Monthly Net Worth

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?

June seemed to fly by for us.  Most of the restrictions in our area have been lifted, as new case numbers drop in our state.  This past month was a good one.

There were numerous things we were finally able to do this month.  First, our 4 month old baby met close relatives.  As little as it seems, it was extremely rewarding to see loved ones meet our newest family member.  The second, we were able to congratulate a relative on graduating high school. Congrats to all graduates of 2020!  Do not be discouraged by the current economic conditions!  Lastly, I went golfing with a good friend I have not seen in a while (yes, we maintained our distance).  He was on a 9-month deployment overseas. It was great to see an old friend while shanking golf balls into the woods.

Also, I was a featured guest post on a great blog. Her website focuses on fitness and financial independence.  Please take the time to read it this weekend.  The content focuses on my journey and goals toward financial independence.  I discuss my why, and how I plan to achieve the goals.

As the 2nd quarter of 2020 comes to a close, I wanted to take a moment to check in and share my net worth.  I am surprised at where the stock market stands at this point.  The S&P 500 is actually up 200 points from June 2019 (+6% Year over Year). Undoubtably, the shutdown's ripple effects will take time to show in the stock markets.  In the meantime, we will enjoy the positive growth!

After a stagnant May, my net worth increased.  I am pleased to see continued growth in my net worth during a recession. This ended the longest period of expansion on record.  The 128 month record was stopped in February of this year.  Subsequently, my net worth increase is not significant, but it's positive (keep reading to find out)!

June 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.  My employer completely pays for my medical insurance.  That is unheard of in the U.S. of A.

As promised, I emailed my car insurance provider this month.  Great news, they are making the dividends available May 31st.  Those dividends will be applied to my July payment.  This will cut my monthly rate in half for the month of July!  Not only am I receiving 50% off in July, but my insurance provider will be reducing rates by 11% in the fall.

Again, please reach out to your insurance providers!  Otherwise, you could be leaving money on the table.

Next, let's dive into my Financial Goals.

Financial Goals:

Dang, websites can be expensive! As previously stated, I invested in a domain and framework for this website.  A company was also created for the blog, which was assisted through an attorney.  Those expenses were paid for through my credit card.  In addition, I accumulated more air-miles.

I reallocated my vacation and emergency fund monies to the short-term rental savings.  Although it appears to be an overrun, I added an additional $50 to my children's 529 plans this month.  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. Even though there is no overrun this month, I do plan to construct a storage shed before the end of the summer.

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.

Great news, I did not completely blow the alcohol budget again!  Last month I completely failed at this.  Although, we spent entirely too much getting take out.  This will be reduced in the month of July.

As mentioned previously, my buddy arrived back to the states from deployment.  I bought him a round of golf and beers.  This was well deserved.

My driving was minimal this month, as I am still working from home. For this reason, I reallocated the funds. I am curious to know when my company will allow our office to reopen.  The state has been doing well the last couple of months.  Our area is slowly opening back up, which I believe has kept the new case count low.  Although I am ready to get out of my makeshift office, saving on gas is a huge perk.

Let's wrap this month's overview up!

Overall June 2020 Net Worth:

The good news is most states are easing shelter-in-place orders.  The bad news, some states are seeing huge spikes of new cases.  We will see what changes will occur next month in the saga of the Coronavirus. I have concerns that the market may correct itself again.

As always, I have continued to put money into the 401k and IRA accounts.  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. It seems like the world is in complete chaos.  However, I WILL NOT allow the emotions alter my plans.  There is quite a way to go before I retire.

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!

The Financial Engineer's June 2020 net worth is now roughly $130,395. This was an increase of $5,049 from last month.  The change was driven by an increase of $3,073 in my 401k and $321 in my IRA.  My HSA grew by $236, respectively. The remainder of the increase came from paying off debt (mortgage and car loan).

Overall, I am ready to add additional income streams with side hustles to increase the net worth.  This will allow us to achieve our financial goal.  After reaching the goal, my focus of saving will shift to investing into the retirement funds.  It should be noted, the increase to my daughter's 529 plans are not reflected in my net worth.

My June 2020 savings/investing rate is approximately 21%.  I plan to increase the rate of saving/investing in the coming months.

In Conclusion

July should be a great month.  I have started side hustling again, which is not reflected in June 2020's net worth update.  Previously, I have steered clear of some side-hustles to reduce exposure to others.  Come back next month to learn more about one the most underrated ways to generate income!

How is you net worth looking?  What are you doing to bring in other streams of income?

We were supposed to be on a family beach vacation in Florida this month.  This was pushed back due to the virus.  On a lighter note, we did not spend money on the vacation.  This definitely helped maintain my net worth.

