Tag Archives: 2016

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.

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.

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August Net Worth and Budget Report

Spending has been getting a bit carried away this summer – and I need to get it back in check as I begin to seriously contemplate a very drastic career change (requiring a major paycut and possibly additional schooling.)

In August, my net worth was relatively flat at $394k (this includes my car worth estimate, so I’m really considering my net worth to be $386k.) My goal for the year is $400k, which leaves 4 months to save $14k. On my current income, if I stop being SO HORRIBLE at giving in to overspending, that should be very do-able. However, I will likely leave my job in October or November, meaning that most of the saving has to happen in September. This month can’t look like last month. I’m embarrassed how much I spent! Continue reading

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. 🙂

 

 

 

November Wrap Up and Progress Towards $300k

Wow, I can’t believe it’s already December, well at least fiscally speaking. Markets closed at 1pm on Friday and the direct deposit paycheck is processing in my checking account. Despite two months of unemployment, this year has shaped up to be decent in terms of networth growth. I’m hoping next year will blow all of my previous year savings out of the water.

I’m toying with the idea of making a goal of hitting $400k networth by the end of 2016 (which is actually possible if I live frugally and manage to hit a sizable chunk of my bonus) but very much so a stretch. This year my stretch goal was $325k — which I’m not going to make — but my non-stretch goal of $50k growth to $300k is within reach (yes, I had gotten to $300k earlier this year and then dropped under it again, so you can say I did reach my goal even if I end up slightly under – but I base my success off of my Jan 1 networth. Actually, according to NetworthIQ I’m at $308k right now – but that includes $16k that is disappearing in my old company stock (probably will be lost in 2016) and $10k for my car which is always depreciating in value. Since both of those are still real live assests I’ll count them for now and have to make up the difference in 2015.

That said, I have one more month to kick ass and bring this year home. Looking forward to a frugalista December for the win. The more over $300k I can be Jan 1 the more likely I can achieve $400k in 2015, bringing it home with $500k networth in 2016 when I hope to be pregnant with my first child. Assuming $15k and $20k growth at .05% interest rate YoY that leaves $165k in actual savings each year to make up for, or $6875 per month. Let’s do this.

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