Net Worth Update 20: Duck on a Pond Edition

Just like that July is out the window and August has rolled in. Our oldest is headed to school next week and I could have sworn she just got out of school. Time truly flies. While the month was sprinting on by, how did our finances fare?

At first glance, the results are pretty boring actually. However, like a duck on a pond, there was a lot going on under the surface.

As always, you can check the latest and greatest info on the Track Our Progress page.

First, the numbers:

Net Worth:

• End of July Balance: $504,698 Up $6,964 (1.30%)
• Year to Date (YTD): Up $112,860 (28.80%)
• Since January 2018 (this is when I started tracking our net worth): Up $199,698

Portfolio:

• End of June Balance: $351,372 Up $6,964 (2.02%)
• YTD: Up $87,835 (33.33%)
• Since January 2018: Up $111,372

Monthly Contributions: $4,120

Most of the gains in July were due to contributions into our 401k, with a smaller amount attributed to increases in real estate value and principle payoff.

We actually pulled $4,000 out of our high yield savings account to cover closing costs for our home refinance. Some of this will come back at the end of August when our old escrow gets refunded to us. More on this below.

July Highlights

We Closed on the Mortgage Refinance

We dropped down to a 15-year mortgage. It took just shy of $5,000 to close the refinance. Hence the big dip in our net worth on July 22nd that you can see in the title image.

The interest rate dropped 1 percent and we dropped the PMI (PMI alone is saving us $108 per month). All told the refinance will have set us back around $900 with a payback of less than a year, and locking in an annual return on investment (ROI) of roughly 12 percent.

I started seeing a Chiropractor

I’ve been dealing with discomfort in my neck and upper back for a long time… going back nearly 20 years, likely due to football-related injuries in high school. I’ve held off getting treatment partially because of concern about costs, but mostly due to stubbornness that I should be able to tough it out. Silly me.

I came to the realization: What is the point of Financial Independence if my body is falling apart? How much money would I be willing to pay to feel good then? “As the old saying goes: An ounce of prevention is worth a pound of cure.” Anyways, better late than never, I wizened up and saw the doc.

It was a refreshing experience. The doc confirmed the issues which helped validate my concerns and prescribed treatment and performed adjustments. Total cost to get treated will be around $500 spread out over two months.

Coming Up in August

Mrs. HoF Negotiated Reduced Working Hours

The big FI win of the month came from Mrs. HoF. She asked for and was approved to reduce her workweek by 5 hours. I know 5 hours does not sound like much but it really means a lot for us. This provides us more flexibility to get our daughter to and from school without before or aftercare. Not to mention, it allows us to keep up on non-work items around the house that still need to done. The real kicker: the reduced hours does not reduce her pay!

We Plan to Pay Off Our Car Loan

We purchased a new car for Mrs. HoF in April and obtained financing to acquire it. We had saved up enough money to pay for the car in cash, but I had been saving up for a possible buy in to my company. In July I received word that this opportunity is likely over a year out. As such, we don’t think it’s worthwhile to keep paying interest on the loan.

So, while the numbers at the end of the month don’t look all that sporty, I feel like things were really moving and shaking.

Thanks for reading!