The Plan: Phase Three

It’s been a heck of a time these past few months!  I have been busy working and hibernating (winter time), but some exciting new developments and changes have boosted my net worth.  I plan to get back on track and get more consistent updates going again.

First off: THE PLAN!  Remember a post a long time ago when I was laid off and looking for work?  When I wanted to get myself to a level where I know my skillset will be utilized?  To not just have a job, but start a career?  How I wanted to get myself a higher level of income to achieve my goals, ultimately: Financial Freedom?  It has proceeded to another step, and I was able to be promoted again at work!

About three years ago I was laid off and on unemployment… I found a temp job and income was around $26k.  They decided to hire me full-time, and then I was sitting at around $33k a year income in a manual labor position.  A year into that I got a small promotion to a more office-environment job, and the income went up to around $40k a year.  A few months ago I was awarded with another promotion, and my new income is sitting at around $59k a year!  Woot!

Through nothing but hard work and dedication over the past three years, I was able to more than double my income.  NICE!

On to the next exciting development, I was the recipient of a small windfall recently.  A dear friend of mine (he’s about 80) taught me about the stock market long ago.  He is substantially wealthy, and one day we put together stock portfolio as part of a lesson / showing me the ropes.  Over the course of 4-5 years, we let the portfolio sit and we observed, made trades, and rode the roller coaster.  Recently we decided to call it quits.  In the end, the portfolio had gained around 25%.  He is a kind enough man that he decided to gift me the capital gains (after all fees and taxes) so I could use it to pay off debt.  How cool is that?  For now, the windfall was around $13k.  There is potential for more coming in 2017, as the capital gains were around $25k.

I did exactly what he wished: used that stuff to build myself up and pay off those debts!  The $4,500 truck loan is GONE!  My student loan has taken a near $9,000 reduction!  I was also able to beef up my emergency fund to around $5,000 – a number I feel good with that – my Roth can be a second $8k emergency if it’s life or death.  Thanks to this friend’s generosity and our trust in each other, I have been able to make a huge dent in my debt and increase my net worth by thousands.  Now, on to the newest numbers!

Cash:
6,600 (+2,300)

Roth IRA Basis:
8,030 (+1100)

401k:
Contribution Basis: 4,400
Company Match: 4,400
Total: 8,800 (+2038)

Pension:
$650

Motorcycle:
3,000 (-500)

Truck:
4,500 (+4,200)

Mustang:
1,000

Personal Assets:
12,000 (reworked, +4,600)

Total Assets:
44,580 (+15,079)

“Liquid” Assets (cash, stock and retirement):
24,080 (+6,192)

Liabilities

Chase Freedom:
0

Chase Unlimited:
0

American Express:
0

Bank CC:
35

Student Loan:
Balance: 13,200 (-9,422)

Truck Loan:
0 (-4,700)

Total Liabilities:
13,200 (-14,250)

Net Worth:
+31,380 (+28,679)

Credit Score:
Credit Karma scores:  767 TU / 759 Equifax
FICO score:  773
Chase Transunion: 767

*mic drop*

Advertisements

October Net Worth

Cash:
4,256 (-580)

Roth IRA Basis:
6,933 (+150)

401k:
Contribution Basis: 3,381
Company Match: 3,381
Total: 6,762 (+244)

Motorcycle:
3,500

Car:
0 (-1,500)

Truck (Value 5,000):
300 (+100)

Mustang:
1,000

Personal Assets:
7,400

Total Assets:
30,151 (-1,586)

“Liquid” Assets (cash, stock and retirement):
17,951 (-186)

Liabilities

Chase Freedom:
0 (-4)

Chase Unlimited:
0 (-22)

American Express:
93 (+86)

Bank CC:
35

Student Loan:
Paid on loan: 278.16 (166 Principal / 112 Interest)
Balance: 22,622 (-163)

Truck Loan:
4,700

Total Liabilities:
27,450 (-199)

Net Worth:
+2,701 (-882)

