tells me that I have been blogging for three years as of today! I thought it would be fun to take a look at where my finances then :) At the end of April 2011, my net worth was $72,871.59 and I was 22 years old. Here’s how that broke down:
- Checking accounts and foreign cash: $13,808.19 (now $7,964.73)
- General savings: $17,170.19 (this is what other people would call an emergency fund, but I’ve always called it general savings) (now $20,949.23 since my expenses are a bit higher)
- Down payment savings: $10,379.65 (cleared out – I now own a condo!)
- Car savings: $6,213.45 (cleared out – I bought my car! I can’t believe I have had it for almost 4 years. It’s still practically new.)
- Car loan: $5,902.60 (my parents advised me to take out a car loan and auto-pay it out of a savings account to build up credit. I took out a 12 month loan that had had almost $900/month payments, which my parents thought was crazy, but I didn’t see any reason to pay on the loan for much longer than I needed to. I will just pay cash for any future cars now that I have credit history.) (paid off after 12 months exactly)
- Traditional 401(k): $5,524.06 (now just over $77,000 – higher than my entire net worth three years ago!)
- Roth 401(k): $2,048.32 (now around $5,500)
- Roth IRA: $10,620.79 (now just over $30,000!)
- Other retirement: $7,361.38 (now just over $8,000)
- Taxable investments: $5,648.16 (this was about ~$3,000 in a bond fund at Vanguard and the rest was my first batch of RSUs from my employer that I kept)
- Total: $72,871.59
Isn’t that cute? I hadn’t gotten into the habit of contributing the maximum to my 401(k) yet (2011 was the first year that I did and I decided to do that a few months into the year). I first contributed to a Roth IRA in 2010 and I started contributing monthly in 2011 before getting a bonus a few months into the year and finishing off the full contribution.
My overall net worth is about 4x higher three years later! I now own about 50% of a condo and my investments are up from $31,202.71 to $148,000, up almost 5x.
My expenses are pretty comparable to where they were in 2011. My expenses in 2013 versus 2011 was a difference of about $440/month, about $200/month of which is from increased housing expenses.
I know what I’m doing with my finances a lot more now than I did in 2011, which was part of why I started my blog. I feel like I have a plan with my finances and no longer wonder what I’ll do month-to-month with my savings since I’m just following my plan. It makes things pretty simple. It probably helps too that my life situation has been reasonably stable over the last couple of years, since I bought my condo in June 2012. I think that the next three years will bring new and exciting changes to my finances as I get closer to 30.
I think that in April 2017, my net worth will have doubled from April 2014, as will have my investments and my condo will be paid off. Maybe I will be trying to figure out joint finances at some point in the next three years with my boyfriend. Maybe I would sell my condo and we would buy a place together. A lot will probably happen in the next few years! Maybe between the two of us, we could be millionaires in the next three years :)
Readers, how have your finances improved over the last three years? How do you see them changing in the next three years?