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!

Year End Review 2013

Okay, I'm starting a journal post over in the MMM forums, and I thought I'd keep details here, as well:


One-income family for 4.  We are 34 & 35, and our kids are 5 & 2.  I'm a CPA working as a corporate financial analyst, and my spouse is a stay at home parent.  I've always been pretty good at tracking things and doing the right thing financially, but I want to do better and keep things in check as my family's needs change.  Started YNAB after getting it through their black friday sale, so I hope it's a good tool and conducive to improvement.  I think it will be.

My 2013 Salary was $88,825 and I received a bonus in Feb of $6,565.  (Bonuses are paid in Feb for the prior year's performance.)  About 15K goes to taxes, and my after tax pay is about 80K at this point.  Current savings rate is about 47%, we max out my 401K and our Roths each year.  Starting to save for college, too.

Here is our 2013 spending.  Caveats- we have a week and a half left in the year, so there's a tiny bit of estimation here.  Plus this is pulled straight from yodlee, so I haven't checked all the categorization, but this should be pretty close:

Category	Annual Spending	Monthly Average
Rent	14,400	1,200
Groceries	5,578	465
Utilities	4,469	372
Education	3,769	314
Restaurants/Dining	2,930	244
Gasoline/Fuel	2,723	227
Insurance	2,094	175
Child/Dependent Expenses	1,148	96
Automotive Expenses	912	76
ATM/Cash Withdrawals	673	56
Clothing/Shoes	425	35
Entertainment	395	33
Hobbies	387	32
Gifts	377	31
Travel	273	23
Home Maintenance	182	15
Personal Care	182	15
Charitable Giving	173	14
Pets/Pet Care	51	4
Office Supplies	34	3
Home Improvement	24	2
Electronics	3	0

Total are $41,200 annually, $3,433 per month.

As of November, our net worth is as follows:

Cash: $146,551
Non-retirement investments: $35,275
Retirement investments: $280,005
Total Net Worth: $461,831

(I don't include personal property.  We have 2 cars and less stuff than most people, but still more stuff than we need.  The cash is for a house.  One day soon, hopefully.  So we are renters for now.  No debt.)

NetworthIQ Page.  (aka the FU fund)

About Me

I'm a 29 year old stay-at-home mom, and my husband, whom I married in January of 2008, is a vegetable farm manager. I was formerly the breadwinner of the household, but we've given up roughly 75% of our income so that I may indulge in some time off to care for our first child, who was born in October of 2008.

Our dream currently is to own our own farm. Right now, we rent a very small one bedroom apartment. Yes, with 3 of us, it is a bit cramped, but living in a smaller place is allowing us to live on my husband's modest salary.

I will likely return to work in a year or so. For now, we will try to live below our means. This means not dipping into our savings. To me, it also means not using any interest income. On top of that, I'd like to continue to increase savings. We have no debt, but utilize credit cards to reap the benefits of various reward programs. These cards are paid in full every month.

On top of our frugal nature, our family strives to live in a socially responsible manner. We buy food locally when we can, buy used when possible, and make choices such as cloth diapers and elimination communication over conventional disposable diapers.