As day 3,126 (or so it seems) in quarantine wraps up, I wanted to take a moment to check in and share my net worth.  The chart that tracks my net worth was all over the place. Between the positive market movements and my daughter's delivery bills, that little graph was up and down throughout this month.

What a ride the stock market has taken us on.  I am not sure if we have reached the 8 seconds on the bull's back, or if we are in the pin preparing to go for a ride on that 1,500 pound beast.

After a huge drop in March, stocks made up a ton of losses.  Let's not forget that scary moment when the S&P 500 closed the first quarter down 20%.   What a turn around in a short period of time, as the S&P 500 has shot up from 2,237 points to 2,991 index points.  Thankfully, the positive market increase offset some hefty bills that I paid.

I have fought off emotions to make any moves to my portfolio.  In fact, I have continued to contribute to all investments more than originally budgeted for.   I find it important to always invest, especially when others are worrisome.

May 2020 Actual vs. Budget:

This month's spending is not as bad as it seems.  I invested in a beautiful website, which required a domain fee.  Starting a blog can be less expensive with some domain providers, but I wanted to use an entity that manages numerous sites and is well accredited.  It was also important to have a completely customizable website, with amazing framework.  In order to do so, I purchased a premium theme from Studiopress. The launch of the website was funded through my AMEX, so I could claim air-miles for my family's future travel (if 'Rona finally leaves us all alone).

In addition, I received a quarterly bonus from my employer.  This is not calculated into the Actual vs. Budget tables (shown below).  I have my yearly budget spreadsheet setup to track my spending based upon my monthly base salary.  Any other additional income would show up as an overrun in Actual vs. Budget tables (shown below) This is mainly to prevent lifestyle creep.  As a civil engineer, everything is ALWAYS over budget and behind schedule!

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

Fixed Costs

I increased my contribution to my HSA account to revive the balance.  As mentioned previously, we paid for our daughter's medical bills in full this month.  By doing so, we received a 10% discount from the healthcare system!  Take note, as you could negotiate this through your own future medical needs.  Uncle Sam received his cut of my quarterly bonus (hence the overruns), and I did not properly budget for our car insurance at the start of the year.

We have been seeing a lot of commercials about our insurance provider returning dividends to their customers for relief during the pandemic.  I plan to call them this month to see where we stand on our payment (or credit)!  Numerous car insurance agencies are providing credits to existing customers.  Please do the same if you have auto-insurance through Geico, State Farm, Chubb, Liberty Mutual, Farmer's Insurance, or any other auto-insurer. Otherwise, this is money left on the table.

Next, let's dive into my Financial Goals.  This will be an interesting look into the juiced 529 investments.

Financial Goals

Whoa, I used my credit card? As previously stated, I invested in a domain and framework for this website.  I paid for it using my credit card in order to obtain more air-miles.  This actually sent my accrued air-miles over 100,000 (I am a saver)! My family and I will definitely use those miles when it becomes safe.

I love leaving my student loans in this section, as I completely paid them off last year.  This was 2 years prior to the maturity date!  It is my reminder of the successes I had so far.  This will fuel the drive to accomplish this year's goals.

I reallocated my vacation and emergency fund money to be placed into the short-term rental savings.  Although it appears to be an overrun, I added an additional $125 to my children's 529 plans this month.  It should be noted that the 529 accounts are not reflected in my net worth.  My net worth tracking page details why.

As the blown budget reflects, I had some spring maintenance for our primary residence.  This portion of my budget always seems to overrun in the spring.  I start noticing projects to do outside.

Finally, 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.  Can you believe I have budgeted for approximately a case of beer a month?  I failed miserably to meet this budget.  Alcohol sales can sky rocket in quarantine, ha!  It is good to track alcohol purchases, as it is a reflection on consumption.  This provides an opportunity to reflect on my health.

As most of you are aware, Mother's Day was this month.  The girls and I treated momma to a home made steak dinner.  We also made our annual purchase of outdoor flowers for her.  In addition, we bought some additional fishing supplies and took her fishing.

Thank goodness I did not have to drive much this month.  That is what saved the budget from being blown out of the water.

Overall May 2020 Net Worth:

The good news is most states are easing shelter-in-place orders.  This is showing promise to investors, which in turn is reviving the economy and markets.  As always, I have continued to put money into the 401k and IRA accounts, which helps the net worth increase.  I am staying the course and resisting the emotional decision pressing me to reallocate the investments.  There is quite a way to go before I retire. My current contribution to my 401k will remain at 8%.  I will also continue to place 2% into my Roth IRA.

