Net Worth Update #24 – October 2018

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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 October 2018:

Money Market Funds
Savings Account $16,816  (+$908)
Checking Account $2,267   (+$167)
Total Money Market $19,083  (+$1,075)
   
Tax Advantaged Accounts
Traditional IRA $3,897  (-$5)
Roth IRA $5,001 (-$6)
401(k) $33,958 (+$127)
Total Tax Advantaged $42,856  (+$116)
   
Non-Tax Advantaged Accounts
Brokerage Account $48,184  (+$1,995)
Cryptocurrencies $1,301     (-$166)
Republic Private Investment $550         (+$0)
Total Non-Tax Advantaged $50,035   (+$1,829)
   
Net Worth $111,974 (+$3,020)

Progress

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

NW_Oct2018


Recap

From September to October my net worth increased by $3,020. Although this month’s increase was smaller than usual, I like to keep things in perspective. At this time last year my net worth was just over $55k, which means I managed to double my net worth over the course of one year.

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What Drove the Increase?

Most of this increase came purely from the difference between my income and expenses.

The stock market was flat during September so I didn’t get much help there:

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Where Did My Savings Go?

In September I invested $1,000 in VTI (Vanguard Total Stock Market) in my brokerage account on two separate occasions. I also threw another $1,000 into a mix of my savings and checking account. 

Since I recently converted from a contractor to full-time employee at my job, this should be the first month that I’m eligible to contribute to the company 401(k). This means my 401(k) balance should start growing again in the coming months. I plan on investing all of my contributions into a simple S&P 500 index fund within the account.

Related: Check out this post to find out why I invest in total stock market funds and this post to find out why I don’t mind investing at all-time market highs.

The Big Picture

The biggest factor that has fueled my net worth increase over the past two years has been a good ‘ol fashioned high savings rate. Most months I’m able to save close to 60% or more of my income, which I mostly invest in stock market index funds. 

My blog income has been steadily increasing over time as well, which has helped propel my net worth higher each month. I am also looking to increase my income through stats tutoring and potentially building stats educational tools (I’ll blog about this in the near future).

For the next 11-12 months my financial strategy is dead simple: continue to earn income from my 9-5 job, dividends, blogging, and stats tutoring, 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.

10 Replies to “Net Worth Update #24 – October 2018”

  1. I don’t know why I hadn’t noticed the IRA accounts before. I just opened a Roth Ira account this month. Are you planning on also having an HSA in the months to come?

    The ~$20k in cash is a nice buffer, but have you thought about investing more of this? I go back and forth on this.

    Crazy how far you’ve come. I’m always impressed when I see how far you’ve taken this blog.

    1. I may open an HSA in the future, but not at the moment. The $20k cash buffer has gotten a bit larger than I’d like, so I’ll probably DCA invest into the market over the coming months. Thanks for the kind words, Gonzalo!

  2. “Dead simple” and “nothing too fancy” are two ways to describe the amazing investment strategy of the (FIRE) community. Great post and thanks for the openness!

  3. Wow, you are doing an amazing job! Congrats and I can’t wait to continue to follow your growth and hear more about how you are going to increase blog income.

    P.S. So great to finally meet and hang out with you at FinCon! 🙂

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