Monthly Net Worth

Welcome to my monthly net worth February 2021 edition.  Another month has come and gone, which indicates a need to review the changes in my net worth. For all of the new followers, welcome! I track my net worth monthly to see where I am in comparison to my annual short term goals.  Additionally, it is an opportunity to see my progress towards reaching my long-term goals.

February 2021 Personal Update

Before I jump into the details of my net worth in February 2021, I will share some personal updates.  What happened in the month of February for The Financial Engineer?  Well, not a lot.  It was a somewhat slower month.

The month was unbelievably cold.  Additionally, we had a couple of snow storms that accumulated over a foot of snow.  This brought an opportunity for our oldest to play in the snow with her dogs.  She loved every minute of it.  Although, the extreme cold did not allow for many days for her to safely do so.   I did not enjoy the snow as much as she did.

We live on a corner lot in an subdivision.  The snow plow is generous with the amount of snow they placed at the end of my driveway.  I spent 2 hours digging out the end of my neighbors and our driveway.  The snow was about 6 feet deep at the corners of our driveway.

We did plan one vacation trip with some family.  We are going to rent a lake house in Michigan.  This should be a relaxing trip in the middle of June.

If you did not read the last month's net worth update, my mom was diagnosed with cancer.  My mom received an update for her treatment.  She will be going into surgery March 7.  This is the first step to fight her stage 2 diagnosis.  Undoubtedly, it is good that they are able to get her into surgery so quickly.

February 2021 Professional Update:

Our office is still extremely busy with various projects.  I have assisted with submitting 5 projects since the start of the year.  Moreover, these projects are relatively large in size. This has been quite an exciting time.  Importantly, meeting client deadlines is extremely important.

With the increase in my working hours, comes a decrease in time spent on the side hustles.  Again, this month had almost no income from side hustles.  However, I anticipate the side hustle income to increase in the coming months.  Since vaccine rollout, COVID cases has dropped significantly this month. The hospitals are no longer needing to divert patients due to being at their limit.  This is great news and a good sign of the trend we are heading into.  As such, the extra income will continue to increase my net worth.

Now, lets dive into the details of my net worth for February 2021.

February 2021 Actual vs. Budget Spending:

This month's spending was great.  I met budget on almost every category.  As such,  my savings and investing percentages increased significantly.

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:

1. Fixed Costs
2. Financial Goals
3. Flex Spending

Now, let's take a dive into the difference in fixed costs!

Fixed Costs:

HSA allowable contributions increased to $3,600 for 2021.  As such, my monthly HSA contribution will be slightly higher than last year. I am reevaluating how many bank accounts I have.  There will be additional accounts added this year to manage savings for all my single annual purchases.  For example, I will have a savings account for our annual recreation center fee.  These accounts will help me manage large, one time payments. For example, I have opened a SoFi savings account that will be used to save for our vacations. Subsequently, the budget spreadsheet will be adjusted to accommodate these accounts.

Next, let's dive into my Financial Goals.

Financial Goals:

Great increases to the children's 529 occurred this month.  I contributed an additional $70 into each account.  I typically contribute $140 / child each month.  However, 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!

Although it is shown as an overrun, I increased my contribution into the 401k accounts this month.   This was due to an increase in my contribution percentage for the year.

As previously mentioned, I am adjusting my management style for liquid savings.  I will be placing large, one time payment savings into individual accounts.  These line items will continue to take a small portion of my income each month.  They will slowly build up throughout the year for the large costs.

I saved an additional $100 for the short-term rental investment.  We will be waiting for a good opportunity to purchase this in the near future.  Investing takes patience and is a waiting game.  It will be interesting to see where the government's moratoriums take the economy this year.

Lastly, I will share the flex spending evaluation.

Flex Spending:

I always try to meet budget in my flex spending.  This section consists mostly of wants, and not needs.  Although, I did not meet this overall budget I did not exceed my eating out budget! This budget is set at $150 every month.  This would be 1 of 9 months where we met the budget.

The shopping budget was not met either.  This was due to purchases for a co-worker's newborn baby.  I will

Let's wrap this month's overview up!

Overall February 2021 Net Worth:

Comparing February 2020 with February 2021's net worth is exciting.  The year-over-year growth was 59%.

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. I am staying the course and resisting the emotional decision pressing me to reallocate the investments.  Who knows when or how the stock market correction will happen?  This is why I am not trying to time the market.

