Welcome to the August 2022 edition of our net worth tracker, where we’ll track our net worth month over month. I first started tracking our net worth at the time this blog was started, which was the beginning of September 2019. I started by creating the Net Worth Baseline report.
You can view Previous Net Worth reports HERE.
August is over and the weather is finally starting to cool down. I was a little worried because August is typically the hottest month of the year.
Fortunately, we have been getting a decent amount of rain as well.
Financially, August was a poor month, but we should have some good news come to the end of September. Our old house will hopefully close and be off the books!
Monthly Roundup
In July, there were places that were starting to require masks again per CDC guidelines and surveillance. My workplace was one of them.
Fortunately, CDC updated their guidance two weeks into that, and now masks are optional.
Finally!
On another note, we continue to get settled into our new house. Just taking it step by step and trying to get the to-do list done. The bathroom reno is complete, and we have moved into the master bedroom.
August 2022 Net Worth
Here’s how August compares to last month:
August Account Breakdown
Let’s take a quick look at what happened in August.
Cash (-1,088.36)
Monthly Blurb: This is where our paychecks get deposited. All our income goes into this account, then gets transferred to the proper accounts as set by my budget. As usual, I do the net worth report before transferring money to the appropriate accounts.
Investment Cash (-$6,261.76)
Monthly Blurb: All of our cash left over at the end of the month is transferred here and is considered part of our savings rate.
This took a bit hit because we are using this money for the bathroom renovation. There is about $1500 left we owe, but we shouldn’t see any more $6,000 hits for a while.
Remaining Cash Accounts (Emergency and Sinking Funds) ($1,074.08)
Nothing exciting here. Just the usual. We are just saving up for our property tax bill and HOA fees, until the old house sells.
Retirement Accounts
401(k)s (-$3,457.32)
Ouch, negative even with us putting money in.
IRA (-$3,218.84)
This decrease is all due to the fall in the markets
College Fund (-$1,894.39)
Just like the other investments, the college savings fell as well.
Net Worth (-$14,014.20)
Negative months are going to happen sometimes, especially when you are paying $3,000 for a mortgage and $6,000 for remodeling.
In total, our net worth decreased by about 2.5%.
Accessible Net Worth (-$7,338.04)
Monthly Blurb: This is the money we are able to put away, not including the tax-advantaged retirement accounts.
Our income was average, and so were our expenses (the new normal). Our accessible net worth decreased mostly because of expenses associated with the new house. Take a guess on what?
Liabilities
Status: None, as usual. They’re a burden, so I avoid them. The cars, the house, they’re all paid for. Student loans…never used them. Credit Card debt? I only use one, and it gets paid off every month, and often I’ll pay it off multiple times per month. Just depends on how many times I think about it.
Temporary: We have a mortgage on the new house until the old house sells. Hopefully, that doesn’t take too long.
Passive Income
September is finally here. Should be interesting since this earnings season is in a recession, using the technical definition. I don’t really care if the government admits it or not.
Either way, September should be exciting.
The interest rate in my savings account feels like it is skyrocketing now with all the rate hikes the fed is making. My money is still barely making any money sitting in that “high-yield” account, earning 1.75% last I checked.
Still, that’s a lot better than the 0.4% that it was at not too long ago.
Saving’s Rate
I track my savings rate in order to help keep my feet to the fire, so later I can be Gone on FIRE. As a bonus, you get a glimpse into my cash flow by looking at the income and expense rows.
Our year-to-date savings rate is in shambles right now. No way we’re going to hit 50% with all the home-buying expenses and the debt of our mortgage.
I really dislike having a mortgage!
Hopefully, September will be the last month with a similar savings rate. Hitting that 50% target is going to be tuff, if not impossible!
Here’s how we did this month.
Income ($9,751.13)
Right now, our only source of active income is through our full-time jobs.
This is what an average month looks like for us.
Expenses ($9,051.04)
Our expenses were also well above-average this month.
Here is a quick breakdown:
1) Home Escrow ($4252.86)
The “new” normal amount we put aside every month, plus the cost of the new house.
So, we’re paying for two houses right now. That was expensive! Last month this cost didn’t even include the mortgage. Now you see what it’s like with the mortgage payment. Ouch!
2) Giving ($1,072.62)
The usual 10% we give every month. Plus 1% that we started to give on top of that.
3) Cost of living ($3,725.56)
Previous Months: Jul: ($4,894.60), Jun: ($4,199.79), May: ($8,107.34), Apr: ($5,767.97), Mar: ($2,486.92), Feb: ($3,306.12), Jan: ($3,409.65), Dec: (-$4,034.08), Nov: ($3,703.00), Oct: ($3,268.10), Sep: ($3,968.22), Aug: ($3,532.91), July ($2,394.24), June: ($4,283.01)
Running Average: $3,557.19
This includes all our bills (Gas, Electric, Water, Internet, Phone), transportation, food, shopping, car insurance, and daycare. Home insurance is paid for out of our Home Escrow savings account. Like last year, we are going to drain our dependent care account at the end of the year in one lump sum. Doing it that way is less paperwork for us.
We have been driving more, so our gasoline bill is starting to climb. We hit a new peak in July as Gasoline prices rose, but thankfully the prices pulled back a bit in August. Our utility bills rose as well since the weather is hot and we have to cool two houses. Not to mention watering the yard.
Having two houses is expensive.
July 2022 Vs August 2022 Expenses
August and July were pretty similar in terms of expenses. A big difference is that we don’t have daycare for one of the kids anymore.
Hopefully, September goes smooth and we don’t have any unforeseen expenses. Also, I hope we sell the old house.
Goals Progress
Financial Goals
Aside from the Roth IRA contribution, most of the financial goals this year are year-long goals.
The Roth IRA contribution is done, and the money has been transferred to the proper accounts.
Aside from the 401k, which is on automatic contributions from my paycheck, I’m still not completely sure how the other goals are going to turn out. If we don’t sell the other house, we won’t be able to meet those goals.
Blog Goal
My goal of 1 article a month isn’t going to happen. I’ve got too much to do with the new house.
Personal Goals
I’m doing a reading goal again this year, with the same number of books. Last year I only read 2, but I know I can do 3. I’m getting close to done with the first book.
And then there is my physical health. I didn’t get to where I wanted in 2021, so we’ll continue to try again this year. I want to lose fat, and part of that is going to be by eating healthier. So far, that hasn’t happened
August 2022 Roundup
The month of August was a good one. We’re all moved into our new house, which the kids are doing really well with. They make me proud. We really like the neighbors and have just about met them all.
I’m excited as we progress into September and for the rest of the year. Hopefully, I’ll get more chores off my to-do list, allowing more time for these reports and other helpful posts.
Stay tuned for next month’s Net Worth update!
FIRE Away!
REMINDERS:
- 2 big items not included in my net worth:
- House & Cars – Their value will be added to my net worth if and when I sell them.
- 2 accounts not included in net worth total (even though they’re listed):
- 529 – This is my money for my babies. Consider it their net worth summary.
- Home Escrow – This is Uncle Sam’s money. We don’t mess around with Uncle Sam and his money.
- Total income only includes our active income, which is currently our full-time jobs.