Net Worth Update #22 – August 2018 (FLYING PAST $100k)

NW Aug 18.JPG
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)
401(k) $32,811 (+$985)
Total Tax Advantaged $41,468  (+$1,156)
   
Non-Tax Advantaged Accounts
Brokerage Account $41,309  (+$265)
Cryptocurrencies $1,857     (-$10)
Republic Private Investment $550         (+$0)
Total Non-Tax Advantaged $43,716   (+$255)
   
Net Worth $102,899 (+$5,373)

Progress

Here’s a look at my net worth progression since I started personally tracking it back in August of 2016:

NW Aug 18


Recap

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.

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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

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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Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

21 Replies to “Net Worth Update #22 – August 2018 (FLYING PAST $100k)”

  1. Incredible month for you, Zach!

    Way to go on the side hustling bringing in that additional income! I love seeing that savings rate go up, and up, and up!

    $100k+ Net Worth…the velocity of money is picking up.

  2. Hi Zack, I have been a long time lurker, but now I have a question for you. You say in the Where Did My Earnings Go? section that you invested 300$ from your brokerage account, but in the numbers for August you say that your brokerage account changed for +265$. Is this difference due to taxes, brokerage fees or something else? I see that VTI is up, so I feel that this difference is not due to decrease in the price of the index.
    Thank you in advance for your answer.

      1. Hey Djordje, great question! The +$265 is due to the fact that I have a few individual holdings in my brokerage account that flopped this month, thus bringing down the total return.

  3. Hi Zach,
    Long time follower of your site, first time leaving a comment. Congrats on your achievement. I do follow your blog pretty closely and read pretty much every single post. In your income & expenses posts the past few months, I believe you have mentioned you have recently purchased a new car, & possibly have a car loan? I’m not trying to rain down on your parade but wouldn’t your net worth be your total assets minus any outstanding liabilities? I wasn’t sure if you were including this in your calculations or not. I am honestly not intending to me a troll in anyway, but I am just curious since I am such a big fan of you and your awesome blog.

    1. Hey Karl, my car is valued at around $12k (what I could receive if I sold it today and needed the cash) and the loan is around $10k, so if I included my car in my calculations with $12k in assets and $10k in liabilities, my net worth would actually be slightly higher. I am not including this in my calculation though for simplicity.

      Thanks for the question and thanks for reading the blog! 🙂

  4. So why the high savings account balance? With $40k in stocks as a backdrop and an average monthly spend rate of $2000, it seems like you could drop down to about $9k cash and still have plenty of Murphy insurance and increase your stock investments. That’s a 12% return versus 1.75% return.

    1. My savings account balance has grown larger than I’d like it to be and I’ll likely transfer more of those savings into stocks over time.

  5. Wow… this is impressive! congratulations on a well accomplished achievement! I too am looking at reaching that 6 figure mark! I am hoping to be there some point next year! this post has inspired me to keep on keeping on.Thanks for sharing Zach. Keep up the amazing work sir!

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