I have increased my annual contribution to my 401k to 11%.  I will also increase my contribution to my Roth from 2% to 4%.  The short-term real estate investment will hopefully become reality this year.

The Financial Engineer's February 2021 net worth is now roughly $186,214. The change was driven by a reduction in my debt.  Additionally my employer's match contribution was deposited into my account for 2020.  I am extremely grateful that this occurred despite last year's recession.

Overall, I am extremely pleased with the massive increase in my net worth.  Again, it should be noted, the value in my daughter's 529 plans are not reflected in my net worth.

My February 2021 savings rate was 7%.  Contrary, my investment rate was 22%.

In Conclusion

I was fairly accurate with my prediction for February 2021.  Historically, a lot of my growth occurs in the last month of a given year and into the first quarter of the following year.  I anticipate March to show a large increase in my net worth as well.

How is your net worth looking?

Welcome to my monthly net worth January 2021 edition.  Another month has come and gone, which indicates a need to review the changes in my net worth. For all of the new followers, welcome! I track my net worth monthly to see where I am in comparison to my annual short term goals.  Additionally, it is an opportunity to see my progress towards reaching my long-term goals.

January 2021 Personal Update

Before I jump into the details of my net worth in January 2021, I will share some personal updates.  What happened in the month of January for The Financial Engineer?  Well, after the holidays I realized we still did not receive our family portraits from the photographer.  This was about two months of waiting.  I reached out to her and discovered she did not receive payment.  Apparently, Venmo retracted my payment to her.  I assume my authorization was incorrect through the app.  As a result, we did not send out our family's annual holiday greeting card.  However, we saved money by not doing so.

We started the month off celebrating the New Year.  However, this year was different due to COVID.  We spent the evening watching an awkwardly positioned times square.  As such, the live performances had no audience in front of the stage.  Thank god we are leaving 2020 for good.  Like most, I did not leave that year without some additional wrinkles.  Not to mention, the booze bill increasing!

My oldest daughter turned five this month.  Undoubtedly, we celebrated in fashion.  The day was spent chasing each other with light sabers, as the theme was Star Wars.  Additionally, the celebration included the destruction of a piñata filled with candy. Apart from this, the cake was phenomenal. Chocolate cake with fresh strawberry filling in between the cake layers.

Our youngest is beginning to teeth.  If you have never witnessed such an event, you're lucky.  Let me paint you a picture with my words.  Envision your alarm's volume set to full blast, and going off every few hours throughout the night. Indeed, it is enough to make you age 5 years in about 2-3 months.

Like most, we established our annual financial plan.  I am dumping gas on my savings and investment rate this year.  It is still a goal to invest in a short term rental this year.  However, I will not force a less than favorable investment.  The numbers have to show an absolute money maker.  This year I plan to grow my net worth by $85,000!  Stay tuned into the website to see how I progress on this stretch goal.

This month was also a bit troublesome.  My mom was diagnosed with breast cancer.  Undoubtedly, this is a fluid situation.  There will be a lot of tests and evaluation the next month.  Nevertheless, she is being extremely positive throughout the situation.  We plan to support her with anything she needs throughout treatment.

January 2021 Professional Update:

Our office is extremely busy with various projects.  The lessons learned and network created from helping out another regional office is becoming useful.  It feels as if each week has a project submittal deadline. Accordingly, time has been reduced to focus on other obligations.  Nevertheless, I am still focusing on the goal to acquire property for short-term rentals.  I will soon share a post on the business model I am considering to form to own and manage the property.

With the increase in my working hours, comes a decrease in time spent on the side hustles.  Again, this month had almost no income from side hustles.  I would still not work side hustles, as there is a high in COVID cases.  It is even more important to stay healthy for my family.  The side hustle income is currently not worth catching the virus.  As such, the extra time will be focused on my family.

Now, lets dive into the details of my net worth for January 2021.

January 2021 Actual vs. Budget Spending:

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:

1. Fixed Costs
2. Financial Goals
3. Flex Spending

Now, let's take a dive into the difference in fixed costs!

Fixed Costs:

The HSA contribution was slightly adjusted this month.  The typical contribution will be the same in February.  I am reevaluating how many bank accounts I have.  There will be additional accounts added this year to manage savings for all my single annual purchases.  For example, I will have a savings account for our annual recreation center fee.  These accounts will help me manage large, one time payments.  Subsequently, the budget spreadsheet will be adjusted to accommodate these accounts.

