Wednesday, February 5, 2014

January 2014 Update

We actually just reduced the cash balance a bit: $11K for 2014 Roth IRA contributions made, and $10K to kid's 529s.  Also, I didn't include the kids 529s in our net worth in November and December, and I think I will now.  I kind of don't want to, but it's just an ego buster to see the net worth go down.  We started it last year with some "found" money, and it was further bolstered a month later with a very generous $16K gift from my sister.  It felt fine to leave it out because our NW was maintaining it's organic growth through savings and investment returns.  Then when I dumped another 10K into it this month, along with some paper losses, I just couldn't stand the drop!  the So anyway, maybe this is cheating a little bit, but here it is:

January Net Worth Update:
Category: Balance (Change)

Cash: $128,600 (-19,649)
Non-retirement investments: $35,337 (-948)
Retirement investments: $294,893 (+5,490)
Kids' 529s: $31,170 (+31,170)
Total Net Worth: $473,937 (+16,063)

So it really kind of sucks that we put over $12K into retirement funds this month and $7K just disappeared into a paper loss.  Oh well.  It will come back.  I think (or hope) as one's portfolio grows, you get used to this kind of thing.  NW goes up, sometimes it goes down.  It happens, it recovers.  Essentially, we would have been down slightly this month if we didn't decide to include the kids' 529s.

Goals for this year.  I would like to hit $570K in net worth by 12/31/14.

I may change jobs soon (I hope to next month).  It is possible that it won't help our financial situation greatly, but I'm hoping it all evens out.  My current job is very stressful and not the best working environment.  I will trade some of that stress for less money.  I'm hoping my salary will be about the same (which means it will be slightly less that what I would have earned at my current company, since raises are in effect next month).  The 401K match is better, so that's a pro.  But the commute is double the miles- 20 instead of 10, so that's a big con.  But a shorter working day, pro!  Anyway, I think it will be a good move overall for me, and hopefully I'll see some good increases in the coming years.

I'm planning on moving more cash out into some Vanguard funds.  It just seems like such a waste for so much to be sitting around earning 1%.  That's such a pittance.  I don't know when we will find the house we want.  And maybe then we shouldn't even put so much down.  It's a perennial argument, investing the cash or putting it towards the mortgage.  I guess it depends on how interest rates look when we finally find a place.

Oh, also wanted to add January spending.  Per Yodlee, $4,519 this month.  Had to replace the shocks/struts (front and rear) on our Matrix this month, which was $1,399.  Without that, spending would be $3,120, which is under our 2014 month average, so that is good.  Except it's not like we didn't really spend that $1,399, so that's not so good.

December 2013 Update

December Net Worth Update:
Category: Balance (Change)

Cash: $148,249 (+1,698)
Non-retirement investments: $36,285 (+1,009)
Retirement investments: $289,403 (+9,397)
Total Net Worth: $473,937 (+12,105)

Surpassed our goal of $450K Net Worth for the year, a total increase of $99K!  The amount we saved in 2013 was about $35K ($17.5K 401K, $11K Roths, $6.5K other).  There were also some increases from 401K match and profit sharing.  But that means that our investment income was around $60K, well over our annual expenses of around $42K!  It feels like such a great accomplishment!