Income Statement

January 2017 Income Statement

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NOTE: I am posting our January income statement early because I will be busy training at my new job next week:)

January was an average income month and a surprisingly large expense month (see spreadsheet screenshot).

Our total income in January was $8,524.38.  My wife received her two regular paychecks and I received $1,800 in unemployment.  My wife also received $44.99 in company reimbursements and we unexpectedly received a $93.16 Annual Escrow Acct Disclosure Statement refund.  We also earned $4.08 in interest income from our savings account.

This month, our spending was higher than we would have liked, mostly due to a roof leak that resulted in a mold problem.  We spent a total of $14,069.10 in January.  Big ticket items include $2,736 in home repairs, $1,099 for a china cabinet, and $685 for our 20 year term life insurance (paid every six months).

Next month should be good.  I start my new job on January 30th and February will be my first full month at my new job!  In addition to my salary, I will receive a guaranteed bonus of $2,500/month for the first three months.

Jan 2017 Income Statement

Net Worth

January 2017 Net Worth Update (+$3,005.74)

Jan 2017 net worth

NOTE: I am posting our January net worth update early because I will be busy training at my new job next week🙂

Overall

2017 got off to a pretty good start.  We saw awesome gains in the market but the were offset a bit by pulling cash from savings.  In January, our net worth increased $3,007.34 from last month to a total of $520,437.98 (see spreadsheet screenshot).  It was great to pass our net worth milestone of $520K this month.

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).  My wife contributed $500 to her 401(k) and her company deposited another $1,000 into her 401(k) for her 5% match and 5% extra “chip in”.   The total balance of our retirement accounts increased $6,081.81 from last month to a total of $214,006.94.

Brokerage Account

Currently, our brokerage account consists of $200 cash and one stock (my wife’s old company) valued at $27.84 (on a $2,000.00 in initial investment).  YeahL

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings account balance. It does not include our checking account balance that we use to pay our bills each month.  This month our cash and savings accounts decreased $4,870.92, bringing the total to $3,554.72.  We pulled money out to pay for some water damage in our home and do a roof repair.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $0 to our son’s 529 Plan and it increased $92.68 from last month to a total balance of $17,394.58.  We also contributed $0 to our daughter’s 529 Plan and it increased $46.11 from last month to a total balance of $8,633.13.

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 $252,959.06.  We paid $100 extra towards principal this month.

Cars

My wife has a company vehicle (and gas card) and I have a 2012 sedan with 60K miles.  The loan balance on my car is $11,138.31 at 1.99%.

Credit Card Balance

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

Goals

2017 Financial Goals

Happy New Year!  Financially, 2016 was a strong year for us, hitting four of our five 2016 financial goals.  We’re looking forward to what the coming year brings and have listed our 2017 financial goals listed below.  I’m excited to be starting off the new 2016 with a new job that begins January 30th (I was laid off in October).

 1) Pass our 2020 Net Worth Goals
Going into 2017 with a net worth of 517,430.64, we’re blessed to be tracking ~3 years ahead of our net worth targets.  We would love to pass our 2020 goal of $575,800 by the end of 2017 to keep our 3 year leed.

2) Start tithing again
We used to be consistent with our monthly giving.  I can honestly say that the more we gave, the more we were blessed.  After moving and trying to find a new church, we’ve lost the habit of give.  We want to get back on track with our giving and intend to begin giving $200/month in 2016.  It’s not a large amount but it is something that we should be able to consistently do and hopefully get back into the habit of giving.

3) Pay $5,000 extra towards mortgage principal
We purchased our new house in 2016 for $528K.  We put $267K down and only had to get a $261K mortgage.  Since the mortgage was small, we could afford a 15-year mortgage (at 2.875%).  Our hope is that we can pay the mortgage off in 10 years.  To do so, we plan to $100 in extra payments to principle each month and lump sum payments to principle whenever possible.  We made $2,100 in extra payments to principle on our new home in 2016 (we moved in in July).  Our current mortgage balance is $254,236.72 and we are shooting to do $5,000 in extra payments to principle in 2017.

4) Contribute $6,000 to 529 Plans ($3,000 for each child)
We’ve been able to consistently contribute $2,000/year to each of our kids 529 Plans.  Our 5-year-old son’s 529 Plan has a balance of $17,301.90 and our 2-year-old daughter’s 529 Plan has a balance of $8,425.64.   With the rising costs of tuition, we feel the need to pick up the pace of our contributions.  We hope to be able to contribute $3,000 to each child’s 529 Plan in 2017.

5) Building savings account balance to $20,000
For the past few years, we’ve had the goal of reaching $20K in our savings.  Unfortunately, this remains one of the goals that we can’t seem to reach.  We ended 2016 with $8,425 in savings and hope to reach $20K in savings by the end of 2017.

Goals

Net Worth Milestone: $520,000

We got the new year off to a great start by hitting our net worth milestone of $520,000!  We passed our previous net worth milestone of $510,000 last month.

Our net worth is currently $520,539.17.  I will update our chart on the right at the end of the month.

We hope to hit our next net worth milestone of $530,000 by March.

Goals

Review of 2016 Financial Goals

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Happy New Year!  Financially, 2016 was a strong year for us, hitting four of our five financial goals for the year.  It was especially good considering my wife did not start her current job until the end of February 2016 and I was laid off in October 2016.  I will be posting our 2017 financial goals shortly.

1) Pass both our 2016 and 2017 Net Worth Goals – SUCCESS
We were blessed to sell our last home for nearly $700K this past summer (only owed $350K on the mortgage).  This helped us absolutely crush our net worth goals.  We finished 2016 with a net worth of $517,430.64, propelling us past not only our 2016 goal ($343,700) and 2017 goal ($395,200) but also past our 2018 goal ($450,800) and 2019 goal ($510,900).

