Net Worth Update: September 2016

My first monthly net worth update! Thanks J Money for the inspiration.

Asset Total Monthly Change Percent Change
Wells Fargo (401)k $14,278.64 $749.95 5.54%
Betterment- Brokerage $11,001.26 $1,501.29 15.80%
Synchrony- High Yield Savings $873.69 $176.83 25.38%
TD Ameritrade- Brokerage $50 $0 0.00%
Total $26,203.59 $2,428.07 10.21%

Still in the beginning stages of saving, but I made good progress this month! It’s nice to see the percent change, which makes me realize that this is a significant increase from how much I had been saving per month before. 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. For early retirement purposes, I only want to include assets that will continue to produce passive income.

My early retirement goal for the moment (I’m hoping to bring this down as I continue to decrease my expenses) is $950,000. This means I have 2.76% of what I need so far… better than 0%!

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

Wells Fargo 401(k)

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) has been a helpful tool to determine my allocations within the account and maximize returns.

Betterment (Brokerage)

I am a huge fan of Betterment, and this is my main account for my early retirement goal. This article from The Minimalists explains the benefits of Betterment; long story short, it’s easy to use and understand with low fees. I was able to put in a significant amount of money this month- some from my regular savings allocation, and some from the leftover money from my Europe trip at the end of the summer.

Synchrony (High Yield Savings)

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)

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?

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