So I skipped posting in December, though I did a table for it and never got around to posting. Here’s the update to kick off 2020. Overall I’m not too thrilled about my overall financial picture. I have also made the difficult decision to get divorced, so the separation is going to be stressful and eventually costly most likely.
I am going to try hard in 2020 to reset my life in several ways, finances included. Is a $335,000 Net Worth at the end of the year doable? Let’s see what happens!
January 2020 Financial Statement
| Account Name | Previous Balance | Balance | Change |
|---|---|---|---|
| Cash | 1501.00 | $36.00 | -$1465.00 |
| Savings - Personal | $3,801.88 | $3,002.10 | -$799.78 |
| Savings - Personal (CU) | $796.00 | $407.89 | -$389.11 |
| Checking - Personal | $2,553.08 | $3,500.48 | $947.40 |
| Checking - Business | $7,134.22 | $7,111.51 | -$22.71 |
| Credit Card - Business | -$120.87 | -$515.00 | -$394.13 |
| Credit Cards | -$1,091.35 | -$4,541.54 | -$3,450.19 |
| Retirement - 401k | $201,916.50 | $204,242.01 | $2,325.51 |
| Retirement - 401k Loan | -10,525.28 | -$9,709.17 | $816.11 |
| IRA | $7.62 | $7.62 | $0.00 |
| Retirement - Pension | $32,595.08 | $32,595.08 | $0.00 |
| Retirement - HSA (Investements) | $9,282.15 | $9,303.68 | $21.53 |
| Retirement - HSA (Cash) | $3,625.45 | $4,156.21 | $540.76 |
| Asset - Vehicle 1 | $9,725.00 | $9,600 | -$125.00 |
| Auto Loan 1 | -$7,253.15 | -$6,877.27 | $375.88 |
| Asset - Vehicle 2 | $6,500.00 | $6,500.00 | $0.00 |
| Asset - Precious Metals | $1330.00 | $2,578.69 | $1,248.69 |
| Asset - Home | $153,697.00 | $152,345.00 | -$1,352.00 |
| Mortgage - Home | -$131,015.56 | -$131,015.56 | $0.00 |
| Net Worth | $284,548.77 | $282,727.73 | -$1,821.04 |
A few things to note this update:
- The table is ran against December’s numbers, but I did not make a December post!
- The first tracked month of negative growth (I think?). Sad.
- I significantly added to my previous metals stack since my last post.
Side Business Income
The side business is continuing on an upward trajectory. January was our second best month ever, and I’ve paid myself $1,000.00 again in anticipation of quarterly profits, when I will reconcile the numbers. I am finding myself having more expenses as well in order to grow the business, but overall I’m pretty happy with where it is, and where it appears to be heading.
Retirement
I still haven’t re-allocated the funds in my retirement account. With Brexit just happening, and everything going on politically, along with a technical recesion in terms of GDP growth now, I’d like see what happens, though not sure I really want to be out of the game all through the election – we will see.
With retirement accounts totaling $236,837.09 and using a 3.5% safe withdrawal rate (SWR), that would allow me to take $690.77 as income each month. Add on to that my $1,000.00 a month draw from my website, and I’m at $1690.77. That’s not enough to retire on anytime soon, but it is enough that if the shit hits the fan, I can find somewhere in the world to live in while I come up with a plan.
Safe Withdrawal Rate (3.5%) monthly income: $690.77 + Website income = $1,690.77
Spendaholic Ways
I feel like I’ve done better with my spending. I haven’t eaten out as much, at least a start… but there just keeps things coming up that as the sole earner in the household I have to pay for.
Emergency Fund
My personal and credit union savings is now at around $3,410, and dwindling. I haven’t been replacing the funds like I need to be, and I had to recently take out large amounts for a garage door replacement, and to give to my wife – as part of support during our separation, and so she could purchase a cheap car.
Looking Ahead
Tax season is coming up, and I should get a bit of a refund which should help. Also, yearly bonus from work will hopefully come through at the end of March which should allow me to reset.
I don’t yet know how the separation and impending divorce is going to play out financially, but if common knowledge is anything to go by – it’s going to hurt financially by the time it’s done.