Category Archives: Networth

2016 Spending

Although I saved a substantial sum in 2016, I definitely overspent in many areas. It was the year of my wedding so even though my parents contributed a sizable sum to the event, I splurged and spent too much on it outside of their contribution. We did a small “mini moon” which also cost something, but in 2017 we will splurge on a bigger international honeymoon. Here is a quick overview of how my spending went into 2016…

Income (after tax and 401k): $112.4k
Spending: $81.2k
(remaining / savings: $31.2k + $18k  (401k) = $49.2k saved)

Auto & Transport: $5.1k
Bills & Utilities: $1.5k
Education: $2.2k
Entertainment: $1.37k
Fees: $443
Food: $11.7k (yikes)
Gifts: $1.67k
Health: $5.4k (not counting insurance)
Home (rent and home things): $17.3k
Personal Care: $4k
Shopping: $14.8k
Wedding: $9.6k
Travel: $6.2k Continue reading

2016 Networth Checkin: $416,583

Incredibly, 2016 has come to a close. My networth goal for 2016 was  somewhere between $400k and $500k from last year’s $352k finish. I didn’t get (anywhere near) $500k, but I still feel accomplished given my mental health and spending more than I wanted to on my wedding this year. I’ve concluded 2016 with $416,583 in networth, including:

  • $14k in cash
  • $188k in taxable investment accounts
  • $204k in retirement accounts
  • $9.9k in college 529 (for grad school or future kids)

My goals for 2017 are:

  • $15k in cash
  • $250k in taxable investment accounts
  • $225k in retirement accounts
  • $10k+in college 529

TOTAL: $500,000

It will be tough, but this goal should be do-able if I either stay in my current job or find another one that pays close to this one. Even if I reduce my current salary by $20k I should be able to still hit this goal. I must save $84,000 in the next 12 months, or $7000 per month. This is definitely do-able with my current job (I make about $10k after taxes per month), but if I reduce that to $9k per month I can manage to save enough. Any less than that it would be challenging with my current rent and other recurring fees.

I am worried about the costs of infertility treatments (that will definitely ruin my networth goal for the year) but I’ll cross that bridge when I get to it. Even though my mental health is poor right now I know I will feel a huge sense of relief when achieving $500k in networth. It has been a dream of mine since forever ago to achieve half a million in networth prior to giving birth. Well, as I’m not pregnant yet I have AT LEAST nine months before I need to get to $500k. At this rate I’ll have more than nine months to get there.

Joining J. Money’s Million Dollar Club

million-dollar-club-1

Today, I’m taking a pledge and – being one of the last to the party – to join J. Money’s Million Dollar Club. I’ve already unofficially been a member since I’m working towards $1M (well, $2M is my financial freedom money goal) but this makes it all more official. Plus, hopefully he’ll add me to his fancy list. I like lists.

I would like to become a millionaire by the time I’m 45 (or sooner) independent of any wealth my husband is accumulating. This puts me well on my way towards $2M+ in individual networth AND means that when my (hypothetical) children are in their pre-teen and teen years I can be more flexible with my career and actually see my kids before they’re out of the house, married off, and spending time with kids of their own (tear. boy do they grow up fast.)

In order for me, Her Every Cent Counts, to become a millionaire by 45, I pledge to do the following:

1. Invest an average of $5000 per month for the next 10 years (between taxable accounts and retirement accounts)

2. Max out my 401k each year for the next 10 years (or every year I have access to a retirement plan through work) even without match (because let’s face it I’ll never work for a company that offers a match.

3. Live in my 1 bedroom rented apartment with Mr. HECC for as long as possible (i.e. until our first child is two) even though I would much prefer to live in a 2-3 bedroom house. Only buy a house after I have $750k-$1M saved for retirement that I don’t need to touch, so it can grow to $2M by the time I retire.

4. Continue to drive my used 2011 car until it dies (but invest the appropriate amount into keeping it in good shape.) Never buy new cars.

5. When possible, increase my monthly savings beyond $5000 (for instance, I can save up to $7000 right now per month if I’m extremely frugal) but don’t let being “ahead” of my net worth goal at any moment in time change my savings rates.

6. Put aside any additional income (bonuses, tax refunds, extra income) into my investment accounts.

7. Find a career that enables me to consistently save $5000 per month for the next 10 years (which means that I can’t go back to grad school unfortunately so I likely have to stay in my current career and just learn to suck it up.)

8. Gain skills and keep up to date with latest skills to become highly valuable as a consultant in my industry so I can potentially earn more money working for myself and enjoy my life more.

