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 paid 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.
May 2017 Update
Welcome to our May 2017 Net Worth update. This is the second time when we are sharing our
underwear financial status, and I am still a little bit nervous.
May was a great month for us. The biggest and most important thing that happened in May was my baptism. It was a big a serious decision for me because I had been “baptized” before being a 6 month old baby in a Russian Orthodox church. I’m from a place where evangelical churches (Baptist churches especially) have been persecuted all the time, and word “evangelical” was and still is identical to “sect”, it took me almost 3 years to take this step. And on May 21st, 2017 it happened, I was baptized in the name of the Lord. Hooray.
In April we moved from an apartment to a duplex that has a small, tiny-tiny backyard. It’s really small, but enough to plant some greens & vegetables and
we Mrs. FR did. I was reluctant to this idea just because it required some initial investments aka spendings for tools, soil fertilizers and seeds. But my wife, being a wise woman, did it anyway. And now we are growing 5 tomatoes (one of them is volunteer), couple of bell peppers (also volunteers), cucumbers, greens and daisies.
May and the whole summer is usually pretty crazy at work. May was the last month before WWDC. Thousands of people have been working really hard to make the fellow Apple fans and app developers happy and excited about the new features for iOS, MacOS and WatchOS.
And I almost forgot about my 4 years “Ameri-versary”. Yes, it’s been 4 years since I’ve come to the States. You can read a story about my first paycheck in America.
Net Worth Update
And now it’s time for our net worth update. Since April 2017 we made significant progress and our Net Worth became $111,013.60 (+8,676.38)
Net Worth Details
Checking Account – $10,170.69 (-$6,017.27): as I mentioned last month our checking account has several small “funds” for car/motorcycle, vacation and so on. We transferred some money to a saving account and we are going to transfer almost $6K to our Vanguard account. Starting next month, actually this month, we are going to transfer more money into saving account and keep just sufficient minimum in our checking.
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) – $8,074.18 (-$36.86): 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. Last month we had enough to make backdoor Roth IRA contribution of $5,500 for me and next month we are going to do the same for Mrs. FR.
Mr. FR Traditional 401(k) $22,336.27 (+$1,012.39): 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 takes couple of pay cycles to see the changes and hopefully the next report we will see the bigger difference here. My employer matches $0.75 for every dollar up to 6%.
Mrs. FR Traditional 401(k) $7,669.69 (+$685,90): 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 5,605.08: this account is the new one. In the middle of the moth I made my very first backdoor Roth IRA contribution and really proud of that. And the account has grown a little bit.
HSA $2,433.75 (+$192.24): in May we had to pay for the pediatrician and physician visits. But this account is growing a little bit.
Downpayment (VSTAX) $24,723.94 (+$7,234.90): 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.
Our income was the same as usual, in addition to our salary we received a security deposit back for an apartment we had rented before – $595
We spent less money in May than in April, yay! But still, groceries and childcare expenses are on the top of the list. Mrs. FR and I are on the way to reduce our groceries budget. I will write about this as soon as we have more details on that.
After all expenses, regular and irregular, our saving rate for May was 70% which is great. I hope your May was great as well.