Disclaimer about our Net Worth
We don’t have any debt, none whatsoever. But we use credit cards to earn some miles and get signup bonuses; we pay the whole balance every month. We own a car and a motorcycle, but we do not include the value of these vehicles in our Net Worth. The same for our kids 529s.
December 2017 Update
What a year it was … Yes, it was great for the FR family, hope your year was great as well. Recently I posted a post review about the year of 2017
How’d you spend your vacation? Was it good? Hope you had a great time because we did.
We spent our vacation at the Lake Tahoe, CA What a great place to spend a Christmas vacation. I don’t know about you, but I LOVE mountains, I really do. When I lived in Russia I lived in a place called Sochi – a host of 2014 Winter Olympic Games. Maybe, for this reason, I LOVE Colorado.
Mrs. FR and I are planning to move to Colorado in a year. We would’ve moved already but one news made us move our plan for a year. I will write you about this news later 😉
Net Worth Update
Just WOW… Less than 5 years after coming to the States our Net Worth crossed $200,000 milestone and I have to tell you this, the first $200K is a bitch. You can take a look at this screenshot.
Yearly in December, we were so close to a $200K milestone, but the life happened: our younger daughter had a dental surgery that we had to pay almost $2000 out of pocket.
On the other hand, this is so awesome we had $30,000 in the Emergency Fund and almost $3,000 in the HSA account.
OK, enough talking, let’s check the numbers:
Checking Account – $1,91740 (-$882.75): In our checking account, we keep enough money to cover our regular expenses. All the extra money we move to different accounts: a saving account or a downpayment fund. And yes, we spent an amazing vacation in the mountains that we paid cash for.
Emergency Funds – $30,000.00: this is our 6 months worth of living Emergency Fund. We used to use Ally Online Banking, buy recently we’ve moved our savings to Vanguard Money Market. And you can read here why your emergency fund is not an investment.
Savings (Other) – $7,176.76: (+$76.42) We use this account for our sinking funds and other expenses that happen once or two times a year: car and motorcycle insurance, vacation fund and so on.
Mr. FR Traditional 401(k) $40,965.47 (+$3,321.05): Finally, I understood the idea of paying yourself first and we decided to max out our retirement accounts. It took a couple of pay cycles to adjust our spending budget but it worth every penny 😉 The more money you save, the less money you need to spend. Unfortunately, in 2017 we didn’t max-out my or my wife’s 401(k) accounts, which is really bad on our side. But in 2018 we will do it, at least for my account.
Mrs. FR Traditional 401(k) $18,216.87 (+$1,911.08): the same as above for Mrs. FR.
Mr. FR Roth IRA $6,285.61 (+$61.91): In 2018 we maxed out our Roth IRA accounts, which is really great. I love seeing my investments growing without me contributing any money. There’s something magic about it. The market is growing, so is our investment.
Mrs. FR Roth IRA $6,107.39 (+$60.11): Isn’t it amazing? Just a couple of months ago we put $5,500 into Mrs. FR Roth IRA account and it’s been growing since. I love when money makes more money.
HSA $1,893.88 (-$1,537.64): Did you know your dental insurance doesn’t cover full anesthesia? We learned this hard way, not really hard but hard enough that we had to pay $1,800 for 2,5 hours of full (deep) anesthesia for our young daughter. But on the other hand, it’s good we had enough money to pay for this procedure. I know, I know…. What we did is called blasphemy in the financial world, people don’t pay for the medical procedure out of HSA funds, but we have different goals and our HSA fund is for medical expenses.
Downpayment (VSTAX) $90,002.12 (+$8,918.88): Say WHAT?! Hooray, we crossed $90K milestone in our Downpayment fund. We are saving for a house and our goal is to have enough money to buy it with no more than 25% of just one of either our salary, which is pretty conservative. We invest every month and it doesn’t matter if the market is high or low.
Liabilities ($0): Zero, Nada, Ноль. There’s nothing to say about, we don’t have car payments, we don’t carry a balance on our credit cards, we even don’t have credit cards, we pay cash. Cash is king.