Once a month I share my net worth.
Related: Net Worth Update #3 - June 2018
I do this as it’s motivational to see the progress other bloggers are making on their net worth 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.
Here are my numbers for July 2018:
|Savings Account||$11,009 ($9)|
|Checking Account||$1,213 (-$1,089)|
|Total Cash Reserves||$12,222 (-$1,080)|
|Non-Tax Advantaged Accounts|
|Vanguard VTSAX||$31,874 (+$5,521)|
|Total Non-Tax Advantaged||$31,874 (+$5,521)|
|Tax Advantaged Accounts|
|Total Tax Advantaged||$23,980 (+$1,946)|
|Net Worth||$68,077 (+$6,388)|
Here’s a look at my net worth progression since I started tracking it back in December of 2017:
My Investment Strategy
My game plan remains unchanged: save as much as possible, max out my 401k, and put all I can into VTSAX.
At the start of the month part of my paycheck gets automatically deducted and deposited into my 401k and during the first week of the month I invest a lump sum into VTSAX (I’ve yet to automate this investment).
The plan initially was to sock away $15,000 into my checking/savings accounts as a little cushion, but I’ve relaxed on this goal in order to put extra money into VTSAX. I’ll probably be staying around where I am now as far as my “liquid” savings go.
My 401k is managed by Vanguard and it uses the Target Retirement 2060 Trust Select fund. This fund has a 90/10 stock to bond allocation.
As my investments in VTSAX continue to outpace and eventually eclipse my 401k contributions, my investment allocation will basically be 100% stocks. I’m young and got time to ride out any market storms, so I’m looking to be as aggressive as possible.
I still have a much higher percentage of my net worth in my savings/checking accounts (18%) than I’d like, but that’s mainly due to my investment accounts still being relatively new. Ideally, my “liquid” savings would only be at around 5-10%.
Here’s my total asset allocation:
Where Did My Money Go?
I drew down my savings just a bit this month in order to invest $5,000 in VTSAX, a lump sum buy on July 6th for $68.92 per share. I also put $1,738 into my 401k.
From June to July my net worth increased by $6,388! That’s about a 10% increase from last month.
The stock market remained fairly stagnant, so the bulk of the gains were due to my contributions rather than any market gains.
One fun little gain was the interest payment in my savings account.
Last month was my first month with my savings put away in Capital One rather than Wells Fargo.
Where I was getting about half a penny in Wells Fargo, this month I earned $9 over at Capital One! Nothing to write home about, but happy to be making an extra ~$15 a month (I made the switch on the second week of June so I missed out on a week of interest).
I went with Capital One as I already have a credit card there, but Ally offers the same interest rate (1.6%) and I know a few people who really like them.
Where I’m Headed
The goal is to maintain my high savings rate and stay on track to surpass the $100k mark sometime before the end of 2018 (🤞).
If you have any questions or comments or just wanna chat, you can reach me at email@example.com.