We survived our first month with only my job to support us (in case you didn’t know, my wife is taking unpaid maternity leave through the end of the year). We have got to make some adjustments to our spending if we are going to be successful in not dipping into our weekly saving amounts over the next 4 months. You will see we took a huge chunk out of our cash last month. We are making adjustments this month that should bear fruit in the November net worth update. But until then, take a look at the cash carnage below!
Still keeping this amount at $360,000. Maybe for 2019 I will use the Zillow estimate (currently at $349,772). If you didn’t catch the last net worth update, I came to $360,000 by adding a fraction of the cost of our remodel to the appraisal we received before doing any work. Even when adding the HEL to our mortgage balance, we net ~$80,000 to our bottom line.
A pretty significant drop over the last month. I’m not totally sure why, but I’m not really concerned about it. Could be market fluctuations, could be that I used a different vehicle condition by accident. Either way, cars depreciate and a decline is expected.
Pretty decent gain over the last month. $2,213.24 came from contributions while $3,891.60 came from market gains. It is a pretty awesome feeling to know that we made more in the 401k from nothing than we did from the contributions. The blend of funds I have in the 401k are currently outperforming VTSAX/VTI by a healthy 1.5%, so that is pretty neat. If I had just placed the 401k into the target date fund Fidelity offered us, we would be under-performing those funds by ~6.5%.
Roth IRA (+$1,186.13)
Small bump in the Roth IRA. We didn’t add money to our accounts over the last month, so 100% of the gains were just from the market ($42 in dividends too). These accounts are now slightly beating VTSAX, which is also pretty nice. If you caught my Confession Post you know that I am currently under-performing the S&P 500 (although I have made up some ground over the last 5 weeks). Either way, we will max these accounts for the year early next spring when I (hopefully) receive my annual bonus.
$125 of the gains here are from the weekly $25 contribution for our Monster Vacation Fund. Small gains here that are going to add up to a lifetime supply of memories for our family.
We’re getting pretty close to having half of our monthly payment going towards the principle. We aren’t doing any over paying on this bad boy, we are deploying extra money towards the higher interest rate Home Equity Loan and retirement accounts.
Home Equity Loan (-$641.49)
This account is one we are trying to be smart about paying down. The monthly payment is $493, and we have $450 bi-weekly payments. I think that October will be a month with 3 payments during the month, which will knock a decent chunk off the balance. So long as we keep pounding away at this loan, we will end up with tens of thousands of dollars in savings by paying this off 15 years early.
Car Loan (-$431.68)
I have grown to hate our car payment. It turns out, we may have an opportunity to eliminate it in the next month, which would be very helpful for us through the year. Hopefully more to come with that. Otherwise, we keep making the payments, about 88% of each monthly payment is applied to the principle. We are scheduled to pay this loan off in May 2020, 21 more monthly payments.
Previous 12 Months
The chart below shows a rolling chart of how our Net Worth has changed over the last 12 months, which is pretty nice to see.
This month we are up to $157,866.62, up nearly $7,300 over last month. One of our stepping stone goals for this year was to hit $150,000. I know we’re one blip away from losing the milestone, but it’s nice to hit it with a few months to go in the year. The next stepping stone goal is $200,000 in 2019, and I’d love to get as close to possible to that by the end of this year.
Goals for this Month
- Don’t buy food/groceries during the week
- Post 2 times per week
- Read a book