August 2015 Net Worth Update (-9,235.52)

Aug 2015 net worth

Overall

Crazy month in the market! It’s a great time to invest if you have time on your side. Our net worth decreased $9,235.52 this month, to a total of $297,961.90 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of my wife’s 401(k), my 401(k), our Roth IRAs and our Traditional IRAs. We contribute 10% to my wife’s 401(k) and 25% to my 401(k). My wife’s company matches up to 3% of her 401(K) contribution and deposits the sum once a year on January 1st (it is 100% vested when deposited).  My company matches up to $1,000 per year (vested over five years). This month, we contributed $2,333.34 to my wife’s 401(k) and $2,175.00 to my 401(k). We saw the total balance of our retirement accounts decreased $8,235.57 over last month to $143,156.20.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that went down $103.11 this month. Our balance is $775.78 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 decreased $172.81, bringing the total to $482.40. Yeah, we need to work on this one.

College Savings Accounts

Our kids have 529 Plans through Vanguard. This month, we contributed $0 to our son’s 529 Plan and it decreased $1,147.79 from last month to a total balance of $11,741.12. We contributed $100 to our daughter’s 529 Plan and it decreased $320.18 over last month to a total balance of $4,984.23.

Home

We use the $489K purchase price that we paid in January 2012 for our home value. Current comps in the area are ~$650K. The current balance on our mortgage loan is $360,678.6. We paid an extra $0 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~60K miles and “Car 2” is a 2012 SUV with ~60Kmiles. When calculating our net worth, we depreciate the vehicles 1% per month. “Car 1” has a current loan balance of $22,951.99 and Car 2 has a current loan balance of $28,552.72. My wife receives $800/month as a car reimbursement and her gas is paid for by her company. I receive $230.13/month as a fixed car reimbursement and $0.22 per mile as a variable reimbursement (to help cover gas, wear and tear, etc.)

Credit Card Balance

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

July 2015 Income Statement

July was a good income month and another large expense month (see spreadsheet screenshot).

Our total income in July was $14,005.09. My 25% 401(k) contributions began kicking in this month, so my paychecks and bonus check were greatly reduced as a result. In addition to our paychecks (I received a 3rd “extra” paycheck this month), I received a $4,611.74 ($2,187.63 net) monthly bonus. My wife received an $800 auto allowance and a $150.00 company reimbursement for internet service. I received $650.94 in auto allowance and mileage reimbursement. We also received $110 in preschool reimbursement, and earned $0.19 in interest income from our online savings account.

This month, we spent a total of $11,470.19. Some of our larger, non-typical expenses included $2,459 in nanny/babysitting, $1,309 in household items, and $425.45 in dinning.

Next month, my wife and I will both be receiving bonuses so it will be a large income month.

 

aug 2015 income statement

July 2015 Net Worth Update (+2,248.57)

July 2015 net worth
July 2015 net worth

Overall
Our net worth increased $2,248.57 this month, to a total of $307,197.42 (see spreadsheet screenshot).

Retirement Accounts
Our retirement accounts are comprised of my wife’s 401(k), my 401(k), our Roth IRAs and our Traditional IRAs.  We contribute 10% to my wife’s 401(k) and 25% to my 401(k).  My wife’s company matches up to 3% of her 401(K) contribution and deposits the sum once a year on January 1st (it is 100% vested when deposited  My company matches up to $1,000 per year (vested over five years)  This month, we contributed $1,083.34 to my wife’s 401(k) and $2,652.94 to my 401(k).  We saw the total balance of our retirement accounts increased $1,513.96 over last month to $151,391.77.  It is really nice to pass the $150K mark for our retirement savings.

Brokerage Account
Currently, our brokerage account consists of one stock (my wife’s company) that went down$ 4.91 this month.  Our balance is $878.89 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 decreased $81.00, bringing the total to $655.21.

College Savings Accounts
Our kids have 529 Plans through Vanguard.  This month, we contributed $0 to our son’s 529 Plan and it decreased $90.02 from last month to a total balance of $12,888.91.  We contributed $0 to our daughter’s 529 Plan and it increased $37.58 over last month to a total balance of $5,364.72.

Home
We use the $489K purchase price that we paid in January 2012 for our home value.  Current comps in the area are ~$650K.  The current balance on our mortgage loan is $361,361.06.  We paid an extra $150 towards principal this month.

Cars
“Car 1” is a 2011 SUV with ~60K miles and “Car 2” is a 2012 SUV with ~60Kmiles.  When calculating our net worth, we depreciate the vehicles 1% per month.  “Car 1” has a current loan balance of $23,291.04 and Car 2 has a current loan balance of $28,932.50.  My wife receives $800/month as a car reimbursement and her gas is paid for by her company.  I receive $230.13/month as a fixed car reimbursement and $0.22 per mile as a variable reimbursement (to help cover gas, wear and tear, etc.).

