The past month was a great one financially, on several fronts. Not only were stock market returns very favorable, but I finally received several thousand dollars that I was owed from the IRS for tax years 2019 and 2020, in addition to two stimulus payments that were not received previously. These payments contributed about a third of the net worth increase this month. Another third was through savings, and the final third was stock appreciation. In total, the net worth increase for the month was $10,828 for a total net worth of $11,221!
In last month’s net worth update, I finally reached a positive net worth! This month continue to move in the right direction and hopefully the days of having a negative net worth are in the past. I track my net worth through Personal Capital, but also utilize Mint.com for tracking my day to day expenses and keeping a budget. One nice thing that Mint has is a goal tracker and I have an “early retirement” savings goal of $650,000 by the end of 2029. According to Mint, I am running about 10 months ahead of schedule for my early retirement savings goal.
Personal Capital also has an annual savings goal tracker, but I find the long-term nature of the Mint tracker more ideal to the way I like to look at my financial goals. Seeing that I’m so far ahead of schedule is just as motivating to keep saving and investing just as if I was running behind schedule.
Positive Net Worth Two Months In a Row!
After breaking out of a negative net worth in last month’s update, I’m pleased to see the growth continue in a positive direction. After spending over a decade with a negative net worth due to substantial student loan debt, it’s nice to finally have more assets than debt. Something I am also looking forward to in the coming months is the effect of moving to a lower cost of living area during the remainder of the work from home period at my job.
I’ve managed to reduce expenses by over $1,200 per month as a result of this relocation and expect/hope to be able to continue working remotely for another year. If my WFH prediction holds, that would mean an extra $14,400 in savings spread across 2021 and 2022. This would be a great boost to my early retirement savings target and help achieve it another few months earlier.
Net Worth = Assets minus Liabilities
| Assets |
Amount |
Change from Last Month |
| Checking/Savings |
$51,076 |
|
| Retirement Accounts |
150,185 |
|
| Taxable Investments |
4,104 |
|
| Misc. (Gold/Silver/Cash/Collectibles) |
7,500 |
|
| Total Assets |
212,865 |
+13,294 |
| Liabilities |
Amount |
Change from Last Month |
| Credit Cards |
$4,551 |
|
| Student Loans |
197,093 |
|
| Total Liabilities |
201,644 |
+2,467 |
Net Worth = $11,221
Change in Net Worth from last month: +$10,828
Total Change in Net Worth Since July 2020: +$59,449
The strange dip in the graph above is a period during which my private student loans were being refinanced and the linked accounts both showed a positive debt balance for a short while.
(Nearly) One Year Anniversary of The Money Sloth
Next month marks the one-year anniversary of The Money Sloth and the beginning of my FIRE journey. I began tracking my finances with these monthly money updates on TheMoneySloth.com in July 2020 with a negative net worth of -$48,228. A big reason for creating this blog is self-accountability and sharing my experiences and knowledge for those who may be embarking on a similar financial journey themselves. If anything good came out of the Covid-19 pandemic for me, it was the self-reflection and decision to embark on this financial journey to begin taking more control over my financial future.
I hope you’ll continue to follow me on this journey!