It’s that time again! I like to use monthly net worth updates for motivation. Posting them pushes me to try harder, I am forced to actually work the numbers, and I started blogging so I could share with all of you and get feedback.
My Backstory for New Readers
I worked in a dead end cubicle job from when I graduated from college in 2005 through July 2011. I could never be promoted within my department and $35,500 was the highest salary I ever received. My plan was to stay there for 30 years and retire. That plan went to crap for two main reasons. First, I wanted to truly connect with people. Secondly, I finally realized the position was the definition of “dead end”.
That led me to creating Budgeting in the Fun Stuff in February 2010 even though I had zero professional writing experience, and I had just been a blog reader and commenter for a few months. It grew faster than I expected (thank you!), and I have been fully self-employed since July 2011. BFS itself has made more than $100,000 since I started. How’s that for investing money and time wisely. My husband and I live on the income we earn through our online business, professional pet sitting, and our first house which is now our rental property. We bring in $80,000-$140,000 each year – 100% self-employed. If you’d like to start your own site, I worked out a special for my readers with Bluehost and anonymous blog sites – lower rates on all 12+ month packages like $3.49 per month for 36 months for their “basic” plan. I switched over too, but I signed up for the 36 month package with their “plus” plan since I have multiple domains.
I also just republished a free three part series to help:
Or if blogging isn’t your schtick, check out any of my other money making posts! I’ve personally done all sorts of things including being a jewelry reseller from online to pawn shops in my late teens, doing online surveys that pay, being a cow mascot in my early 30’s, selling my hair for $100+, and starting my own professional pet sitting business in 2014. Email me any time for ideas as well since side hustles and entrepreneurship have become my whole life!
Onto this month’s update!!!
Net Worth Update – May 2016
Cash (in all checking and savings accounts) – $86,800 (-$7750)
Stocks – $18,000 (+$350)
Retirement – $159,300 (+$12,550)
Home – $306,000 (same)
Rental House – $122,000 (same)
Cars – $15,000 (-$500)
Home – $194,400 ($300)
Car – $10,500 ($200)
Total Net Worth = $502,200
Last Month: $497,050
Total Monthly Change: +$5150
WHOO-HOO!!! We finally broke that $500,000 ceiling!!! The next $500,000 should be a breeze, right? 😉
Okay, so the cash hit was actually not as bad as expected. We used $11,000 to fund our new SEP IRA for 2015 so we could include that on last year’s tax stuff. So the fact that we only went down $7750 means we actually absorbed $3250 of the cost through the extra after expenses in April. I’m pretty happy with that!
The $11,000 contribution to the new SEP IRA was obviously a big chunk of the extra in that category , but that still means we bounced back $1550 too. Yay! Our home values are still spot on right now thanks to the official evaluations we just had done in April. We’re also using the Fundrise app as another way to invest in real estate. Our car values are based off of Kelley Blue Book.
In case you are ever wondering, the car loan is at 0.9% interest, so we are not paying it off early. Our cash reserves do have a little more than necessary in them right now, but not much when we take into account what we are aiming for. Overall, we want the following padding – $3500 in checking, $20,000 in our emergency fund, $20,000 in our blog income account for paychecks, $10,000 in our rental home account, $5000 in a car account for our next down payment, and we have two accounts that build $2000 per month (hopefully) throughout the year. One of those accounts is the one we use to save for and pay our income and property taxes as well as our home insurance and HOA dues. The other is to save up for this year’s SEP IRA contributions as well as the following year’s Roth IRA contributions. So in our reality, we “only” have an extra $8300 and that will be used as padding for any lower-than-expected income months this year (and I’ll be honest, it’ll probably be used a little for any we may be short for our next cruise).
Overall, I’m optimistic for 2016. We already hit my $500,000 goal, woot! Now onto the BIG goal set at $550,000.
How have you been doing lately? What are your short-term and long-term financial goals?