September Net Worth: Δ 2.41% m/m
YTD Net Worth: Δ 87.5%
My net worth results are in! Another successful month of net worth growth and wealth accumulation. I am super excited about how the numbers shaped up. Since this is my first Net Worth post you will have to excuse my exuberance over the numbers. An increase of 1%, let alone 2.4%, is super exciting for me. As I summarized in my introduction, I am in the early stages of my millionaire climb. Up until 2016, I was still in negative territory albeit in a great trajectory. This month’s result is a wonderful reminder of how much better my financial position can be if I follow the plan.
Before I get into some individual results it is a good time to pause and drop some basic facts about my financial assets and approach. Here are a few notes:
- My approach is a hybrid of best practices and methods. It is NOT for everyone and is NOT the “most efficient” or “lowest cost” way. I tried all of them individually and they did not work for me. My impatience, family goals and absolute money ADHD just got in the way. This plan and financial structure seems to keep me driving down debt, allows for family spending and still meets my ultimate goal. Maybe as I get some traction I can learn to be a bit more patient.
- I keep assets like my house and car on my asset list but at a very conservative amount. The home has a positive net worth impact but the car will show a negative in the short term.
- I use some of my asset allocation and budget specifically to help my tax situation. I allocate 10% to my 401k (4% $ match) and allocate to a pre-tax HSA. I won’t share the extreme details but I get CRUSHED in federal taxes.
- There are lump sum payments that I reasonably expect to receive throughout the year. So if you notice an unusual jump specifically in assets, a bonus was awarded or my annual direct 401k contribution was paid (2% of gross salary).
- I am married and my wife has assets as well but none of Mrs. Riding to 7’s numbers are included.
LIABILITIES: Down 0.36% m/m
Credit Cards: For the foreseeable future this percentage drop will mostly be attributed to my last credit card. I anticipate finishing this credit card off (9.9% APR, $16,274) by March 2019, barring any unforeseen windfalls.
Loans: I have a student loan (3% APR, ~$68,000) and a car loan (0% APR, $18,028) that I pay regular payments. These are paid monthly with a little extra just because I like round numbers. I have a mortgage on my primary residence at 4.625% APR and no PMI.
ASSETS: Up 0.05%
Retirement Accts.: My 401k account (up 4.8% ytd) like many others is doing well this year. I am not exactly pacing with the S&P 500 (up 8.5% ytd) since I do keep an allocation to foreign markets and bonds in my allocation. My Roth IRA is small (<$1,000) and recently opened. My HSA receives a contribution out of my pay check and is doing well. Since it’s before taxes, it helps drop my tax burden.
Other investments: I also have a stock trading account at Robinhood and a peer to peer lending account at Prosper. This is how I cure my financial “itch” to do something. I take super small amounts that I receive (eg. I find a $20 bill) and split it: half to debt and half to one of these accounts. I can buy shares at Robinhood for free and the returns at Prosper so far have been decent, ~7% after fees.
I look forward to updating you on my progress, how I did it and what I am doing to celebrate the achievements along the way.
Cheers to happiness!
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