Goals

Review of 2018 Financial Goals

Wow!  2018 flew by!  Happy New Year!  2018 was another blessed year for our family.  We were on track to hit all of our goals until the stock market dropped at the end of the year.  Even though we only hit three of our five 2018 financial goals, I still am counting it as a very good year.  Here are the details:  

1) Pass our 2022 Net Worth Goal  – FAIL
We had a very good chance to hit our 2022 net worth goal of $721,500 but the market dump at the end of the year did us in.  We finished 2018 with a net worth of $667,000.27, still over 3 years ahead of our 2018 net worth goal target (2018’s target was $450,800) but short of our goal to be 4 years ahead of our net worth goal targets.

2) Continue tithing and improve attendance  – SUCCESS
We did a better at making it to church more consistently but still have a lot of work to do do better.  We tithed $5,471.01 in 2018, which is an average of $455.91/month.  That was better than we were shooting for but there is still room to improve.

3) Pay $6,000 extra towards mortgage principal  – SUCCESS
We nailed this goal perfectly!  We paid exactly an extra $6,000 towards our mortgage principal in 2018.  We started the year with a mortgage balance of $232,756.63 and ended the year with a mortgage balance of $213,191.54, a reduction of $19,565.09.

4) Contribute $2,000 to 529 Plans ($1,000 for each child)  – SUCCESS
We exceed this goal, contributing a total of $2,591.35 to our kid’s 529 Plans in 2018.  We contributed $1,321.35 to our son’s 529 Plan and $1,270 to our daughter’s 529 Plan.  It feels good to get back on track with this after taking most of 2017 off from contributing.  Currently, our 7-year-old son’s 529 Plan has a balance of $21,511.44 and our 4-year-old daughter’s 529 Plan has a balance of $11,579.15.  

5) Building retirement accounts balance total to $300K  – FAIL
We begin 2018 with $267k in retirement savings. Due to the big market downturn at the end of the year, we finished 2018 with a net worth of 274,633.09.  Unfortunately, we came up well short of our $300k goal.

Income Statement

December 2018 Income Statement

December was an outstanding income month and a lower than usual expense month (see spreadsheet screenshot).

Our total income in December was very good at $23,684.28.  In addition to our regular paychecks, I received a monthly bonus of monthly bonus $1,332.08 gross ($778.82 net) and a $450 auto allowance.  My wife also received $10,193 gross ($6,482.51 net) quarterly bonus, $3,150 special company bonus (on a credit card), a $641.50 auto allowance / mileage reimbursement, and $44.99 in reimbursements.  We also received an unexpected $843.71 California state tax refund.  Very nice surprise!  We earned $8.63 in interest income from our savings accounts.

This month, our expenses totaled $17,963.81.  Big ticket items include $1,922 in furniture, $1,945 in giving (tithe and gifts), and $293.17 in vacation.

Next month might be a bit of a tight income month as neither my wife or I expect to receive much in the way of bonuses.  That being said, 2018 ended on a high note income-wise!

Net Worth

December 2018 Net Worth Update (-$18,994.30)

Overall

It sucks to end 2018 on a down note but in December our net worth experienced another huge decrease due to the stock market.  Our net worth decreased $18,994.30 from last month to a total of $667,000.27 (see spreadsheet screenshot).  It’s good that we are buying shares at a discounted rate but no fun to see our numbers drop.

Retirement Accounts

Our retirement accounts are comprised of our 401(k)s, our Roth IRAs and our Traditional IRAs.  We contribute 5% to my wife’s 401(k).  My wife’s company matches up to 5% of her 401(K) contribution and chips in an additional 5% on top of the match (both 100% vested when deposited in March).  This month, we contributed $1,210.41 to her 401(k).  We contribute 6% to my 401(k) and my company matches up to 4% and deposits the match in March (100% vested when deposited).   This month, we contributed $309.92 to my 401(k).  The total balance of our retirement accounts decreased $20,422.60 from last month to a total of $274,633.09.

Brokerage Account

Currently, our brokerage account consists of four stocks and some cryptocurrency (I prefer to track crypto in the “brokerage account” field rather than “Cash & Savings Accounts”.  The total current value is $5,186.24, up $504.70 from last month because we bought $1,000 worth of a stock.

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings accounts balance. It does not include our checking account balance that we use to pay our bills each month.  Our cash and savings accounts increased $3,343.71 this month, bringing the total to $12,824.34.  This was a definite bright spot on a tough month.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $70 to our son’s 529 Plan and it decreased $2,342.36 from last month to a total balance of $21,511.44.  We contributed $70 to our daughter’s 529 Plan and it decreased $11,579.15 from last month to a total balance of $11,579.15.

Home

We use the $528K purchase price that we paid in July 2016 for our home value.  Current comps in the area are ~$530K.  The current balance of our 15-year, 2.85% mortgage loan is $213.191.54.  We paid $200 extra towards principal this month. 

