I usually provide a net worth update at the beginning of each month but due to New Year’s and classes starting this semester I’m a bit behind on this update. But better late than never, right? You can find my first net worth update here and my second one here.
Alright let’s jump into the numbers for January 2017!
|Money Market Funds|
|Ally Savings Account||$15 (-$2,498)|
|Checking Account||$640 (-$656)|
|Total Money Market||$655 (-$3,154)|
|Tax Advantaged Accounts|
|Vanguard Traditional IRA||$3,657 (+$1,485)|
|Vanguard Roth IRA||$3,600 (+$117)|
|Fidelity 401(k)||$4,717 (+$1,557)|
|Total Tax Advantaged||$11,974 (+$3,158)|
|Non-Tax Advantaged Accounts|
|Loyal3 Brokerage Account||$2,708 (+$635)|
|Vanguard Brokerage Account||$10 (+$0)|
|Total Non-Tax Advantaged||$2,718 (+$635)|
|Student Loans||$1,000 (+$0)|
|Net Worth||$14,347 (+$639)|
From December to January my net worth inched upwards by $639. The reason for the lackluster improvement was because I had to empty out roughly $3,500 from my money market accounts to pay for my last semester of grad school for this spring semester. However, I am planning on being reimbursed for this amount at the end of this semester by my current employer as they offer a generous tuition reimbursement program that covers up to $5,000 each year.
Student Loan Situation
If you have been keeping track of my previous net worth updates to this point you’ll notice that the single $1,000 loan is still yet to be paid. I attempted to pay it using my new Chase Sapphire Reserve card to earn travel points, but I was not allowed to pay using this card in the system. Luckily I was able to use the Chase card to pay for my tuition this semester, which will be enough to put me close to the $4,000 spending requirement to get the 100,000 bonus travel points on the card. As for the $1,000 loan I’ll likely pay it off next month.
I’m still pumping money into my 401(k) at a rate that puts me on pace to max it out by the end of the year. My allocation is ridiculously simple in this account: I contribute to a fund that tracks the entire stock market as well as one that tracks the entire bond market. Dead simple and effective, not to mention the management fees are lower on these two funds than any other funds I have available to choose from.
Once I graduate at the end of this semester I will no longer be tasked with paying for college tuition or loans ever again…what a relief. I will also be graduating debt-free, which is an added bonus. I have commuted to classes every year of college, saving me from paying for housing as well as the need to have a meal plan. I made this decision long before I even discovered the early retirement community simply because this approach to college made sense to me.
If I had to go back to my freshman year I genuinely wouldn’t change anything. I have met some great friends at my college and kept in touch with old friends from high school who attended different colleges within my state. I have had an awesome college experience and will be able to graduate debt-free with a positive net worth. I’m not saying this to brag at all, I’m saying it to show that it can be done. Students don’t need to spend an exorbitant amount of money on college and be saddled with student loan debt the rest of their lives to have the “college experience”. I love my friends to death but I wouldn’t trade positions with any of them to have the burden of their $40,000 + student loans.
Looking forward, I think 2017 will be a big year, full of both change and growth. Even more so than increasing my net worth and pressing closer towards financial independence I hope to read and write more than ever. I have some exciting projects in mind I’d like to do with Four Pillar Freedom and I plan on making this a year of consistent blogging and creating meaningful content. I’ll be sure to share my progress each step of the way.
That’s all for this month’s net worth update, thanks for reading 🙂
I strongly suggest using free financial tools like Personal Capital to track your net worth, spending habits, and cash flow to help keep an eye on your money. The more you track your finances, the better you get at growing your wealth!
You can also sign up to have my most recent articles sent straight to your email inbox for free 🙂