Disclaimer about our Net Worth
We don’t have any deb, non 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.
June 2017 Update
Welcome to our June 2017 Net Worth update. It’s been three months since I’ve started sharing our financial situation. At first I was scared and uncomfortable, but now I can tell that writing this reports helps us to be more focused and accountable.
June was a great month for our family. Our older daughter finished 3rd grade with great score. The young one came back home from Russia where she had spent 3 months with my parents.
The tomatoes we planted in May has grown from small and tiny plants to huge bushes. I think in July we will start harvesting our first tomatoes.
This person gets the prize for determination, creativity and his or her ability to live like no-one else. I don’t know if s(he) is getting out of debt, saving money for a college or it’s just a small business to supplement household income, but it’s great to know that there are people around who are willing to work hard. Kudos to you an unknown person.
Speaking of small business. The biggest news from the month of June in our family being my lovely wife started a small online business. She’s in learning stage right now but already got several successful deals. Now we have to learn more about DBA accounts, quarterly estimates and other interesting things about small business operations.
Net Worth Update
I love June, there are a lot reasons to love June: it’s stable nice and warm weather, my wife’s birthday is in June, a lot of plans for summer, and last but not least – 3 paychecks in June (we are getting paid bi-weekly).
Since the last month we’ve increased 401(k) up to the maximum, we also started participating in ESPP program. Remember, you have to pay yourself first.
After that lovely month of June our Net Worth became $124,365.22 (+13,351.62)
Net Worth Details
Checking Account – $8,661.32 (-$1,509.37): we use our checking account for direct deposits and paying of the credit cards we use. All the other money we transfer either to Ally Savings account or into our downpayment fund.
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. And you can read here why your emergency fund is not an investment.
Ally Savings (Other) – $6,797.13 (-$1,277.05): 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. And we keep our sinking funds money in this account as well. It happened, in June we opened 401(k) for Mrs. FR and converted it into Roth IRA.
Mr. FR Traditional 401(k) $24,958.98 (+$2,622.71): in May we took a plunge and increased our pre-tax contribution from 6% to 15%. Finally I understood the idea of paying yourself first. It took couple of pay cycles to see the changes and, finally, in June we saw the huge difference in the contribution part. My employer matches $0.75 for every dollar up to 6%.
Mrs. FR Traditional 401(k) $9,199.90 (+$1530.21): the same as above, Mrs. FR has increased her contribution to 15% and her employer matches $0.5 for the first 6%.
Mr. FR Roth IRA 5,656.70 (+$52.62): It’s so great to see this account growing without any contribution from us.
Mrs. FR Roth IRA 5,500.00: this account is the new one. In the end of June we opened Traditional 401(k) for Mrs. FR and a couple of days later we converted it into Roth IRA.
HSA $2,947.56 (+$513.81): Our HSA has two parts in it: checking account that we use for medical expenses and investment part. We always keep $2000 in the checking account and invest whatever is above.
Downpayment (VSTAX) $30,643.63 (+$5919,69): In June we invested $5,638.16 As you can see the market wasn’t so great, but we keep investing. 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.
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.
As I said above, I love June because of three paychecks. Our family has been blessed with the great income for the last couple of years. And our major responsibility is to make sure we are managing this blessing right.
We spent almost $500 more in June than in May, but all the extra spendings were predictable and didn’t bring us down. I was too lazy to categorize all the spendings and because of my laziness you can think that our plan to reduce grocery budget didn’t work out. Frankly speaking, in June we spent $875 for everything household related: groceries, detergents, toilet papers and napkins and so on. And it’s more than $100 less than our spending used to be. But don’t forget, for now there are 5 people in our family: 3 adults and 3 children.
It’s been 3 months in a row where after all expenses, regular and irregular, our saving rate has been 70% which is awesome. I hope your June was great as well.