
Welcome to my monthly net worth July 2020 update. Another month has come and gone, which indicates a need to review the change in my net worth. For all of the new followers, I track my net worth monthly to see where I am in regards to my annual short term goals. Additionally, it is an opportunity to see my progress towards reaching my long-term goals.
July 2020 Personal Update
What happened in the month of July for The Financial Engineer? Well, progress and regress occurred.
I started working back in the office at the start of the month. As a result, my mental health and work productivity improved. The change in scenery helped me get back into my pre-quarantine routine. For this reason, I was able to workout more and actually enjoy the drive to work. Working back in the office allowed me to work directly off of the server. Consequently, my production increased dramatically.
Now, the regress portion of the month. I was informed that I would start working back from the home office. This is a result of needed space for new hires. The company I work for implemented new office standards to maintain adequate social distancing. As a result, this reduces the office employee occupancy count. It is imperative the new hires get the adequate office orientation when starting fresh from college.
In addition to this, I was informed that I will be helping a regional office meet project deadlines. This is great news for the firm. Accordingly, the new contracts from a single client are aiding in the firm meeting it's financial goals for the year. For this reason, I will not be working off my office's server directly.
The month of July marks two momentous occasions. First, the celebration of the 4th of July was a little different. We hung out in the back yard and made s'mores before walking to an open field for our town's firework display. The second occasion, the annual golf outing I go on with some of my family. Although, this year saw a reduction in participation. I hit a shot that was within a foot of a hole in one!

Similarly to June, my net worth increased. I assisted the increase with some of my side hustles. As a result of this, I am pleased to see continued growth in my net worth during this pandemic. Subsequently, the month-over-month percent change is increasing.
July 2020 Actual vs. Budget:
This month's spending was similar to last month's. Please note, each budget section (listed below) is based upon my salary. It does not include any other income sources. The thought is to save all other income 100%, and not include it in the annual budget. As a reminder, I break out my budget into 3 categories:
- Fixed Costs
- Financial Goals
- Flex Spending
Now, let's take a dive into the variance in fixed costs!
Fixed Costs:

The continued contribution to my HSA is definitely help increase the net worth. I will be taking some of this and investing it once the balance reaches a certain amount. I anticipate this occurring by the end of the year.
As promised, my car insurance provider helped out by reducing my payment this month! This cut my monthly rate in half for the month of July! I will definitely follow up with our insurance provider to ensure they keep their promise. It would be great to have that 11% reduction in our rates.
Next, let's dive into my Financial Goals.
Financial Goals:

I sure am glad the up-front costs for starting the website are paid for. This included start-up costs for my first company. I think it was great experience obtained with lower risk. Undoubtedly, this knowledge will be beneficial for starting the short term rental companies.
As mentioned last month, I reallocated my vacation and emergency fund monies to the short-term rental savings. Next month will show a change in contribution to the children's 529 plans. Subsequently, this will show an overrun for the remainder of the year. I should have planned for the additional contribution for our second child's 529. It should be noted, the 529 accounts are not reflected in my net worth. Curious to know why? My net worth tracking page explains it all!
There were no home improvements made this month. However, I recently noticed our water heater is leaking. I plan to keep the repair costs low. Therefore, I will be taking this repair on myself. Wish me luck. Tune in to next month's net worth update to learn how I did it.
Lastly, I will share the flex spending evaluation.
Flex Spending:
Oh boy, golfing comes at a cost.

I always try to meet budget in my flex spending. This section consists mostly of wants, and not needs. However, the payment for the golf outing was due. It always increases this month's flex spending.
Great news, I did not completely blow the alcohol budget. I always try to budget the beers on the golf outing. As such, I kept the costs low by buying a lower grade brew.
Playing 72 holes of golf is quite an event. It takes a lot of energy, golf balls, and beers. The flex spending will be reduced in the month of August.

My driving picked up this month, as I was back commuting to the office. This expense should be lower in the coming months. This is one perk of working back from home. Although, I seem to have better mental health when commuting. However, saving on gas is a huge perk.
Let's wrap this month's overview up!
Overall July 2020 Net Worth:
I am still hopeful the economy will continue to open up. We will see what changes will occur next month in the saga of the Coronavirus. There are still concerns on the economic recovery. A lot of unemployment benefits are ending. Only time will tell how this will impact the economy, stock market, and my net worth. Unfortunately, it is difficult to be optimistic when the GDP decreased at an annual rate of 32.9 percent in the second quarter of 2020. Ouch!

As always, I have continued to put money into the 401k and IRA accounts. I have focused more attention into the short term savings for the real estate investment. This is primarily funded through my side hustles. This helped the net worth increase. I am staying the course and resisting the emotional decision pressing me to reallocate the investments. Who knows what will happen in the next month.
My current contribution to my 401k will remain at 8%. I will also continue to place 2% into my Roth IRA. These percentages will remain the same until we purchase our first investment property. After, I will throw fuel on the 401k investment FIRE! This should occur sometime in the 3rd quarter of 2021.
The Financial Engineer's July 2020 net worth is now roughly $136,951. This was an increase of $6,566 from last month. The change was driven by an increase of $3,672 in my 401k and $432 in my IRA. My HSA grew by $236, respectively. I also added approximately $900 from a side hustle. The remainder of the increase came from paying off debt (mortgage and car loan).

Overall, I am happy with the increase to the net worth. The side hustle has provided a boost. As a result, this will allow us to achieve our financial goals. After reaching the goal, my focus of saving will shift to investing into the retirement funds. It should be noted, the value in my daughter's 529 plans are not reflected in my net worth.
My July 2020 savings/investing rate is approximately 29%. This will continue to increase in the following months.
In Conclusion
August will continue to be a month of growth. This will be from the side hustling and reduction in costs. Previously, I have steered clear of some side-hustles. However, with minimal contact to others food delivery is a great way to make extra income. Especially during economic turbulence.
How is you net worth looking?
Not going to lie, my first question was, “How is the alcohol budget so low?” and my second question was, “How is the food budget so low??” Priorities. Thanks for sharing such a detailed breakdown! Congrats on the Net Worth increase this month, that has got to feel amazing even though it will likely fluctuate a lot this year.
I always provide my variance to my budget from my actual costs. This is considered a projection of how I am trending towards meeting my annual goals. With that said, I actually came in under my budget on some of those items. I did this by purchasing a lower grade beer and made sandwiches instead of eating lunch from the clubhouse. I also do not eat out a lot. How much do you spend monthly on your groceries and eating out?
Nice breakdown, and I really like the flex budget part so while on your journey you still keep room for the fun stuff! Are you going to play gold again this month? Trying that hole in 1 shot? 🙂
You have to enjoy the journey, no matter where you are in it. I believe that includes doing things that make you happy. I will be shanking some golf balls next weekend. It is shots like that which keep you coming back for more. How about you? Golf much?