Welcome to the July 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.
July is over and the weather is has been over 100 every day, it seems. I think we have had only a few 100-degree days last year, and this year were getting close to 40. Financially, July was a good month, and a lot cleaner than June. I’m still getting everything sorted out after buying the house.
Monthly Roundup
There are places that are starting to require masks again. My workplace is one of them. I’m pretty sick of it, no pun intended.
On another note, we moved into our new house and are starting to get settled. The bathroom reno is almost complete! Finally, we can move into our bedroom.
July 2022 Net Worth
Here’s how July compares to last month:
July Account Breakdown
Let’s take a quick look at what happened in July.
Cash (-3,274.83)
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 ($57.76)
Monthly Blurb: All of our cash leftover at the end of the month is transferred here and is considered part of our savings rate.
Remaining Cash Accounts (Emergency and Sinking Funds) ($1,071.53)
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 (+$15,131.78)
I guess the markets are coming off their lows.
IRA (+$11,337.59)
This increase is all due to the rise in the markets
College Fund (+$3,982.31)
Just like the other investments, the college savings rose as well.
Net Worth (+$23,262.15)
I’m continually amazed to see how much our net worth can change in a single month. It felt like the market was flat in July, but I guess they were up.
In total, our net worth increased by about 4%.
Accessible Net Worth (-$3,207.22)
Monthly Blurb: This is the money we are able to put away, not including the tax-advantaged retirement accounts.
Our income was well above average, and so were our expenses. Our accessible net worth decreased mostly because expenses associated with the new house.
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
The tension is building as the break until September continues.
September should be exciting, but we have to make it through August first.
The interest rate in my savings account is slowly increasing with every rate hike the few makes. My money is still barely making any money sitting in that “high-yield” account earning 0.7% last I checked.
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. I anticipate the next few months will have a similar savings rate. Hitting that 50% target is going to be tuff, if not impossible!
Here’s how we did this month.
Income ($14,920.86)
Right now, our only source of active income is through our full-time jobs.
This is what a well above-average month looks like for us.
Expenses ($9,225.67)
Our expenses were also well above-average this month.
Here is a quick breakdown:
1) Home Escrow ($2689.78)
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’s expensive! And this cost doesn’t even include the mortgage.
2) Giving ($1,641.29)
The usual 10% we give every month. Plus 1% that we started to give on top of that.
3) Cost of living ($4,894.60)
Previous Months: 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), May: ($3,726.16)
Running Average: $3,544.24
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 paper work 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 continue to rise. Our utility bills rose as well since the weather is heating up and we have to cool the house. Not to mention watering the yard.
Having two houses is expensive. We also took a family vacation to Tennesse, but that really didn’t add much to our monthly expensive because friends and family took great care of us.
July 2022 Vs June 2022 Expenses
June and July were pretty similar in terms of expenses.
Hopefully August 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 accoutns.
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 over halfway through 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.
July 2022 Roundup
The month of July was a a good one. One of the girls had a birthday, and that is always fun. We also moved into our new house, which the kids did really well with. They make me proud.
I’m excited as we progress into August, and for the rest of the year. Hopefully I’ll get more chores off my to-do list, allowing more time for these reports.
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.