April 2013 net worth update (+2.0%)

31-Dec-2012 31-Mar-2013 30-Apr-2013 MoM YTD
cash $12,100 $12,400 $6,700 -$5,700 -$5,400
savings $26,800 $25,400 $23,000 -$2,400
investments $74,000 $92,500 $102,700 +$10,200
mortgage $259,600 $245,700 $243,000 +$2,700
net worth $211,300 $242,600 $247,400 +$4,800
assets – debts
$146,700 $115,400 $110,600 +$4,800

Wowee, this was an expensive month, but I was about expecting that! My net worth change was pretty much exactly in line with what I expected (a ~$3k increase), until I realized my April 401(k) contribution had also posted this month. I’m a bit of a dumbo though because I made an extra payment to my credit card in the last few days of the month and it didn’t post until May, so my net worth increase is $1,500 less than it should be and cash is down $1,500 more than it should be. Oops! Sort of like that $200 transfer that I did in March at the very end of the month, but a bit more… I also got a healthy raise on my base pay, which was reflected in my April paycheck. I am getting super close to $250,000 though and I am reasonably confident that it will happen next month!

Expenses: I spent $4,240 in April ignoring work reimbursable expenses, which is a bit more than double my spending goal for the year (under $30,000 $24,000 in non-mortgage expenses), but there were some high, expected expenses. That puts 2013 so far at $10,860 or an average of $2,715/month. This would project forward to $32,580 or closer to $27,000 if you assume those two expenses were one-time.

Some of my controllable expenses broke down as follows:

  • $0 Clothing (woo!)
  • $0 Cell phone (woo credits!)
  • $437 Lifetime subscription for my TiVo
  • $135 Entertainment/Social ($140 last month, $216 average last year)
  • $28 Eating out by myself ($8 last month, $51 average last year)
  • $127 Groceries ($211 last month, $126 average last year)
  • $97 Work lunches ($99 last month, $171 average last year)
  • $31 Internet (woo!)
  • $188 Electricity (boo, but better than February’s $238!)
  • $X,XXX Property taxes (not controllable, but listing because it contributed to this month being expensive)
  • $15 Health
  • $20 Eyebrows
  • $60 Sport #3
  • $34 Car maintenance (routine oil change, with a coupon)
  • $22 Fuel ($19 average this year so far, $38 average last year)
  • $X,XXX Flights (overseas trip in the fall!)

Other than the overseas flight and the property taxes, this month wasn’t actually that bad for spending.

I didn’t buy any clothes this month! None at all!! I’m super proud of myself for that. I have so many clothes and shoes in my closets and drawers that I think this is a good experiment. Or at the very least, it should (and is) forcing me to be a bit more conscious with my spending.

I’ve been trying to be conscious of my Entertainment/Social spending while still hanging out with friends and not being antisocial. I think that I’m saving about $200/month by being single because my spending values didn’t line up so well with my ex’s.

I’m kicking myself for not just having paid for the TiVo lifetime subscription when I bought the thing and kicking myself for paying for it now. It would have cost me $100 more than the 3 year subscription to pay for the lifetime 3 years ago. And of course, back then, I couldn’t see that far in the future and figured I might have moved to another country by then and only paid for 3 years. /dumbo At least I found a $100 coupon!

I was doing so well with work lunches in January and February, but I seem to have failed at bringing my lunch to work very often this month again. In my defense, I believe in the value of networking and I prefer to do that over lunch rather than afternoon coffee breaks for productivity reasons. $36 of this is networking lunches, which means that only ~$63 of it is me buying my lunch because I didn’t pack something. At the very least, I have made a good improvement in this category over last year.

Ah, groceries! Feeding only one person that eats very little is apparently not all that expensive :) I have been meal planning somewhat. It’s not that time consuming when anything I cook will last me 2-4 meals! I probably spent about $30-40 on fancy chocolate and ice cream this month though which is included in the Groceries category.

My electricity company bills for two months at a time. $188 is for late January through late March, a $50 decrease from the previous bill. The heating hasn’t been on nearly as much lately, so I think the next bill should be closer to $140 and hopefully $100-120 for the summer months.

My Ting bill for the month of April looks like it’ll be $20+fees, which is pretty awesome considering that I used to be paying $85/month for the same service. I’ll do a post on my experiences with Ting so far at some point.

May I say that I should have gotten on the auto-pay bandwagon ages ago? This is wonderful, so much time saved.

Savings: $23,000 (down $2,400)

Current breakdown:

  • $19,200 in an online savings account
  • $600 in a checking account that gets free ATM fees anywhere in the world (for a just in case backup)
  • $1,500 in a Chase checking account for 6 months ($200 bonus for opening the account!)
  • $1,400 Condo furnishing sinking fund (no change this month!)
  • $300 in my new Health Savings Account (woo!)

What changed this month? I moved $5,000 from my online savings account to Series I Savings Bonds and then put my “savings” direct deposit back in there.

In case you guys can’t tell, I love fidgeting with my finances. I’m having a hard time deciding on exactly how much I want in savings. That’s why I put this month’s “savings” into my online savings account. My theory is that I don’t like that number being under $20,000 for whatever reason. So I’ll throw another ~$800 in there next month and see if I feel better. Yep, I’m pretty sure that $20,000 in that one account is the magic number that will let me sleep soundly at night.

