Once a month I share a financial update.
Related: Financial Update #13 - April 2019
I do this as it’s motivational to see the progress other people are making on their financial goals and, hopefully, to provide some motivation for others as well.
I shared my first net worth update back in April 2018 and have been sharing monthly updates since.
Income & Expenses
My 9-5 job income listed below is the sum of my post-tax salary plus my 401k and HSA contributions. Any side hustle income is pre-tax since it’s hard to calculate what I’ll end up paying on this until tax season.
|9-5 Job Income|
|Side Hustle Income|
|Total Monthly Income||$8,822|
|Expense||Amount||Percent of Total|
|Trip to Portland||$247||14%|
Based on the above, I saved about 80% of my total income in May.
Here’s a summary of my account balances as of June 9, 2019:
|Savings Account||$29,734 (+$6,448)|
|Checking Account||$229 (-$6,428)|
|Total Cash Reserves||$29,963 (+$20)|
|Tax Advantaged Accounts|
|Roth IRA||$5,514 (-$82)|
|Total Tax Advantaged||$51,406 (+$1,592)|
|Non-Tax Advantaged Accounts|
|Brokerage Account||$3,608 (-$194)|
|Total Non-Tax Advantaged||$68,934 (+$3,049)|
|Net Worth||$150,303 (+$4,661)|
Here’s a look at my net worth progression since I started tracking it back in December of 2017:
From April to May my net worth increased by $4,661, a 3% increase since last month.
This increase was mainly driven by the recent gains in the stock market. If I had posted this earlier in the month as I meant to my monthly gains would have been close to zero. Over the past few days, however, the stock market has gone up (VTSAX went from $68.36 on June 3rd to $71.84 on June 10th) resulting in the 3% gain.
May also brought a few extra dollars courtesy of Medium. This month’s $55 are a far cry from that glorious high of $847 in August of last year, but I’m not complaining. I do plan to get back to Medium some time in 2019, but work and some side projects have kept me busy.
Where Did My Money Go?
In last month’s update I mentioned I was holding off on buying any more shares of VTSAX until a market correction drove prices down.
I got my chance late in May when a small stock market correction drove the price of VTSAX down to $69.28. Considering I bought VTSAX when it was as high as $73 around October of last year I thought this was a good buying opportunity and I invested $2,000. Two days later, on the 31st, VTSAX fell to $68.52 after President Trump threatened to impose tariffs on Mexico and I decided to invest another $2,000. VTSAX ended up falling to $68.36 on June 3rd before rebounding, but what are you gonna do? ¯\_(ツ)_/¯
Since falling to $68.36, however, VTSAX has increased every day and is at $71.84 as of June 10th.
I have no idea when or if there’ll be other blimps like these in the upcoming months. Trump loves to talk about the gains the stock market has made since he’s been in office so it seems likely that he’ll do all he can over the next year and a half to keep the stock market strong to look good for the 2020 elections. But volatility has been rampant this year and Trump likes to stay up late on Twitter, so who knows? Definitely not me.
Regardless of what the stock market does, I’ll continue to make my regular monthly 401k and HSA contributions and build my savings for the next buying opportunity.
Where I’m Headed
This month I surpassed the $150K mark for the first time. Depending on how the stock market plays out, I might be able to reach the $200k mark by the end of 2019.
Regardless, the plan remains the same: maintain a high savings rate, plug all I can into VTSAX when good buying opportunities present themselves, and continue to chip away at the $19,000 401k limit for 2019.
Thanks for reading and if you have any questions or comments, you can reach me at email@example.com.