Welcome to the February 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.
Well, I guess the pandemic is over now. In the blink of an eye ….or in one little update from the CDC and one State of the Union address.
Never mind the fact that both cases and deaths are higher than they were last February. Never mind the fact that four months ago we were being forced to get vaccinated to keep our jobs. Never mind the people who got fired and couldn’t claim unemployment benefits.
Now it doesn’t matter if you are vaxxed or not, the recommendations are the same! I’m sure there is no other motivation they have then public safety.
Enough ranting…
Monthly Roundup
Previously, I would go through my month, and go over the highlights. These days I’m doing it a little differently. Unless you convince me that you want to hear about my month, I’m not going to talk about it.
February 2022 Net Worth
Here’s how February compares to last month:
February Account Breakdown
Let’s take a quick look at what happened in February.
Cash (-$1,600.21)
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.
It was a good month for us in terms of spending. The difference in cash on hand is due mainly to not making as much money as last month.
Our spending was a little below average this month. We didn’t really do much so that kept expenses low.
Investment Cash ($4,557.02)
Monthly Blurb: All of our cash leftover at the end of the month is transferred here and is considered part of our savings rate.
This is where our leftover income went from February. It was a decent amount that we were able to put into our investment account.
I’m still waiting for some opportunities to come up. The foreclosure moratorium expired a while ago now, but the housing market is still red hot.
I had expected the market will be flooded with properties a few months after the moratorium ends, but that hasn’t happened yet. I do see a good number of foreclosures, but it’s not as much as it was before.
There is low inventory and most homes are going above list price in a matter of days. It’s hard to find a rental property in a market like this. Plus, I’m not sure I want a rental if I can’t evict a bad tenant.
Remaining Cash Accounts (Emergency and Sinking Funds) ($1,065.56)
Nothing exciting here. Just the usual. We’re back at it again. We are just saving up for our property tax bill and HOA fees for when they are due early next year.
Retirement Accounts
401(k)s ($3,234.39)
Last month we had a huge 10% drop, and this month we saw a small 1% increase. That was mainly from contributions. I’m a little surprised as the markets were pretty turbulent and I expected a decent decline.
IRA (-$2,905.97)
Again, all market performance. I know this was negative, but it’s still better than I expected.
Overall, that’s a loss of less than 1% between the 401k and IRA’s. Not too bad. I could live with that, as long as we don’t’ continue to have hyperinflation.
For reference, Inflation has been around 7-8% year-over-year.
College Fund (-$206.95)
The college fund is invested just like the IRAs; in mutual funds. The loss is equal to about .3%. That’s barely noticeable.
Net Worth ($3,290.10)
Last month our net worth decreased by 10’s of thousands. It was followed up by a mediocre month, but at least it’s in positive territory. I’m always surprised at the end of the month and see how much our net worth has increased. In the case of February, I’m surprised that it increased at all.
In total, our net worth increased by approximately .5%.
Accessible Net Worth ($2,961.68)
Monthly Blurb: This is the money we are able to put away, not including the tax-advantaged retirement accounts.
Our income was okay and our expenses were a little below average this month. Our accessible net worth increased as a result of transferring money into our investment account.
Liabilities
Status: (Other than the hospital bills.) 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.
Passive Income
December was a near-record month for dividend income, and 2021 was a record year. We are about a third of the way to being able to live solely off the dividend. And it’s supposed to grow exponentially, right? So, Financial Independence here we come!
That said, February, along with January, are very boring months for dividends. Finally, March has arrived! Here is where we actually brought in some dividend income.
The dividend income is the same as last month. I’m curious what April will look like because most of that dividend came from one mutual fund in the biotech sector. Has anything happened in the biotech sector recently?! Has the government stopped buying a certain vaccine?
The interest rate in my savings account is super low, as can be expected. My money is barely making any money sitting in that “high-yield” account now earning a measly 0.3%.
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.
A couple of years ago, I had to adjust the savings goal to 50%, which we didn’t achieve. In 2021, we barely achieved that goal, only making it in the last month! I’m setting the same goal this year.
This month we failed to reach that goal! Again. I don’t really have anyone thing to blame. Maybe inflation? Maybe we just spend too much, although I don’t see many areas we can cut.
Of that 50% we are spending, Housing and Daycare alone eat up about 30%. We give 10%, so that means we are living on 10-15% for everything else.
There is a light at the end of the tunnel for daycare, but these Texas property taxes kill me. They will be the reason I move out of the state. Is that Tennessee I see in the future???
I expect moving there will at least cut property taxes in half. Daycare will decrease every year until it’s gone in about 3 or so years. Hopefully, we can get our savings rate up to 60 or 70% by then.
I wonder what other expenses will pop up once daycare is done.
Here’s how we did this month.
Income ($10,071.69)
Right now, our only source of active income is through our full-time jobs.
This is what a normal income month looks like for us. Next month we will be paying some taxes I expect, but I’ll also receive a work bonus.
Expenses ($5,684.13)
Our expenses were a little above average this month. I think it’s because of inflation and the cost of oil going up. Our gas bill more than doubled this month compared to last year.
Here is a quick breakdown:
1) Home Escrow ($1695.31)
The normal amount we put aside every month. And as I mentioned last month, this went up slightly we hired a gardener.
2) Giving ($1,370.84)
The usual 10% we give every month. Plus 1% that we started to give on top of that.
3) Cost of living ($3,306.12)
Previous Months: 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), May: ($3,726.16), Apr: ($3,857.24), Mar: ($2,962.72), Feb: ($2,632.65)
Running Average: $2,985.32
This includes all our bills (Gas, Electric, Water, Internet, Phone), transportation, food, shopping, 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.
Our gasoline bills continued to increase. We have a pretty good idea of what it will cost each month now with my wife going back to work, and me having to go into the office.
I mentioned that after February, I should have a pretty good idea of what a normal month looks like. And I’ll know if a savings rate of 50% is likely.
Unfortunately, after seeing what a normal month looks like for us, I think a 50% savings rate is a little bit of a stretch for us. Sure, our income has increased slightly, but inflation is rising even faster. I’m not going to change it though, because it will be a good challenge to see if we can make it like we did last year, just barely.
February 2022 Vs January 2022 Expenses
January was a pretty average month, in terms of finances, and February wasn’t much different. We’re in our routine for the year, and things are going great.
Hopefully, March stays fairly smooth too, although I think we may have some car maintenance we need to take care of.
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 I have transferred the money. I didn’t forget like last year. Haha. I’m putting all that investment money we had in December towards the Roths.
Aside from the 401k, which is on automatic contributions from my paycheck, I’m still not sure how the other ones are going to turn out. Time will tell.
I have to wait till dividends start coming in to know how the passive income goal will turn out. I can’t really tell yet.
The savings rate goal of 50% is turning into a stretch goal, but I still think we can do it. We’ll see!
Blog Goal
For 2022, I want to create more content. My goal is at least one article a month, or 12 total in the year. I didn’t create anything for February, so I now have 10 months left to write 12 articles.
Personal Goals
I’m doing a reading goal again this year, with the number of books. Last year I only read 2, but I know I can do 3.
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.
February 2021 Roundup
The month of February was a good one, and nothing unusual happened. Kids only had a few unplanned days off school, we all stayed healthy, and pretty much life ran smooth.
There was no snowmageddon like last year, but there were a few freezing days the kids got to stay home.
I continue to be excited as we progress into March, and for the rest of the year. We are inching closer and closer towards normal. Gotta be there for elections, right?
I’m thankful that we are able to stop wearing masks everywhere we go now, including in the office.
Stay tuned for next month’s New 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.