Monthly Income: 1,778
Monthly Assets Change: -1,586
Monthly Liabilities Change: -199
Monthly Net Worth Change: -882
Mortgage Principal Paid: 263
Monthly Savings Rate (IRA/401k+Match/Cash/StudenLoan/MortgPrincipal): 355 (20%) x .55 = 11(All expenses are shared jointly, me @ 55%, Fiance @ 45%)

Credit Score:
Credit Karma scores:  746 TU / 739 Equifax
FICO score:  752

Definitely a tough looking month here!  But with some good news as well.  I was promoted at work, and that was the next step in The Plan!  As a result, my pay switched to bi-weekly, so I essentially missed $570 of savings.  My savings rate would be more like 22%.  Going forward, I may have some wonky looking months since I my pay will be bi-weekly, but it should balance out the following month!

I did some naughty spending this month, including an anniversary gift of around $200 and a trip north with the fiance costing around $600 as well in fun, food and shopping.  However, with the new promotion and getting my new routines back in place, I should be coming out on top.  There is some debt I am not tracking due to a joint effort by fiance and I to pay off (8 new tires, exciting!), so the cash savings may be lower than normal, but a few months from now everything should be settled and on the way to glory!

I sold the car, but a large chunk went to the ridiculous spending from this month.  Another bit of it disappeared due to paying the Joint account but not getting paid last week, resulting in a ~$425 deficit.  So – this month there was some lack of discipline but also lack of income stability, so it was a rough one all around.  Next month should be looking better!

September Net Worth

Cash:
4,836 (+122)

Roth IRA Basis:
6,783 (+250)

401k:
Contribution Basis: 3,259
Company Match: 3,259
Total: 6,518 (+430)

Motorcycle:
3,500

Car:
1,500

Truck (Value 5,000):
200

Mustang:
1,000

Personal Assets:
7,400

Total Assets:
31,737 (+802)

“Liquid” Assets (cash, stock and retirement):
18,137 (+802)

Liabilities

Chase Freedom:
0 (-4)

Chase Unlimited:
22 (-278)

American Express:
7 (-54)

Bank CC:
35

Student Loan:
Paid on loan: 278.16 (173 Principal / 105 Interest)
Balance: 22,785 (-169)

Truck Loan:
4,800

Total Liabilities:
27,649 (-505)

Net Worth:
+3,583 (+802)

Monthly Income: 3,045
Monthly Assets Change: 802
Monthly Liabilities Change: -505
Monthly Net Worth Change: +802
Mortgage Principal Paid: 261
Monthly Savings Rate (IRA/401k+Match/Cash/StudenLoan/MortgPrincipal): 1,341 (44%) x .55 = 24(All expenses are shared jointly, me @ 55%, Fiance @ 45%)

Credit Score:
Credit Karma scores:  743 TU / 736 Equifax
FICO score:  745

 

Another average month in the books here.  Credit took a big hit due to the opening of the auto loan, which is not a huge deal.  I will recover from that quickly enough!  401k is slowly but surely catching up to that IRA amount!  Cool to see that.  Forseeing some big income changes in the near future as a promotion at work is nearing.  All part of “The Plan”!

August Net Worth

Cash:
4,664+50 = 4,714 (+352)

Roth IRA Basis:
6,533 (+200)

401k:
Contribution Basis: 3,044
Company Match: 3,044
Total: 6,088 (+338)

Motorcycle:
3,500

Car:
1,500

Truck (Value 5,000):
200

Mustang:
1,000

Personal Assets:
7,400

Total Assets:
30,935 (+1,090)

“Liquid” Assets (cash, stock and retirement):
17,335  (+890)

Liabilities

Chase Freedom:
4 (+4)

Chase Unlimited:
300

American Express:
61 (-26)

Bank CC:
35

Student Loan:
Paid on loan: 278.16 (157 Principal / 121 Interest)
Balance: 22,954 (-169)

Truck Loan:
4,800

Total Liabilities:
28,154 (+4,909)

Net Worth:
+2,781 (-3,819)

