3 min read
At the start of each month I share my net worth.
I have always found it motivational and just plain interesting to follow along with a blogger’s net worth journey, so I hope readers find value in following mine. I shared my first net worth update back in November 2016 and have been sharing monthly updates ever since.
Here are my numbers for August 2018:
|Money Market Funds|
|Savings Account||$15,509 (+$2,042)|
|Checking Account||$2,206 (+$1,920)|
|Total Money Market||$17,715 (+$3,962)|
|Tax Advantaged Accounts|
|Traditional IRA||$3,796 (-$3)|
|Roth IRA||$4,861 (+$174)|
|Total Tax Advantaged||$41,468 (+$1,156)|
|Non-Tax Advantaged Accounts|
|Brokerage Account||$41,309 (+$265)|
|Republic Private Investment||$550 (+$0)|
|Total Non-Tax Advantaged||$43,716 (+$255)|
|Net Worth||$102,899 (+$5,373)|
Here’s a look at my net worth progression since I started personally tracking it back in August of 2016:
From July to August my net worth increased by $5,373, pushing me past the $100k net worth milestone for the first time ever.
I started tracking my net worth two years ago in the summer right after my college graduation. I had a total of $3,699 in savings at the time. Fast forward two years and I now have $102,899. That’s an incredible feeling.
Later this week I’ll drop an article that shares a more in-depth look at my journey up to this point as well as my reaction to crossing $100k for the first time.
What Drove the Increase?
A combination of high income and investment returns fueled my net worth increase this past month.
1. The stock market increased in price by about 3.5% in July. Since most of my investments are in equities, most of my account balances increased in value.
2. My income streams outside of my 9-5 had another nice month. I shared in my Income & Expenses Update yesterday that I earned $1,407 through blogging and dividends in July. This side hustle income along with my regular 9-5 paycheck helped me funnel almost $4,000 into my various accounts, even after paying my bills.
Where Did My Earnings Go?
This month I invested $300 in VTI (Vanguard Total Stock Market) in my brokerage account. Check out this post to find out why I invest in total stock market funds.
I funneled about $2,000 into my Ally savings account, which currently pays a healthy 1.75% annual interest rate. Another $2,000 landed in my checking account, which I plan to transfer to my savings account soon.
Since I recently converted from a contractor to full-time employee, I’m not eligible to contribute to the company 401(k) until next month, so my 401(k) balance simply grew by itself without additional contributions this month since nearly all my investments are in a simple S&P 500 index fund within the account.
The Big Picture
Last August I had $47k in assets, which means my net worth has increased by about $55,000 over the past 12 months. Almost all of this increase has been due to a good old-fashioned high savings rate.
Both my blog income and monthly stock/REIT dividends have been steadily increasing over time as well, which has added to my earning power. Combined with monthly spending of less than $2,000, I have made it inevitable for my investment accounts to grow steadily each month.
Looking forward, my financial strategy is dead simple: continue to earn income from my 9-5 job, dividends, and blogging, then funnel at least 60% of those earnings into the stock market or my savings account. Nothing too fancy.
That’s all for this month’s update, thanks for reading 🙂
My favorite free financial tool I’ve been using since 2015 to manage my net worth is Personal Capital. Each month I use their free Investment Checkup tool and Retirement Planner to track my investments and ensure that I’m on the fast track to financial freedom.
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