|taxable assets – debts||$135,200||$70,400||$70,600||-$200
|$ until FI||$823,900||$845,000||$811,300||-$33,700
This is the last net worth update of 2014!
You might notice that the ‘taxable assets – debts’ numbers look a bit different than they did last month. This is because I decided to start calculating them ignoring the “cash” numbers since I would not ever empty my checking account in order to pay off the mortgage.
I, ahem, have used the money that normally goes to savings from my November and December paychecks to pay for our awesome trip that is coming up soon, so I saved a lousy 2% of my paycheck this month and 4% last month. As you would expect, that has pretty significantly dropped my overall savings rate for the year, which I’ll talk about when I look at the year in review over the next week.
I’m not doing very well with keeping such a larger savings account buffer. I tend to like to move money somewhere useful as soon as possible. I made an extra payment on the mortgage near the end of December to lower the balance a bit. I’ll probably also use $5,500 from savings to make my 2015 Roth IRA contribution before I start the new job and then hopefully I’ll be able to leave the rest of the money alone until I start the job since I will have about 4-6 weeks unpaid and possibly 1-1.5 months between paychecks. But in reality, I don’t need to have a $50,000 emergency fund.
The $ until FI is a huge moving target since even a $200 increase in average monthly spending requires an additional $60,000 saved or for example, my estimated savings from my boyfriend moving in lowers the target by about $100,000. Here are the past numbers on this:
- EOY 2010: $1,027,400 (average monthly spending $3,600)
- EOY 2011: $856,500 (average monthly spending $3,300)
- EOY 2012: $1,104,800 (average monthly spending: $4,220)
- EOY 2013: $823,900 (average monthly spending: $3,730)
- EOY 2014: $811,300 (average monthly spending: $4,000)
It is in general going in the right direction (down), but it is pretty variable. If things go according to plan in 2015, this number should drop down under $500,000!
Expenses: I spent $4,369 in December (ignoring work reimbursable expenses) after the mortgage or $3,342 without it. My total spending for 2014 was $47,994.
Some of my controllable expenses broke down as follows:
- $151 Clothing/Shoes – bought two white tank tops and a pair of warm black flats
- $207 Entertainment/Social [average this year: $211, last year: $224]
- $40 Eating out by myself [average this year: $18, last year: $25] – this was increased a bit from the moving
- $89 Groceries [average this year: $185, last year: $152] – this is my half and I’m not really sure what happened here. We were gone for a few days for Christmas and we ate out a bit more than usual, but this is abnormally low grocery spending.
- $161 Work lunches [average this year: $147, last year: $77]
- $495 Presents [$1,228 so far this year, $627 last year] – I had a lot more people to buy presents for this year and I also bought more expensive gifts than I did last year.
- $33 Internet – yay for split internet :)
- $0 Household goods [average this year: $17, last year: $29] – a lot of this has gotten rolled up into groceries and I’m not concerned about that since it’s easier to split things this way.
- $38 Electricity – October/November [$719 so far this year, $699 last year – rates went up about 7% year-over-year and my boyfriend and I are now splitting this]
- $57 Hair cut
- $110 Toiletries [average this year: $33, last year: $31] – new shampoo, conditioner, and a couple other hair products. I decided to splurge on less cheap shampoo, conditioner, etc. and my hair is feeling so much better already!
- $77 Accessories – my cost of a bigger purse after Christmas money
- $77 Furnishings – some wood swatches to look for a new piece of furniture for the kitchen/dining room (these will be returned for a full refund once we’ve decided what to buy!)
- $354 New camera, 64 GB memory card, and some filters – my point and shoot was from 2008, so we decided to buy a new camera before we go on our trip
- $5 Transit fares – took some transit while visiting my family over Christmas
- $7 Car maintenance – bought a tire pressure gauge
- $37 Electronics – some more rechargeable AAs and AAAs
- $12 Fuel [$224 so far this year, $393 last year]
- $30 Tolls – filled up my tolls account again
- $900 More flights and one of the hotels (we accidentally prepaid for the hotel) for our overseas trip
- No more HOA dues to pay :)
Cash: $12,300 (up $4,200)
This is mostly up because I’ve set aside all of the money to pay for our trip and the funds are just hanging out in my checking account until we pay for more stuff.
Savings: $47,800 (down $4,300)
These funds are spread across a checking account that gets free ATM fees anywhere in the world, my health savings account, a savings account at my credit union, and a bit of a buffer in my credit union checking account.
This is down because I made an extra payment on the mortgage and I needed to borrow a bit from savings to cover the gap from my December paycheck in my checking account.
Investments: $164,500 (down $2,100 or -1.3%)
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:
- Stock market losses
- No contributions (status quo for the rest of 2014)
- Almost $1,000 in dividends (maybe next year I’ll surpass $1,000 one quarter!)
Mortgage: $143,000 (down $4,700 or -3.2%)
Some statistics here:
- 2.5%: the interest rate on my 5/1 ARM
- January 2018: when the interest rate on my mortgage is set to reset, possibly to 7.5%
- 6: months of payments eliminated with this month’s pre-payments
- $4,000: extra payments made on the mortgage this month
- $8: interest this month’s extra payments will save me on the next regular payment
- 30.0%: portion of my regular payment went to interest (originally was 59%; down 0.1 percentage points)
- 60.0%: amount of equity in my condo, assuming purchase price (up 1.3 percentage points)
- 50.0%: amount of the mortgage I’ve paid down (up 1.6 percentage points)
I made my first extra payment since August! That was awesome. I’m looking forward to getting back to making extra payments soon, although how much extra I’ll pay the mortgage down in 2015 depends on whether I have access to the Mega Backdoor Roth IRA or not with my new employer. I’m about $19,400 ahead of where I needed to be at the end of 2014 to pay the mortgage off before the rate resets in 2018!
TOTAL: $531,600 (up $2,500 or +0.5%)
I ended 2013 with a net worth of $345,900, so I’ve seen a change of +$185,700 or +53.7% 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. I didn’t quite meet my $550,000 estimate for the year.