Without a doubt, I will max out my HSA this year.  I will also contribute more to my 401k.  Doing so will lower our AGI.  Furthermore, our tax obligation will decrease.

Next, let's dive into my Financial Goals.

Financial Goals:

Great increases to the children's 529 occurred in January.  This was fueled by an additional $70 contribution into the accounts.  I am currently contributing $140 / child each month.  With this contribution amount (and assumed 7% annual interest rate) each account should hold $60,000 in 18 years. However, 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!

I did not reach my monthly saving goal for the short-term rental.  This was due to the reduction in the side hustles.  I anticipate my side hustles to remain slow for the remainder of the year.

As previously mentioned, I am adjusting my management style for liquid savings.  I will be placing large, one time payment savings into individual accounts.  These line items will continue to take a small portion of my income each month.  They will slowly build up throughout the year for the large costs.

Thank goodness I paid off the tires for my truck.  This did not come without a large payment to my credit card.  I tried to maintain a strong liquid cash position.  I did not use any of my emergency fund for the tires.  However, I will be contributing a little bit of my income each month to a car maintenance account I will open within the next few months.

Lastly, I will share the flex spending evaluation.

Flex Spending:

I always try to meet budget in my flex spending.  This section consists mostly of wants, and not needs.  My flex spending was obliterated by the photographer fees for our family photos.

Well, we did not only did I pay for the photographs, but we ate out way too much.  I always seem to struggle with meeting my eating out budget.  This budget is set at $150 every month.  I would like to meet this portion of the budget 9 out of 12 months this year.  It may seem pointless to not meet the budget every month, but I have to start somewhere.

The shopping budget was not met either.  This was due to the birthday celebration for my daughter.  I will gladly exceed the budget for my daughter's birthday, and not save as much.  I cannot forget my "why."

Let's wrap this month's overview up!

Overall January 2021 Net Worth:

Comparing January 2020 with January 2021's net worth is exciting.  The year-over-year growth was 44%.  This is decent growth.  Especially, when we were thrown into a recession from the pandemic.  The year of 2021 will set a new record in an increase to my net worth.  I have a record of growing my net worth by $70,000 in one year.  However, this year will break that record!

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. I am staying the course and resisting the emotional decision pressing me to reallocate the investments.  Who knows when or how the stock market correction will happen?  This is why I am not trying to time the market.

I have increased my annual contribution to my 401k to 11%.  I will also increase my contribution to my Roth from 2% to 4%.  The short-term real estate investment will hopefully become reality this year.

The Financial Engineer's January 2021 net worth is now roughly $172,577. The change was driven by a reduction in my debt, and increase in income from my engineering job.  My HSA grew by $120, respectively. The S&P 500 grew, and as such, so did my 401k.  Additionally, I made some individual stock purchases that grew by nearly 200%.  I know, I went against my nature and purchased individual stock.  This was out of character, however, I knew the company had huge growth potential.  It appears to be working out, so far.

Overall, I am extremely pleased with the massive increase in my net worth.  I will continue to learn about short-term rentals and metrics for the investment.  I will be ready for the perfect opportunity.  Again, it should be noted, the value in my daughter's 529 plans are not reflected in my net worth.

My January 2021 savings rate was 4%.  Contrary, my investment rate was 18%.

In Conclusion

I was fairly accurate with my prediction for January 2021.  Historically, a lot of my growth occurs in the last month of a given year and into the first quarter of the following year.  I anticipate February to show a large increase in my net worth as well.

How is your net worth looking?

 

Welcome to my monthly net worth November 2020 edition.  Another month has come and gone, which indicates a need to review the change in my net worth. For all of the new followers, welcome! I track my net worth monthly to see where I am in comparison to my annual short term goals.  Additionally, it is an opportunity to see my progress towards reaching my long-term goals.

November 2020 Personal/Professional Update

Personal Update:

What happened in the month of November for The Financial Engineer?  Well, I burnt the Thanksgiving Day turkey.  Get ready for a laugh!

We started the month off celebrating our niece's 5th birthday.  It was great seeing family members that we have not been with since the start of the pandemic.  My oldest daughter is close in age to her, so they were able to play together.  The celebration included the destruction of a piñata filled with candy. Apart from this, it was also the first time we met our nephew.

