Net Worth Update #11 – September 2017

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At the start of each month I share my net worth because I want readers to be able to track my financial journey from the very start all the way to financial independence. I first started tracking my net worth in August of 2016 and have been posting monthly updates ever since.

Here are my numbers for September 2017:

Money Market Funds
Savings Account $8,475  (+$4,310)
Checking Account $325    (-$615)
Total Money Market $8,800  (+$3,695)
   
Tax Advantaged Accounts
Traditional IRA $3,879  (+$115)
Roth IRA $4,569   (+$190)
401(k) $16,475  (+$38)
Total Tax Advantaged $24,923  (+$343)
   
Non-Tax Advantaged Accounts
Brokerage Account $17,656    (+$93)
Total Non-Tax Advantaged $17,656    (+$93)
   
Net Worth $51,379  (+$4,131)

Progress

Here’s a look at my net worth progression since I started tracking it back in August of 2016:

NW Sept 17


From August to September my net worth increased by $4,131, helping me fly by the $50,000 net worth mark!

Whoever said the first $1 million is the hardest was clearly lying because the first $50,000 is definitely the hardest. It took me just over a year to reach this point. I’ll be interested to see how long it takes from now to get the next $50,000…

Most of this increase landed in my Ally Bank online savings account. Since moving into my new apartment I had an irrational fear that I would have a ton of bills to pay and that I needed to have plenty of money in my savings account to quickly draw from. Obviously $8,475 is a bit overkill…now that I know exactly which day of the month my bills are due I’ll be reducing how much money I have in my savings account and getting back to my old ways of systematic investing in index funds. 

But Ally Bank is an excellent place to park my money for the short-term, since it pays 1.15% in annual interest. In fact, I recently tweeted out my admiration for Ally Bank:

tweetAllyBank

$17.44 in interest is not bad for doing no work to earn it.

In exactly one month from now I’ll also be eligible to contribute to my 401(k) plan at my new job. I decided that 100% of my contributions will be invested into an S&P 500 index fund offered by the plan. I’m optimistic that over the long haul the S&P 500 will continue to kick ass like it has done since the beginning of time. To quote the investing advice that Warren Buffet gives to his heirs:

“My advice to the trustee couldn’t be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”

If Warren Buffett believes in the long-term strength of the S&P 500, so do I.

In general, my net worth has been increasing by around $4,000 every month for the past year. It’s interesting to see that I obtained a 60% increase in salary and yet my monthly savings are about the same because I actually have rent, utilities, and grocery bills to pay now. It’s a little sad to look at my checking / savings accounts and see so many dollars leaving the accounts on a regular basis, but as long as my net worth keeps increasing I have no major complaints.

Starting next month I’ll also be sharing my monthly expenses and some cool graphs to visualize my expenses. As part of the FOUR Visuals series I’m also working on building a neat little app that lets you visualize your own monthly expenses…so stay tuned for that!

To everyone that has been following my financial journey up to this point, thank you and I hope you keep checking in each month. If you have any questions for me or want to discuss your own financial journey feel free to shoot me an email at fourpillarfreedom@gmail.com.

That’s all for this month’s net worth update, thanks for reading 🙂


My favorite free financial tool I use is Personal Capital. I use it to track my net worth, manage my spending, and keep an eye on my monthly cash flow.

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14 Replies to “Net Worth Update #11 – September 2017”

  1. Anything up to about $150k is hard work, I’d say! My first $100k was basically straight savings. Now that I’m approaching $200k I’ve seen a bit of tailwind from compounding, but it seems like it took forever to get to that point! Congrats on achieving the $50k milestone!

    1. That’s what I’m finding out first-hand. As I passed the $30k, then $40k, and now $50k marks I kept thinking “compound interest will start pushing my net worth forward way faster now”, but you’re completely right – almost all of my net worth is comprised of savings at this point. Even with a 10% return on $50,000 that’s only $5,000. The best I can do right now is keep a high-income job and low cost-of-living for a while and keep throwing money in the bank and my 401(k) each paycheck.

      Thanks for your perspective 🙂

  2. Now you have an army behind you that is over 50k strong! Those soldiers are going to be hard at work training more and more with you hard at work commanding them.

    One day in the future though, you will have experienced officers to do the hard work for you. While you will still be in command, you don’t have to spend much effort at it.

    Your dollar army will be large enough to support you forever. Congrats on hitting 50k!

    1. Haha I love this analogy! It’s true, as time goes on my money will just be in the background quietly working for me, building up my net worth more and more over time until I no longer have to even think about it. Thanks for the feedback! 🙂

    1. That seems to be the general consensus. Most of the hard work in the beginning of a net worth journey is just diligently saving, saving, saving. Then compound interest begins to help more and more as time goes on. Thanks for the feedback, Turning Point Money! 🙂

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