|liquid assets – debts||$49,000||$12,000||$100||+$11,900
|$ until FI||$823,900||$901,300||$841,500||-$59,800
After some discussion in the comments on last month’s net worth update, I decided to set my condo value to what I realistically think it would sell for today, from a comparative market analysis done by a real estate agent familiar with my area and unit. This month also saw about $4,000 in after-tax savings from my paycheck, in addition to about $8,000 of 401(k) contributions from last month and some gains in the stock market. I’m now so close to $500,000 in net worth!
I saved 71% of my net income this month! I’m at 73% so far for the year. I’ve been looking at my budget with the plan to change jobs and trying to see what I can reduce, but it’s hard when I have ~$1,900/month of fixed expenses. Add in $200/month for groceries and I guess my bare bones budget is $2,100/month, which is a pretty decent chunk of money. I’m so glad I didn’t buy a more expensive place! If I was going to take more than a month off, I could recast my mortgage, which would drop the required payment down about $400/month.
It’s interesting seeing how different my finances have unfolded than I expected. My May 2011 projections showed me hitting $250,000 in 5 years (2016), $500,000 by age 35, and $1 million by age 51. I hit $250,000 two years later than that in May 2013 and will hit $500,000 this year at age 26. My projections now show that I will hit $1 million in net worth around age 30-31, which is twenty years earlier than my projection three years ago. Early compounding really is your friend!
Expenses: I spent $3,570 in August after the mortgage or $2,543 without it. So far, my total spending for 2014 is $31,272, which is $46,908 annualized.
To hit my $38,500 spending goal for the year, I need to spend no more than an average of $1,807/month over the remaining 4 months this year. That’s not really possible considering that the mortgage, property taxes, and HOA dues alone will add up to $6,653 over the remaining 4 months of the year or about $1,663 on average per month, leaving me with only $144 of room each month to hit $38,500. So that’s not going to happen. My current spending estimate is $42,360 for 2014, which would be a decrease of $2,450 from 2013 or about $200/month.
Some of my controllable expenses broke down as follows:
- ($47) Clothing – adjustment on the cost of some dresses from July
- $331 Entertainment/Social [average this year: $214, last year: $224]
- $28 Eating out by myself [average this year: $18, last year: $25]
- $36 Groceries – for two people [average this year: $201, last year: $152]
- $116 Work lunches [average this year: $156, last year: $77]
- $53 Presents – a gift for a friend’s bridal shower [$221 so far this year, $235 last year]
- $53 Internet
- $94 Electricity – June/July [$614 so far this year, $571 last year – rates went up about 7% year-over-year]
- $3 Household goods [average this year: $23, last year: $29]
- $20 Eyebrows
- $38 Toiletries – buying a year’s supply of lip balm [average this year: $21, last year: $31]
- $29 Fuel [$129 so far this year, $302 last year]
- $1,420 Travel – a) bought flights for a September trip with my boyfriend, b) bought the second flight for a fall trip with some girlfriends, and c) paid a deposit on the hotel for the trip with some girlfriends (the other women owe me for their portion of the cost…) September will see another ~$650 in travel spending and then I will likely be done with non-work travel spending for the year!
Savings: $25,000 (up $3,200)
These funds are spread across a Chase savings account, a general online savings account, a checking account that gets free ATM fees anywhere in the world, and my health savings account.
I’ve decided to keep the Chase savings account open even though I could now close it with no penalty as it has come in handy a few times, for example to get a deposit rather than a statement credit for credit card rewards and then immediately send them to the mortgage. Plus, it is only the opportunity cost on $300, which at the Ally online savings account rates loses me $2.55/year.
This month, I was able to set aside just over $4,000 to my savings account! (It’s only up $3,200 because I tossed a bit at my mortgage to get it under $150,000…) Since I’m done contributing to my 401(k) for the year, I should be able to save quite a bit of funds post-tax over the rest of the year (close to $4,000 from each full paycheck).
Investments: $167,800 (up $11,300 or +7.2%)
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:
- July paycheck 401(k) contribution and employer matching (last contribution for the year to any of my investment accounts)
- Some stock market gains
My 401(k) is now worth over $100,000! That’s pretty exciting!
Mortgage: $149,900 (down $1,600 or -1.1%)
Some statistics here:
- 2.5%: the interest rate on my 5/1 ARM
- February 2018: when the interest rate on my mortgage is set to reset, possibly to 7.5%
- 1: months of payments eliminated with this month’s pre-payments
- ~$900: extra payments made on the mortgage this month
- ~$2: interest this month’s extra payments will save me on the next regular payment
- 30.7%: portion of my regular payment went to interest (originally was 59%; down 0.2 percentage points from July)
- 58.1%: amount of equity in my condo, assuming purchase price (up 0.5 percentage points from July)
- 47.6%: amount of the mortgage I’ve paid down (up 0.6 percentage points from July)
I cheated and threw enough extra at the mortgage this month to roll the balance under $150,000. It was worth it. I still increased my cash position by $3,200, so I call it not a bad month for savings.
TOTAL: $498,500 (up $86,500 or +21.0%)
I ended 2013 with a net worth of $345,900, so I’ve seen a change of +$152,600 or +44.1% so far this year.
I’ve set the y-axis on this graph to $465,000 so we can see how my net worth grows towards that throughout the year. I have now surpassed my original y-axis of $465,000 (!), so I’ve increased it to $550,000, which is my new estimate for the year.