9. If needed, move to an area of the country with a lower cost of living (but only if I can continue saving $5000 consistently per month for the next 10 years)

10. Invest in experiences only, especially travel before kids and family vacations after kids. Rotate cheap vacations (camping) with fancier ones (Hawaii). Any additional income (if income increases) should be split between savings, “life experience” fund and housing fund.

 

 

 

2016 Home Stretch: Networth Goals and New Directions

My 2016 goal was to hit between $400k and $450k in networth. While I’m not going to get anywhere near the top of that range, there is still a chance I can make it to $400k.

On January 1, 2016 my networth was $339.5k. As of November 15, 2016, my networth is $391.4k, a $51.9k increase.  To hit my objective of $400k networth minimum, the stock market needs to hold out and I must save around $9k more between now and the end of the year. That should be doable but it will be close.

Next year is theoretically the big $500k year. With very poor job stability right now I’m guessing that goal is going to have to be adjusted down significantly – I won’t actually get to $500k before I have a baby (since I’ll probably have to spend $50k to even get pregnant!) In any case, despite the shakiness at work, I’m feeling good about getting closer to achieving my goals for the year.

I’m very seriously considering moving to a lower cost of living area to have a family and taking on a lower paid career – I just want to cross that $500k mark before I do. Having $500k in the bank means $1M-$2M in retirement as long as the markets don’t completely crash and go up at a reasonable rate, as long as I don’t touch the $500k basis. I will feel very successful once I get to $500k, and as I’m at $391 now it isn’t that far out. It’s definitely possible.

Budgeting to Achieve $500k Goal Before Kids

As my long-time readers know, my “impossible” goal of hitting $500,000 in individual net worth before I have my first child is somehow within sight. It’s still seemingly impossible, but I always aim high and see how far I can get. I’m not pregnant yet, so that gives me at least nine months to get there. Below, I’m going to detail my budget plan to take me from where I am today to where I want to be before my first child is born.

On 7/15/16, my networth calculations = $379,412.

This leaves $120,588 to save prior to having children.

Continue reading

Mid Year Networth Check In

It’s been a while since I’ve written about finances on this blog, and since it’s somehow half way through the year it’s time to do a quick check in. So, the first half of this year has not been as profitable as it should have been given my high income, but the wedding just wiped out most of my gains. My stock has been performing ok so I haven’t lost money on paper, but I could be doing much better right now had I not gone crazy on my wedding. I don’t regret it, though, and it just inspires me to tighten my wallet for the rest of the year to hit my goals.

My goal WAS $500k before having kids and it still kind of is — I’m not pregnant yet and I’m at $373k in net worth right now… leaving $127k left to achieve my goal before I have my first child. Even if I got pregnant tomorrow, that leaves me nine months to accumulate $127k, which is $14k a month… not exactly doable (I figure being frugal with my current income I can save about $6k a month) but this is all on the hypothetical if I get pregnant tomorrow which likely won’t happen. More likely it will take me at least a year to get pregnant (and we aren’t going to really start trying until after our actual honeymoon next spring) so that buys me an extra 9 months at least… getting me to $7k a month savings/interest needed to hit my goal. While it will be tough the goal actually seems POSSIBLE to hit. It all depends on when I get pregnant and if I can keep my job – both serious up in the air variables – but if I’m not quite at $500k when I have a kid it won’t be the end of the world. It’s just a random goal keeping me on track to $2M+ in retirement.

(See first half of year being kind of bleh below:)

Screen Shot 2016-07-03 at 3.39.43 AM

I’m counting wedding gifts towards my total which I guess I should split in half with my husband, but he/his family didn’t pay for much of the wedding, so I’m currently keeping them toward my net worth (it still doesn’t cover all of what I spent on the wedding.) I’ll have to write another post on married finances because that’s worth a post (at least) but for now I’m still tracking my net worth independently. I think I will until I get to $500k because what fun would it be to merge our finances and get there by cheating and adding his small savings into mine. I want to get to $500k so I can move on to my next goal of $750k and then the big $1M. I think $1M by 40 is achievable but I might not go for that… I might aim for $1M by 45 or 50 and slow my career down a bit and seek out a better career that brings more happiness and creative fulfillment. Once I get to $500k I don’t want to go under it by much, I feel that’s a good amount for financial freedom when I still want to work full time.

