August update

After my huge net worth growth in July, August was a bit disappointing. August was a no-bonus month, plus there was the stock market correction, which brought my investments down by almost the amount of my 401(k) contribution for the month!

I’m happy to say that I was not tempted to sell anything in August, despite the beating that my stocks took. I’ve stuck to my investment plan and the next 401(k) contribution should be appearing in my account soon. The events in August made me slightly regret front-loading my Roth IRA back in April, but I think that, overall, that was the correct decision since I had the funds available. My asset allocation has shifted to 87/13, which is actually not bad since that is my new target asset allocation with my birthday this summer!

I am definitely on track to meet my net worth goal for the year. The current projection is the end of November, with the month of December as a buffer in case my investments continue to falter.

August was my first full month using the rewards checking account at my credit union. By keeping my emergency fund and several other small amounts of savings there, I was able to earn $40 in interest last month!

For my down payment savings goal, there has been some question throughout the year as to whether or not I will meet it. My current projections estimate that I will have $25,000 at the year’s end, so I will come close to the original goal.

Whenever I try to tell myself that I am not saving enough, I love adding up how much I saved for the month and comparing it against my net pay! In August, I saved 50% of my net pay and so far this year, I have saved 62% of my net pay.

Interesting FSA* lesson learned in August: I can use funds from my FSA to pay for the co-pay or co-insurance on any non-preventative care dental work. This means that I will end up using cash funds to pay for health care costs later in the year, but this is still helpful knowledge.

*FSA = Flexible Spending Account, a pre-tax use-it-or-lose-it account used for eligible health and dental insurance co-pays, co-insurance amounts, and out-of-pocket costs.

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4 thoughts on “August update

  1. Hey Leigh!

    Great job- you seem to be doing great with your updates!

    I see a lot of Canadian blogs in your blog roll, and yet I see you’re investing in 401K’s etc. Did you move to the states or do you just like us Canadian PF blogs? ;)

    • Thanks! Somehow I feel like month-to-month, it doesn’t really show, but I’ve written part of the post-mortem on 2011 and it really shows there, so I shouldn’t be doubting myself.

      I prefer the personal side that you and Krystal show. You two just happen to be Canadian ;)

      Gail is just plain awesome. I’ve never seen her show and a lot of her advice (paying off student loans, credit card debt, etc.) isn’t relevant to me, but I love how strong-willed she is and I especially enjoy her grab bag of advice articles.

      And Million Dollar Journey – does that one need to be explained? I am addicted to his net worth updates! I hope that I’m doing as well as he is when I’m his age :)

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