Net Worth Update #12 – October 2017

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At the start of each month I share my net worth so I can document 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 October 2017:

Money Market Funds
Savings Account $5,082  (-$3,393)
Checking Account $539    (+$214)
Total Money Market $5,621  (-$3,179)
   
Tax Advantaged Accounts
Traditional IRA $3,802  (-$77)
Roth IRA $4,648   (+$79)
401(k) $16,805  (+$330)
Total Tax Advantaged $25,255  (+$332)
   
Non-Tax Advantaged Accounts
Brokerage Account $24,745    (+$7,089)
Total Non-Tax Advantaged $24,745   (+$7,089)
   
Net Worth $55,621 (+$4,242)

Progress

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

NW Oct 17.PNG


From September to October my net worth increased by $4,242. As usual, each month my net worth keeps increasing by roughly $4k and this month was no different.

Most of my savings from this past month were invested in a combination of REIT’s and index funds in my brokerage account. 

In my most recent Monthly Income & Expenses Report I revealed that I had a savings rate of 73% for the month of September. That type of savings rate is what’s allowing me to save thousands of dollars each month.

There are two huge factors that enable me to save so much each month:

1. Having an $80k salary job.

2. Living in an apartment with a roommate. 

I realize $80k isn’t an extremely impressive salary, but in my situation where I only have to pay bills for myself it means I have a significant chunk of money left over each month that I can save. Choosing to continue living like a college student also helps tremendously. I do have the money to go out and place a significant down-payment on a house, but I can save so much more money by simply living small in an apartment, at least for a few years. 

Keeping It Simple

My net worth journey up to this point hasn’t been flashy. I haven’t bought a runaway stock like Netflix, hit the lotto, or inherited a windfall from a rich relative. In fact, my story might even sound boring to some people: I got a degree in a niche field (statistics), graduated debt-free, got a decent-paying job, and I’m practicing the art of minimalism and living with few things. 

In only a few years from now when I have a significantly higher net worth and the freedom to live without a 9-5 job, I can show people these early net worth updates and point out that the simple path is the path to wealth.

The simple path involves:

  • Discipline brings freedom. If you want something, work for it. This mindset helps you find ways to earn more.
  • Keep investing simple. Index funds build wealth.

Hang out on this simple path for a few years and you’ll find that building wealth and gaining freedom is not only possible, but it’s inevitable

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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8 Replies to “Net Worth Update #12 – October 2017”

  1. Nice Blog, just wandering why you choose to put so much into your brokerage account rather than roth ira given the flexibility associated with principal investment?

    1. Hey Patrick, great question. I actually do plan on maxing out my IRA this year, I just haven’t done so yet. In particular, I like investing in REIT’s in my IRA that pay monthly dividends, and I’ve been patiently waiting for a few names I have in mind to become a bit cheaper to buy. But I should have enough savings from now until the end of the year to max out my IRA ($5,500) and continue to invest with my brokerage account.

  2. Fantastic progress! Keep plugging away and those bar graphs will shoot to the moon 🙂 An 80k/year job is awesome, especially if you are just providing for yourself. That will allow for plenty of investments and savings. Take care!

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