Chart showing net worth progression from December 2017 to April 2018

This is the first time I’m sharing my net worth online.

Related: Net Worth Update #2 - May 2018

I got the idea to share my net worth from J. Money. It’s motivational to see the progress he’s made over the past 10 years and hopefully, I can provide some motivation for others as well. The layout for my net worth update is heavily inspired by Zach’s net worth update over at Four Pillar Freedom.

I’ll be sharing monthly updates from here on out.

Here are my numbers for April 2018:

Cash Reserves
Savings Account$5,933.37  (+$1,898.88)
Checking Account$28.21       (-$868.75)
Total Cash Reserves$5,961.58  (+$1,030.13)
  
Non-Tax Advantaged Accounts
Vanguard VTSAX$19,342.53  (+$2,396.08)
Total Non-Tax Advantaged$19,342.53  (+$2,396.08)
  
Tax Advantaged Accounts
401(k)$18,330.71  (+$1,358.59)
Total Tax Advantaged$18,330.71  (+$1,358.59)
  
Net Worth$43,634.82  (+$4,784.80)

Progress

Here’s a look at my net worth progression since I started tracking it back in December of 2017:

Chart showing net worth progression from December 2017 to April 2018

My Investment Strategy

My “investment strategy” is dead simple.

Every month money goes straight from my paycheck into my 401(k) (the idea here is to reach the annual contribution limit of $18,500) and during the first week of the month I invest a lump sum into VTSAX (usually around $3,000 - I have yet to automate this, though I will at some point).

The rest of the money has been going into my savings and checking accounts, though I’m now reaching a point where I’m comfortable with my “liquid” reserves, so I’ll soon start increasing my monthly investment in VTSAX and leaving just enough in my savings and checking accounts to cover my monthly expenses.

My 401(k) is managed by Vanguard and it uses the Target Retirement 2060 Trust Select fund. This fund has a 90/10 stock to bond allocation.

Since my investments are basically split in half between my 401(k) and VTSAX ($18,330.71 and $19,342.53), that leaves me with a 95/5 stock to bond allocation (VTSAX is purely stocks). I’m young and got plenty of working years ahead of me, so I’m looking to be as aggressive as possible.

Here’s my complete asset allocation breakdown:

Chart showing source of net worth (cash, stock, bond) by percentage

Recap

From March to April my net worth increased by $4,784.80.

This was the lowest month-over-month net worth increase ever for me and it was mainly due to one reason:

1. The stock market dipped. From March 20th (I track my net worth around the 20th of every month) to April 20th, VTSAX decreased from $68.17 a share to $66.92, for a 1.83% loss.

Most of my invested money is in VTSAX (I invest in it directly and 53% of my 401(k) is also in VTSAX) so I took a small hit.

I’m in this for the long run, though, and in the long run the market always goes up!

Stock price of VTSAX over April 2018

Where Did My Money Go?

This month I invested $3,000 in VTSAX, a lump sum buy on March 27th for $66.48 per share. I also invested $1,716 into my 401(k). The rest of my income went into my savings and checking accounts.

Where I’m Headed

A fairly high percentage of my net worth is tied up in my savings and checking accounts as I build a little safety net.

The plan is to stockpile a rainy day fund of $15,000 (about a year’s worth of living expenses) and to then switch into full-on, pedal to the metal investing mode, basically putting all of my income minus monthly expenses into my 401(k) and VTSAX.

Thanks for following along with me! If you have any questions or comments or if you want to talk about financial independence, you can reach me at ziadig@gmail.com.