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

 

June 2015 Income Statement

June was a strong income month and a crazy expense month (see spreadsheet screenshot).

Our total income in June was $12,011.83 (my first full month of income at my new job). In addition to our paychecks, my wife received an $800 auto allowance and a $150 company reimbursement for internet service. I received $438.38 in auto allowance and mileage reimbursement. We also received $250 in preschool reimbursement, $165 in gifts for our daughter (deposited into 529 Plan), and earned $4.80 in interest income from our online savings account.

It’s hard to write but in June we spent a total of $24,281.01. Definitely the largest month we’ve had since I’ve began tracking in early 2007. The big ticket item this month was $10,118 for my wife’s elective surgery. I also had $292 in lab fees, $457.87 in auto service, and $3,187.45 in “household items”. Household items is becoming a catch-all for stuff that should probable get its own line item…eventually.

Next month, our income will drop a bit as my 25% contribution to 401(k) kicks in. Interestingly, my HR department called me to make sure that I meant 25% and not $25 dollars per check. I know it’s a large percentage, but it only amounts to $13K/year plus whatever is contributed from my monthly bonuses.

Income Statement June 2015

June 2015 Net Worth Update (-6,246.30)

June 2015 Net WorthOverall

June was a negative net worth month for us but as you will see below, we intentionally depleted our savings. Our net worth decreased $6,246.30 this month, to a total of $304,948.85 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of my wife’s 401(k), our Roth IRAs and our Traditional IRAs. My wife’s company matches up to 3% of her 401(K) contribution and deposits the sum once a year on January 1st (it is 100% vested when deposited). We contributed $1,083.34 to my wife’s 401(k) this month and saw the total balance of our retirement accounts increased $1,002.90 over last month to $149,877.81.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that went up $112.93 this month. Our balance is $883.80 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 decreased $8,441.65, bringing the total to $736.21. Scary low but my wife is having an elective surgery and we received a substantial discount on for paying cash. We are both receiving bonuses totaling $10K-16K in the next 30-60 days which will allow us to refill our savings account.

College Savings Accounts

Our kids have 529 Plans through Vanguard. This month, we contributed $0 to our son’s 529 Plan and it decreased $17.07 from last month to a total balance of $12,978.93. We contributed $165 to our daughter’s 529 Plan and it increased $158.87 over last month to a total balance of $5,402.30.

Home

We use the $489K purchase price that we paid in January 2012 for our home value. Current comps in the area are ~$650K. The current balance on our mortgage loan is $362,190.92. We paid an extra $150 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~60K miles and “Car 2” is a 2012 SUV with ~55K miles. When calculating our net worth, we depreciate the vehicles 1% per month. “Car 1” has a current loan balance of $23,631.01 and Car 2 has a current loan balance of $29,313.86. My wife receives $800/month as a car reimbursement and her gas is paid for by her company. I receive $230.13/month as a fixed car reimbursement and $0.23 per mile as a variable reimbursement (to help cover gas, wear and tear, etc.)

Credit Card Balance

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

May 2015 Income Statement

May was an AMAZING income month and a reasonable expense month when compared to our income (see spreadsheet screenshot).

Our total income in May was a whopping $22,510.29, making it our 3rd largest income month since I began tracking in 2007. The big game changers were my Wife’s quarterly bonus of $8,200 gross ($4,080.42 net) and our tax refund of $9,118. In addition to our paychecks (only one week from my new job), my wife received an $800 auto allowance and a $315.01 company reimbursement for internet service and meals. We also received $250 in preschool reimbursement, $215 in gifts for our daughter (deposited into 529 Plan), and earned $2.55 in interest income from our online savings account.

In May, we spent a total of $13,376.69. A ton of money, but a lot less than we made, thankfully. A couple of items like my car payment and fuel for Car 2 will be partially offset by reimbursements from my company next month. We had a big birthday party for our 1-year old daughter, which resulted in a $844 entertainment expense. Nanny/babysitting costs were also higher his month as we increased the hours due to me going back to work.

Next month will be my first full month at my new job, and thus, my first full month of paychecks.  We were looking forward to a nice bump to our income, but we were hit by AMT last year, so we will likely increase our 401(k) contributions, reducing our net income.  Craziness!

May 2015 Income Statement

May 2015 Net Worth Update (+11,580.21)

May 2015 Net Worth

Overall

May was a surprisingly huge month for us. First, my wife learned that she would be receiving an unexpected quarterly bonus of $8,200 gross ($4,080.42 net). Then, we met with our tax accountant to do our taxes (we filed an extension previously) and determined our refund would be $9,118 ($7196 federal and $1,922 state). Either of these surprises would have made our month, so it was awesome to receive both in one month. Our net worth increased $11,580.21 this month, to a total of $311,195.15 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of my wife’s 401(k), our Roth IRAs and our Traditional IRAs. My wife’s company matches up to 3% of her 401(K) contribution and deposits the sum once a year on January 1st (it is 100% vested when deposited). We increased my wife’s contribution from 3% to 10%, effective her 2nd paycheck in April. We contributed $1,903.34 (includes 10% from bonus) to my wife’s 401(k) this month and saw the total balance of our retirement accounts increased $2,403.91 over last month to $1478,874.91.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that went up $83.47 this month. Our balance is $770.87 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 $2,327.57, bringing the total to $9,177.86.