Networth Update May 2016: $365k

2016 networth goal $500k – aborted. I’ll be lucky if I break even this year. It’s my own fault. I’m making a really solid income I’m just spending way too much on my wedding. I mean – wayyyyy too much. I’m torn on how bad I feel about it. On one hand, financial blogger self feels nauseous about how much this wedding costs – and how I failed to manage to keep the budget within my very generous parent’s contribution that at first seemed impossible to exceed. Well, it seemed impossible to exceed before I fully understood the difference between $2000 and $6000 wedding dresses and how the higher petal count of garden roses makes them just so much more elegant than a standard rose and that DJs really aren’t our style and venues which rush you out because another couple is getting married an hour after your celebration ends make the whole day feel so unfortunately rushed and unromantic.

Ok. I went overboard. Way overboard. You can see how overboard in my networth chart for the year to date:

It’s going to look flat for the next few months. I’ve paid off the entirety of my dress and alterations, as well as deposits on the florist and photographer and videographer. I still don’t understand how despite how much we’re spending on this shindig it still feels I have to cut corners all over the place.

I’ve revamped my networth goal this year to $400k. It’s $100k under where I was hoping to be at this point but then again it doesn’t look like I’m having a kid anytime soon — and the real goal is $500k before my first child is born. If I add in my future husband’s savings and count it in my networth we’ll be close to $500k by that point. I’m still going to account my own networth separately going forward though – I don’t really think we should merge our bank accounts. We’re doing just fine splitting rent and food at this point. When we have kids or buy a house I guess we’ll have to figure it out.

So… I don’t think I’ll be able to save any money until after the wedding. I’m still maxing out my 401k this year… about half way there so far… but the rest of the wedding expenses will wipe out my sizable take-home income for the next few months. We haven’t even planned a honeymoon because that will be too expensive and there’s no time… though I’d like to take one. In any case, I figure July will be the first month this year I can start saving something. I have a zillion weddings to go to this year as well which are across the country, so I’ll be spending a lot even after my wedding is done. I’ll somehow make it work.

If I break even by July 1 — say, $360k — I have $40k to make up in the next six months of the year… or $6.6k per month. Fortunately with my income that’s doable but I really cannot buy anything other than gifts for my friend’s weddings and plane tickets (you know, and food and rent and such.) I just really really really need to keep my job. Odds are looking ok on that but not great. If I lose my job all bets are off. I’ve been struggling to manage wedding planning and job together so once that’s over I can get back to focusing 100% on work… hopefully I’ll last that long.

Farewell $500k goal… on my way to $400k this year. Next year I think $500k is really possible with interest and such or at least getting closer to it. 2017 will be my half million year, I hope.

How I Increased My Networth 13% in 2015

Last year I increased by net worth from $309,894 in January of 2015 to $352,066 in January of 2016 (increase of $42,112 or 13% YoY increase.) This is not accounting for the last week of declines, which may or may not hinder 2016 growth. With a total net worth of $352k to start this year, I’m focused on my goal of hitting $400k by the end of 2016. Although this isn’t my original goal of $500k by the end of 2016, I think $400k is still a very aggressive and challenging goal for this year.

Screen Shot 2016-01-11 at 9.28.52 PM

In 2015, my stock portfolio increased from $144k to $171k. My retirement portfolio increased from $152k to $171k. Thus, the year concluded with approximately $342k in active investments (mostly stocks.) This is why when the market dips my portfolio significantly decreases. Since I have a substantial amount of funds in the stock market I tend to wait now a bit before putting large sums into play beyond what is already invested.

Goals for 2016:

Stocks: $200k, including $15k additional in Vanguard admiral healthcare fund, which has a $50k minimum. This would = $29k in net new investment, or ~$2.5k per month. If the market drops lower than monthly investments will have to increase to make up the difference.

  • $1250 / month — Vanguard Healthcare Fund (to get to $50k admiral minimum)
  • $400 / month — loyal3 fee-free partial stock investing
  • $850 / month — Vanguard fund TBD to get to $10k admiral (might reinvest in the dividend growth fund I sold for losses after a month or so. We’ll see.)

Retirement: $190k (max out 401k and IRA for 2016 — $23.5k additional investment, or $2k per month)

  • $18k = 401k max
  • $5.5k = vanguard IRA (post tax)

Cash: $10k – I’d like to close out the year with a $10k emergency fund.

This = a total monthly investment of approximately $4.5k per month, up to $6.5k if the market drops further. $6.5k is fairly impossible w/ my general monthly expenses plus the wedding, so I think the $4.5k goal (esp with some of it in pre-tax dollars) is a reasonable objective. If the market sucks this year then I probably won’t get to $400k, but I’ll still be buying discount stocks which will hopefully go up at some point in the next 10 years to make up for any losses.