Our youngest daughter is fully mobile.  She started to crawl around the house.  The new mobility is fueling her curiosity.  This rug-rat is keeping us on our toes.  It is great to see her develop and learn through her sister.

Like most, we decorated for Christmas early this year.  Our decorations came out before Thanksgiving, which I am usually opposed to.  However, our oldest had her tonsils removed on the 24th.  We knew she would be recovering through Thanksgiving weekend.  As a result, she would not be in any condition to help decorate for the holiday for a while.  Besides, I think the decorations kept her spirits high while she muscled through the recovery process.

We still celebrated Thanksgiving.  However, our Thanksgiving Day looked a little different this year.  We celebrated the holiday with immediate family. Although we did not celebrate with others, we kept the tradition of watching the Detroit Lions lose on Thanksgiving (apologies to any Lions fans).  Our oldest could only eat selective items.  She kept her diet while we tried to deep fry a turkey.  I would never recommend placing brown sugar rub on a deep fried turkey.  The photo below depicts why you should not.

Professional Update:

I wrapped up my long-term shift work for the other regional office.  Our office is getting busy with local projects, which they needed help with.  I learned a lot from the colleagues in the other office that will make me more productive. It has been extremely busy for site development project's, which appears to be increasing steadily too.  Accordingly, time has been reduced to focus on the website.  Nevertheless, I am still focusing on the goal to acquire property for short-term rentals.  I will soon share a post on the business model I am considering to form to own and manage the property.

With the increase in my working hours, comes a decrease in time spent on the side hustles.  This month had almost no income from side hustles.  The focus was needed to meet client deadlines at work.  I found that this was a good month to take a break from the time consumed by the side hustle.  As such, productivity will increase to finish out the year strong.

Similarly to most of the year, my net worth increased.  Although it is increasing, I am focused on liquid cash to utilize in the middle of next year to purchase real estate.

November 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:

1. Fixed Costs
2. Financial Goals
3. Flex Spending

Now, let's take a dive into the difference in fixed costs!

Fixed Costs:

We paid our family's annual membership for the local municipality's recreational center.  I was not anticipating this cost during this time of the year.  Subsequently, the budget spreadsheet will be adjusted to accommodate this cost going forward.  That cost destroyed my budget.

My annual HSA contribution should be maxed after this month.  The monthly HSA contribution will be reallocated to the savings for the short-term rental.  I will also be investing all funds left over in my HSA account into a index fund.

Next, let's dive into my Financial Goals.

Financial Goals:

Great increases to the children's 529 occurred in November.  This was fueled by the typical $280 deposit into the accounts, and an increase in the S&P 500.  I am currently contributing $140 / child each month.  With this contribution amount (and assumed 7% annual interest rate) each account should hold $60,000 in 18 years. However, 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!

I did not reach my monthly saving goal for the short-term rental.  This was due to the reduction in the side hustles.  I anticipate my side hustles to remain slow for the remainder of the year.  However, I have made a couple of flip sales that have brought in an additional $100 this month (not reflected above).

As previously mentioned, I reallocated my vacation and emergency fund monies to the short-term rental savings. These line items will consistently show a $100 savings for the remainder of the year.  As previously mentioned, my truck required new tires.  I installed all 4 for $800.  I used my AMEX credit card to pay for them, and will pay the bill in full by the end of the year.

Lastly, I will share the flex spending evaluation.

Flex Spending:

I always try to meet budget in my flex spending.  This section consists mostly of wants, and not needs.  My flex spending was reduced to try and balance the overruns for the rec center annual fee and my truck's tires.

Great news, we got closer to the minimal budget for eating out.  I am pleased to see a reduction in the overrun number for this line item.  The monthly budget for eating out is a stretch, as we are feeding three mouths each time.  This budget is set at $125 every month.

Contrary, we spent quite a bit on groceries.  This was due to the steak dinner for my niece's birthday and theThanksgiving dinner meal.  Turkey's can be expensive.  However, it was enjoyable to spend time with family and celebrate with them for her birthday.  On the other hand, the turkey was a pretty bad fail.

Let's wrap this month's overview up!

Overall November 2020 Net Worth:

The United States has seen serious spikes in cases.  The temperature has decreased since the start of the month.  As such, the state and local communities are adjusting.  This year has required a lot of adjusting.  Adapting and overcoming hard situations is a part of life.  However, I want the numbers to decrease as soon as possible.  We have recently seen Pfizer and Moderna requested the FDA to authorize use of their vaccines.  There is hope on the horizon.

