I hope you all had a wonderful holiday season! This update marks the completion of our first year of monitoring our Net Worth progress. I will be taking a deeper dive into the 2018 numbers in another post, but for now how did we fare in December?
As always, you can check the latest and greatest info on the Track Our Progress page.
First, the numbers:
Net Worth:
- End of December Balance: $391,838 Down $10,430 (-2.59%)
- Year to Date (YTD): Up $86,838 (24.47%)
Portfolio:
- End of December Balance: $263,537 Down $-17,104 (-6.09%)
- YTD: Up $23,537 (9.81%)
Like just about everyone, our numbers nosedived in December. I don’t advocate watching the market on a daily basis; however, I have to admit, it was interesting watching the dramatic ups and downs last month.
The graph (courtesy of Personal Capital) in the title shows a massive dip between the 18th and the 19th. Rather than extreme volatility, this was a temporary condition due to us moving savings accounts. More on this below.
Monthly Contributions:
- $8,664 Up 37.72%
- I took most of my work bonus and plowed it into savings/investment
- I received a settlement from my car accident, which allowed us to deposit a bit more than normal.
December Highlights
Bathroom Remodel Complete
In case you missed it, we started remodeling our daughters’ bathroom right after Thanksgiving. You can follow along on our remodeling story with Part I and Part II. We wrapped the project up in mid-December and I’m pleased with the result:
New tub, tile (shower and floor), light, vanity, mirror, medicine cabinet, baseboard and paint… for just under $3,000.00 and in 17 days. The only thing that stayed was the toilet, which was recently replaced.
Emergency Fund on the Move
I mentioned earlier that we moved savings accounts. We were sick of our existing savings account’s microscopic interest rate of 0.03% and opened up a high yield savings account. The new account has a much improved rate of 2% and earned a cash bonus for meeting a minimum deposit.
We have some shorter term savings goals, which I discussed further in How to Compare Short Term Savings Strategies. It pains me to keep this money out of the market (you can’t get that time in the market back!) but since our window is only a year or two, the risk of loss is just not worth it. We’ve earned more interest in the first month than we did the over the rest of the year in our old account, not including the cash bonus.
Coming Up in January
Focus on my Fat Ass
In 2018, I focused a lot of my free time creating content for this blog and restructuring our finances. Between the blog, financial restructuring and a very hectic day job, I lost focus on eating healthy and exercising. As a result, I gained back much of the weight I lost in 2017 (I dropped a little over 20 pounds then). The holidays were the the final nail in the coffin. My wife makes dynamite chocolate chip cookies and my will power stands no chance.
As one of my New Year’s Resolutions, I have vowed to cut down on my body fat. I realize that weight loss resolutions are a dime a dozen, but it makes no sense for me to work so hard to reach financial independence only to be held back by a beat up mess of a body. As the old saying goes: “Health Equals Wealth”.
I will touch on my planned approach and thought process in an upcoming post, but I am excited to get healthy again! And without counting calories this time! As an added benefit, I hope this public forum will help me stay accountable. So stay tuned!
Daycare Bills to Investing Thrills
As I alluded to earlier, having money out of the market drives me crazy. Additionally, I’ve become increasingly anxious about funding our taxable investment account. Besides, if we hope to retire early, won’t we need some dollars to live on until we can tap our tax-advantaged retirement savings? Also, other alternatives, such as real estate are very appealing to us, so having some quickly available funds is attractive.
As it turned out, an opportunity popped up at that allows us to scratch that itch. Our youngest moved up a class in her daycare at the end of the month. As a result, the weekly fee drops a few bucks. We are taking the difference (plus a couple bucks) and scheduled an automated investment through Vanguard. Converting a recurring expense into recurring savings is one of my top 10 Lazy Ways to Increase your Savings Rate.
Enough already, time to plan out my next few meals and shed some #s. Here’s wishing you a healthy and profitable 2019!