April 2015 net worth update (+1.4%)

31-Dec-2014 31-Mar-2015 30-Apr-2015 MoM YTD
cash $12,300 $9,300 $6,700 -$2,600 -$5,600
savings $47,800 $61,900 $59,600 -$2,300 +$11,800
investments $164,500 $176,200 $188,200 +$12,000
+6.8%
+$23,700
+14.4%
mortgage $143,000 $140,800 $140,100 +$700
+0.5%
+$2,900
+2.0%
net worth $531,600 $556,600 $564,400 +$7,800
+1.4%
+$32,800
+6.2%
taxable assets – debts $70,600 $53,700 $52,800 +$900
+1.7%
+$17,800
+25.2%
$ until FI $845,000 $826,000 $815,200 -$10,800
-1.3%
-$29,800
-3.5%

This month was all about the pre-tax 401(k). It’ll be done with part of the first June paycheck. I also realized that one quarter’s ESPP contributions + discount is about equal to two months’ spending, so to max out the 401(k) while doing a lump sum to the 401(k), I really won’t use up that much of my buffer. Sweet! Thanks to not paying taxes on the income going into the pre-tax 401(k), I managed to get my savings rate up to 83% this month!

My investments are up enough this month that a 4% SWR of them will now cover the following expenses: passport replacement, condo insurance, property taxes, and HOA dues. I anticipate adding toiletries, cell phone, driver’s license renewal, vehicle tab renewal, and bras to the list of items in my budget that a 4% SWR would cover this year. Pretty exciting to watch!

A metric I was tracking was liquidated assets – debts. I’ve been counting down the tax advantaged assets until I don’t need to liquidate them to pay off the mortgage and I no longer need my traditional 401(k)! I still need the following assets to pay off the mortgage: Roth IRA, taxable investments, checking accounts, and cash savings. I forecast that by the end of next year, I would just need my cash savings accounts to pay it off!

Expenses: I spent $4,214 in April including the mortgage or $3,186 without it. Some of my controllable expenses broke down as follows:

  • ($534) Kept one pair of jeans from all of the online shopping
  • $288 Annual refresh of regular bras and a new sports bra for running
  • $128 Tops – stocked up on t-shirts when I found a great sale and will return ~$50-60 of these
  • $118 total clothing
  • $39 Entertainment/Social [average so far this year: $195, average last year: $211] – this was one book and two years (only meant to pay for one of LastPass. I need to get some e-books from the library instead of buying books for the commute.
  • $0 Eating out by myself [average so far this year: $3, average last year: $18]
  • $88 Work lunches [average so far this year: $56, average last year: $147]
  • Half of annual property taxes (only up 9% from last year, not the 20% I had budgeted for!)
  • Passport renewal!
  • $344 Medical
  • $62 Toiletries [average so far this year: $26, average last year: $33] – stocking up on a year’s supply of shampoo
  • $294 Yoga classes – bought a multi-class pass
  • $155 Pillow – it was past time to replace the one I bought five years ago…
  • $9 Taxis – I had to run an errand after work and decided it was better to cab home and cook dinner than to eat dinner out and bus home.
  • $20 Fuel [$83 so far this year, $35 at this time last year] – So apparently Costco has super cheap gas?
  • $0 Travel – first month with $0 spent on Travel this year!

Spending looks high this month since I paid property taxes, meaning that ~75% of this month’s spending was on housing. My discretionary spending this month was actually pretty good. Most of the clothing purchases were necessities (bras), I didn’t eat out by myself at all, I’m on track to spend ~half of what I did last year on work lunches, even my entertainment/social spending was pretty low, and work reimburses me for a certain amount of fitness spending.

You might notice a few of the usual categories missing. I mentioned last month that my boyfriend and I were trying something different with how we share expenses. That means that going forward he’s paying for groceries, date nights, electricity, internet, household goods, and some other items, depending on how the numbers work out. I’m still making spreadsheets about the electricity bill even though I’m not paying it, don’t you worry ;)

I predict that my total May spending will be…$1,611. Let’s see how this goes!

Savings: $59,600 (down $2,300)

These funds are spread across a checking account that gets free ATM fees anywhere in the world, my new and old 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 since I didn’t get an April paycheck and used funds from savings to replenish my checking account for May. My new HSA is all up and working now, so one of the items on my to do list for May will probably be to try to figure out what to do with my old HSA.

Investments: $188,200 (up $12,000 or +6.8%)

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:

  1. Good-sized contributions to my new 401(k) – I’ve now contributed 50% of the pre-tax limit in the last month :D
  2. Employer matching contributions (almost double what I got at my last job)
  3. ESPP contributions that are currently sitting in cash

The rollover from my old 401(k) completed successfully. The old Roth 401(k) money is now in my Roth IRA and the old pre-tax 401(k) money is in my new 401(k).

Mortgage: $140,100 (down $700 or -0.5%)

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%
  • 28.6%: portion of my regular payment went to interest (originally was 59%; down 0.1 percentage points)
  • 60.8%: amount of equity in my condo, assuming purchase price (up 0.1 percentage points)
  • 51.0%: amount of the mortgage I’ve paid down (up 0.2 percentage points)

I’m just letting the regular, automatic payment go for now, until my cash savings is at the level I want and my 401(k) is fully maxed out.

TOTAL: $564,300 (up $7,700 or +1.4%)

I ended 2014 with a net worth of $531,600, so I’ve seen a change of +$32,700 or +6.2% so far this year. I’m going to set the y-axis on this graph to $650,000 so we can see how my net worth grows towards that throughout the year. I finally updated the graph this month!

April 2015 Net Worth Graph

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3 thoughts on “April 2015 net worth update (+1.4%)

  1. Great job on getting the 401K almost maxes out this early in the year. Money in early is typically better then money in later. And if you get laid off, it’s already in. I maxed out mine by the end of March, even with the extra $6K I am allowed. I do a 75% contribution rate so it’s quick and doesn’t bleed me all year.

    When you get to be FI, all this savings will make it seem like it was easy.

    • Thanks! I only started this job at the end of February. I won’t lose out on any matching doing it this way, so I’d rather get it out of the way. I will be done with the pre-tax 401(k) with the first June paycheck and then I’ll work on the after-tax 401(k) until the first September paycheck, after which I’ll move it over to my Roth IRA. I set it to a 75% contribution rate since that’ll also let me max out the ESPP. Once the mortgage is gone, I’ll actually be able to live off the ESPP proceeds (15% of my gross) and deposit my whole paycheck to my Vanguard account! That’ll be pretty sweet.

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