Side-hustles will soon fire back up, as I strive to increase income for the real estate investment. I have steered clear of some side-hustles to reduce my family's exposure.  As cases drop in my state, I will look for more ways to generate income quickly.  I believe a potential housing crisis looms.  This is an opportunity for investing into the real estate market. As most know, I am looking to invest in short-term rental property within a year.  The ripple effect from the 'Rona virus will create a buying opportunity.

The Financial Engineer's May 2020 net worth is now roughly $125,346. This was an increase of $1,724 from last month.  The change was driven by an increase of $3,076 in my 401k and $431 in my IRA.  However, medical bills from the little one's delivery offset a good portion ($2,352). The remainder of the changes were driven by paying off debt (mortgage and car loan).

Overall, I am happy with the slight change in my net worth.  My family does not have a burden of a monthly payment for the birthing costs, and the net worth increased!  Not to mention the increased in my daughter's 529 plans that are not reflected in my net worth.

How is you net worth looking during these turbulent times?  Any suggestions on how I could improve mine?

Before I dive deep into my net worth changes, lets take a moment to be thankful the 1st quarter of 2020 is over.  It was the worst first quarter since the 2008 financial crisis! The S&P 500 closed this quarter down 20%, ouch!  I hope to never see my numbers drop like that again.  Thankfully my net worth bounced back a bit in April, thanks to a hefty tax return.

2019 Tax Return

April is a great time of the year.  Flowers are blooming, trees have buds, and our anticipated tax return typically hits our accounts.  Many people debate on the best way to fill out your W-4 for withholding money for tax filing at the end of the year.  There are varying situations for everyone, but for the sake of time I will discuss my own.  As you know, I am a father of two (2 dependents) and husband to a amazing wife.  We choose to withhold quite a bit throughout the year on our paychecks, so we both have a withholding status of single with 0 dependents.

You may be asking, why would you do that?  You could be holding that in a high interest savings account accruing interest, or allowing it to make returns in you IRA.  This goes to the old saying, "you won't spend, what you don't see."  I find it as a way of managing the urge to spend money on frivolous items that are not needed.  If I kept the amount additionally withheld I would have built more wealth, and felt more financially secured.  This would then allow me to feel more secure about spending money on something my family or I did not need.  I find it as a way to prevent lifestyle creep.

I am sure you are wanting to know the juicy details of the return, and could really care less about the why.  My wife and I received $7,534 from the Feds and $796 from the State.  This was a hefty return that further cushions our financial status during a time of uncertainty.

What to do with the Tax Return?

This is a substantial amount of money that we look forward to receiving each year.  I am sure you all are asking the typical question, "What will you spend it on?"  Last year we used it on a home improvement project, but this year we plan to do so much more. Part of it will be used to place a down payment on our real estate investment, but a majority of it will go to pay off my wife's student loans used for her MBA. All but $2,330 will go towards paying off her student loans. We will make the student loan payment as a recovery further progresses.  I believe we are in a solid financial situation to afford a discounted purchasing price for the short-term rental property by the end of the year as we begin recovering.

April 2020 Actual vs. Budget:

This month's spending was an interesting one.  I invested in a deep freezer, as we have a new addition to the family.  A future engineer was born mid-March during the start of the Coronavirus frenzy.  My family wanted to minimize the amount of times we went out into the world after we received a shelter-in-place order.  This allowed us to stock up our meals in the freezer for the month of April.  Below are summaries of the variance in my Actual vs Budgeted Spending:

 

 

I am sure your eyes went to 2 or 3 line items under the Flex Spending Variance.  The $6,000 has been allocated to the wife's student loans.  The huge shopping number came from the roughly $650 deep freezer purchase, or was it the toilet paper? That was a joke, it was definitely the freezer that cost $650.  I did spend more on groceries this month to prepare for the shelter-in-place order.

April 2020 Net Worth:

The good news is the stock market didn't continue to plunge in April.  I also continued to put money into the 401k and IRA accounts, which helped the net worth increase.  I am staying the course and resisting the emotional decision pressing me to reallocate the investments.  Resisting the urge to take the losses and flee is tough, but I am into my early 30's.  I have quite a ways to go before retirement. I am looking at the significant drop in the market as equities on sale, and will continue to contribute my 8% into my 401k / IRA.

The Financial Engineer's April 2020 net worth is now roughly $123,550. This was an increase of $9,294 from March.  The change was driven by an increase of $4,443 in my 401k; $1,000 in my IRA; and the tax return funds that will have $2,330 allocated to the Real Estate investment savings.  The remainder of the changes were driven by paying the mortgage and my car loan.

Everyone's net worth will continue to bounce back and forth until the Coronavirus becomes a memory and the panic calms.