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.
September 2017 Update
Welcome to our September 2017 Net Worth update. It’s been almost six months since I’ve started tracking our net worth, and it’s become really powerful and inspiring tool for me and Mrs. FR. It not only gives us a picture of our finances but also encourages and motivates not to stop and keep moving forward.
September was a great month for us, we are definitely blessed here, praise the Lord. The crazy summer is over and now we are back to our regular, normal level of craziness. Kids went back to school, well, our older one went back to school, but the young one just started her educational journey. She went to kindergarten, is this is really great. But the other side of the coin is the after school bill that we have to pay now, which is $707/month.
Despite all the school-related expenses and routines, we are so blessed. Kids are a blessing and a gift from God, even though sometimes they can drive you bananas. Enough about my kids, we all know why you are here, let’s check the numbers.
Net Worth Update
And now it’s time for our net worth update. Since the last month, we have made significant progress and our Net Worth has become $163,572.94 (+$9,375.68)
Checking Account – $4,938.83 (+$3,728.77): We decided to keep just enough money in our checking account and transfer everything else to a savings account. Plus, we transferred more to the downpayment fund this month.
Emergency Funds – $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.
Savings (Other) – $7000 (+$202.87): 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) $29,090.74 (+$1,671.70): 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 a 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) $11,785.68 (+$1,243.38): 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 5,785.62 (+$10.27): Despite the fact the market wasn’t so great in August, it’s so great to see this account growing without any contribution from us.
Mrs. FR Roth IRA 5,621.65 (+$9.98): Isn’t it amazing? Just two months ago we put $5,500 into Mrs. FR Roth IRA account and it has grown already. I love when money makes more money.
HSA $3102.59 (-$233.61): 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. In August I had to visit a couple of doctors because of my elbow problems and both of them told me that I have to have a surgery. So, expecting to have bigger expenses in the next couple of months.
Downpayment (VSTAX) $56,872.15 (+$13,936.31): 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, no 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 use cash when it’s necessary and if we can get a better deal.