At the start of each month I share my net worth so I can document my financial journey from the very start all the way to financial independence. I first started tracking my net worth in August of 2016 and have been posting monthly updates ever since.
Here are my numbers for October 2017:
|Money Market Funds|
|Savings Account||$5,082 (-$3,393)|
|Checking Account||$539 (+$214)|
|Total Money Market||$5,621 (-$3,179)|
|Tax Advantaged Accounts|
|Traditional IRA||$3,802 (-$77)|
|Roth IRA||$4,648 (+$79)|
|Total Tax Advantaged||$25,255 (+$332)|
|Non-Tax Advantaged Accounts|
|Brokerage Account||$24,745 (+$7,089)|
|Total Non-Tax Advantaged||$24,745 (+$7,089)|
|Net Worth||$55,621 (+$4,242)|
Here’s a look at my net worth progression since I started tracking it back in August of 2016:
From September to October my net worth increased by $4,242. As usual, each month my net worth keeps increasing by roughly $4k and this month was no different.
Most of my savings from this past month were invested in a combination of REIT’s and index funds in my brokerage account.
In my most recent Monthly Income & Expenses Report I revealed that I had a savings rate of 73% for the month of September. That type of savings rate is what’s allowing me to save thousands of dollars each month.
There are two huge factors that enable me to save so much each month:
1. Having an $80k salary job.
2. Living in an apartment with a roommate.
I realize $80k isn’t an extremely impressive salary, but in my situation where I only have to pay bills for myself it means I have a significant chunk of money left over each month that I can save. Choosing to continue living like a college student also helps tremendously. I do have the money to go out and place a significant down-payment on a house, but I can save so much more money by simply living small in an apartment, at least for a few years.
Keeping It Simple
My net worth journey up to this point hasn’t been flashy. I haven’t bought a runaway stock like Netflix, hit the lotto, or inherited a windfall from a rich relative. In fact, my story might even sound boring to some people: I got a degree in a niche field (statistics), graduated debt-free, got a decent-paying job, and I’m practicing the art of minimalism and living with few things.
In only a few years from now when I have a significantly higher net worth and the freedom to live without a 9-5 job, I can show people these early net worth updates and point out that the simple path is the path to wealth.
The simple path involves:
- Eliminating your ego. You’re not as important as you think. You don’t need to buy stuff to impress people. This helps keep expenses radically low.
- Discipline brings freedom. If you want something, work for it. This mindset helps you find ways to earn more.
- Keep investing simple. Index funds build wealth.
Hang out on this simple path for a few years and you’ll find that building wealth and gaining freedom is not only possible, but it’s inevitable.
To everyone that has been following my financial journey up to this point, thank you and I hope you keep checking in each month. If you have any questions for me or want to discuss your own financial journey feel free to shoot me an email at email@example.com.
That’s all for this month’s net worth update, thanks for reading 🙂
My favorite free financial tool I use is Personal Capital. I use it to track my net worth, manage my spending, and keep an eye on my monthly cash flow.
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