September 2018

sep2018

Another solid month. The key highlight to this month was stated in the last post. Another highlight was that M started on a new job. This job was lined up almost 10 months ago but the start was purposely chosen to be after the unofficial end of summer (Labor Day). We had one domestic and one international trip, each a week long, during the time M was enjoying time off between jobs.

One more thing of note. With the job change, and the corresponding change in salary, our combined annual income has gone past $250k. We will put up an income post for 2019 when we have the full year number.

The next near-term goal is to get the total assets up to a $1M by end of the year. Of course, a lot depends on the markets. As we have said in numerous posts, and will continue to reiterate, we fully acknowledge the huge role the bull market has played on our current state of affairs. We know the bears are bound to come at some point. We will ride those periods out.

Posts that give more context:

Who we are

Our income

Our Assets and Liabilities

August 2018

aug2018

Another month where the trifecta of a) Socking money in retirement account, b) Paying down debt, and, c) Stock markets continuing in their upward trajectory – helped us in pushing our net worth close to $700k, notwithstanding the fact that we’ve been on one income for the whole month of August!

There were a couple of big expenses in August, all paid for by credit cards, which will be reconciled by cash this month and reflect in the next update. One of the expenses relate to travel (food and incidental; major categories such as flight and hotels were already paid for earlier); the other relate to a party we threw in August.

September heralds in a new job with a substantial greater income. Also, the outstanding student loan (~$8k) will be paid off by end of the end of this month (from the signing bonus of the new job).

Here’s what goes into our Assets and Liabilities.

July 2018

 

jul2018

Big ticket expenses for July:

  • $816 for semi-annual vehicle insurance premium. We have a stand-alone checking account for vehicle and home insurance premiums, in which we sock away monthly amounts
  • $260 for a bed that we bought on Amazon. We’ve been following this item for months now. The highest it has been was $640.
  • Took a extended-weekend long trip to Canada which cost about $350, including gas, hotel, and meals

Another solid and stable month. Retirement and investment accounts continue to rise, buoyed by the markets and us systematically setting money aside. Debts went down by $3.1k.

Last day at my old job was in the last week of July. It’s almost 2 weeks now and I’m loving it. I won’t be starting at the new gig till September. Now that we are temporarily down to one income, the post on August will have some screwy numbers.

June 2018

 

jun2018

Big ticket expenses for June:

  • $2,915.62 on airfare, lodging, and day tours for our upcoming trip to Iceland. Exciting! We have a standalone savings account for big trips and all of the expenses were paid from this account.
  • $680.06 on patio and porch furniture. We have a standalone savings account for big household expenses and the furniture were paid from this account.

Our retirement accounts crossed over half a million dollars in June, for the first time. Debts reduced by $3.3k.

Other than that, nothing much to write home about. Haven’t changed what we put into our retirement or taxable accounts. Markets have been doing their thing. By end of this month, we go down to one income! More on that in next month’s update.

May 2018

Buoyed by the markets, and us continually pumping in money into our retirement accounts, our assets grew by around $17k in May. Almost $3k debt was slayed in the same period. Resulting in our highest Net Worth yet in our journey.

There were a couple of big ticket expenses in May:

  • $1,687.32 for Lasik eye correction surgery for one of us. The money for this got taken out of the HSA account
  • $1,175.51 for an international flight we booked for one of our mom. This kind of expense is not a common occurrence, more like once in a year (or two). This expense came from general savings

June will be interesting as there are a few high profile expenses coming up.

April 2018

Last month we had our biggest *loss*, month over month, of net worth: over $10k.

And I love it!

This gives us a chance to show that it’s not all rainbows and unicorns out here. Though the general trend of the net worth is upward in the long term, in the short term there are hiccups. Things have been so hunky dory over the past year and half (the time this blog has been alive) that it is easy to miss the short term volatility that the markets are known for.

Jan-2018
Feb-2018
Mar-2018
Apr-2018
Assets
Retirement
477,705.20
468,813.18
495,327.97
480,819.34
529college
19,853.29
19,096.68
20,315.59
19,660.51
Bank Accounts
41,349.08
51,254.82
54,584.54
55,316.67
Investments
19,844.21
19,575.18
21,422.73
21,583.46
Bonds
12,371.98
12,584.32
12,607.70
12,609.56
House
300,000.00
300,000.00
300,000.00
300,000.00
Total Assets
871,123.76
871,324.18
904,258.53
889,989.54
Liabilities
264,002.67
260,845.04
257,299.46
253,842.05
Net Worth
607,121.09
610,479.14
646,959.07
636,147.49
Change MoM
23,077.28
3,358.05
36,479.93
-10,811.58

 

Our retirement accounts, comprising of a vast majority of our assets, took a $15k plunge, even though we plowed in over $2.5k in April (as we do every month). That how the markets works. Some days, some weeks, some months, and even some years, are worse than others. We just have to ride out the rough while making hay while the sun shines (double metaphor in a single sentence, anyone?)

We also shaved around $3.5k from our liabilities. That’s something that can go unnoticed. Growing Net Worth is equally important by saving and investing as well as chipping away at those pesky debt obligations.

Consolidating the student loans with Earnest helped as the monthly $1.5k that I put towards that loan resulted in only $17.15 being paid towards interest, whereas the same amount when applied to the Navient and Discover loans had resulted in $93.16 in interest payment in March.

March 2018

Jan-2018
Feb-2018
Mar-2018
Assets
Retirement
477,705.20
468,813.18
495,327.97
529college
19,853.29
19,096.68
20,315.59
Bank Accounts
41,349.08
51,254.82
54,582.04
Investments
19,844.21
19,575.18
21,422.73
Bonds
12,371.98
12,584.32
12,607.70
House
300,000.00
300,000.00
300,000.00
Total Assets
871,123.76
871,324.18
904,256.03
Liabilities
264,002.67
260,845.04
257,299.46
Net Worth
607,121.09
610,479.14
646,956.57
Change MoM
23,077.28
3,358.05
36,477.43

A net increase of $36k for March, easily besting the $23k from Jan 2018! That’s pretty good! We had a triple whammy of bonuses flowing in, the markets going up (till Mar 9, at least!), and paying down our debts by over $3.5k.

We’re very aware of the fact that we’re in the midst of a historic bull market. The crash will come, at some point. Maybe we’re in the middle of it. We don’t know 🙂

Here is what all constitutes our Assets and Liabilities. We have updated this a bit since some things have changed from over a year ago.