This post may contain affiliate links. Please read my disclosures for more details. 2018 has started off extremely well and has really impacted our net worth. Like many others, we are along for the ride on a hot stock market right now. In fact, January’s gains were so much that they covered 23% of our yearly 2018 year-end Net Worth goal of $678,000. I am still in a bit of shock by this month’s gains and January was thelargest monthly gains we have seen since starting tracking last year.
I had mentioned in the post about putting it all together that I had never tracked or officially calculated our net worth. I started back in April 2017 with the first Net Worth Update #1 and will continue to track and post monthly. This month provided a huge jump in our net worth, which was driven by positive gains in investments and our retirement accounts. Here is a look at this month’s numbers.
|Total – Retirement||$485,351||Total – Installment||$0|
|Total – Liquid||$83,563||Total – Transacting||$6,811|
|Total – Investments||$232,696||Total – Revolving||$0|
|Total – Physical||$91,000||Total – Physical||$267,216|
|Total Assets||$892,610||Total Debts||$274,027|
|Net Worth Jan ’18||$618,583|
|Change Since Apr ‘17||$129,978|
January’s monthly change was an increase of $18,179 bringing our net worth over the $618,583. All of this month’s gains came from investments and our retirement accounts. Awesome month, but I know that these gains will not keep up over the months ahead. That said, I will take them while I can and be ready to ride out any downturn in the market. I will go into more details about this month’s number below, but first a quick break down of what we are looking here. Net worth = Assets – Liabilities. In short, everything you own minus everything you owe.
Retirement – 401K, 401B, and a Roth IRA account
Liquid – Checking/Savings Accounts
Investment – Stocks
Physical – House and car
Transacting: Credit Card (paid in Full Monthly)
Physical: Mortgage and Truck Payment
Note: I am using Zillow for the estimated value of our home as it is the closest/most realistic value I can get on a monthly basis.
The month of January saw the majority of the gains come from our retirement and investment accounts. As I mentioned early, I know that $18,000+ monthly gains are not the norm and I do not expect to continue to see these types of gains. I will be happy with any monthly gains, but am really targeting for $8,000- $10,000 a month. We still plan to shift some cash from the sale of our house into stocks in February. I had planned to do this in January, but have been researching a handful of stocks and funds to purchase. I am still planning to keep a higher amount of cash on hand for the time being because we are investigating a couple of real estate investments.
Standard 30-year mortgage that we started in June 2017 when we bought the new house. In the past I would be paying this down, but right now I am paying the standard monthly payment.
We are still in the 1 year “sign up for the best deal”, once this is up we will be taking a look to see what else in available.
Cell Phone: $53.39
This is for 1 phone with Verizon. There are cheaper options out there, but we have zero issues with service. Maybe in the future we will be look to change companies. My phone is a company phone, so no payment on that one.
Truck Payment $533.94
Yup, this one hurts. We traded in a 2004 Silverado, that we owed for over 10 years and almost 200,000 miles, about 19 months ago. Hopefully, this “new to us” truck will last as long as the last one.
Home Insurance & Taxes: $341.70
Nothing special here. We did shop around our house insurance and are now happy with the rates that we have with a local company.
We try to budget for $100 a week for groceries, pretty much on track for this. I cannot wait until we start our garden this year. Looking forward to fresh from the garden food.
Gas (car): $420
We budget $450 for gas for the month, so we are slightly under.
The cost of taking showers, doing the dishes and laundry.
Trash is paid quarterly, so no bill this month.
Gas Home: $99.95
The house has gas hot water and gas heat. The cost of the gas for hot water is only a couple of dollars a month. The majority of this is for heating the house. It has been unseasonable cold in Georgia.
Yup, this is to power the mother ship. When the AC is not running the bills are pretty low compared to New England.
As you have seen from the updates we are finishing a portion of our basement. I am doing everything, except the electrical, myself, so costs are only going to be for the cost of materials. This amount bought all of the ceiling materials, about 50% of the insulation, all of the lights, a couple of doors and a handful of odds and ends.
Travel for Work: $1851
I haven’t been reimbursed for Decembers travel yet and I now have January’s as well. Hoping to see these refunds early in February.
All Other: $2356
$1500 Disney – Vacation
$204 Truck Brakes – I did the front brakes on the truck,
$132 harbor freight – When I went to do the brakes on my truck, my jack was broken. I have had it for 10 years and I am guess something happened during the move. I also bought some throw away paint brushes we used for painting the basement, and a chisel set that I need for hanging doors.
Everything else $520
A higher than normal spending month with part of that still needed to be refunded for travel. That said, still really happy with the overall outcome for the month. Looking ahead to the rest 2018 we have set a goal of $678,000. If these kind of gains continue we should really be able to smash our goals, especially since we are now a 1 income family.
How did you January budget and/or net worth end up?