Once a month I share my net worth.
Related: Net Worth Update #5 - August 2018
I do this as it’s motivational to see the progress other bloggers 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.
Here are my numbers for September 2018:
|Savings Account||$11,041 (+$16)|
|Checking Account||$2,000 (-$868)|
|Total Cash Reserves||$13,041 (-$852)|
|Non-Tax Advantaged Accounts|
|Brokerage Account||$4,006 (+$64)|
|Total Non-Tax Advantaged||$41,271 (+$4,411)|
|Tax Advantaged Accounts|
|Roth IRA||$5,557 (+$5,557)|
|Total Tax Advantaged||$34,976 (+$7,584)|
|Net Worth||$89,285 (+$11,144)|
Here’s a look at my net worth progression since I started tracking it back in December of 2017:
From August to September my net worth increased by $11,144! That’s about a 14% increase from last month.
This increase is a bit misleading since I got paid twice in September. I get paid once a month and it worked out so that I got paid for August on September 1st.
September was another month with higher than normal spending, mostly related to moving. This month I moved with my girlfriend into a new place and we had a little Ikea excursion to finish furnishing the apartment (I ate their Swedish meatballs for the first time. Not bad.)
I also had my car shipped from Florida (an $1,100 hit… I don’t think there’s a further route in the US than the one my car took––south Florida to Seattle). The car has already started to pay for itself in the form of some beautiful hikes.
I also opened up a Roth IRA account, one of the things I mentioned I wanted to do in last month’s update. I did this through Vanguard as I already have my other investments there (my 401k is also through Vanguard) and it took less than 10 minutes. I invested $5,500 (the annual maximum) into VTSMX (which is the same as VTSAX, except without the $10,000 minimum).
I went with a Roth IRA over a traditional IRA as I wouldn’t get a tax deduction from the traditional IRA and because I liked the flexibility of being able to withdraw my contributions penalty free.
What Drove The Net Worth Increase?
Like I mentioned above, the main factor in this month’s increase was the double paycheck. I also got most of my security deposit back from my previous apartment, so that was a nice little bonus.
The market was fairly flat during September so I didn’t gain much there.
Where Did My Money Go?
In addition to the $5,500 I added to the Roth IRA, this month I was able to contribute again to VTSAX. I hadn’t done so for a few months since I needed money on hand, but I added $4,222 as a lump sum buy on the 30th at $72.95 per share.
I first bought VTSAX shares in December of last year at $66.34 a share. Nine months later they’re already over $70 (about a 10% increase). The best time to invest is always today.
I also put in $1,738 into my 401k and remain on track to reach the $18,500 max annual contribution limit. Everything else went into my checking account.
Here’s my total asset allocation:
Where I’m Headed
Over the past few months I did a few small things that will have a big impact in the long-term.
In May I signed up for an HSA at work and then last month I invested the funds I had in there in SPTM (the HSA investments are managed through Ameritrade and SPTM is one of the only total market commission-free funds I found). This lowers my tax bill and provides tax-free growth.
In June I finally got rid of my awful no-interest Wells Fargo savings account from college and opened one up at Capital One (I’ve heard Ally is also good), where I’m getting 1.85%. Over these past few months I’ve made about $55 worth of interest.
This month I opened up a Roth IRA, which won’t lower my tax bill, but will provide tax-free growth. I’ve reached the max annual contribution for 2018 and will add to it again next year.
Overall, the game plan remains unchanged: save as much as possible, max out my 401k, and put all I can into VTSAX. The goal is 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 firstname.lastname@example.org.