|assets – debts
This month was pretty good financially! My huge 401(k) contribution from my October paycheck posted, as well as a good-sized bonus. My spending was also average for the year. I used the bonus to contribute the maximum for 2013 to my Roth IRA through the backdoor, to set aside my 2014 Roth IRA contribution, and to pay down the mortgage. The almost $30,000 net worth increase this month is my new record.
That gap between monetary assets and debts has narrowed quite a bit this year! I’m expecting that to be in positive territory around January to March 2014 and then I’ll start tracking the gap between my taxable assets and debts since when that goes to zero, I could technically pay off the mortgage with the taxable assets.
Expenses: I spent $2,400 in November. That puts 2013 so far at $29,030 or an average of $2,639/month. This would project forward to $31,669. I’m now past my stretch ($24,000) goal and will very likely surpass my target ($30,000) goal in December. However, as of the end of November, I have spent $11,600 less than in 2012, so I should still beat my 2012 spending by a fair margin. It looks like I will surpass my 2011 spending though as I’m only $500 behind it.
Some of my controllable expenses broke down as follows:
- $840 Clothing (two pairs pants, five sweaters, several bras)
- $254 Entertainment/Social ($205 average this year): 20% cash withdrawals, 15% books, 22% meals out with my boyfriend, 36% dinners out with friends, 8% concerts and TV shows
- $0 Eating out by myself ($26 average this year)
- $145 Groceries ($155 average this year)
- $57 Work lunches ($75 average this year, $171 average last year)
- $99 Presents
- $11 Cell phone (buying SIM card for the Nexus 5)
- $31 Internet
- $22 Household goods (dishwasher detergent, bathroom cleaner, microfiber cloths)
- $21 Medical (waiting on about $800 of bills)
- $20 Eyebrows
- $92 Toiletries (some over-the-counter injury related purchases, hair dryer, razors, handwashing soap)
- $430 Furnishings (recycling bin, way to lock up my bike in my parking spot, Christmas tree, tinsel, new fitted sheet)
- $52 Fuel ($34 average this year so far, $38 average last year)
- $60 Out of pocket parking at work / parking meters
- $135 Taxis to/from work
- +Work parking reimbursement from October
I’ve separated out my dinners with my boyfriend from my regular social eating. It’s still being lumped into Entertainment, but at least I can see the data later now.
November started out being a pretty good month for spending and then got worse near the end. About 1/3 of the spending was in the first half of the month and the other 2/3 was in the second half of the month. Overall it turned out to be an average month. The Clothing spending looks a lot worse than it really is because I do my bra shopping online and when I return the ones that don’t fit, I will get that money back.
I was pretty excited for the Christmas tree :) It’s a good size and in my living room! So nice to know that I will be able to use this same tree for many years to come and I can just store it down in my storage unit over the spring/summer/fall.
I’m going to start taking the bus to/from work instead of driving/cabbing, which will free up some money.
Savings: $27,600 (up $3,700)
These funds are spread across a Chase savings account (opening bonus!), a general online savings account, a checking account that gets free ATM fees anywhere in the world, a condo furnishing sinking fund, and my health savings account.
The change here comes from:
- Spending down some of the condo furnishing sinking fund
- Transferring the tuition fund to the mortgage
- Paycheck contributions to my health savings account
- Setting aside $5,500 for my 2014 Roth IRA contribution
Investments: $132,700 (up $11,400 or +9.4%)
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.
The change here comes from:
- 401(k) contribution from my October paycheck, including employer matching
- Contributing the maximum to my Roth IRA for 2013 through the back door
- Modest market increases
Mortgage: $192,100 (down $9,000 or -4.5%)
My mortgage is a 5/1 ARM at 2.5%. Before the refinance, it would have been paid off November 1, 2038.
I paid just enough on November 1st to bring the balance to round under $200,000. Next, I cleared out the tuition fund savings account and threw that at the mortgage since I’m going to pay off the mortgage first. Lastly, I threw the rest of my bonus at the mortgage once I’d maxed out my Roth IRA for the year and set aside the funds to make the 2014 contribution. Now that the balance is under $200,000, it really feels like it’s going somewhere soon. I can’t wait to pay it off!
I estimate with the extra principal payments in November that the payoff date is now at September 1, 2033. I shaved 7 months of payments off with this month’s pre-payments! And I’ll save about $16 in interest on the December 1st payment based on these pre-payments.
The mortgage balance is so far ahead of where it needs to be by the end of 2013 to stay on track with the five year pay-off plan that I’ve adjusted the plan to pay it off by the end of 2015 or two more years. I’m currently about $11,200 behind where I need to have it at the end of 2013 to stay on the two more year payoff plan. I have now paid down 32.8% of the original mortgage balance and am getting so close to 50% in equity! (I have $13,350 more in mortgage principal payments to go before I have 50% in equity.)
TOTAL: $340,200 (up $29,800 or +9.6%)
I ended 2012 with a net worth of $211,300, so I’ve seen a change of $128,900 or +61.0% so far this year. (For reference: my net worth increased by $78,800 in all of 2012.) I surpassed the original y-axis on this graph of $315,000 in November, so I increased it to $350,000. I am currently projecting to get very close to $350,000 by the end of the year, for a total yearly increase of about $135,000.
Lastly, to check in on the goals I made at the end of October:
- Read books! SUCCESS! I’m not sure exactly how many books I read, but I definitely went through at least one or two.
- Go back to the doctor again. SUCCESS! I’m not fully healed, but I’m doing a LOT better. I had more tests done and I’ve been going to physical therapy. I hit the deductible on my health insurance plan, which isn’t so bad because I still have another four months left on the year and now I’m only paying 10% of the cost :)
- Finalize the work thing I was introspecting about. SUCCESS! It’s not 100% official, but I would say it’s about 95% official at this point. I’ll talk about what I ended up doing once it is 110% official.
- Make my Roth IRA contribution for 2013 and re-balance accordingly. SUCCESS!
- Set aside the rest of my bonus and paycheck for my tuition fund. PASS! I ended up setting it aside for the 2013 and 2014 Roth IRA contributions and the mortgage instead.
- Start Christmas shopping. (Ugh, I hate buying presents.) SUCCESS! I bought presents for my boyfriend, my sibling and SO, and part of the presents for my parents. Now I just need to finish the rest of my parents’ presents and I’ll be done!
Now for some goals for December:
- Finalize the work thing 110%.
- Read 3 books.
- Follow the directions of the physical therapist.
- Make a plan for my time off at Christmas – I possibly only have 15 working days in December :)
- Set goals for 2014!