Monthly Income: 2,406
Monthly Assets Change: 1,090
Monthly Liabilities Change: +4,909
Monthly Net Worth Change: -3,819
Monthly Savings Rate (IRA/401k+Match/Cash/StudenLoan/MortgPrincipal): 1,472 (61%) x .55 = 34(All expenses are shared jointly, me @ 55%, Fiance @ 45%)

Credit Score:
Credit Karma scores:  764 TU / 753 Equifax
FICO score:  739

Tough month this month, as we did quite a bit of landscape work, I bought a truck, and have yet to sell the car.  When I get the car sold, there’ll be another $1,500 in the bank to help offset some of the cost.  We decided it’d just be good to go back to a solid truck, as we were borrowing folks’ trucks every other week for stuff.  That, or we were loading up my car for 3-4 trips to the hardware store for landscape rocks.

My plan is to of course pay off that truck ASAP, as it’s the highest interest.  It’s got some low miles, and I was able to snag it under Blue Book value, so I feel comfortable with the purchase.  It’s got a solid body for being a 2001, and low miles at high 90’s.  Hopefully she’ll last us a good three or four years before the repairs become too great to justify keeping it!

July Net Worth

Cash:
4,312+50 = 4,362 (+170)

Roth IRA Basis:
6,333 (+200)

401k:
Contribution Basis: 2,875
Company Match: 2,875
Total: 5,750 (+382)

Motorcycle:
3,500

Car:
1,500

Mustang:
1,000

Personal Assets:
7,400

Total Assets:
29,845 (+752)

“Liquid” Assets (cash, stock and retirement):
16,445 (+752)

Liabilities

Chase Freedom:
0 (-0)

American Express:
87 (+49)

Bank CC:
35

Student Loan:
Paid on loan: 278.16 (171 Principal / 107 Interest)
Balance: 23,123 (-161)

Total Liabilities:
23,245 (-112)

Net Worth:
+6,600 (+864)

Mortgage Breakdown:
Appraisal:  160,000
Loan Balance:  149,075
Equity:  10,925
July Payment:  258 P / 482 I / 311 E = 1,051

Monthly Income: 2,688
Monthly Assets Change: 752
Monthly Liabilities Change: -112
Monthly Net Worth Change: +864
Monthly Savings Rate (IRA/401k+Match/Cash/StudenLoan/MortgPrincipal): 1,288 (48%) x .55 = 26(All expenses are shared jointly, me @ 55%, Fiance @ 45%)

Credit Score:
Credit Karma scores:  755 TU / 749 Equifax
FICO score:  739

Decent month for July.  I definitely came out low on cash savings, but 401k and Roth were consistent, not to mention another consistent student loan payment.  This month, we spent a lot of cash on landscape materials for the house, about $150 total.  I also had to buy a new power supply unit for my computer that cost $60 – it couldn’t run without replacing it.  Not to mention the dog’s haircut and a new pair of sunglasses (I lost a pair I just bought last month) for another $50.  We also had a nasty vet bill, costing us each $50.  I still managed to come out ahead, so that’s a plus!

This month was also a big deal because we got engaged!  We are one step further in our relationship, and are preparing to get married in about a year’s time.  She is the best, and I couldn’t ask for a better partner in life.  She is also a good  help with the finances – she pays her fair share of all shared costs, including retirement, utilities, food and the big ones like mortgage and student loans.  We are looking forward to a bright future!

It was cool to see how my 401k and Roth IRA are growing.  After looking at the monthly balances, they were both over 6,000 (market price) which was pretty cool to see!  Just a couple years ago I had no 401k and my Roth IRA had just started with the $1,000 minimum.  It’s easy to see if we continue down this path, along with putting nearly $500 a month towards student loans (hers and mine), we are setting ourselves up for success down the road.

