July 2015 net worth update (+1.4%)

31-Dec-2014 30-Jun-2015 31-Jul-2015 MoM YTD
cash $12,300 $10,400 $7,800 -$2,300 -$4,500
savings $47,800 $49,600 $55,600 +$6,000 +$7,800
investments $164,500 $203,100 $206,500 +$3,400
+1.7%
+$42,000
+25.5%
mortgage $143,000 $138,600 $137,900 +$700
+0.5%
+$5,100
+3.6%
net worth $531,600 $574,200 $582,000 +$7,800
+1.4%
+$50,400
+9.5%
taxable assets – debts $70,600 $58,400 $56,200 +$2,200
+3.8%
+$14,400
+20.4%
$ until FI $811,300 $849,300 $806,500 -$42,800
-5.0%
-$4,800
-0.6%

This month, I continued to work on maxing out my after-tax 401(k). I have 3 more paychecks of that left. I also sold some ESPP and moved the money to my general savings account. It turned out that when I transferred 2x as much as usual to my checking account for July, I really only needed the normal amount, oops! So I only transferred about $200 to my checking account this month. That resulted in a 105% savings rate for July and a combined 58% savings rate between June and July.

Expenses: I spent $3,578 in July including the mortgage or $2,551 without it. Some of my controllable expenses broke down as follows:

  • $0 clothing
  • $33 Entertainment/Social [average so far this year: $133, average last year: $211] – this was all eating out with friends.
  • $10 Eating out by myself [average so far this year: $6, average last year: $18]
  • $12 Work lunches [average so far this year: $56, average last year: $147] – I brought my lunch every day until our fridge had an issue and then I bought lunch on two days because of that.
  • $114 A birthday present and a donation to a friend’s GoFundMe campaign (my donations account isn’t all for deductible donations!)
  • $1,456 Housing: regular HOA dues, annual condo insurance policy, repairing the fridge, and buying a new guest bathroom sink.
  • $ Annual umbrella insurance policy
  • $20 Eyebrows
  • $0 Toiletries [average so far this year: $39, average last year: $33]
  • $120 Shopping – A second can of paint and some painting supplies that we’d forgotten about with the first trip. Also some plants for the balcony.
  • $481 Transportation: six month car insurance policy and one tank of fuel
  • $78 Travel – my half of the rental car

As per usual, housing was 70% of my spending this month. I’m expecting it to be about 90% of next month’s spending.

PSA: Make sure to shop around for insurance every few years. I was able to save 25% on my package of insurance policies by shopping around, from what my previous insurance carrier wanted to charge me.

Savings: $55,600 (up $6,000)

These funds are spread across a checking account that gets free ATM fees anywhere in the world, my current employer’s health savings account, a health savings account at my credit union, a bit of a buffer in my credit union checking account, and general and grad school savings accounts at Ally.

This is up from my HSA getting a nice boost this month, as well as me transferring the ESPP proceeds to my general savings account, which is back up to $18,000 and a balance I’m much happier with. The plan for non-retirement savings for the rest of the year is to boost this account up to $30,000, top up the grad school savings account a bit more, and then pre-pay the mortgage.

Investments: $206,500 (up $3,400 or +1.7%)

This includes my pre-tax 401(k), employer 401(k) matching, my after-tax 401(k), my Roth IRA, and my taxable investments including stock index funds, Series I Savings Bonds, and ESPP cash/shares.

The change here comes from:

  1. Large contributions to the after-tax 401(k)
  2. Employer matching contributions (almost double what I got at my last job!)
  3. A month’s ESPP deposits
  4. A quarter’s ESPP contributions sold
  5. My investments were mostly flat this month
Mortgage: $137,900 (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%
  • 28.1%: portion of my regular payment went to interest (originally was 59%; down 0.2 percentage points)
  • 61.5%: amount of equity in my condo, assuming purchase price (up 0.3 percentage points)
  • 51.8%: amount of the mortgage I’ve paid down (up 0.3 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 for the year.

TOTAL: $582,000 (up $7,800 or +1.4%)

I ended 2014 with a net worth of $531,600, so I’ve seen a change of +$50,400 or +9.5% 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.

July 2015 Net Worth Update

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11 thoughts on “July 2015 net worth update (+1.4%)

  1. Great month Leigh…a $7.8K (1.4%) increase in your net work and 105% savings rate is a great accomplishment! Continue to save at those rates and you should reach FI in no time. By the way, I like your countdown $ to FI. Very nice touch to your Net Worth report. :)

    Best wishes and continued success on your person journey to FI!

    AFFJ

    • Thanks! I think the 58% combined savings rate from the last two months is more accurate though as last month’s was 12% and this month’s 105% ;)

      Yup, I’ll probably get there sometime in the next 5-10 years, sometime in my thirties.

    • Thanks! I was pretty happy on the 20th when I had spent under $200 after the mortgage. That was before I paid the HOA dues or the insurance and before the fridge decided it wasn’t having a happy life…

  2. Look how your net worth is growing. In this speed, you should be able to reach 630K by the end of year or even a bit stretched 650K. Keep up the great work Leigh!~

    • Thanks! My spreadsheet is currently tracking to $630k at EOY. My gross income is going to be on the lower end of what I thought it would be and I need to pay for two grad school courses out of pocket in 2015 before my employer reimburses me in 2016, plus my spending is a bit over budget and my investments have only returned about 3% annualized so far this year when my net worth forecasting uses 8%. The two grad school courses + spending overages + lowered investment returns = $20k.

  3. Hi Leigh,

    Contributions to an after-tax 401 (k) are a smart way to accumulate capital, especially if your plan allows you to convert that money immediately into a Roth. I started doing that this year, but my plan only allows this conversion only twice per calendar year.

    Of course, saving 30K in a Roth per year is really appealing to me for some reason.

    Good luck on your financial independence journey!

    DGI

    • Thanks DGI! I do plan to convert the after-tax 401(k) money to my Roth IRA once a year, the month after I’m done my contributions for the year. I’m frontloading it, which takes about 3 months and investing it in our low-cost S&P 500 index fund in the meantime. I’ll pay taxes on whatever gains there are since that’s better than no gains at all! It seems especially important to take advantage of this feature now when who knows how long I’ll work for an employer that offers this!

      Thanks for stopping by!

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