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.
November 2017 Update
Welcome to our November 2017 Net Worth update. What a year it has been: a year of changes, challenges, new acquaintances.
In November I had to learn new things, like changing a dead battery on our 2014 Dodge Journey, it was an experience I can tell you this.
I spent about 30 minutes finding where the battery is, and another 45 minutes changing it. Of course, I could’ve spent $150 worth of labor by asking a Dodge service to do the work, but I am too cheap 🙂
I have to tell you this, I wasn’t the only one replacing the battery. My younger daughter was helping me as well.
After checking the battery she told me, ‘Dad, it’s not that bad. At least it’s showing some numbers.‘
Look at this happy face, after spending almost 2 hours on the job that could’ve been done in 15-20 minutes. Damn you, Dodge Engineers.
OK, enough boasting, it’s time for some numbers.
Net Worth Update
Checking Account – $2,800.15 (+$542.77): 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.
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) – $7100.34: 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) $37,644.42 (+$2,853.25): 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.
Mrs. FR Traditional 401(k) $16,305.79 (+$1,622.63): the same as above for Mrs. FR.
Mr. FR Roth IRA $6,223.70 (+$179.16): 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 $6,047.28 (+$174.08): 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 $3431.52 (+$214.3): 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 the remaining.
Downpayment (VSTAX) $81,083.24 (+$5,915.85): 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.