June Net Worth

Cash:
4,092+100 = 4,192 (+1,159)

Roth IRA Basis:
6,133 (+250)

401k:
My Contribution Basis:2,684
Company Match: 2,684
Total: 5,368 (+444)

Motorcycle:
3,500

Car:
1,500

Mustang:
1,000

Personal Assets:
7,400

Total Assets:
29,093 (+1,853)

“Liquid” Assets (cash, stock and retirement):
15,693 (+1,853)

Liabilities

Chase Freedom:
0 (-4)

American Express:
38 (+21)

Bank CC:
35

Student Loan:
Paid on loan: 278.16 (159.25 Principal / 118.91 Interest)
Balance: 23,284 (-174)

Total Liabilities:
23,357 (-157)

Net Worth:
+5,736 (+2,010)

Mortgage Breakdown:
Appraisal:  160,000
Zillow Estimate:  173,000
Acting Appraisal:  166,500
Loan Balance:  149,332
Equity:  17,168
June Payment:  256 P / 483 I / 311 E = 1,050

Monthly Income: 3,128
Monthly Assets Change: 1,853
Monthly Liabilities Change: -157
Monthly Net Worth Change: +2,010
Monthly Savings Rate (IRA/401k+Match/Cash/StudenLoan/MortgPrincipal): 2,387 (76%) x .55 = 42% (How is this number calculated?  All expenses are shared jointly, me @ 55%, GF @ 45%)

Credit Score:
Credit Karma scores:  757 TU / 750 Equifax
FICO score:  742

Solid month this June!  A couple of fun outings net met a few hundred extra in cash, plus a full return on deposit from our rental!  On top of that, we recieved a rent credit as well for moving out early the final month.  This month was definitely a good one for excess cash!  Nothing of partiuclar note otherwise, just going to continue chugging along.  Life is good – I’ve got a job that pays enough for me (and my GF) to pay all the bills, sock some extra away for retirement, and still save a bit/spend a bit on top of that.  Off to enjoy Independence Day!

May Net Worth

Cash:
2,933+100 = 3,033 (+294)

Roth IRA Basis:
5,883 (+200)

401k:
My Contribution Basis: 2,462
Company Match: 2,462
Total: 4,924 (+346)

Motorcycle:
3,500

Car:
1,500

Mustang:
1,000 (+1,000)

Personal Assets:
7,400 (+100)

Total Assets:
27,240 (+1,940)

“Liquid” Assets (cash, stock and retirement):
13,840 (+840)

Liabilities

Chase Freedom & Unlimited:
4 (-5)

American Express:
17 (+17)

Bank CC:
35 (+8)

Student Loan:
Paid on loan: 278.16 (165.89 Principal / 112.27 Interest)
Balance: 23,458 (-156)

Total Liabilities:
23,514 (-136)

Net Worth:
+3,726 (+2,076)

Mortgage Breakdown:
Appraisal:  160,000
Zillow Estimate:  173,000
Acting Appraisal:  166,500
Loan Balance:  149,590
Equity:  16,910
May Payment:  255 P / 484 I / 311 E = 1,050

Monthly Income: 2,443
Monthly Assets Change: 1,940
Monthly Liabilities Change: -136
Monthly Net Worth Change: +2,076
Monthly Savings Rate (IRA/401k+Match/Cash/StudenLoan/MortgPrincipal): 1,373 (56%) x .55 = 31% (How is this number calculated?  All expenses are shared jointly, me @ 55%, GF @ 45%)

Credit Score:
Credit Karma scores:  767 TU / 757 Equifax
FICO score:  758

Alright!  May was a kind of a tough month for us, but relieving as well!  We paid off our final extra rent payment, and will pay of the final utility bill this month.  That was a burden on our shoulders, but we got through it and now it will no longer be looming over us.  The initial deposit was $950, and we should get a rent reimbursement of around $260, plus hopefully a good chunk of the deposit back as well.

As an added boost to the assets this month, I brought the old Mustang up to the garage from my parents, and am working on it.  It’s been mine for years, but just has been sitting in their garage.  Some of my extra money (whenever I get any!) will be going towards restoring this.  This project is more to learn mechanical skills with cars than to make money – I’ll probably spend more in economy parts than it’ll be worth in the end, but the skills I learn will be invaluable!