2) Pay off Car 1 Loan – SUCCESS
We began 2015 with two SUV auto loans, one for $22K at 3.29% and one for $27K at 2.59%.  We had the simple goal of paying off the $22K loan by the end of 2016.  I am happy to report that we sold both SUVs, replacing them with one low mileage sedan for $12K at 1.99%!

3) Pay $4,000 extra towards mortgage principal – SUCCESS
We killed this goal!  We sold our home at a huge profit, allowing us to pay the $353K mortgage off completely and put $267K down on a new home. Our new $528K home has a 15-year mortgage at 2.875% that we have begun making accelerated payments on it as well (current mortgage balance $254,236.72).

4) Contribute $4,000 to 529 Plans – SUCCESS
We squeezed this win in at that last minute.  Thanks to the blessing of my wife’s large quarterly bonus in December, we were able to hit our goal of contributing $4,000 total ($2,000 for each child) to our kids 529 Plans in 2016.  Our 5-year-old currently has a 529 Plan balance of $17,301.90 and our 2-year-old has a 529 Plan balance of $8,587.02.

5) Building savings account balance to $20,000 – FAIL
We’ve attempted to accumulate $20K in savings for a few years but still can’t reach this goal.  We had nearly $300K cash in the bank after selling our home, but we used it for a down payment on our new home and for furniture.  We ended 2016 with a savings balance of $8,425.64.

Income Statement

December 2016 Income Statement

December was an AWESOME income month, especially considering that I am unemployed (go wife!).  As expected during the Christmas season, our expenses were higher than normal (see spreadsheet screenshot).

Our total income in December was $22,434.03.  We were very blessed in that my wife received a $17,325 quarterly bonus ($10,152.65 net) this month!  In addition to my wife’s normal two paychecks, she also received a third “extra” paycheck.  I received $1,800 in unemployment.  My wife also received $55.24 in company reimbursements. We earned $4.56 in interest income from our savings account.

This month, our spending was higher, mostly because of Christmas gifts.  We spent a total of $15,974.46 in December.  Big ticket items include $2,884 in giving, $1,900 in extra mortgage payments, and $1,707 in groceries & dinning.

January should be my last month on unemployment.  I expect to start my new job January 30th.   Happy New Year!

Net Worth

December 2016 Net Worth Update (+$17,361.40)

Overall

We ended the year really strong!  In December, our net worth increased $17,361.40 to a total of $517,430.64 (see spreadsheet screenshot).  My wife knocked it out of the park, scoring a large $17,325 quarterly bonus ($10,152.65 net).  Huge blessing!  With the bonus, were were able to put $4,880 into savings, made an extra mortgage payment to principal of $1,900, contributed $400 total to our kids 529 Plans, tithed $1,700, and kept the remainder as a cushion in our checking account.

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).  My wife contributed $1,616.25 to her 401(k) and her company deposited another $3,232.50 into her 401(k) for her 5% match and 5% extra “chip in”.   The total balance of our retirement accounts increased $8,172.17 from last month to a total of $207,925.13.   We blew passed $200K total retirement savings this month!

Brokerage Account

Currently, our brokerage account consists of $100 cash and one stock (my wife’s old company) valued at $36.17 (on a $2,000.00 in initial investment).

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings account balance. It does not include our checking account balance that we use to pay our bills each month.  This month our cash and savings accounts increased $4,884.56, bringing the total to $8,425.64.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $150 to our son’s 529 Plan and it increased $609.30 from last month to a total balance of $17,301.90.  We also contributed $250 to our daughter’s 529 Plan and it increased $480.12 last month to a total balance of $8,587.02.

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 $254,236.72.  We paid $1,900 extra towards principal this month.

Cars

My wife has a company vehicle and I have a 2012 sedan with 60K miles.  Our loan balance on my car is $11, 322.39 at 1.99%.

Credit Card Balance

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

Career

Scored a new job!

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I am happy to have landed a new job.  My entire team was laid off in October so I just accepted an identical position at a competing company.  My new job will start January 30th.

Below is a comparison of my old job and my new job.

  Old job New job
Base Salary $52,000 $45,000
Bonus at 100% $28,000 $30,000
Bonus cap 120% of goal No cap
Vehicle Company car & gas card $450 auto allowance* & gas card
Vacation per year 2 weeks 2 weeks
Sick days per year 4 days 6 days
Holidays per year 7 days 9.5 days
401(k) match $1,000/year max 4%

* I negotiated a $450/month auto allowance & gas card in lieu of the company vehicle that is normally provided.  I was going to keep my car even if I was provided a company vehicle so receiving the auto allowance is a plus for me.

Goals

Net Worth Milestone: $510,000

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Thanks to a large quarterly bonus that my wife received today, we were able to pass our net worth milestone of $510,000!    We passed our previous net worth milestone of $500,000 last month.

Our net worth is currently $511,242.83.  I will update our chart on the left at the end of the month.

We hope to hit our next net worth milestone of $520,000 by February.

Income Statement

November 2016 Income Statement

November was our first full month with me on unemployment (I was laid off on 10/3/16).  It was one of our more modest income months but our expenses have come down a good amount (see spreadsheet screenshot).

Our total income in November was $8,501.32.  My wife received her normal two paychecks.  I received $1,800 in unemployment.  My wife also received $138.34 in company reimbursements. We earned $2.54 in interest income from our savings account.

This month, we successfully keep our spending down.  We spent a total of $8,948.95 in November.  Big ticket items include $1,776 for groceries and $356 for our phone bill (included a new phone).

Next month should be a strong month.  My wife will receive a $17K gross quarter bonus and she also will receive a third “extra” paycheck.  Our expenses will be higher with the Christmas holiday.

income statement dec 2016

Our path to financial independence and retiring early.