Vehicles

My wife’s 2017 SUV has 45,000 miles.  Her company gives her $300/month auto allowance and $0.53/mile reimbursement. The loan balance on my wife’s car is $39,236.19 at 2.79%. I have a 2012 sedan with 130K miles.  My company gives me a $450/month vehicle allowance and provides me with a gas card.  The loan balance on my car is $4,739.76 at 1.99%. We also have a ski boat with a loan balance of $51,681.23 at 5.24%. 

Credit Card Balance

We do not currently have a credit card balance that is not paid in full each month.

Income Statement

November 2018 Income Statement

November was another a great income month and a lower than usual expense month (see spreadsheet screenshot).  Best of all, we learned that my wife will keep her job and not be part of her company’s layoff.

Our total income in October was $15,665.25.  In addition to our regular paychecks, I received a third “extra” paycheck.  I also received a monthly bonus of $1,250 gross ($730.82 net), $450 auto allowance and $100 holiday gift card.  My wife also received a $923.10 auto allowance / mileage reimbursement, $100 gift card, and $44.99 in reimbursements.  We earned $5.75 in interest income from our savings accounts.

This month, our expenses totaled $13,848.45.  Big ticket items include $436 in car service, $535 in gifts, and $473 in clothing.

Next month, my wife will receive ~$12K in bonuses and I should receive a solid monthly bonus too.  Hope to improve our savings balance with this money ?

 

November 2018 income statement

Net Worth

November 2018 Net Worth Update ($3,853.30)

November 2018 Net worth

Overall

In November, we dug our way back bit from our huge $19K decrease last month.  Our net worth increased $3,853.30 from last month to a total of $685,994.57 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of our 401(k)s, our Roth IRAs and our Traditional IRAs.  We contribute 5% to my wife’s 401(k).  My wife’s company matches up to 5% of her 401(K) contribution and chips in an additional 5% on top of the match (both 100% vested when deposited in March).  This month, we contributed $700.72 to her 401(k).  We contribute 6% to my 401(k) and my company matches up to 4% and deposits the match in March (100% vested when deposited).   This month, we contributed $420.38 to my 401(k).  The total balance of our retirement accounts increased $2,587.82 from last month to a total of $295,055.69.

Brokerage Account

Currently, our brokerage account consists of four stocks and some cryptocurrency (I prefer to track crypto in the “brokerage account” field rather than “Cash & Savings Accounts”.  The total current value is $4681.54, down $1,305.79 from last month.

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings accounts balance. It does not include our checking account balance that we use to pay our bills each month.  Our cash and savings accounts increased $1,005.96 this month, bringing the total to $9,480.63.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $0 to our son’s 529 Plan and it increased $227.72 from last month to a total balance of $23.853.80.  We contributed $0 to our daughter’s 529 Plan and it increased $122.43 from last month to a total balance of $12,842.10.

Home

We use the $528K purchase price that we paid in July 2016 for our home value.  Current comps in the area are ~$530K.  The current balance of our 15-year, 2.85% mortgage loan is $214,664.01.  We paid $200 extra towards principal this month.

Vehicles

My wife’s 2017 SUV has 45,000 miles.  Her company gives her $300/month auto allowance and $0.53/mile reimbursement. The loan balance on my wife’s car is $39,810.1 at 2.79%. I have a 2012 sedan with 130K miles.  My company gives me a $450/month vehicle allowance and provides me with a gas card.  The loan balance on my car is $4,934.88 at 1.99%.  We also have a ski boat with a loan balance of $51,858.41 at 5.24%.

Credit Card Balance

We do not currently have a credit card balance that is not paid in full each month.

Income Statement

October 2018 Income Statement

October was a great income month and a high expense month (see spreadsheet screenshot).

Our total income in October was $16,986.62.  In addition to our regular paychecks, my wife received a $2,250 gross ($1,524.87 net) supplemental bonus and a $250 gift card.   I received a monthly bonus of $2,708.33 gross ($1,583.47 net). My wife also received a $1,370.46 auto allowance / mileage reimbursement and I received a $450 auto allowance. We earned $5.87 in interest income from our savings accounts.

This month, our expenses totaled $15,334.35.  Big ticket items include $1,986.66 in vacation costs, $2,332.03 in household stuff, and $169.68 in skin care stuff for my wife.

Next month, my wife will learn if she is part of a nationwide layoff at her company.  We’re optimistic that she will avoid the cut but she is looking into other options, just in case.

