March 2015 Income Statement

March was a good income month but also a large expense month (see spreadsheet screenshot).

Our total income in March was $8,629.58 (remember, I am not currently working). In addition to my wife’s paychecks, she received an $800 auto allowance and a $228 company reimbursement for internet service and parking. We also received $250 in preschool reimbursement, $20 selling items on Craigslist, and earned $4.82 in interest income from our online savings account.

In March, we spent a total of $9,375.20 (more than we made). We went overboard this month in many areas, mostly in groceries and household items.

Next month should be a kinda sorta more of the same, although we need to get our expenses below our income.

inc state  March 2015

March 2015 Net Worth Update (-$1,785.13)

March 2015 Net WorthOverall

March was a negative month for our net worth. It decreased $1,785.13, to a total of $305,240.27 (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 $1,780.03 over last month to $142,407.83.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that went down in March. Our balance is $662.85 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 $184.00, bringing the total to $7,774.72.

College Savings Accounts

Our kids have 529 Plans through Vanguard. This month, we contributed $0 to our son’s 529 Plan and it decreased $276.37 over last month to a total balance of $11,505.10. We contributed $50 to our daughter’s 529 Plan and it decreased $44.04 over last month to a total balance of $3,934.89.

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 $365,658.82. We paid an extra $150 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~55K miles and “Car 3” is a 2004 SUV with ~100K miles. We no longer own a “Car 2”. When calculating our net worth, we depreciate the vehicles 1% per month. Car 1 has a current loan balance of $24,643.15 and Car 3 is paid off.

Credit Card Balance

Our credit card interest is 0% for two years. This month, our credit card debit went up $12.57 to a total of $2,644.95.

February 2015 Income Statement

February was an awesome income month and crazy expense month (see spreadsheet screenshot).

Our total income in February was $17,911.56! This is primarily due to my wife’s salary jumping 34% thanks to a promotion and a quarterly bonus she earned of $16,745.00 gross ($9,088.68 net). So proud of her continued success! In addition to my wife’s paychecks, she received an $800 auto allowance and a $163 company reimbursement for internet service & travel. We also received $250 in preschool reimbursement, $220 selling items on Craigslist, $59.17 in credit card rewards, and earned $3.95 in interest income from our online savings account.

In February, we spent a total of $12,336.89. Some of our larger non-standard expenses were $1,000 extra in mortgage principal, $938.02 for clothing, and $1,363.98 for furniture. We also hired a new nanny.

Next month should be a little more average in terms of income and expenses.

Feb 2015 Income Statement

February 2015 Net Worth Update (+16,185.37)

Feb 2015 net worth

Overall

February was an awesome month for our net worth. It increased $16,185.37, to a total of $307,025.40 (see spreadsheet screenshot).  Definitely a nice turn-around from last month. The two main contributors were my wife’s quarterly bonus of $16,745.00 gross ($9,088.68 net) and her large promotion ($97K/year to $130K/year).  She’s a keeper:)

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).  This month, we contributed $827.35 to my wife’s 401(k) and saw the total balance of our retirement accounts increase $8,050.18 over last month to $144,187.86.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that moved up in February. 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 increased $2,073.95, bringing the total to $7,958.72.

College Savings Accounts

Our kids have 529 Plans through Vanguard. This month, we contributed $250 to our son’s 529 Plan and it increased $926.92 over last month to a total balance of $11,781.47. We also contributed $250 to our daughter’s 529 Plan and it increased $469.36 over last month to a total balance of $3,978.93.

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 $366,475.29. We have been paying ~$150 in escrow shortage payments for the past year, but our shortage payments are finally complete. We decided to continue paying the extra $150 each month towards principal. Since my wife received an awesome quarterly bonus in February, we added an extra $1,000 on top of the $150. So, we paid $1,150 extra to mortgage principal this month.  Sweet!

Cars

“Car 1” is a 2011 SUV with ~55K miles and “Car 3” is a 2004 SUV with ~100K miles. We no longer own a “Car 2”. When calculating our net worth, we depreciate the vehicles 1% per month. Car 1 has a current loan balance of $24,983.79 and Car 3 is paid off.

