I think this might be the latest in a month that I have posted a project update for the previous month. Since the beginning of this year, we have been passing around viruses in our household, and it really has taken a toll. It is one thing to be sick, but being sick while two young children are sick is a bit overwhelming. The good news is I think all of us are finally on the mend with just a few lingering coughs here and there. Needless to say with all of this going on and the start of the spring semester, I have been a bit checked out of everything else. Now that I finally have a little bit of time I am updating our numbers for January, and everything still seems to be on track.
January investment gains was minimal and actually showed a small loss. Our net worth grew to $1,013,962 with all of the increase coming from new contributions in to our accounts. The percentage change is almost too small to measure, increasing our total by .03%. Still I will take it!
Looking at the changes in January from the end of last year, our net worth is up, and we are restarting all of our yearly numbers. Our goal this year is to again save at least $50,000, and I think it may be a little easier to reach this year. At the end of December 2019, our net worth was $1,010, 980 which means our net worth increase by $2,982 which is actually less than the amount we contributed. We knew the type of growth we experienced at the end of last year was unsustainable, and in fact we are surprised that we did not dip below the one million dollar mark yet. We do expect that this will probably happen a few times before the end of this year, and that is ok!
We calculate our net worth by adding all of our pre-tax retirement accounts (403b, 457b, Traditional IRAs, and ORP), our after-tax retirement accounts (Roth IRAs), and our after-tax brokerage and savings accounts together. We also include real-estate equity (i.e. our home) discounted to a price we think we would be able to get after closing costs if we needed to sell the property as quickly as possible. After we add up all the assets above we subtract our current mortgage (our only debt) to arrive at our current net worth.
This month our income was $10,450 which was an increase of $142 from December. It has been a long time since our income was fairly similar from the previous month with the variability of my spouse’s self-employment.
We calculate our income by taking our net income (after tax income) and adding back the amount that was withheld/saved in our retirement accounts, including the 6% of my salary contribution I get from my job in my ORP account (I mean technically it is income).
We spent $6,351 this month, which is close to our expectations in the budget . We have some months that this will be our average spending amount, and some months that it will be a lot less, a lot of it really depends on travel, and pre-school costs!
Our goal we set for 2020 is to save a minimum of $50,000 inside our retirement accounts, with maybe a little additional amount in our after-tax brokerage or savings account. We met our goal last year (barely) and saved $50,414 and are off to a pretty good start this year. This month we saved $4,094 in our pre-tax accounts. Last year we were able to front load the maximum contribution in at least one Roth IRA, but this year we are going to be making smaller regular contributions throughout the year.
Some Closing Thoughts
I have felt all out of sorts for this first month of the year. The colds and other viruses going through this house have been relentless, and when the kids are sick as the same time as we are, it is never pleasant. Luckily everyone seems to be on the mend and most things are getting back to normal. This is good as we get ready to head out on one of our first trips of the year.
The decluttering process (see 2020 goals) has finally started in full, and we have now completed the clothing/closet part of our plan. Even after doing this a few years ago, it is amazing how much we were still able to clear out and donate. I also think we did a better job this time. The next phase is starting soon so I will post more on this as a separate post.
I hope everyone has a wonderful February!