Net worth progression from December 2017 to June 2018

Last month I had my biggest jump in net worth thanks to Uncle Sam’s tax refund.

Related: Net Worth Update #2 - May 2018

I share my net worth 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 June 2018:

Cash Reserves
Savings Account$11,000    ($7,190)
Checking Account$2,302     (-$6,340)
Total Cash Reserves$13,302   (+$849)
  
Non-Tax Advantaged Accounts
Vanguard VTSAX$26,352  (+$3,562)
Total Non-Tax Advantaged$26,352  (+$3,562)
  
Tax Advantaged Accounts
401(k)$22,034  ($1,751)
Total Tax Advantaged$22,034  ($1,751)
  
Net Worth$61,689  (+$6,163)

Progress

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

Net worth progression from December 2017 to June 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 close to my $15,000 “liquid” reserves safety net goal.

I should reach this goal within the next month, which will allow me to start increasing my monthly investment in VTSAX.

Ideally, I wouldn’t have more than 5-10% in my savings and checking accounts at this point in time, and I think I’ll get there sometime by the end of this year.

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 ($22,034.23 and $26,352.59), that leaves me with roughly a 95/5 stock to bond allocation (VTSAX is purely stocks).

As I invest more in VTSAX than in my 401(k), this allocation will continue to skew towards 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 total asset allocation:

Net worth broken down by source (cash, stock, bond)

Recap

From May to June my net worth increased by $6,163!

This was another solid month due to the following:

1. The stock market continued to make gains

From May 20th (the day of my previous update) to June 20th, VTSAX increased from $68.24 a share to $69.84, for a 2.34% gain.

Most of my invested money is in VTSAX (I invest in it directly and 53% of my 401(k) is also in VTSAX), so this market gain gave me a little boost.

Stock price of VTSAX from May to June 2018

Where Did My Money Go?

This month I invested $3,000 in VTSAX, a lump sum buy on June 5th for $69.20 per share. I also invested $1,738 into my 401(k). The rest of my income went into my savings and checking accounts.

Where I’m Headed

Last month I talked about moving my money out of my Wells Fargo Savings Account, which only pays .01% in interest, into a Capital One or Ally savings account, which pay 1.60%.

This month I got around to making the switch.

I ended up choosing Capital One as I already had a credit card there and it seemed like they had a few more physical locations than Ally.

So starting next month there will be some small monthly gains in my savings account –– somewhere around $15 a month. Nothing huge, but I’m not complaining!

The goal is to maintain my high savings rate and maybe (🤞) surpass the $100k mark sometime by the end of 2018.

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