Oct 2018 income statement

Net Worth

October 2018 Net Worth Update (-19,377.10)

Overall

Ouch!  October was a tough month for our net worth.  It decreased $19,377.10 from last month to a total of $682,141.27 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of our 401(k)s, our Roth IRAs and our Traditional IRAs.  We contribute 5% to my wife’s 401(k).  My wife’s company matches up to 5% of her 401(K) contribution and chips in an additional 5% on top of the match (both 100% vested when deposited in March).  This month, we contributed $728.28 to her 401(k).  We contribute 6% to my 401(k) and my company matches up to 4% and deposits the match in March (100% vested when deposited).   This month, we contributed $392.50 to my 401(k).  The total balance of our retirement accounts decreased $16,380.27 from last month to a total of $292,467.87

Brokerage Account

Currently, our brokerage account consists of four stocks and some cryptocurrency (I prefer to track crypto in the “brokerage account” field rather than “Cash & Savings Accounts”.  The total current value is $5,987.33, down $782.67 from last month.

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings accounts balance. It does not include our checking account balance that we use to pay our bills each month.  Our cash and savings accounts decreased $943.94 this month, bringing the total to $8,474.67.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $0 to our son’s 529 Plan and it decreased $1,606.89 from last month to a total balance of $23.626.08.  We contributed $0 to our daughter’s 529 Plan and it decreased $866.66 from last month to a total balance of $12,719.67.

Home

We use the $528K purchase price that we paid in July 2016 for our home value.  Current comps in the area are ~$530K.  The current balance of our 15-year, 2.85% mortgage loan is $216,132.96.  We paid $200 extra towards principal this month.

Vehicles

My wife’s 2017 SUV has 40,000 miles.  Her company gives her $300/month auto allowance and $0.53/mile reimbursement. The loan balance on my wife’s car is $40,428.42 at 2.79%. I have a 2012 sedan with 127K miles.  My company gives me a $450/month vehicle allowance and provides me with a gas card.  The loan balance on my car is $5,132.67 at 1.99%.  We also have a ski boat with a loan balance of $52,034.45 at 5.24%.

Credit Card Balance

We do not currently have a credit card balance that is not paid in full each month.

Income Statement

September 2018 Income Statement

1 Comment

September was an amazing income month and a very high expense month (see spreadsheet screenshot).

Our total income in September was $20,260.50.  In addition to our regular paychecks, my wife received a quarterly bonus of $10,159.17 gross ($5,964.95 net) and I received a monthly bonus of $1,666.66 gross ($977.19 net).  My wife also received a $1,524.78 auto allowance / mileage reimbursement and I received a $450 auto allowance. We earned $5.89 in interest income from our savings accounts.

This month, our expenses totaled $17,977.27.  Big ticket items include $609 boat registration bill, $127.37 in clothing, and $2,323 in vacation costs.

Next month, my I should receive a quarterly bonus ?

Sept 2018 income statement

Net Worth

September 2018 Net Worth Update (+$9,901.66)

Sept 2018 net worth

Overall

September was very good month for our net worth.  It increased $9,901.66 from last month to a total of $701,518.37 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of our 401(k)s, our Roth IRAs and our Traditional IRAs.  We contribute 5% to my wife’s 401(k).  My wife’s company matches up to 5% of her 401(K) contribution and chips in an additional 5% on top of the match (both 100% vested when deposited in March).  This month, we contributed $1,208.68 to her 401(k).  We contribute 6% to my 401(k) and my company matches up to 4% and deposits the match in March (100% vested when deposited).   This month, we contributed $330 to my 401(k).  The total balance of our retirement accounts increased $3,768.85 from last month to a total of $308,848.14

Brokerage Account

Currently, our brokerage account consists of four stocks and some cryptocurrency (I prefer to track crypto in the “brokerage account” field rather than “Cash & Savings Accounts”.  The total current value is $6,770.00, up $1,058.99 from last month.

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings accounts balance. It does not include our checking account balance that we use to pay our bills each month.  Our cash and savings accounts increased $1,406.08 this month, bringing the total to $9,418.61.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $200 to our son’s 529 Plan and it increased $522.04 from last month to a total balance of $25,232.97.  We contributed $150 to our daughter’s 529 Plan and it increased $323.36 from last month to a total balance of $13,586.33.

Home

We use the $528K purchase price that we paid in July 2016 for our home value.  Current comps in the area are ~$530K.  The current balance of our 15-year, 2.85% mortgage loan is $217,598.40.  We paid $1,800 extra towards principal this month.

Vehicles

My wife’s 2017 SUV has 38,000 miles.  Her company gives her $300/month auto allowance and $0.53/mile reimbursement. The loan balance on my wife’s car is $41,039.16 at 2.79%. I have a 2012 sedan with 122K miles.  My company gives me a $450/month vehicle allowance and provides me with a gas card.  The loan balance on my car is $5,328.44 at 1.99%.  We also have a ski boat with a loan balance of $52,224.36 at 5.24%.

Credit Card Balance

We do not currently have a credit card balance that is not paid in full each month.

Our path to financial independence and retiring early.