This month was pretty bad in terms of spending, not going to lie. I went from a $0 balance credit card, to over $5000 spent on it, and over $6,000 now in the early morning hours of July 1st. More on that later…
I also withdrew $1000 from my savings account when my everyday checking account was getting a little low.
I also took a hit on my business account, because a hired ad agency tripled my ad budget without even asking or telling me! Due to the nature of how I hired them, I don’t really any any recourse other than firing them and turning off access.
That being said, it was still a positive month for my net worth, which grew by about $6,000 bringing me up to $350,509.06. Most of that gain was growth within my 401k, including earnings and new contributions.
In terms of the “Big Plan” I am about 3 months ahead of schedule at the moment.
June 2020 Financial Statement
| Account Name | Previous Balance | Balance | Change |
|---|---|---|---|
| Cash | $0.00 | $61.00 | $61.00 |
| Savings - Personal | $5,502.29 | $4,702.46 | -$799.83 |
| Savings - Personal (CU) | $933.37 | $950.10 | $16.27 |
| Checking - Personal | $3,467.32 | $5,392.21 | $1,924.89 |
| Checking - Business | $9525.34 | $7,964.38 | -$1,560.96 |
| Credit Card - Business | $0.00 | $0.00 | $0.00 |
| Credit Cards | $0.00 | -$5,313.48 | -$5,313.48 |
| Retirement - 401k | $243,954.70 | $253,523.00 | $9,578.30 |
| Retirement - 401k Loan | -$6,401.13 | -$5,529.11 | $872.02 |
| IRA | $7.62 | $7.62 | $0.00 |
| Retirement - Pension | $32,996.00 | $33,401.85 | $405.85 |
| Retirement - HSA (Investments) | $11,360.51 | $11,626.54 | $266.03 |
| Retirement - HSA (Cash) | $3,016.37 | $3,414.67 | $398.30 |
| Asset - Vehicle 1 | $34,700 | $34,400 | -$300.00 |
| Loan - Vehicle 1 | -$34,241.88 | -$33,749.89 | $491.99 |
| Asset - Vehicle 2 | $6,000.00 | $6,000.00 | $0.00 |
| Asset - Precious Metals | $4,110.38 | $4,118.47 | $7.91 |
| Asset - Home | $156,716.00 | $154,940 | -$1,776.00 |
| Mortgage - Home | -$128,363.83 | -$128,045.20 | $318.63 |
| Investment Account (Boat Fund) | $1,140.80 | $2,644.44 | $1,503.64 |
| Net Worth | $344,423.86 | $350,509.06 | $6,085.20 |
A few things to note this update:
- Those credit cards, abysmal…. I really let myself down there.
- My boat fund is doing well!
Side Business Income
The business is still really hurting. It was better than last month, but not by much. Started to pick up towards the end, so I am hopeful July will get better. Would love to get back to 5 figure sales months!
Retirement
May was very good to my 401k account growing by $9,578.30. I pulled back into 100% cash. I’m really worried about both a 2nd wave of COVID, what seems to be an overbought market due to stimulus money and FED injections, and political issues with the election later this year.
I don’t really want to sit the market out though, so I don’t know what to do here….
With retirement accounts totaling $286,933.17 and using a 3.5% safe withdrawal rate (SWR), that would allow me to take $836.89 as income each month. Can’t really live off of that, but it did increase by about $28 in just one month. If I can keep that up it will one day be a livable value!
Safe Withdrawal Rate (3.5%) monthly income: $836.89
Spendaholic Ways
June was bad, bad for spending… let me count thy ways…
- Scuba gear
- a $1300 New Herman Miller Aeron office chair
- $700 or so on a family weekend vacation
- A LOT of eating out / take out
- Step-daughter went back to pre-school
Emergency Fund
Not much changed here, it went down a little bit… Over $10,000 if you count the precious metals… but overall, it’s not where I want to be.
Looking Ahead
Here’s my order of priority of debts to pay off:
- Have a $10,000 inheritance check to cash
- Will be refinancing my house to go from 4.5% down to 3%, and shave 7 years off the payment without really changing how much I pay per month. (min payment, not including extras)
- Pay off those credit cards again!
What I am debating on now that my mortgage will be at 3%, do I continue making aggressive extra payments on it, or do I invest that money instead and probably(?) earn more than 3% with it, and then later on make some big bulk payments if I want? Hmmm….
My prediction for this month came $14,000 short. Partially because I can’t cash that inheritance check until July, and the rest was due to too much spending. So let’s see for July, can I get a $20,000 swing in net work in one month? (about 6%?)