If I can do this then and maintain my job I should be able to close the year out with $400k net worth. This would be a very exciting achievement for this year, as I’d still be on target to hit $500k prior to 35 (2018.)

Hello 2016! A Toast to an Amazing, Productive, Healthy, and Sane Year

I’ll admit it, 2015 was rough. With my long commute to and from work, my sanity and health sank to perhaps an all-time low. Although I achieved networth growth over the year, it wasn’t nearly as much as I had targeted. In fact, in the year when I made significantly more than I had ever made before, I ended up saving less than I had in the past (including interest.) I closed out the year with $344k in total assets with the exception of my car (I don’t count that in my networth calculations, though, I guess I suppose I should.) I wanted to be at $400k in networth, but between some bad investments, general stock market blahs, and being unemployed for a brief while, I just didn’t get anywhere near that.

What I try to remind myself is that $344k at 32 is not too shabby. If I don’t touch that, don’t add anything else, and it manages to grow at 5% YoY that’s $1.3M by the time I’m 60. Ok, so I want to get to $4M by 60 (which requires about a 10% YoY annual return with my current principal and no annual additions), but even if I get to $1.3M by 60 I think I could remain working and manage to grow that another 5  years, which gets me to $1.7M and that isn’t counting any savings from future Mr. HECC.

The plan was to hit $500k net worth, have a kid and save for a house while living in an apartment with young kid, and then over the next five years save enough for a 20% downpayment ($300k) on top of the $500k plus annual interest that I wouldn’t touch. That goal is looking rather unlikely right now, and I’m actually ok with that. I’ve gotten to this point where I’ve accepted that the life I am going to lead as an adult is going to be at a lower class level than the one I was used to as a child. While I grew up in an upper-middle class household, my family will be squarely in the middle class (for my region of the country), and we’ll be fine. We’ll still be doing much better than the majority of households in the country, even if we can’t afford a house for a long time, if ever.

Right now, my focus must be 100% on excelling in my job. With my current salary and responsibilities, I have the opportunity to set myself up for a very successful next 20 years of my career. I also am very seriously confronting the reality that if this doesn’t work out for any reason, if this is a failure, then it means a significant shift my career trajectory and networth projections. I very well might return to school – which I’ve been talking bout for a while but haven’t seriously pursued – to study to become a psychologist or design researcher with a psychological focus. But I don’t want to think about that right now, I’m heads down, fully in the game, trying to relax and thrive despite the many challenges at hand. In other words, I refuse to mess this up.

Beyond work, this year is just a huge year of major life changes. I get married in a few months (tax bill goes up next year, woohoo), and I also likely start trying to have kids, confronting the soon-to-be-proven fact that conceiving doesn’t come so naturally to me (thanks PCOS.) I’m hyper-focused on losing weight, eating healthy and exercise right now. My weight fluctuates significantly — in 2012 I was at 180lbs (my highest ever, which is very heavy for a woman who is 5’3), to 155lbs a year later, to 176lbs a year later than that, dropping and holding steady at 170 through 2014 and most of 2015, ending 2015 at 160lbs. I hired a personal trainer 3x a week ($50 a session which is a really good deal for this area) so we’re working on getting my weight down to about 130 in the next couple of months (5 pounds a month is my goal to lose, which is a good, achievable goal.) It’s mostly so I can feel happy with how I look in my wedding pictures, but it’s also just something I need to do in order to save myself from premature aging. Plus, I just feel mentally more clear and balanced when I’m eating healthy and exercising. It’s good to have such short-term goal so I am focused the entire way through, no matter how hard it gets.

This year, my goals are going to be a little less intense on the networth side. I’d like to get to $400k in networth, including $23.5k in new retirement savings (401k & IRA). That leaves $31.5k to make up for in interest and other savings, or about $2.6k per month. I’m planning to try to save an additional $2k per month on average, and hopefully the rest (~$7200) will come from interest on, say, $250k of invested, interest-earning assets, which is about a 3% gain on those investments. I’d prefer to go well over this, but trying to be realistic with the goals, especially with the wedding spending. I don’t think this is going to be a hugely profitable year but I could be wrong.

2016 Goal Summary

1) $400k networth – including $23.5k in retirement savings, $24k in taxable investments, and about $7k in interest.
2) Be 130lbs by summer
3) Thrive at my job (and be gainfully employed and loved by my colleagues when Jan 1, 2017 rolls around)
4) Get pregnant before I’m 33!?!

Well, here’s to kicking off what is sure to be a crazy year. Fingers crossed it’s a good one. I think it will be. I hope it will be. Oh god, it better be. 🙂