Investments: $102,700 (up $10,200 or +11.0%)

This includes my Roth and Traditional 401(k), my 401(k) employer matching (fully vested!), my Roth IRA, my taxable investments including stock index funds and Series I Savings Bonds.

You might question my counting my Series I Savings Bonds under Investments vs Savings. I’m counting them here mostly because of their tax-deferred until maturity nature. I also consider them part of my emergency fund, but in reality my entire monetary (i.e. non-property) net worth is my emergency fund, so that doesn’t necessitate it being part of savings.

The increase here comes from:

  1. March 401(k) contribution and employer matching
  2. Buying $5,000 of Series I Savings Bonds (my second half of the annual limit for 2013)
  3. Healthy market gains
  4. April 401(k) contribution and employer matching

A fancy milestone: My investments are now worth over $100,000!!! I am super excited about this :) I noticed last week sometime when I logged in to Vanguard to add the second $5,000 of i-bonds that it was hovering around $99,000 something and then yesterday morning I logged in and it was over $100,000 and then this morning I noticed that the April 401(k) contribution had posted as well. Woo!!

Mortgage: $243,000 (down $2,700 or -1.1%)

My mortgage is a 5/1 ARM at 2.5%. Before the refinance, it would have been paid off November 1, 2038. ~$9 less was paid in interest with the April 1st payment versus the March 1st payment and more of the regular payment went to principal than to interest!

The April 1st regular payment saw some extra principal funds from my March paycheck.

I estimate with the extra principal payments in April that the payoff date is down to July 1, 2040, shaving 4 months off of the amortization. I need to send an additional ~$25,300 in extra principal payments this year to stay on track with the five year payoff plan, which I am on track to hit by July/August.

TOTAL: $247,400 (up $4,800 or +2.0%)

I ended 2012 with a net worth of $211,300, so I’ve seen a change of $36,100 or +17.1% so far this year. I’ve set the y-axis on this graph to $315,000 so we can see how my net worth grows towards that throughout the year.

Interesting fact: in June 2012, my net worth was up $32,700 YTD. This year, my net worth is up 110% of that amount only four months in!

April 2013 Net Worth Graph

20 thoughts on “April 2013 net worth update (+2.0%)

  1. Can I assume your numbers don’t add up to your net worth because you’re including the house value in your net worth but not explicitly listing it in the grid? Your “assets-debts” row makes sense to me, but the “net worth” number is confusing.

    Forgive me if you’ve explained this in the past and it escaped my attention.

    • Yep, exactly! I know that people can do math, but I changed my mind on specifically calling out the property value.

  2. I’m glad you’re reaping the benefits from automating your finances. It really does free up time and mental effort for other things. With the stock market breaking record highs, it’s been a stellar month for my investment accounts as well. Congrats on breaking 100k there!

    Have you plotted your network growth rate? It would be interested to see how that trend has changed.

    • Thanks! I’m still checking and reading the bills, but not having to make the manual payment is surprisingly a huge time savings. Glad your investments have been doing well too!

      I have a graph of my net worth year over year and the growth has definitely gone up at a similar slope to my income. Now that I’ve been out of college for over three years, I am starting to have more useful data there. It’s hard to break it out monthly since bonuses are paid out in different months. It would be interesting to compare how much it has gone up in months with no bonuses year over year though. I’ll dig that information up!

    • Oh and I also have a graph plotting my net worth increase versus my W-2 income that month. That one definitely explains the higher and lower increase months!

      • I don’t! I buy them at Treasury Direct. I enter them manually under “Outside Investments” though so that I have a full picture of my investments at Vanguard, since my 401(k), Roth IRA, and taxable stock index funds are there.

    • Nah, raises are once a year and effective in April. Normally bonuses only vest twice a year, but this year is four times. I’ll definitely miss that next year!

  3. It’s crazy how small your groceries budget is. I don’t think there’s any way I could get mine down to $127. I buy cheap food, and I’ve reduced it quite a bit over the past year, but it may just be that I eat a ton of food every day.

    Congrats on hitting the $100,000 investment mark, that’s the big time. I’m going to be excited for you to see your NW cross $300,000 this year.

    • If you’re anything like most of the guys I know, you eat at least double the amount of food I do at every meal. I also eat very little meat.

      Thanks! I’m forecasting that it should happen between September and November, depending on how the world unfolds. Oh and by the way, I averaged 12,371 Fitbit steps per day in April! That’s about 171 miles.

      • Darn! I only averaged 11,554! Nice job. Do you want to link our Fitbit accounts so we can compete every month? (i’m not actually sure how to do that)

  4. while the rest of the this blog was al always a cool read, I just wanted to pass on that I started the auto-pay feature last month, and this month is SO nice. Auto-pay is the way to go.

  5. Congrats on a great month and also the HUGE investment milestone! The market returns have been great this year, but you also save so much that the two combined really add up!

    We had an expensive month, too.(also doing some vacation planning). Sometimes spending a lot is stressful but I also think it’s good to not save everything:)

    • Thanks!! My investments actually increased more than one of my 401(k) contributions this month :)

      Agreed – I try to not guilt trip myself when I spend a lot. Especially since in this case, it was planned. The property taxes are a big hit, which makes the other months less expensive. Vacation planning must be even more expensive with four!

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