Credit Card Balance

Great news!! We paid off a $5,651.31 balance on a 0% credit card from a new HVAC that we installed in September 2014. However, we also added another $2,632.38 in credit card debit for office furniture and. It is 0% for two years.

Wife’s quarterly bonus $16,745.00

As a follow-up to my post yesterday about reaching our $300K net worth milestone, I should have explained that it was due to my wife earning a nice quarterly bonus.  Her bonus was larger than she expected, $16,745.00 gross ($9,088.68 net).

She also received her first paycheck from her promotion (her salary went from $97K/year to $130K/year).   This extra ~$1,650/month take home is a major blessing and buys us time as I look for a job.  We plan to use it to increase our savings.

A great start to 2015!

 

Net Worth Milestone: $300,000

We passed the net worth milestone of $300,000.  Yeehaw!!  We passed our last net worth milestone of $290,000 all the way back in June.

Our net worth is currently $301,079.30. I will update our chart on the left at the end of the month.

Based on my estimates, we should hit our next net worth milestone of $310,000 by April.

January 2015 Income Statement

Jan 2015 Income Statement

January was an okay income month and another larger than budgeted expense month (see spreadsheet screenshot).

Our total income in December was $7,183.63. In addition to my wife’s paychecks, she received an $800 auto allowance and a $100 company reimbursement for internet service.  We received $250 in preschool reimbursement, $90 selling items on Craigslist, and earned $4.89 in interest income from our online savings account.

In January, we spent a total of $9,746.39. Some of our larger non-standard expenses were $685 for 6 months term life insurance (wife and I), $635 for 6 months auto insurance (2 cars), $485.11 for clothing, and $156.1for vacation. We let our nanny go mid-month, so there was reduced spending in that area.

Next month should be a good income month with my wife receiving  her 34% raise and a quarterly bonus of approximately $15K.

January 2015 Net Worth Update (-5,286.35)

Jan 2015 Net Worth

Overall

January was a down month for our net worth. It decreased $5,286.35, to a total of $290,840.03 (see spreadsheet screenshot). Not an awesome start to the year, but not the end of the world either. My wife just received a huge promotion so we’ll catch up in February.

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 $242.50 to my wife’s 401(k) and saw the total balance of our retirement accounts decrease $2,885.95 over last month to $136,137.68. In January, my wife also received her 3% company match ($1,012.52) for 2014.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s company) that has continued to decline as of late. Our balance is $810.15 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, due to a number of large annual bills, we had a decrease of $3,322.53 to our cash and savings bringing the total to $5,884.77.

College Savings Accounts

Our kids have 529 Plans through Vanguard. We contributed $0 to our son’s 529 Plan and it decreased $494.68 over last month to a total balance of $10,854.55. We contributed $0 to our daughter’s 529 Plan and it decreased $163.75 over last month to a total balance of $3,509.57.

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 $368,136.26. We paid $100 extra to mortgage principal this month.

Cars

“Car 1” is a 2011 SUV with 53K miles and “Car 3” is a 2004 SUV with 99K miles. We no longer own a “Car 2”. When calculating our net worth, we depreciate the vehicles 1% per month. Car 1 has a current loan balance of $25,323.76 and Car 3 is paid off.

Credit Card Balance

The $5,651.31 credit card balance is from a new HVAC that we installed in September 2014. It is 0% for two years.  We expect to pay this off in February once my wife receives her quarterly bonus.

Wife Is Going To Have a BIG February

February is going to be a huge month for my wife’s career.  She had an amazing quarter (as usual) and should receive a quarterly bonus of ~$15K gross.   She will also be receiving a trip for two to Cancun for winning the President’s Award.

If that wasn’t enough, she also is being promoted to management and will now have a team of sales reps that report to her.  Her salary will increase from $97,000 to $130,000 and her quarterly bonus for hitting goal will increase from $9,000 to $12,500 (she earns more if she exceeds the goal).  Furthermore, they are giving her 15,000 more stock options (they already gave her 20,000).

I am so proud of my wife and can’t believe how much success she has had in her career and at such a young age (30 years old).  It is truly a blessing and well deserved because she works so hard.

Our path to financial independence and retiring early.