Disclaimer about our Net Worth
We don’t have any debt, non whatsoever. But we use credit cards to earn some miles and get signup bonuses; we paid the whole balance every month. We own a car and a motorcycle, but we decided do not include the value of these vehicles in our Net Worth.
April 2017 Net Worth Update
Welcome to our very first Net Worth Update, the monthly series where I share our real life numbers with you. Frankly speaking I am a little bit nervous for two reasons:
- I have never done it before
- It is kind of scary to share the real numbers with the whole world. But seeing similar reports from other fellow bloggers helped me to stay motivated and keep going.
And here it goes, our April 2017 Net Worth is $102,337.22
Net Worth Details
Checking Account ($16,600.92): Nothing fancy, pure liquid cash we use to operate our household. We have several “funds” like car/motorcycle maintenance and insurance, or vacation fund, etc. Some of you might say, “There’re a lot of money sitting idle, doing nothing”. But the truth is $7,000 will be transferred toward the downpayment fund, $1,888 into Ally Savings account.
Ally Savings (EF) ($30,000.00): This is our 6 months worth of living Emergency Fund. We use Ally Online Bank for keeping our Emergency Fund money.
Ally Savings (Other) ($8,111.04): Because of our income we can’t contribute to Roth IRAs directly, that’s why every month we save some money that we would have sent to Roth IRA if we could. As soon as we have enough money ($11,000) we will open two Roth IRAs accounts and will do backdoor IRA contributions.*
Mr. FR Roth 401(k) ($21,323.88): Because we are saving for a house (see below) we decided to contribute up to the match only. In my case it’s $0.75 for every dollar up to 6%
Mrs. FR Roth 401(k) ($6,983.79): The same as above, Mrs FR contributes 6% only and her employer matches 50%
HSA ($2,241.51): This year we decided to switch our health insurance from High Premium Low Deductible to Low Premium High Deductible and use HSA account, especially after my employer decided to contribute $1,500 every year. Every paycheck we contribute $201.92 to meet the maximum.
Downpayment (VSTAX) ($17,489.04): We are saving for downpayment for a house, our goal is to have enough money to buy a house with no more than 25% of just one of either our salary, which is pretty conservative.
Liabilities ($0): Zero, Nada, Ноль. There’s nothing to say about, we don’t have car payments, we don’t carry balance on our credit cards, we use cash when it’s necessary and if we can get a better deal.
Income vs Outcome
April was really good, in addition to our regular paycheck I received $6,000 (Gross) bonus which I didn’t expect to.
But our spending was a little bit different than our usual months
Groceries and childcare are still the top expenses for us so far** I still think $800 per month for groceries and household items like toilet paper and stuff is higher than it should be. Childcare is lower this month, usually we pay $1,600 for both of our kids, but our youngest daughter is staying with my parents in Sochi, Russia until June.
Insurance – I don’t know about you, but I buy Term Life Insurance, and April was the time to pay for the new year.
But even after all the spendings, usual and unusual, our saving rate for April is 70% which is great.
* Because we are saving for a house, Mrs. FR and I haven’t decided either we are going to contribute this money to Roth IRAs, or we are going to use them for downpayment. We still have couple of months to think about it and take the final decision.
** We are not paying rent until March 2018 because we paid the whole year upfront and got pretty good discount. I will write a post about it