Net Worth Update: October 2016

Net worth update #2!

Asset Total Monthly Change Percent Change
Wells Fargo (401)k $14,716.89 $438.25 3.07%
Betterment- Brokerage $10,806.59 -$195.67 -1.77%
Synchrony- High Yield Savings $2,507.97 $1,634.28 187.05%
TD Ameritrade- Brokerage $50 $0 0.00%
Total $28,081.45 $1,877.86 7.17%

Slowly but surely making progress! Saving for my coaching class that I need to pay for by the end of December is showing me that I can save a lot more money than I have been each month. I have only made minimal changes, like trying to eat out less and holding off on major trips. If I keep up this pace after my class, I could be putting $20,000/year into my brokerage account!

Again, I do not include my car (or house, as I am renting) for two reasons: first, I intend to drive my car as long as I can safely hold on to it. Secondly, my main goal for tracking my net worth is to save up enough for early retirement (current goal- $950K, hoping to bring that down as I lower expenses). For early retirement purposes, I only want to include assets that will continue to produce passive income.

A breakdown of the accounts I have and their progress this month:

Wells Fargo 401(k): +$438,25

This is my retirement account through my company. I contribute 6% of my income and take advantage of my company match, which is up to 6% as well. I prioritize my Betterment brokerage account over this one because I don’t want to pay tax penalties for withdrawing money during early retirement. Smart401(k) helps me determine my allocations within the account and maximize returns. Still an increase, but less than normal as the market posted losses for October.

Betterment (Brokerage): -$195.67

Betterment is my main account for my early retirement goal. I did not contribute anything to this account this month, so this loss solely reflects the market performance. I like seeing the percentage change, because it shows how small of a loss it actually is.

Synchrony (High Yield Savings): +1634.28

I recently switched from Bank of America to Synchrony to take advantage of their 1.05% APY, a significant increase from Bank of America’s .012%. It also has the added benefit of being more difficult to transfer money from my savings account to my checking account, which forces me to really think twice about making a transfer. I use this as my Emergency Fund and as a place for short term savings- I am currently saving for my coaching certification through IPEC, so expect a lot going into this account before December, and then a huge drop at the end of the year (when I have to pay the class fees). I thought about not including that money in my net worth at all, but I think seeing the increases will help motivate me to save the money I still need for the class.

TD Ameritrade (Brokerage): +$0

This is my short term investment account- playing around with stocks and practicing what I learned in my “Rich Dad, Poor Dad” investment class. Once I finish paying off my class fees, I will put a few thousand dollars in here to play around with. I do not recommend this strategy to the casual investor, and I only put money into this account that I can afford to lose. So far, I have been using paper money to practice my strategy to build up my skills.

Do you track your net worth every month? How did last month go for you?

Leave a Reply

Your email address will not be published. Required fields are marked *