Net Worth – Q1 2017

We crossed the $100,000 mark in liquid assets this quarter!

Assets

  • Home (Estimated Market Value): $70,000
  • 401(k): $79,308
  • tIRA: $20,160
  • Non-Earmarked Cash: $2,959
  • HSA (invested portion): $1,028
  • Total: 173,455
  • Assets towards FI: $103,455
    • Approximate passive income this would generate annually: $4,138

Liabilities

  • Home Mortgage: $98,192 @6.5% –> PMI makes it effectively ~7.1%
  • Student Loan (Alchemist A): $603 @0.1%
  • Student Loan (Alchemist B): $20,372 @4.8% (variable)
  • Total: $119,167

Net Worth: $54,288

Net Worth Last Quarter: $41,004

Net Worth 1 Year Ago: $24,258

Net Worth At the Start (End 2013): -$33,948


Net Worth – End 2016

Some really nice progress in Q4. If we can avoid too many major expenses in 2017 it should be a great year for our goals unless Mr. Market puts stocks on sale in which case it’s still good for the longterm.

Assets

  • Home (Estimated Market Value): $70,000
  • 401(k): $69,150
  • tIRA: $19,056
  • Non-Earmarked Cash: $2,450
  • HSA (invested portion): $1,027
  • Total: 161,683
  • Assets towards FI: $91,683
    • Approximate passive income this would generate annually: $3,667

Liabilities

  • Home Mortgage: $98,941 @6.5% –> PMI makes it effectively ~7.1%
  • Student Loan (Alchemist A): $801 @0.1%
  • Student Loan (Alchemist B): $20,937 @4.36% (variable rate that has been slowly rising)
  • Total: $120,679

Net Worth: $41,004

Net Worth Last Quarter: $32,905

Net Worth 1 Year Ago: $9,863

Net Worth At the Start (End 2013): -$33,948


Net Worth – Q3 2016

For now I think I’m still comfortable publicly updating our net worth progress. It’s a high-level look at our progress to our goals.

Assets

  • Home (Estimated Market Value): $70,000
  • 401(k): $65,191
  • tIRA: $18,303
  • Non-Earmarked Cash: $500 (We have much more cash on hand but a lot of it is going to be eaten up by the transmission rebuild that’s currently in progress.)
  • HSA (invested portion): $987
  • Total: 154,981
  • Assets towards FI: $84,981
    • Approximate passive income this would generate annually: $3,399

Liabilities

  • Home Mortgage: $99,579 @6.5% –> PMI makes it effectively ~7.1%
  • Student Loan (Alchemist A): $999 @0.1%
  • Student Loan (Alchemist B): $21,498 @3.9%
  • Total: $122,076

Net Worth: $32,905

Net Worth Last Quarter: $26,991

Net Worth 1 Year Ago: $15,371

Net Worth At the Start (End 2013): -$33,948


Why we save aggressively

We save aggressively and live simply. People often associate frugality with austerity or ‘missing out’ but there’s freedom in having solid finances. We’ve had an unusually expensive year this year to date but are powering through what would see many “typical” American families accruing considerable debt.

This post isn’t meant to brag, but hopefully to inspire.

Maria earns good money, which definitely helps. We’re above the median household income but nowhere near six figures. We put enough of that income into tax-advantaged accounts that we have zero federal income tax liability each year.

We did $2,000 in repairs to my car. We bought a car for Maria for a little over $4,000 in cash. That car unfortunately may need a transmission rebuild (we’ll know soon) for $2,500-$2,600, but we can (just barely) pay for that out of what’s left in savings.

We spent several thousand dollars on the homestead this year between constructing the raised beds, bringing in soil, buying perennial plants, and setting up our animals.

We grow some of our own food but still spend an awful lot on what we can’t grow. Food is important to us. To paraphrase Joel Salatin, you are only as healthy as the life energy that you consume. I source as many ingredients as possible from local farms, and with the rest of our food dollars I try to support sustainable practices as best as I can through the veil of the supermarket.

With all this, we were still able to pre-pay a considerable amount of our existing debt. We save aggressively as a way to “spend” on our future selves. We give a gift to our 40, 50, 60 year-old selves that hopefully one day in the not-too-distant future we will be financially independent and able to live the homesteading life we truly desire without a need for Maria’s income.

Do you save aggressively? What difficult situations have made you thankful that you did?


Net Worth – Q2 2016

Assets

  • Home (Estimated Market Value): $70,000
  • 401(k): $61,122
  • tIRA: $17,532
  • Non-Earmarked Cash: $1,350
  • HSA (invested portion): $946
  • Total: 150,950
  • Assets towards FI: $80,950
    • Approximate passive income this would generate annually: $3,238

Liabilities

  • Home Mortgage: $100,701 @6.5% –> PMI makes it effectively ~7.1%
  • Student Loan (Alchemist A): $1,197 @0.1%
  • Student Loan (Alchemist B): $22,061 @3.9%
  • Medical Debt @0%: $0 –>retired since last update
  • Total: $123,959

Net Worth: $26,991

Net Worth Last Quarter: $24,258

Net Worth 1 Year Ago: $17,213

Net Worth At the Start (End 2013): -$33,948


Net Worth – Q1 2016

Assets

  • Home (Estimated Market Value): $70,000
  • 401(k): $59,194
  • tIRA: $17,090
  • Non-Earmarked Cash: $3,000
  • HSA (invested portion): $922
  • Total: 150,206
  • Assets towards FI: $80,206
    • Approximate passive income this would generate annually: $3,208

Liabilities

  • Home Mortgage: $101,803 @6.5% –> PMI makes it effectively ~7.1%
  • Student Loan (Chief): $–>retired since last update
  • Student Loan (Alchemist A): $1,396 @0.1%
  • Student Loan (Alchemist B): $22,624 @3.9%
  • Medical Debt @0%: $125
  • Total: $125,948

Net Worth: $24,258

Net Worth Last Quarter: $9,863

Net Worth 1 Year Ago: $5,848

Net Worth At the Start (End 2013): -$33,948


Net Worth – End 2015

Assets

  • Home (Estimated Market Value): $70,000 (lowered from 80K, because this is a more honest net value)
  • 401(k): $55,090
  • tIRA: $17,070
  • Non-Earmarked Cash: $1,000
  • HSA: we do have some HSA savings, but at this point I’m counting it as “spent” money already. Once the balance gets sufficiently large (who knows when?) I’ll factor this in with NW.
  • Total: $143,160
  • Assets towards FI: $73,160
    • Approximate passive income this would generate annually: $2,900

Liabilities

  • Home Mortgage: $102,440 @6.5% –> PMI makes it effectively ~7.1%
  • Student Loan (Chief): $1,928 @2%
  • Student Loan (Alchemist A): $1,593 @0.1%
  • Student Loan (Alchemist B): $23,144 @3.9%
  • Medical Debt @0%: $341
  • Total: $133,297

Net Worth: $9,863

Net Worth Last Quarter*: $5,371

Net Worth 1 Year Ago*: -$13,776

Net Worth At the Start (End 2013)*: -$33,948

*retroactively adjusted for lower house value.