We will see what changes will occur next month in the saga of the Coronavirus. I am excited to see how the economy opens up for the last stretch of the decade long year of 2020.

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. I am staying the course and resisting the emotional decision pressing me to reallocate the investments.  Who knows when or how the stock market correction will happen?  This is why I am not trying to time the market.

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 November 2020 net worth is now roughly $153,694. This was an increase of $7,278 from last month.  The change was driven by a reduction in my debt, and increase in income from my engineering job.  My HSA grew by $354, respectively. I only made an extra $100 from my side hustles.  My 401k and individual retirement accounts increased significantly this month.

Overall, I am extremely pleased with the massive increase in my net worth.  I will continue to learn about short-term rentals and metrics for the investment.  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.  Again, it should be noted, the value in my daughter's 529 plans are not reflected in my net worth.

My November 2020 savings/investing rate is approximately 19%.  This will continue to increase after the holidays.  I expect gifts and celebration meals to impact the growth slightly.

In Conclusion

I was fairly accurate with my prediction for November.  Sadly, I anticipated the need for truck tires.  In evaluating my numbers, this was a fairly accurate prediction.  I negotiated the price of the tires down from $950 to $800.  I anticipate December to show a large increase in my net worth.  This will be due to added income.

How is you net worth looking?

Welcome to my monthly net worth September 2020 edition.  Another month has come and gone, which indicates a need to review the change in my net worth. For all of the new followers, welcome! I track my net worth monthly to see where I am in comparison to my annual short term goals.  Additionally, it is an opportunity to see my progress towards reaching my long-term goals.

September 2020 Personal Update

What happened in the month of September for The Financial Engineer?  Further progress!

The family and I made a trip to the lake for a long Labor Day weekend.  We enjoyed the family time to close out the summer.  The trip allowed us to slow down and focus on important things.  Such as, falling off the boat in an attempt to dock it.  Additionally, we enjoyed swimming and tubing off the boat.  The family also took a trip to a local apple orchard to kick off the fall season.

It has been enjoyable to get out of the house.  The kids appreciated picking out apples and getting the fresh air.  They relished in picking out pumpkins and drinking the apple cider.  Moreover, the outings have helped with the mental health before we enter the colder weather.

The work life has been very similar to last month. I continue to assist a separate regional office with large projects.  It has been extremely busy but I am appreciative of the opportunities provided, given current economic conditions. Accordingly, time has been reduced to focus on the website.  Nevertheless, I have started reading a book on short-term rentals.  A spreadsheet has been developed based upon the book's theme.  The spreadsheet will evaluate key financial indicators for the real estate investment.

With the increase in my working hours, comes a decrease in time spent on the side hustles.  This month had almost no income from side hustles.  The focus was needed to meet client deadlines at work.  I found that this was a good month to take a break from the time consumed by the side hustle.  As such, productivity will increase to finish out the year strong.

The month of September has provided us with more things to be thankful for.  Our youngest daughter is starting to sit-up on her own.  She is also starting to sleep for about 7 hours.  In addition, we have been able to spend more time with family which has grown the relationships between our daughters and others.  It is fun to see our two daughters loving on one another, and they both light up when they see each other.

Similarly to the last few months, my net worth increased.  Although it was a modest increase, I am pleased to see continued growth in my net worth during these economic conditions.

September 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:

1. Fixed Costs
2. Financial Goals
3. Flex Spending

Now, let's take a dive into the difference in fixed costs!

Fixed Costs:

I received my quarterly bonus this month which required me to pay more taxes.  Additionally, I contributed a portion of the bonus to my HSA.  Showing an overrun in this line item is good.  The additional contribution to my HSA is helping the increase to my net worth.  I plan to place a portion of the funds into a low cost index fund that the HSA provider offers. The investment of the funds will occur by the end of the year.

Reimbursable work costs line item increased from expenses incurred as a result of renewing my professional engineer license.  As mentioned last month, every biennial year I have to renew the license.  This costs approximately $100 for the state renewal fee.  Not to mention, I have 30 continuing education hours I must meet.  Those courses can really add up, at an average of $85/hr. Thankfully, my employer covers all costs associated with this.  I was reimbursed this month from all the costs incurred.  However, I do not track additional income that comes in when comparing the line items to the budget.  This is a tactic I use to manage my expenses

Next, let's dive into my Financial Goals.