College Savings Accounts

Our kids have 529 Plans through Vanguard. This month, we contributed $1,000 to our son’s 529 Plan and it increased $1,114.00 over last month to a total balance of $12,996.00. We contributed $1,150 to our daughter’s 529 Plan and it increased $1,197.43 over last month to a total balance of $5,243.43.

Home

We use the $489K purchase price that we paid in January 2012 for our home value. Current comps in the area are ~$650K. The current balance on our mortgage loan is $363,018.20. We paid an extra $1,150 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~60K miles and “Car 2” is a 2012 SUV with ~55K miles. When calculating our net worth, we depreciate the vehicles 1% per month. “Car 1” has a current loan balance of $23,970.27 and Car 2 has a current loan balance of $29,694.2. My wife receives $800/month as a car reimbursement and her gas is paid for by her company. I receive $204.56/month as a fixed car reimbursement and $0.18 per mile as a variable reimbursement (to help cover gas, wear and tear, etc.)

Credit Card Balance

We paid off the $2,544.95 balance of our 0% credit card.   It feels awesome to finally put this to bed.

April 2015 Income Statement

April was another good income month, but an even larger expense month (see spreadsheet screenshot).

Our total income in April was $8,696.33 (only my wife is working). In addition to my wife’s paychecks, she received an $800 auto allowance and a $150 company reimbursement for internet service. We also received $250 in preschool reimbursement, $75 selling items on Craigslist, and earned $4.57 in interest income from our online savings account.

In April, we spent a total of $8,928.07 (more than we made, again). Thank God that I begin my new job next month because the ship is starting to list.  This is the third month in a row that we’ve had to pull money from savings to cover our expenses. I left my company at the end of September, over 7 months ago, and am eager to get back to work.

Next month, with the addition on my income, we hope to begin rebuilding our savings.

April 2015 Income Statement

April 2015 Net Worth Update (-5,625.33)

April 2015 Net Worth

Overall

First of all, great news, I am starting a new sales job in May! I quit my job of 13 years in September 2014 and have been looking for an opportunity that provides better work/life balance. I will be working out of my home office and visiting accounts in the field locally. No more business trips every month:) The base salary is $52K and the bonuses if I hit my goals total $28K/year (not capped). They will pay a fixed amount to me each month for my vehicle and a variable amount based on the miles that I drive. Another positive is that this will be my first company that I’ve worked for with a 401(k) match, albeit only up to a max of $1,000/year.

April was a negative month for our net worth, primarily due to trading in “Car 3” for a newer vehicle (“Car 2”). Our net worth decreased $5,625.33 this month, to a total of $299,614.94 (see spreadsheet screenshot).

Retirement Accounts

Our retirement accounts are comprised of my wife’s 401(k), our Roth IRAs and our Traditional IRAs. My wife’s company matches up to 3% of her 401(K) contribution and deposits the sum once a year on January 1st (it is 100% vested when deposited). We contributed $325 to my wife’s 401(k) this month and saw the total balance of our retirement accounts decreased $4,063.17 over last month to $146,471.00.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that went up a bit this month. Our balance is $687.40 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 decreased $924.43, bringing the total to $6,850.29.

College Savings Accounts

Our kids have 529 Plans through Vanguard. This month, we contributed $50 to our son’s 529 Plan and it increased $376.90 over last month to a total balance of $11,882.00. We contributed $0 to our daughter’s 529 Plan and it increased $111.11 over last month to a total balance of $4,046.00.

Home

We use the $489K purchase price that we paid in January 2012 for our home value. Current comps in the area are ~$650K. The current balance on our mortgage loan is $364,839.79. We paid an extra $150 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~60K miles and “Car 2” is a 2012 SUV with ~55K miles. “Car 2” was purchased this month because the company I am starting with in May requires a newer vehicle to receive the monthly reimbursement. When we purchased “Car 2” they gave us $7,000 off for trading in “Car 3”. When calculating our net worth, we depreciate the vehicles 1% per month. “Car 1” has a current loan balance of $24,307.08 and Car 2 has a current loan balance of $30,060.00. My wife receives $800/month as a car reimbursement and her gas is paid for by her company. When I start my new job in May, I should receive ~$350/month as a fixed car reimbursement and a certain amount per mile as a variable reimbursement (to cover gas, wear and tear, etc.)

Credit Card Balance

Our credit card interest is 0% for two years. This month, our credit card debit went down $100.00 to a total of $2,544.95.

Our path to financial independence and retiring early.