Financial Goals:

Great increases to the children's 529 occurred in September.  The additional $170 was provided by the quarterly bonus received.    I am currently contributing $140 / child each month.  With this contribution amount (and assumed 7% annual interest rate) each account should hold $60,000 in 18 years. However, 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!

I did not reach my monthly saving goal for the short-term rental.  This was due to the reduction in the side hustles.  However, a portion of the quarterly bonus did go into the account for this.  Undoubtedly, I anticipate this to be met each month for the remainder of the year.

As previously mentioned, I reallocated my vacation and emergency fund monies to the short-term rental savings. These line items will consistently show a $100 savings for the remainder of the year.  We did not require any home or vehicle repairs this month.  However, this will not be the case in next month's net worth update.  My truck is in dire need of new tires.

Lastly, I will share the flex spending evaluation.

Flex Spending:

I always try to meet budget in my flex spending.  This section consists mostly of wants, and not needs.  However, the payment for next month's vacation is what caused the overrun shown in the last line item. This was a portion of the beach vacation we will take in October.

Great news, we got closer to the minimal budget for eating out.  I am pleased to see a reduction in the overrun number for this line item.  The monthly budget for eating out is a stretch, as we are feeding three mouths each time.  This budget is set at $125 every month.

Contrary, we spent quite a bit on groceries and alcohol for the lake house stay over labor day weekend.  We had some great meals while staying on the lake.  Steaks were grilled out as we watched the sunset one night.  It was enjoyable.

Let's wrap this month's overview up!

Overall September 2020 Net Worth:

Our state has been doing well with coronavirus cases.  The state continues to open the economy up.  It is good to see life coming back to local restaurants.  I believe the mask mandate has minimized the coronavirus cases, and I will happily wear a mask if that prevents another economic shutdown.

We will see what changes will occur next month in the saga of the Coronavirus. I am excited to see how the economy opens up for the last stretch of the decade long year of 2020.

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. I am staying the course and resisting the emotional decision pressing me to reallocate the investments.  Who knows when or how the stock market correction will happen?  This is why I am not trying to time the market.

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 September 2020 net worth is now roughly $145,911. This was an increase of $1,109 from last month.  The change was driven by a reduction in my debt, and increase in income from my engineering job.  My HSA grew by $354, respectively. I did not have any income from my side hustles.  My 401k and individual retirement accounts slightly decreased this month.

Overall, I am okay with the modest increase to the net worth.  The side hustle is crucial income that helps increase my net worth.  I will get this back on track.  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.  Again, it should be noted, the value in my daughter's 529 plans are not reflected in my net worth.

My September 2020 savings/investing rate is approximately 23%.  This will continue to increase in the following months.

In Conclusion

I was fairly accurate with my prediction for September.  Sadly, I anticipated September to be a stagnant month.  In evaluating my numbers, this was a fairly accurate prediction.  I also anticipate October to be a modest increase in my net worth.  I foresee the tire expense to hamper the growth.  Additionally, the costs for the beach vacation will be in full.  After October, I will finish the year out strong.

How is you net worth looking?

Welcome to my monthly net worth August 2020 edition.  Another month has come and gone, which indicates a need to review the change in my net worth. For all of the new followers, welcome! I track my net worth monthly to see where I am in comparison to my annual short term goals.  Additionally, it is an opportunity to see my progress towards reaching my long-term goals.

August 2020 Personal Update

What happened in the month of August for The Financial Engineer?  Further progress!

As mentioned last month, my company introduced employees back to the office space.  I started working back in the office at the start of last month.  However, this only lasted a couple of week as the company 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. Shortly after, they opened the office to 75% capacity.  I was included in that 75% capacity count.

I honestly do not know what next week holds in a pandemic world.  It would not be a surprise if things changed next week.  We must all roll with the punches.

Even though I am working in the office, I have been assisting a separate regional office with projects. It is extremely impressive to see amount of work the midwest region is doing. Accordingly, the new contracts from numerous clients are aiding in the firm meeting it's financial goals for the year.  The firm's financial health has even allowed them to make slight increases to salaries!

The month of August held many firsts.  August has never seen Indy cars race the Indianapolis 500, until this year.  In fact, this was the first time the greatest spectacle in racing did not occur in the month of May. Thankfully, the world's largest single-day sporting event occurred in the month of August.  Even without the fans, it is still considered the largest single day sporting event in my eyes.  I was thankful to watch this event, even if it was not in person.  We hung out in the back yard and smoked chicken wings while watching them turn left.

August was also the first time our second born rolled over!  It was awesome watching her big sister cheering her on.  She will be crawling before we know it.

Similarly to July, my net worth increased.  My side hustle income helped fuel the increase.  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 steadily increasing.

August 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:

1. Fixed Costs
2. Financial Goals
3. Flex Spending

Now, let's take a dive into the difference 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.  The investment of the funds will occur by the end of the year.

I truly wish my car insurance would be the same rate as last month's! Our July rates were half of what we typically see. We will be shopping for new auto insurance in the near future.  Come back next month to read about my game plan to lower this cost.

Reimbursable work costs line item increased from expenses incurred as a result of renewing my professional engineer license.  Every biennial year I have to renew the license.  This costs approximately $100 for the state renewal fee.  Not to mention, I have 30 continuing education hours I must meet.  Those courses can really add up, at an average of $85/hr. Thankfully, my employer covers all costs associated with this.

Next, let's dive into my Financial Goals.

Financial Goals:

Dang car maintenance!  I had a close overrun in the car maintenance line item.  This was due to my break pads.  Luckily, my rotors were not in terrible condition.  I was able to salvage them and only replaced the break pads on all four wheels.  This line item could have ballooned to $400+ overrun!  Undoubtedly, I anticipate new tires before snow miser shows up and flips my vehicle upside down.

As previously mentioned, I reallocated my vacation and emergency fund monies to the short-term rental savings. I messed up the reoccurring contribution to my children's 529 plan.  August is the start to depicting an overrun for the remainder of the year on the children's 529 line item.  This is due to poor planning for contributing to our new addition to the family's account.  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!

Hooray for our home improvement line item!  If you recall, I mentioned our water heater was leaking last month.  I planned the replacement to perfection and kept the costs near zero!  It cost us a total of $150 to replace.  This included the cost of disposal!  How did I do it you ask?  Well, we did the replacement on our own.  Luckily the water heater was still under warranty!  That means we got a replacement at no charge!  Not even a handling or shipping fee.  One Saturday morning we picked up the new heater after the manufacturer provided us with a replacement number.  We emptied the heater using a garden hose hooked to the valve.  Then a couple of sharkbite couplers later, the heater was up and providing cold water. I mean hot, hot water.

After a couple of hours, we were back to drinking beer and watching baseball!

Lastly, I will share the flex spending evaluation.

Flex Spending:

I always try to meet budget in my flex spending.  This section consists mostly of wants, and not needs.  However, the payment for numerous birthday gifts in one month can take a toll.  It always increases this month's flex spending.  We have a big family with a lot of birthdays between us and the end of the year.

Great news, I did decent on the alcohol budget yet again.  This is a decent sign I am not consuming too much.  It keeps the numbers in check.  As such, it keeps the costs low.

Contrary, I spent too much on eating out.  We ran over our budget by way too much.  I will get this back into check next month.

Let's wrap this month's overview up!

Overall August 2020 Net Worth:

We are seeing more trends of the economy opening up.  However, I think there are unfortunately more layoffs in the future.  I recently read an article on major airlines laying off thousands of workers.  On the other hand, I was informed that Southwest Airlines (LUV) was not planning to have any layoffs.  As a result, they now have my loyalty.

We will see what changes will occur next month in the saga of the Coronavirus. I am excited to see how the economy opens up for the last stretch of the decade long year of 2020.

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 when or how the stock market correction will happen?  This is why I am not trying to time the market.

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 August 2020 net worth is now roughly $144,802. This was an increase of $7,851 from last month.  The change was driven by an increase of $4,915 in my 401k and $677 in my IRA.  My HSA grew by $236, respectively. I also added approximately $950 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 income is increasing month over month, which means I am becoming more efficient.  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.  Again, it should be noted, the value in my daughter's 529 plans are not reflected in my net worth.

My August 2020 savings/investing rate is approximately 31%.  This will continue to increase in the following months.

In Conclusion

Sadly, I anticipate September to be a stagnant month. This will be from the side hustling and reduction in costs balancing the payment for a family vacation and automobile maintenance.  I may smooth the costs into October. Maybe the stock market will rocket 20%!?  The deranged year of 2020 has no limits!

How is you net worth looking?

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:

1. Fixed Costs
2. Financial Goals
3. 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?